UNITED STATES

_____________________________________________________________________________________________


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________


FORM 8-K/A

______________________________


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



Date of Report (Date of earliest event reported):  August 2, 2012

______________________________________


UMH Properties, Inc.

(Exact name of registrant as specified in its charter)

______________________________________


Maryland              001-12690                       22-1890929

(State or other jurisdiction   (Commission    (IRS Employer

of incorporation)    File Number)               Identification No.)


Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, Freehold, NJ     07728

(Address of principal executive offices)               (Zip Code)


Registrant's telephone number, including area code: (732) 577-9997


Not Applicable

(Former name or former address, if changed since last report.)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


[ ] Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR 240.14a-12)


[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


_____________________________________________________________________________________________



1




This Form 8-K/A amends our Form 8-K filed on August 6, 2012 to provide additional financial information in connection with the acquisition of the eleven manufactured home communities, ten in Pennsylvania and one in New York, from ARCPA Properties LLC and ARCML06 LLC, both unrelated entities of the Company.  The communities are Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II (collectively referred to as the “Properties”).  The following financial statements are filed as part of this report:


UMH PROPERTIES, INC.

TABLE OF CONTENTS

Item 9.01 Financial Statements and Exhibits


 

 

Page

 

 

 

(a)

Financial Statements:

 

 

 

 

 

Independent Auditors’ Report

3

 

Combined Statement of Revenue and Community Operating Expenses of Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II for the year ended December 31, 2011 (Audited) and for the six months ended June 30, 2012 (Unaudited)





4

 

Notes to Combined Statement of Revenue and Community Operating Expenses


5

(b)

Pro Forma Financial Information (Unaudited):

 

 

 

 

 

ProForma Consolidated Balance Sheet as of June 30, 2012

7

 

Notes to Unaudited Pro Forma Financial Information

9

 

ProForma Consolidated Statement of Income for the year ended December 31, 2011

10

 

Notes to Unaudited Pro Forma Financial Information

12

 

ProForma Consolidated Statement of Income for the six months ended June 30, 2012

13

 

Notes to Unaudited Pro Forma Financial Information

15

 

 

 




2



Independent Auditors’ Report



To the Board of Directors and Shareholders

UMH Properties, Inc.


We have audited the accompanying Combined Statement of Revenue and Community Operating Expenses of the Properties known as Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II (“the Properties”) for the year ended December 31, 2011 (the “Historical Summary”).  This Historical Summary is the responsibility of the Property’s management.  Our responsibility is to express an opinion on this Historical Summary based on our audit.


We conducted our audit in accordance with auditing standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Historical Summary is free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Historical Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Historical Summary presentation. We believe that our audit provides a reasonable basis for our opinion.


The accompanying Historical Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission as described in note 2 and is not intended to be a complete presentation of the Properties’ revenues and expenses.


In our opinion, the Historical Summary referred to above presents fairly, in all material respects, the Revenue and Community Operating Expenses of the Properties for the year ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America.







/s/  PKF O’Connor Davies,

A Division of O’Connor Davies, LLP


New York, New York

October 10, 2012






3



Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II


Combined Statement of Revenue and Community Operating Expenses




 

 

For the Six Months Ended

June 30, 2012   (Unaudited)

 

For the Year

Ended

December 31, 2011

 

 

 

 

 

Revenue:

 

 

 

 

Rental and Related Income

$  2,130,000

 

$  4,004,000

 

 

 

 

 

Community Operating Expenses:

 

 

 

 

Real Estate Taxes

147,000

 

                  268,000

 

Utilities

428,000

 

                  850,000

 

Salaries and Benefits

197,000

 

                  425,000

 

Other

143,000

 

                  368,000

 

 

915,000

 

               1,911,000

 

 

 

 

Excess of Revenue Over Community

 

 

 

 

Operating Expenses

$ 1,215,000

 

 $  2,093,000





















See Accompanying Notes to the Combined

Statement of Revenue and Community Operating Expenses



4




Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II


Notes to Combined Statement of Revenue and Community Operating Expenses



NOTE 1 – BUSINESS AND ORGANIZATION


On August 1, 2012, UMH Properties, Inc. (the “Company”) completed the acquisition of eleven manufactured home communities, ten in Pennsylvania and one in New York, from ARCPA Properties LLC and ARCML06 LLC, both unrelated entities of the Company.  The communities acquired are as follows:  Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II (collectively referred to as the “Properties”).  The following is a brief overview of the Properties that the Company acquired:


