10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to ___________

Commission File Number 001-12690

UMH PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

Maryland	22-1890929
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	identification number)

Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, Freehold, NJ	07728
(Address of Principal Executive 0ffices)	(Zip Code)

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

(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	[  ]		Accelerated filer	[X]
Non-accelerated filer	[  ]	(Do not check if smaller reporting company)	Smaller reporting company	[  ]
Emerging growth company	[  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [  ] No [X]

Indicate the number of shares outstanding of each issuer’s class of common stock, as of the latest practicable date:

Class	Outstanding Common Shares as of October 30, 2017
Common Stock, $.10 par value per share	34,926,759

UMH PROPERTIES, INC. AND SUBSIDIARIES

FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2017

Table of Contents

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
	Consolidated Balance Sheets	3
	Consolidated Statements of Income (Loss)	5
	Consolidated Statements of Comprehensive Income (Loss)	7
	Consolidated Statements of Cash Flows	8
	Notes To Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35
PART II - OTHER INFORMATION		36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37
SIGNATURES		38

2

UMH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2017 AND DECEMBER 31, 2016

	September 30, 2017			December 31, 2016
	(Unaudited)
- ASSETS -
Investment Property and Equipment
Land	$	58,679,126		$	47,476,314
Site and Land Improvements		434,687,047			398,776,390
Buildings and Improvements		22,537,450			21,101,836
Rental Homes and Accessories		205,808,456			172,862,227
Total Investment Property		721,712,079			640,216,767
Equipment and Vehicles		16,584,913			14,986,196
Total Investment Property and Equipment		738,296,992			655,202,963
Accumulated Depreciation		(159,593,306	)		(140,255,603	)
Net Investment Property and Equipment		578,703,686			514,947,360
Other Assets
Cash and Cash Equivalents		14,840,944			4,216,592
Securities Available for Sale at Fair Value		132,212,410			108,755,172
Inventory of Manufactured Homes		17,493,173			17,424,574
Notes and Other Receivables, net		24,366,221			20,323,191
Prepaid Expenses and Other Assets		5,635,719			4,497,937
Land Development Costs		12,543,001			10,279,992
Total Other Assets		207,091,468			165,497,458
TOTAL ASSETS	$	785,795,154		$	680,444,818

See Accompanying Notes to Consolidated Financial Statements

3

UMH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – CONTINUED

AS OF SEPTEMBER 30, 2017 AND DECEMBER 31, 2016

	September 30, 2017			December 31, 2016
	(Unaudited)
- LIABILITIES AND SHAREHOLDERS’ EQUITY -
LIABILITIES:
Mortgages Payable, net of unamortized debt issuance costs	$	312,808,180		$	293,025,592
Other Liabilities:
Accounts Payable		3,709,828			2,962,037
Loans Payable, net of unamortized debt issuance costs		41,489,139			58,285,385
Accrued Liabilities and Deposits		5,078,658			4,820,142
Tenant Security Deposits		4,970,030			4,319,695
Total Other Liabilities		55,247,655			70,387,259
Total Liabilities		368,055,835			363,412,851
Commitments and Contingencies
Shareholders’ Equity:
Series A – 8.25% Cumulative Redeemable Preferred Stock, par value $0.10 per share; -0- and 3,663,800 shares authorized, issued and outstanding as of September 30, 2017 and December 31, 2016, respectively		-0-			91,595,000
Series B – 8.0% Cumulative Redeemable Preferred Stock, par value $0.10 per share; 4,000,000 shares authorized; 3,801,200 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively		95,030,000			95,030,000
Series C – 6.75% Cumulative Redeemable Preferred Stock, par value $0.10 per share; 5,750,000 and -0- shares authorized, issued and outstanding as of September 30, 2017 and December 31, 2016, respectively		143,750,000			-0-
Common Stock - $0.10 par value per share; 113,663,800 and 75,000,000 shares authorized, 34,686,428 and 29,388,811 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively		3,468,643			2,938,881
Excess Stock - $0.10 par value per share; 3,000,000 shares authorized; no shares issued or outstanding as of September 30, 2017 and December 31, 2016, respectively		-0-			-0-
Additional Paid-In Capital		163,326,714			111,422,691
Accumulated Other Comprehensive Income		12,831,755			16,713,188
Accumulated Deficit		(667,793	)		(667,793	)
Total Shareholders’ Equity		417,739,319			317,031,967
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	785,795,154		$	680,444,818

