UMH Properties (UMH) Reports Q1 Loss of $1.04

UMH Properties (NYSE: UMH) reported Q1 EPS of ($1.04), versus $0.15 reported last year.

Samuel A. Landy, President and CEO, commented on the results of the first quarter of 2020.

“We are pleased to announce another solid quarter of operating results and an excellent start to 2020. During the quarter, we:

• Increased Rental and Related Income by 12%;
• Increased Community Net Operating Income (“NOI”) by 22%;
• Improved our Operating Expense ratio by 430 basis points to 45.1%;
• Increased Same Property NOI by 14%;
• Increased Same Property Occupancy by 180 basis points from 82.8% to 84.6%;
• Increased our rental home portfolio by 149 homes to approximately 7,500 total rental homes, representing an increase of 14%;
• Increased rental home occupancy by 100 basis points from 93.0% at yearend 2019 to 94.0% at quarter end;
• Reduced the weighted average interest rate on our mortgages payable from 4.3% to 4.1%;
• Reduced our Net Debt to Total Market Capitalization from 34% to 30%; and,
• Sold approximately 2.6 million shares of our Series D Preferred Stock through our Preferred Stock At-The-Market Program for net proceeds of approximately $63.1 million, after offering expenses.”

Mr. Landy stated, “The impact of the COVID-19 pandemic has been widespread. UMH took aggressive action to protect the health and well-being of our employees and residents. All the states in which we operate have issued stay at home orders and closed nonessential businesses. Although our offices were closed, our maintenance staff was deemed essential and able to maintain our communities and deliver essential services to our residents. Our community managers have been able to work with residents and potential residents remotely. Our new website allows for virtual tours of our homes for sale or rent, online execution of applications and lease agreements, online payment of rent, and other enhancements.”

“UMH continues to perform well despite the adversity that we are currently facing. Our operating results demonstrate the success of our business plan. Our rental and related income improved by 12% driving community NOI growth of 22%. Same property NOI increased by 14%. This is the second quarter in a row that same property NOI has increased double digits. Same property occupancy improved by 180 basis-points. Our strong occupancy gains have continued into the second quarter despite the disruptions caused by the pandemic.”

“As we previously disclosed, our April rent collections were very strong. We collected 94% of our April rent charges as compared to 95% last year and believe the remainder will be collected in the coming months. We have offered payment agreements to residents who were financially impacted as a result of the pandemic. We expect to have similar collection results in May.”

“Our solid balance sheet has allowed us to invest in rental homes and expansions positioning the Company for further growth in 2020. We are also lining up low cost sources of capital to redeem our 8% Series B Preferred Stock in October. Although the future impact of the COVID-19 pandemic is uncertain, we believe that the strength of our operations, our financial flexibility and our ability to reduce our overall cost of capital should allow us to execute our business plan and significantly improve FFO for our common shareholders.”

For earnings history and earnings-related data on UMH Properties (UMH) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Tvardi Therapeutics (TVRD) Tops Q2 EPS by 1c
• Outlook Therapeutics (OTLK) Misses Q3 EPS by 9c