Community

 

Location

 

Number      of Sites

 

Occupancy

 

 

 

 

 

 

 

Carsons

 

Chambersburg, PA

 

132

 

83%

Chambersburg I & II

 

Chambersburg, PA

 

98

 

96%

Chelsea

 

Sayre, PA

 

86

 

98%

Collingwood

 

Horseheads, NY

 

103

 

76%

Crestview

 

Sayre, PA

 

100

 

95%

Frieden Manor

 

Schuylkill, PA

 

194

 

97%

Green Acres

 

Chambersburg, PA

 

24

 

100%

Monroe Valley

 

Jonestown, PA

 

44

 

93%

Mountaintop

 

Narvon, PA

 

39

 

92%

Valley View Ephrata I

 

Ephrata, PA

 

105

 

95%

Valley View Ephrata II

 

Ephrata, PA

 

43

 

100%


These eleven all-age communities total 968 sites situated on approximately 200 acres.  The average occupancy for these communities is approximately 92%.  


NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation


The Combined Statement of Revenue and Community Operating Expenses (“Historical Summary”) has been prepared for the purpose of complying with the provisions of Rule 3-14 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”), which requires certain information with respect to real estate operations to be included with certain filings with the SEC.  The Historical Summary includes the historical revenues and community



5



operating expenses of the Properties, exclusive of interest income, interest expense, depreciation and amortization, and other expenses, which may not be comparable to the corresponding amounts reflected in the future operations of the Properties.


Use of Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.


Investment Property and Equipment and Depreciation


Property and equipment are carried at cost.  Maintenance and Repairs are charged to income as incurred and improvements are capitalized.  


Revenue Recognition


Income is derived primarily from the rental of manufactured home sites.  The Company also owns approximately 60 rental units which are rented to residents.  Rental and related income is recognized on the accrual basis.



Item 9.01 (b)

Pro Forma Financial Information (Unaudited)


The following pro forma information reflects the acquisition of Carsons, Chambersburg I & II, Chelsea, Collingwood, Crestview, Frieden Manor, Green Acres, Monroe Valley, Mountaintop, Valley View Ephrata I and Valley View Ephrata II (collectively referred to as the Properties) by UMH Properties, Inc. (the Company).


The Pro Forma Consolidated Balance Sheet as of June 30, 2012 and the Pro Forma Consolidated Statement of Income for the year ended December 31, 2011 and the six months ended June 30, 2012 have been prepared to reflect the acquisition and the adjustments described in the accompanying notes.  The historical financial statements of the Properties are for the year ended December 31, 2011 and the six months ended June 30, 2012.  The pro forma financial information is based on the historical financial statements of the Company and should be read in conjunction with the notes and management's assumptions thereto. The pro forma consolidated balance sheet was prepared as if the acquisition occurred on June 30, 2012.  The pro forma consolidated statement of income for the year ended December 31, 2011 was prepared assuming the acquisition occurred on January 1, 2011. The pro forma consolidated statement of income for the six months ended June 30, 2012 was prepared assuming the acquisition occurred on January 1, 2012.  The pro forma financial information is unaudited and not necessarily indicative of the actual financial position of the Company as of June 30, 2012 or what the actual results would have been assuming the acquisition had been consummated at the beginning of the periods presented, nor does it purport to represent the future financial position and results of operations for future periods.