See Accompanying Notes to Consolidated Financial Statements

4

UMH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 30, 2017 AND 2016

	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
INCOME:
Rental and Related Income	$	25,854,623		$	23,103,155		$	75,678,939		$	67,313,211
Sales of Manufactured Homes		2,830,314			2,251,896			8,272,395			6,756,921
Total Income		28,684,937			25,355,051			83,951,334			74,070,132
EXPENSES:
Community Operating Expenses		12,317,856			10,719,289			35,669,793			31,993,965
Cost of Sales of Manufactured Homes		2,215,767			1,803,315			6,465,665			5,278,587
Selling Expenses		836,939			812,392			2,461,780			2,270,861
General and Administrative Expenses		2,354,054			2,293,366			7,190,665			5,933,299
Acquisition Costs		-0-			51,360			-0-			51,360
Depreciation Expense		6,980,113			5,887,667			20,260,556			17,092,676
Total Expenses		24,704,729			21,567,389			72,048,459			62,620,748
OTHER INCOME (EXPENSE):
Interest Income		510,358			400,899			1,479,495			1,206,858
Dividend Income		2,068,198			1,755,438			5,715,038			4,834,817
Gain on Sales of Securities, net		466,521			884,458			1,518,289			1,898,836
Other Income		126,660			146,469			592,251			395,682
Interest Expense		(3,871,046	)		(3,774,341	)		(12,040,990	)		(11,604,123	)
Total Other Income (Expense)		(699,309	)		(587,077	)		(2,735,917	)		(3,267,930	)
Income before Loss on Sales of Investment Property and Equipment		3,280,899			3,200,585			9,166,958			8,181,454
Loss on Sales of Investment Property and Equipment		(18,898	)		(572	)		(29,540	)		(23,510	)
Net Income		3,262,001			3,200,013			9,137,418			8,157,944
Less: Preferred Dividends		(4,938,937	)		(3,789,747	)		(12,518,431	)		(10,313,685	)
Less: Redemption of Preferred Stock		(3,502,487	)		-0-			(3,502,487	)		-0-
Net Loss Attributable to Common Shareholders	$	(5,179,423	)	$	(589,734	)	$	(6,883,500	)	$	(2,155,741	)

See Accompanying Notes to Consolidated Financial Statements

5

UMH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS) – CONTINUED (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 30, 2017 AND 2016

	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Basic and Diluted Income (Loss) Per Share:
Net Income	$	0.10		$	0.12		$	0.29		$	0.30
Less: Preferred Dividends		(0.14	)		(0.14	)		(0.39	)		(0.38	)
Less: Redemption of Preferred Stock		(0.11	)		-0-			(0.11	)		-0-
Net Loss Attributable to Common Shareholders	$	(0.15	)	$	(0.02	)	$	(0.21	)	$	(0.08	)
Weighted Average Common Shares Outstanding:
Basic and Diluted		34,102,231			27,891,370			31,918,211			27,450,747

See Accompanying Notes to Consolidated Financial Statements

6

UMH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 30, 2017 AND 2016

	THREE MONTHS ENDED						NINE MONTHS ENDED
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Net Income	$	3,262,001		$	3,200,013		$	9,137,418		$	8,157,944
Other Comprehensive Income (Loss):
Unrealized Holding Gain (Loss) Arising During the Period		2,486,402			5,489,522			(2,367,127	)		24,911,089
Reclassification Adjustment for Net Gains Realized in Income		(466,521	)		(884,458	)		(1,518,289	)		(1,898,836	)
Change in Fair Value of Interest Rate Swap Agreements		(3,164	)		25,410			3,983			(15,455	)
Comprehensive Income		5,278,718			7,830,487			5,255,985			31,154,742
Less: Preferred Dividends		(4,938,937	)		(3,789,747	)		(12,518,431	)		(10,313,685	)
Less: Redemption of Preferred Stock		(3,502,487	)		-0-			(3,502,487	)		-0-
Comprehensive Income (Loss) Attributable to Common Shareholders	$	(3,162,706	)	$	4,040,740		$	(10,764,933	)	$	20,841,057

