UMH Properties (UMH) got here out with quarterly funds from operations (FFO) of $0.20 per share, lacking the Zacks Consensus Estimate of $0.21 per share. This compares to FFO of $0.15 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an FFO shock of -4.76%. 1 / 4 in the past, it was anticipated that this actual property funding belief would publish FFO of $0.20 per share when it really produced FFO of $0.20, delivering no shock.
During the last 4 quarters, the corporate has surpassed consensus FFO estimates two instances.
UMH, which belongs to the Zacks REIT and Fairness Belief – Residential business, posted revenues of $43.13 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 2.70%. This compares to year-ago revenues of $37.57 million. The corporate has topped consensus income estimates thrice during the last 4 quarters.
The sustainability of the inventory’s quick worth motion based mostly on the recently-released numbers and future FFO expectations will largely rely upon administration’s commentary on the earnings name.
UMH shares have added about 46% for the reason that starting of the 12 months versus the S&P 500’s acquire of 11%.
What’s Subsequent for UMH?
Whereas UMH has outperformed the market up to now this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s FFO outlook. Not solely does this embrace present consensus FFO expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and tendencies in estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested ranking instrument just like the Zacks Rank, which has a powerful monitor file of harnessing the ability of estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for UMH was favorable. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You’ll be able to see the whole record of right now’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus FFO estimate is $0.22 on $45.01 million in revenues for the approaching quarter and $0.88 on $181.77 million in revenues for the present fiscal 12 months.
Traders ought to be aware of the truth that the outlook for the business can have a fabric influence on the efficiency of the inventory as properly. When it comes to the Zacks Business Rank, REIT and Fairness Belief – Residential is at present within the backside 28% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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UMH Properties, Inc. (UMH): Free Inventory Evaluation Report
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