6



UMH PROPERTIES, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

AS OF JUNE 30, 2012

(Unaudited)


 

 Company

 

 

 Acquisition of the

 

 

 Company

 

 Historical

(a)

 

 Properties

 

 

 Pro Forma

-ASSETS-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT PROPERTY AND EQUIPMENT

 

 

 

 

 

 

 

  Land

$18,043,214

 

 

 $2,000,000

(b)

 

 $20,043,214

  Site and Land Improvements

144,744,435

 

 

      24,389,000

(b)

 

  169,133,435

  Buildings and Improvements

5,593,797

 

 

           650,000

(b)

 

      6,243,797

  Rental Homes and Accessories

30,404,837

 

 

        1,044,000

(b)

 

    31,448,837

    Total Investment Property

    198,786,283

 

 

      28,083,000

 

 

  226,869,283

  Equipment and Vehicles

8,836,775

 

 

           167,000

(b)

 

      9,003,775

    Total Investment Property and Equipment

    207,623,058

 

 

      28,250,000

 

 

  235,873,058

  Accumulated Depreciation

   (69,411,779)

 

 

-0-

 

 

(69,411,779)

    Net Investment Property and Equipment

    138,211,279

 

 

      28,250,000

 

 

  166,461,279

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

 

 

 

 

 

  Cash and Cash Equivalents

20,925,489

 

 

(8,234,000)

(b)

(c)

    12,691,489

  Securities Available for Sale

55,271,574

 

 

-0-

 

 

    55,271,574

  Inventory of Manufactured Homes

11,910,126

 

 

-0-

 

 

    11,910,126

  Notes and Other Receivables, net

21,110,507

 

 

-0-

 

 

    21,110,507

  Unamortized Financing Costs

1,448,253

 

 

164,000

(c)

 

      1,612,253

  Prepaid Expenses and Other Assets

1,218,232

 

 

-0-

 

 

      1,218,232

  Land Development Costs

5,027,284

 

 

-0-

 

 

      5,027,284

    Total Other Assets

    116,911,465

 

 

     (8,070,000)

 

 

  108,841,465

 

 

 

 

 

 

 

 

TOTAL ASSETS

 $255,122,744

 

 

 $20,180,000

 

 

$275,302,744

 

 

 

 

 

 

 

 















See Accompanying Notes to Unaudited Pro Forma Financial Information



7



UMH PROPERTIES, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET (CONT’D)

AS OF JUNE 30, 2012

(Unaudited)


 

 Company

 

 

 Acquisition of the

 

 

 Company

 

 Historical

(a)

 

 Properties

 

 

 Pro Forma

-LIABILITIES AND SHAREHOLDERS’ EQUITY-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

MORTGAGES PAYABLE

$95,699,534

 

 

 $13,980,000

(b)

 

$109,679,534

 

 

 

 

 

 

 

 

OTHER LIABILITIES

 

 

 

 

 

 

 

  Accounts Payable

1,390,274

 

 

-0-

 

 

      1,390,274

  Loans Payable

8,981,160

 

 

        6,200,000

(b)

 

    15,181,160

  Accrued Liabilities and Deposits

2,671,939

 

 

-0-

 

 

      2,671,939

  Tenant Security Deposits

988,403

 

 

-0-

 

 

         988,403

    Total Other Liabilities

      14,031,776

 

 

        6,200,000

 

 

    20,231,776

  Total Liabilities

    109,731,310

 

 

      20,180,000

 

 

  129,911,310

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

  Series A – 8.25% Cumulative Redeemable Preferred

    Stock, $60,345,000 liquidation value, 2,488,800

    shares authorized,  2,413,800 shares issued and    

    outstanding as of June 30, 2012

      60,345,000

 

 

-0-

 

 

    60,345,000

  Common Stock – $.10 par value per share, 35,000,000

    shares authorized, 16,261,015 shares

    issued and outstanding as of June 30, 2012

1,626,102

 

 

-0-

 

 

1,626,102

  Excess Stock - $.10 par value per share, 3,000,000

    shares authorized; no shares issued or outstanding

-0-

 

 

-0-

 

 

-0-

  Additional Paid-In Capital

      78,007,273

 

 

-0-

 

 

    78,007,273

  Accumulated Other Comprehensive Income

        9,645,827

 

 

-0-

 

 

      9,645,827

  Accumulated Deficit  

     (4,232,768)

 

 

-0-

 

 

   (4,232,768)

  Total Shareholders’ Equity

    145,391,434

 

 

-0-

 

 

  145,391,434

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND

  SHAREHOLDERS’ EQUITY

 $ 255,122,744

 

 

 $20,180,000

 

 

 $275,302,744







See Accompanying Notes to Unaudited Pro Forma Financial Information



8



NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION


ADJUSTMENTS TO PRO FORMA CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2012:



(a)

Derived from the Company's unaudited financial statements as of June 30, 2012.