See Accompanying Notes to Consolidated Financial Statements

7

UMH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE NINE MONTHS ENDED

SEPTEMBER 30, 2017 AND 2016

	September 30, 2017			September 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	9,137,418		$	8,157,944
Non-Cash items included in Net Income:
Depreciation		20,260,556			17,092,676
Amortization of Financing Costs		496,225			580,335
Stock Compensation Expense		998,059			896,519
Provision for Uncollectible Notes and Other Receivables		(934,794	)		650,382
Gain on Sales of Securities, net		(1,518,289	)		(1,898,836	)
Loss on Sales of Investment Property and Equipment		29,540			23,510
Changes in Operating Assets and Liabilities:
Inventory of Manufactured Homes		(68,599	)		(2,024,369	)
Notes and Other Receivables, net of Notes Acquired with Acquisitions		167,229			(1,542,870	)
Prepaid Expenses and Other Assets		(1,137,782	)		(875,188	)
Accounts Payable		747,791			977,426
Accrued Liabilities and Deposits		262,499			(1,189,041	)
Tenant Security Deposits		650,335			554,962
Net Cash Provided by Operating Activities		29,090,188			21,403,450
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities		(40,877,655	)		(2,954,000	)
Purchase of Investment Property and Equipment		(48,095,917	)		(44,239,188	)
Proceeds from Sales of Investment Property and Equipment		1,651,685			844,097
Additions to Land Development Costs		(2,263,009	)		(2,484,948	)
Purchase of Securities Available for Sale		(38,002,778	)		(23,453,933	)
Proceeds from Sales of Securities Available for Sale		12,178,413			12,330,020
Net Cash Used in Investing Activities		(115,409,261	)		(59,957,952	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages		44,420,000			15,458,000
Net Payments on Short Term Borrowings		(16,791,278	)		(1,330,266	)
Principal Payments of Mortgages		(24,543,481	)		(13,629,215	)
Financing Costs on Debt		(595,124	)		(390,961	)
Proceeds from Issuance of Preferred Stock, net of offering costs		138,983,808			49,120,853
Redemption of 8.25% Series A Preferred Stock		(91,595,000	)		-0-
Proceeds from Registered Direct Placement of Common Stock, net of offering costs		22,527,507			-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		46,565,672			9,267,775
Proceeds from Exercise of Stock Options		5,435,634			1,081,380
Preferred Dividends Paid		(12,339,553	)		(10,773,898	)
Common Dividends Paid, net of Dividend Reinvestments		(15,124,760	)		(13,075,166	)
Net Cash Provided by Financing Activities		96,943,425			35,728,502
Net Increase (Decrease) in Cash and Cash Equivalents		10,624,352			(2,826,000	)
Cash and Cash Equivalents at Beginning of Period		4,216,592			6,535,897
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	14,840,944		$	3,709,897

See Accompanying Notes to Consolidated Financial Statements

8

UMH PROPERTIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2017 (UNAUDITED)

