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Mar 31, 2020
UMH Properties Q1 2020 Earnings Report
Reported solid operating results despite an unrealized loss in the securities portfolio.
Key Takeaways
UMH Properties reported a decrease in net income due to an unrealized loss in their securities portfolio, but showed strong operating results with an increase in rental and related income.
Total income increased by 10% to $37.6 million compared to Q1 2019.
Net loss attributable to common shareholders was $42.8 million, or $1.04 per diluted share, due to a $38.6 million unrealized loss in marketable securities.
FFO was $6.1 million, or $0.15 per diluted share, consistent with Q1 2019.
Normalized FFO was $6.1 million, or $0.15 per diluted share, compared to $6.5 million, or $0.17 per diluted share in Q1 2019.
Forward Guidance
UMH believes that the strength of its operations, financial flexibility, and ability to reduce overall cost of capital should allow it to execute its business plan and significantly improve FFO for common shareholders.
Positive Outlook
- Solid balance sheet allows for investment in rental homes and expansions.
- Lining up low cost sources of capital to redeem the 8% Series B Preferred Stock in October.
- Strong operating results demonstrate the success of the business plan.
- Rental and related income improved by 12% driving community NOI growth of 22%.
- Same property NOI increased by 14%.
Challenges Ahead
- The impact of the COVID-19 pandemic has been widespread.
- All the states in which UMH operates have issued stay at home orders and closed nonessential businesses.
- Uncertainty surrounds the future impact of the COVID-19 pandemic.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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