(b)

Reflects the pro forma acquisition of the Properties valued at $28,250,000, with allocations among land, site and land improvements, buildings and improvements, rental homes and accessories, and equipment and vehicles.  The Company obtained a $13,980,000 mortgage, borrowed $6,200,000 on its margin line, and paid the remaining amount in cash.  The Company intends to account for this acquisition in accordance with Accounting Standards Codification (ASC) Section 805, Business Combinations.  Accordingly, the purchase price allocation is preliminary and may be subject to change.  The Company will include the accounts of the Properties in its consolidated financial statements.


(c)

Reflects the costs incurred in connection with obtaining the mortgage on this acquisition.  These costs were paid in cash.



9



UMH PROPERTIES, INC.

PRO FORMA CONSOLIDATED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2011

(Unaudited)


 

 Company

 

 

Acquisition of

 

 

 Pro Forma

 

 

 Company

 

 Historical

(a)

 

the Properties

(b)

 

Adjustments

 

 

 Pro Forma

 

 

 

 

 

 

 

 

 

 

 

INCOME:

 

 

 

 

 

 

 

 

 

 

Rental and Related  Income

$32,990,219

 

 

 $4,004,000

 

 

$   -0-

 

 

$36,994,219

Sales of Manufactured Homes

6,323,135

 

 

-0-

 

 

-0-

 

 

   6,323,135

 

 

 

 

 

 

 

 

 

 

 

   Total Income

  39,313,354

 

 

          4,004,000

 

 

-0-

 

 

43,317,354

 

 

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

Community Operating Expenses

17,758,332

 

 

          1,911,000

 

 

-0-

 

 

  19,669,332

Cost of Sales of  Manufactured Homes

5,747,963

 

 

-0-

 

 

-0-

 

 

    5,747,963

Selling Expenses

2,104,077

 

 

-0-

 

 

-0-

 

 

    2,104,077

General and  Administrative  Expenses

3,979,866

 

 

-0-

 

 

-0-

 

 

    3,979,866

Loss Relating to Flood

984,701

 

 

-0-

 

 

-0-

 

 

       984,701

Acquisition Costs

260,463

 

 

-0-

 

 

553,000

(e)

 

       813,463

Depreciation Expense

5,962,338

 

 

-0-

 

 

       982,000

(c)

 

    6,944,338

Amortization of  Financing Costs

376,918

 

 

-0-

 

 

33,000

(f)

 

       409,918

 

 

 

 

 

 

 

 

 

 

 

   Total Expenses

  37,174,658

 

 

          1,911,000

 

 

     1,568,000

 

 

  40,653,658

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

Interest and Dividend  Income

4,503,237

 

 

-0-

 

 

-0-

 

 

    4,503,237

Gain on Securities Transactions, net

2,692,649

 

 

-0-

 

 

-0-

 

 

    2,692,649

Other Income

77,375

 

 

-0-

 

 

-0-

 

 

         77,375

Interest Expense

(5,744,567)

 

 

-0-

 

 

      (578,000)

(d)

 

 (6,322,567)

 

 

 

 

 

 

 

 

 

 

 

   Total Other Income (Expense)

   1,528,694

 

 

-0-

 

 

      (578,000)

 

 

       950,694

 

 

 

 

 

 

 

 

 

 

 

Income before Gain on Sales of

 

 

 

 

 

 

 

 

 

 

   Investment Property and Equipment

   3,667,390

 

 

          2,093,000

 

 

   (2,146,000)

 

 

    3,614,390

Gain on Sales of Investment

 

 

 

 

 

 

 

 

 

 

  Property and Equipment

        28,873

 

 

-0-

 

 

-0-

 

 

         28,873

Net Income

   3,696,263

 

 

          2,093,000

 

 

   (2,146,000)

 

 

3,643,263

Less: Preferred Dividend

   1,656,766

 

 

-0-

 

 

-0-

 

 

    1,656,766

Net Income Attributable to Common Shareholders

$2,039,497

 

 

 $2,093,000

 

 

 ($2,146,000)

 

 

 $1,986,497

 

 

 

 

 

 

 

 

 

 

 




See Accompanying Notes to Unaudited Pro Forma Financial Information



10



UMH PROPERTIES, INC.