NOTE 1 – ORGANIZATION AND ACCOUNTING POLICIES

UMH Properties, Inc., a Maryland corporation, together with its subsidiaries (“we”, “our”, “us” or “the Company”) operates as a real estate investment trust (“REIT”) deriving its income primarily from real estate rental operations. The Company owns and operates one hundred seven manufactured home communities containing approximately 19,400 developed home sites as of September 30, 2017. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. The Company, through its wholly-owned taxable subsidiary, UMH Sales and Finance, Inc. (“S&F”), conducts manufactured home sales to residents and prospective residents in its communities. Inherent in the operations of manufactured home communities are site vacancies. S&F was established to fill these vacancies and enhance the value of the communities. The Company also owns a portfolio of REIT securities which the Company generally limits to no more than approximately 20% of its undepreciated assets, which is the Company’s total assets excluding accumulated depreciation. The consolidated financial statements of the Company include S&F and all of its other wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code (the “Code”), and intends to maintain its qualification as a REIT in the future. As a qualified REIT, with limited exceptions, the Company will not be taxed under federal and certain state income tax laws at the corporate level on taxable income that it distributes to its shareholders. For special tax provisions applicable to REITs, refer to Sections 856-860 of the Code. The Company is subject to franchise taxes in some of the states in which the Company owns property.

The interim Consolidated Financial Statements furnished herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

In preparing the consolidated financial statements in accordance with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as contingent assets and liabilities as of the dates of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates and assumptions.

9

Reclassifications

Certain amounts in the financial statements for the prior periods have been reclassified to conform to the statement presentation for the current periods.

Derivative Instruments and Hedging Activities

In the normal course of business, the Company is exposed to financial market risks, including interest rate risk on its variable rate debt. The Company attempts to limit these risks by following established risk management policies, procedures and strategies, including the use of derivative financial instruments. The Company’s primary strategy in entering into derivative contracts is to minimize the variability that changes in interest rates could have on its future cash flows. The Company generally employs derivative instruments that effectively convert a portion of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes. The Company had entered into various interest rate swap agreements that have had the effect of fixing interest rates relative to specific mortgage loans. As of September 30, 2017, these agreements have expired and the Company no longer had any interest rate swap agreements in effect.

Recently Adopted Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business.” ASU 2017-01 seeks to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, intangible assets and consolidation. The adoption of ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments should be applied prospectively on or after the effective dates. Early adoption is permitted. The Company adopted this standard effective January 1, 2017, on a prospective basis. The Company evaluated its acquisitions and has determined that its acquisitions of manufactured home communities during 2017 should be accounted for as acquisitions of assets. As such, transaction costs of approximately $368,000 have been capitalized as part of the cost of the acquisitions, which is then subject to a purchase price allocation based on relative fair value.

In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation.” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company adopted this standard effective January 1, 2017, and it did not have a material impact on our financial position, results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” ASU 2015-11 applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (“IFRS”). The Company adopted this standard effective January 1, 2017, and it did not have a material impact on our financial position, results of operations or cash flows.

10

Other Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” ASU 2017-09 clarifies which changes to the terms or conditions of a share based payment award are subject to the guidance on modification accounting under FASB Accounting Standards Codification Topic 718. Entities would apply the modification accounting guidance unless the value, vesting requirements and classification of a share based payment award are the same immediately before and after a change to the terms or conditions of the award. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

On February 22, 2017, the FASB issued ASU No. 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets.” ASU 2017-05 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance non-financial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any non-controlling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. As a result of the new guidance, the guidance specific to real estate sales in ASC 360-20 will be eliminated. As such, sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2017. Early adoption is permitted. The Company believes that the adoption of this standard will not have a material impact on our financial position, results of operations or cash flows. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2019. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

11

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements and the timing of adoption.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements and the timing of adoption.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)”. The objective of this amendment is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this amendment, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. This amendment applies to all contracts with customers except those that are within the scope of other topics in the FASB ASC. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. In July 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has not yet selected which transition method it will apply upon adoption. Our primary source of revenue is generated through leasing arrangements, which is specifically excluded from ASU 2014-09. We continue to evaluate and are in the process of quantifying the impact, if any, the adoption of ASU 2014-09 will have on our non-lease revenue streams, including sales of manufactured homes, interest income, dividend income and other income. While our evaluations are ongoing, we do not expect material changes to our accounting policies for these revenue streams.

12

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements.

