UMH Properties(US:UMH)2023-08-08 20:16PART I - FINANCIAL INFORMATION Financial Statements Presents unaudited consolidated financial statements for UMH Properties, Inc. as of June 30, 2023, showing increased assets and equity from acquisitions and improved operating income Consolidated Balance Sheets Total assets increased to $1.39 billion, liabilities decreased to $756.0 million, and shareholders' equity rose to $637.9 million as of June 30, 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $1,393,869 | $1,344,596 | | Net Investment Property and Equipment | $1,105,075 | $1,055,211 | | Cash and Cash Equivalents | $41,484 | $29,785 | | Total Liabilities | $756,002 | $793,400 | | Mortgages Payable, net | $444,797 | $508,938 | | Total Shareholders' Equity | $637,867 | $551,196 | Consolidated Statements of Income (Loss) Q2 2023 net loss narrowed to $0.4 million from $6.7 million, driven by 11% rental income growth and 12% total income rise Key Income Statement Data (in thousands, except per share) | Metric | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Income | $55,290 | $49,223 | $107,897 | $95,091 | | Total Expenses | $46,371 | $41,258 | $91,611 | $79,082 | | Net Loss | $(403) | $(6,688) | $(1,904) | $(3,413) | | Net Loss Per Share | $(0.07) | $(0.41) | $(0.16) | $(0.50) | Consolidated Statements of Shareholders' Equity Shareholders' equity increased to $637.9 million, primarily from $78.4 million in common stock and $34.6 million in preferred stock ATM offerings - The company raised significant capital through its At-The-Market (ATM) offerings in the first half of 2023, issuing common stock for net proceeds of $78.4 million and Series D Preferred Stock for net proceeds of $34.6 million798618 Consolidated Statements of Cash Flows Net cash from operating activities rose to $52.4 million, investing activities used $93.8 million, and financing provided $49.7 million for H1 2023 Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $52,425 | $5,415 | | Net Cash from Investing Activities | $(93,819) | $871 | | Net Cash from Financing Activities | $49,706 | $153,701 | Notes To Consolidated Financial Statements Detailed notes cover accounting policies, the $3.7 million Mighty Oak acquisition, credit facility expansion, ATM capital raises, and subsequent $12.5 million property purchases - The company operates as a REIT and owned 135 manufactured home communities with approximately 25,700 developed homesites as of June 30, 202323 - On January 19, 2023, the company acquired the Mighty Oak community in Georgia for approximately $3.7 million through its qualified opportunity zone fund46 - The company's unsecured line of credit was expanded from $100 million to $180 million on February 24, 202362 - Subsequent to quarter-end, the company agreed to purchase two manufactured home communities in Maryland for approximately $12.5 million109 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses strong Q2 2023 operational growth, with 11% rental income and 16% Community NOI increases, driven by acquisitions and occupancy gains Q2 2023 vs Q2 2022 Performance | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Rental and Related Income | $47.1M | $42.2M | +11% | | Community NOI | $27.0M | $23.3M | +16% | | Sales of Manufactured Homes | $8.2M | $7.0M | +18% | - Same property NOI increased 13% for Q2 2023, driven by a 190 basis point increase in occupancy to 87.9% and a rental rate increase of 4.7%118131 Normalized Funds from Operations (NFFO) (in thousands) | Period | NFFO Attributable to Common Shareholders | | :--- | :--- | | Q2 2023 | $13,049 | | Q2 2022 | $12,026 | | YTD 2023 | $24,769 | | YTD 2022 | $22,439 | - The company added 534 new rental homes in the first six months of 2023, bringing the total to approximately 9,600 units with a high occupancy rate of 93.9%120143 Quantitative and Qualitative Disclosures About Market Risk No material changes to market risk disclosures were reported compared to the prior year's Annual Report on Form 10-K - No material changes regarding market risk disclosures were reported for the quarter161 Controls and Procedures Disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO have concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period162 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls163 PART II - OTHER INFORMATION Legal Proceedings The company reported no legal proceedings during the period - The company reports 'None' for legal proceedings167 Risk Factors No material changes to risk factors were reported since the last annual report - No material changes to risk factors were reported since the last annual report168 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities - The company reports 'None' for this item169 Defaults Upon Senior Securities The company reported no defaults upon senior securities - The company reports 'None' for this item170 Mine Safety Disclosures The company reported no mine safety disclosures - The company reports 'None' for this item171 Other Information The company reported no other information required to be disclosed - The company reports 'None' for this item174 Exhibits This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and iXBRL data files - Exhibits filed include certifications from the CEO and CFO (31.1, 31.2, 32) and iXBRL formatted financial statements (101)174 Signatures