PRO FORMA CONSOLIDATED STATEMENT OF INCOME - CONTINUED

FOR THE YEAR ENDED DECEMBER 31, 2011

(Unaudited)


 

 Company

 

 

Acquisition of

 

 

 Pro Forma

 

 

 Company

 

 Historical

(a)

 

the Properties

(b)

 

Adjustments

 

 

 Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Basic Income Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net Income

$0.25

 

 

 

 

 

 

 

 

$0.25

  Less: Preferred Dividend

(0.11)

 

 

 

 

 

 

 

 

(0.11)

Net Income Attributable to Common

    Shareholders

$0.14

 

 

 

 

 

 

 

 


$0.14

Diluted Income Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net Income

$0.25

 

 

 

 

 

 

 

 

$0.25

  Less: Preferred Dividend

(0.11)

 

 

 

 

 

 

 

 

(0.11)

  Net Income Attributable to Common

    Shareholders

$0.14

 

 

 

 

 

 

 

 


$0.14

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

14,506,679

 

 

 

 

 

 

 

 

14,506,679

   Diluted

14,562,018

 

 

 

 

 

 

 

 

14,562,018























See Accompanying Notes to Unaudited Pro Forma Financial Information



11



NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION


ADJUSTMENTS TO PRO FORMA CONSOLIDATED STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2011:


(a)

Derived from the Company's audited consolidated financial statements as of December 31, 2011.


(b)

Reflects revenues and community operating expenses as reported by the Properties for the year ended December 31, 2011.


(c)

Reflects the pro forma depreciation expense for the year ended December 31, 2011 based on a 27.5 year estimated useful life for site and land improvements, buildings and improvements and rental homes and accessories for a total cost basis of $26,083,000; and a 5 year estimated useful life for equipment and vehicles with a cost basis of $167,000, as if the properties had been owned for the entire year.


(d)

Reflects the pro forma interest expense on the mortgage and loans payable as if it they were made on January 1, 2011.  Interest on the mortgage is at LIBOR + 300bp (average of 3.25% for the year) and interest on the margin loan is variable (2% for the year).  


(e)

Reflects the estimated cost incurred for the transaction and due diligence costs associated with the acquisition of the Properties.


(f)

Reflects the amortization of the costs incurred in connection with obtaining the mortgage on this acquisition.



12



UMH PROPERTIES, INC.

PRO FORMA CONSOLIDATED STATEMENT OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2012

(Unaudited)


 

 Company

 

 

 Acquisition of

 

 

 Pro Forma

 

 

 Company

 

 Historical

(a)

 

 the Properties

(b)

 

Adjustments

 

 

 Pro Forma

 

 

 

 

 

 

 

 

 

 

 

INCOME:

 

 

 

 

 

 

 

 

 

 

Rental and Related  Income

 $17,667,035

 

 

 $2,130,000

 

 

$    -0-

 

 

 $19,797,035

Sales of Manufactured Homes

4,367,940

 

 

-0-

 

 

-0-

 

 

4,367,940

 

 

 

 

 

 

 

 

 

 

 

   Total Income

22,034,975

 

 

         2,130,000

 

 

-0-

 

 

24,164,975

 

 

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

Community Operating Expenses

9,674,174

 

 

            915,000

 

 

-0-

 

 

10,589,174

Cost of Sales of  Manufactured Homes

4,040,403

 

 

-0-

 

 

-0-

 

 

4,040,403

Selling Expenses

1,059,745

 

 

-0-

 

 

-0-

 

 

1,059,745

General and  Administrative  Expenses

2,490,066

 

 

-0-

 

 

-0-

 

 

2,490,066

Acquisition Costs

269,941

 

 

-0-

 

 

384,000

(e)

 

653,941

Depreciation Expense

3,301,421

 

 

-0-

 

 

        491,000

(c)

 

3,792,421

Amortization of  Financing Costs

139,326

 

 

-0-

 

 

16,000

(f)

 

155,326

 

 

 

 

 

 

 

 

 

 

 