NOTE 2 – NET INCOME (LOSS) PER SHARE

Basic Net Income (Loss) per Share is calculated by dividing Net Income (Loss) by the weighted average shares outstanding for the period. Diluted Net Income (Loss) per Share is calculated by dividing Net Income (Loss) by the weighted average number of common shares outstanding plus the weighted average number of net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. For the three and nine months ended September 30, 2017, employee stock options to purchase 1,778,100 shares of common stock were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would be anti-dilutive. For the three and nine months ended September 30, 2016, employee stock options to purchase 1,900,500 shares of common stock were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would be anti-dilutive.

NOTE 3 – INVESTMENT PROPERTY AND EQUIPMENT

Acquisitions

On January 20, 2017, the Company acquired two manufactured home communities, Hillcrest Estates and Marysville Estates, located in Ohio, for approximately $9,588,000. These all-age communities contain a total of 532 developed homesites that are situated on approximately 149 total acres. At the date of acquisition, the average occupancy for these communities was approximately 57%.

On January 20, 2017, the Company also acquired two manufactured home communities located in Indiana for approximately $24,437,000. This acquisition consists of Boardwalk, an age restricted community containing 195 homesites, and Parke Place, an all-age community containing 364 homesites. These communities are situated on approximately 155 total acres. At the date of acquisition, the average occupancy for these communities was approximately 77%. In conjunction with this acquisition, the Company obtained a 10-year, $14,250,000 mortgage with an interest rate of 4.56% and a 30-year amortization (See Note 5).

On January 24, 2017, the Company acquired Hillcrest Crossing, a manufactured home community located in Pennsylvania, for approximately $2,485,000. This all-age community contains a total of 200 developed homesites that are situated on approximately 78 total acres. At the date of acquisition, the occupancy for this community was approximately 40%.

13

On May 31, 2017, the Company acquired Cinnamon Woods, a manufactured home community located in Maryland, for $4,000,000. This age restricted community contains a total of 63 developed homesites that are situated on approximately 79 total acres, of which approximately 61 acres are available for expansion. At the date of acquisition, the occupancy for this community was approximately 92%.

These acquisitions have been accounted for utilizing the acquisition method of accounting in accordance with ASC 805, Business Combinations, and accordingly, the results of the acquired assets are included in the statements of income (loss) from the date of acquisition. The following table summarizes the estimated fair value of the assets acquired, including transaction costs of approximately $368,000, for the nine months ended September 30, 2017:

	At Acquisition Date
Assets Acquired:
Land	$	11,045,000
Depreciable Property		26,557,190
Notes Receivable and Other		3,275,465
Total Assets Acquired	$	40,877,655

The allocations of the fair value of the assets acquired are subject to further adjustment as final costs and valuations are determined.

See Note 12 for the Unaudited Pro Forma Financial Information relating to these acquisitions.

Other

Many oil and gas companies compete for the opportunity to drill for oil and gas. Successful bidders pay an upfront purchase price (“bonus payment”). In May 2017, the Company received a bonus payment of $251,680 at one of its communities, which has been recorded as Other Income. This amount is not refundable and has been earned since the Company has no further obligation relating to it. In addition to this upfront bonus payment, the Company entered into an agreement (“Lease”) whereby the oil and gas company may remove the oil and gas from the property, provided that it pays the Company an 18% fee (“royalty”) based on the amount of the oil and gas removed. The term of the Lease is for five years.

NOTE 4 – SECURITIES AVAILABLE FOR SALE

The Company’s Securities Available for Sale at Fair Value consists primarily of marketable common and preferred stock of other REITs with a fair value of $132,212,410 as of September 30, 2017. The Company generally limits its investment in marketable securities to no more than approximately 20% of its undepreciated assets. The REIT securities portfolio provides the Company with additional liquidity and additional income and serves as a proxy for real estate when more favorable risk adjusted returns are not available.

14

During the nine months ended September 30, 2017, the Company sold securities with a cost basis of $10,660,124 and recognized a Gain on Sale of $1,518,289. The Company also made purchases of $38,002,778 in Securities Available for Sale. Of this amount, the Company made total purchases of 75,836 common shares of Monmouth Real Estate Investment Corporation (“MREIC”), a related REIT, through MREIC’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $1,084,324 or weighted average cost of $14.30 per share. The Company owned a total of 2,313,424 MREIC common shares as of September 30, 2017 at a total cost of $20,315,735 and a fair value of $37,454,330.

As of September 30, 2017, the Company had total net unrealized gains of $12,831,755 in its REIT securities portfolio. The Company held ten securities that had unrealized losses as of September 30, 2017. The Company considers many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment. The Company normally holds REIT securities long-term and has the ability and intent to hold these securities to recovery.

The following is a summary of the securities that the Company has determined to be temporarily impaired as of September 30, 2017:

	Less Than 12 Months					12 Months or Longer
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Preferred Stock	$	542,280	$	(2,396	)	$	-0-	$	-0-
Common Stock		67,438,450		(5,249,555	)		-0-		-0-
Total	$	67,980,730	$	(5,251,951	)	$	-0-	$	-0-

The following is a summary of the range of the losses on these temporarily impaired securities:

Number of Individual Securities	Fair Value		Unrealized Loss			Range of Loss
8	$	52,273,480	$	(1,364,570	)		0-4	%
1		3,332,000		(302,882	)		8	%
1		12,375,250		(3,584,499	)		22	%
10	$	67,980,730	$	(5,251,951	)

NOTE 5 – LOANS AND MORTGAGES PAYABLE

Unsecured Line of Credit

On March 28, 2017, the Company entered into an amended and restated credit agreement to renew and expand its existing unsecured revolving credit facility. The new unsecured revolving credit facility (the “Facility”) was syndicated with BMO Capital Markets (“BMO”), as sole lead arranger and sole book runner, with Bank of Montreal as administrative agent. The Facility provides for an increase from $35 million in available borrowings to $50 million in available borrowings with a $75 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions. The maturity date of the Facility is March 27, 2020, with a one year extension option. Borrowings will bear interest at the Company’s option of LIBOR plus 1.75% to 2.50% or BMO’s prime lending rate plus 0.75% to 1.50%, based on the Company’s overall leverage. Based on the Company’s current leverage ratio, borrowings under the Facility will bear interest at LIBOR plus 2% or at BMO’s prime lending rate plus 1%. As of September 30, 2017, there were no amounts outstanding under the Facility.

15

Loans Payable

Loans Payable includes unamortized debt issuance costs of $113,022 and $108,054 at September 30, 2017 and December 31, 2016, respectively. The weighted average interest rate was 2.7% and 3.1% at September 30, 2017 and December 31, 2016. At September 30, 2017, $30,842,204 was outstanding on the margin loan at a 2.05% interest rate.

In June 2017, the Company entered into an amended and restated revolving line of credit with OceanFirst Bank (“OceanFirst Line”), secured by the Company’s eligible notes receivable. The maximum availability on the OceanFirst Line is $10 million. Interest was reduced from prime plus 50 basis points to prime plus 25 basis points. The new maturity date is June 1, 2020. As of September 30, 2017, the amount outstanding under the OceanFirst Line was $4 million and the interest rate was 4.5%.

Mortgages Payable

On January 20, 2017, the Company obtained a $14,250,000 Federal Home Loan Mortgage Corporation (“Freddie Mac”) mortgage through Wells Fargo Bank, N.A. (“Wells Fargo”) on Boardwalk and Parke Place in connection with the Company’s acquisition of these communities. This mortgage is at a fixed rate of 4.56% and matures on February 1, 2027. Principal repayments are based on a 30-year amortization schedule.

On May 31, 2017, the Company obtained a $16,800,000 Freddie Mac mortgage through Wells Fargo on Highland Estates. This mortgage is at a fixed rate of 4.12% and matures on September 1, 2027. Principal repayments are based on a 30-year amortization schedule. Proceeds from this mortgage was used to repay the existing $9,000,000 mortgage with an interest rate of 6.175%.