   Total Expenses

20,975,076

 

 

            915,000

 

 

        891,000

 

 

22,781.076

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

Interest and Dividend  Income

2,549,517

 

 

-0-

 

 

-0-

 

 

2,549,517

Gain on Securities Transactions, net

2,281,066

 

 

-0-

 

 

-0-

 

 

2,281,066

Other Income

555,259

 

 

-0-

 

 

-0-

 

 

555,259

Interest Expense

(2,666,167)

 

 

-0-

 

 

      (289,000)

(d)

 

(2,955,167)

 

 

 

 

 

 

 

 

 

 

 

   Total Other Income (Expense)

2,719,675

 

 

-0-

 

 

      (289,000)

 

 

2,430,675

 

 

 

 

 

 

 

 

 

 

 

Income before Loss on Sales of

 

 

 

 

 

 

 

 

 

 

   Investment Property and Equipment

3,779,574

 

 

         1,215,000

 

 

    (1,180,000)

 

 

3.814,574

Loss on Sales of Investment

 

 

 

 

 

 

 

 

 

 

  Property and Equipment

       (10,841)

 

 

-0-

 

 

-0-

 

 

       (10,841)

Net Income

     3,768,733

 

 

         1,215,000

 

 

    (1,180,000)

 

 

     3.803,733

Less: Preferred Dividend

1,621,034

 

 

-0-

 

 

-0-

 

 

1,621,034

Net Income Attributable to Common Shareholders

 $2,147,699

 

 

 $1,215,000

 

 

 ($1,180,000)

 

 

 $2,182,699









See Accompanying Notes to Unaudited Pro Forma Financial Information



13



UMH PROPERTIES, INC.

PRO FORMA CONSOLIDATED STATEMENT OF INCOME - CONTINUED

FOR THE SIX MONTHS ENDED JUNE 30, 2012

(Unaudited)



 

 Company

 

 

Acquisition of

 

 

 Pro Forma

 

 

 Company

 

 Historical

(a)

 

the Properties

(b)

 

Adjustments

 

 

 Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Basic Income Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net Income

$0.24

 

 

 

 

 

 

 

 

$0.24

  Less: Preferred Dividend

(0.10)

 

 

 

 

 

 

 

 

(0.10)

Net Income Attributable to Common

    Shareholders

$0.14

 

 

 

 

 

 

 

 


$0.14

Diluted Income Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Net Income

$0.24

 

 

 

 

 

 

 

 

$0.24

  Less: Preferred Dividend

(0.10)

 

 

 

 

 

 

 

 

(0.10)

  Net Income Attributable to Common

    Shareholders

$0.14

 

 

 

 

 

 

 

 


$0.14

Weighted Average Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

15,762,634

 

 

 

 

 

 

 

 

15,762,634

   Diluted

15,824,169

 

 

 

 

 

 

 

 

15,824,169

























See Accompanying Notes to Unaudited Pro Forma Financial Information



14



NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION


ADJUSTMENTS TO PRO FORMA CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2012:


(a)

Derived from the Company's unaudited financial statements for the six months ended June 30, 2012.


(b)

Reflects revenues and operating expenses as reported by the Properties for the six months ended June 30, 2012.


(c)

Reflects the pro forma depreciation expense for the six months ended June 30, 2012 based on a 27.5 year estimated useful life for site and land improvements, buildings and improvements and rental homes and accessories for a total cost basis of $26,083,000; and a 5 year estimated useful life for equipment and vehicles with a cost basis of $167,000, as if the properties had been owned for the entire period.


(d)

Reflects the pro forma interest expense on the mortgage and loans payable for the six months ended June 30, 2012.  Interest on the mortgage is at LIBOR + 300bp (average of 3.25% for the period) and interest on the margin loan is variable (2% for the period).


(e)

Reflects the estimated cost incurred for the transaction and due diligence costs associated with the acquisition of the Properties.


(f)

Reflects the amortization of the costs incurred in connection with obtaining the mortgage on this acquisition.








15



SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




UMH Properties, Inc.

 



Date:  October 10, 2012

By:      /s/ Anna T. Chew

Name:

Anna T. Chew

Title:

Vice President and

Chief Financial Officer

 







16