On August 28, 2017, the Company obtained a $13,370,000 mortgage loan on six communities from Sun National Bank. This mortgage is at a fixed rate of 4.18% and matures on August 1, 2027. Principal repayments are based on a 30-year amortization schedule. Proceeds from this mortgage was used to repay the existing $10,000,000 mortgage, secured by eleven communities with an interest rate of LIBOR plus 3%, which was fixed at 3.89% with an interest rate swap.

16

The following is a summary of our mortgages payable as of September 30, 2017 and December 31, 2016:

	9/30/2017						12/31/2016
	Amount			Rate			Amount			Rate
Fixed rate mortgages	$	316,337,850			4.3	%	$	285,584,102			4.4	%
Variable rate mortgages (1)		102,651			4.3	%		10,979,881			3.9	%
Total mortgages before unamortized debt issuance costs		316,440,501			4.3	%		296,563,983			4.3	%
Unamortized debt issuance costs		(3,632,321	)					(3,538,391	)
Mortgages, net of unamortized debt issuance costs	$	312,808,180			4.4	%	$	293,025,592			4.4	%

(1) Includes a variable rate mortgage with a balance of $-0- and $10,625,352 as of September 30, 2017 and December 31, 2016, respectively, which was effectively fixed at an interest rate of 3.89% with an interest rate swap agreement.

NOTE 6 - SHAREHOLDERS’ EQUITY

Common Stock

On June 5, 2017, the Company issued and sold 1,400,000 shares of its Common Stock in a registered direct placement at a sale price of $16.60 per share. The Company received net proceeds from the offering after expenses of approximately $22.5 million and intends to use the net proceeds for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of its existing communities, potential acquisitions of additional properties and possible repayment of indebtedness on a short-term basis.

On September 15, 2017, the Company paid total cash dividends of $6,188,961 or $0.18 per share to common shareholders of record as of the close of business on August 15, 2017, of which $794,744 was reinvested in the Dividend Reinvestment and Stock Purchase Plan (“DRIP”). Total dividends paid to our common shareholders for the nine months ended September 30, 2017 amounted to $17,305,824, of which $2,181,064, was reinvested. On October 2, 2017, the Company declared a dividend of $0.18 per share to be paid December 15, 2017 to common shareholders of record as of the close of business on November 15, 2017.

During the nine months ended September 30, 2017, the Company received, including dividends reinvested of $2,181,064 a total of $48,746,736 from its DRIP. There were 3,293,638 new shares issued under the DRIP during this period.

8.25% Series A Cumulative Redeemable Preferred Stock

On August 31, 2017, the Company redeemed all 3,663,800 issued and outstanding shares of its 8.25% Series A Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series A Preferred”) at a redemption price of $25.00 per share, totaling $91,595,000. Unpaid dividends on the Series A Preferred accruing for the period from June 1, 2017 through the redemption date, totaling $1,889,147 (or $0.515625 per share) were paid on September 15, 2017 to holders of record as of the August 15, 2017 record date previously established by the Company’s Board of Directors and accordingly such dividends were not included in the redemption price. The Company recognized a preferred share redemption charge of approximately $3,502,000 related to the original issuance costs.

17

During the nine months ended September 30, 2017, the Company paid $5,667,441 in Preferred Dividends, or $1.546875 per share, on its then outstanding Series A Preferred.

8.0% Series B Cumulative Redeemable Preferred Stock

On September 15, 2017, the Company paid $1,900,600 in dividends or $0.50 per share for the period from June 1, 2017 through August 31, 2017 to holders of record as of the close of business on August 15, 2017 of our 8.0% Series B Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series B Preferred”). Dividends on our Series B Preferred shares are cumulative and payable quarterly at an annual rate of $2.00 per share. Total dividends paid to our Series B Preferred shareholders for the nine months ended September 30, 2017 amounted to $5,701,800.

On October 2, 2017, the Company declared a dividend of $0.50 per share for the period from September 1, 2017 through November 30, 2017 to be paid on December 15, 2017 to Series B Preferred shareholders of record as of the close of business on November 15, 2017.

6.75% Series C Cumulative Redeemable Preferred Stock

On July 26, 2017, the Company issued 5,000,000 shares of its new 6.75% Series C Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series C Preferred”) at an offering price of $25.00 per share in an underwritten public offering. The Company received net proceeds from the sale of these 5,000,000 shares, after deducting the underwriting discount and other estimated offering expenses, of approximately $120,800,000. On August 2, 2017, the Company issued an additional 750,000 shares of Series C Preferred pursuant to the underwriters’ exercise of their overallotment option and received additional net proceeds of approximately $18,200,000.

The Company used a portion of the net proceeds from the sale of Series C Preferred to redeem all of the 3,663,800 outstanding shares of our Series A Preferred. The balance of the offering proceeds will be used for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of our existing communities, potential acquisitions of additional properties and possible repayment of indebtedness on a short-term basis.

Dividends on the Series C Preferred shares are cumulative from July 26, 2017 at an annual rate of $1.6875 per share and will be payable quarterly in arrears on March 15, June 15, September 15, and December 15. The first quarterly dividend on the Series C Preferred was payable September 15, 2017 and amounted to $970,312 or $0.16875 per share for the dividend period from July 26, 2017 to August 31, 2017.

18

The Series C Preferred, par value $0.10 per share, has no maturity and will remain outstanding indefinitely unless redeemed or otherwise repurchased. Except in limited circumstances relating to the Company’s qualification as a REIT, and as described below, the Series C Preferred is not redeemable prior to July 26, 2022. On and after July 26, 2022, the Series C Preferred will be redeemable at the Company’s option for cash, in whole or, from time to time, in part, at a price per share equal to $25.00, plus all accrued and unpaid dividends (whether or not declared) to the date of redemption. The Series C Preferred shares rank on a parity with the Company’s Series B Preferred shares with respect to dividend rights and rights upon liquidation, dissolution or winding up.

Upon the occurrence of a Delisting Event or Change of Control, each as defined in the Prospectus pursuant to which the shares of Series C Preferred were offered, each holder of the Series C Preferred will have the right to convert all or part of the shares of the Series C Preferred held into common stock of the Company, unless the Company elects to redeem the Series C Preferred.

Holders of the Series C Preferred Stock generally have no voting rights, except if the Company fails to pay dividends for nine or more quarterly periods, whether or not consecutive, or with respect to certain specified events.

In conjunction with the issuance of the Company’s Series C Preferred, the Company filed with the Maryland State Department of Assessments and Taxation (the “Maryland SDAT”), an amendment to the Company’s charter to increase the authorized number of shares of the Company’s common stock by 30,750,000 shares.  As a result of this amendment, the Company’s total authorized shares were increased from 95,663,800 shares (classified as 85,000,000 shares of Common Stock, 3,663,800 shares of Series A Preferred, 4,000,000 shares of Series B Preferred and 3,000,000 shares of excess stock) to 126,413,800 shares (classified as 115,750,000 shares of Common Stock, 3,663,800 shares of Series A Preferred, 4,000,000 shares of Series B Preferred and 3,000,000 shares of excess stock). Immediately following this amendment, the Company filed with the Maryland SDAT Articles Supplementary setting forth the rights, preferences and terms of the Series C Preferred and reclassifying 5,750,000 shares of Common Stock as shares of Series C Preferred.  After the reclassification, the Company’s authorized stock consisted of 110,000,000 shares of Common Stock, 3,663,800 shares of Series A Preferred, 4,000,000 shares of Series B Preferred, 5,750,000 shares of Series C Preferred and 3,000,000 shares of excess stock. Additionally, upon the redemption on August 31, 2017 of all 3,663,800 outstanding shares of the Series A Preferred, the authorized shares of Series A Preferred automatically converted to authorized Common Stock, which increased our authorized Common Stock to 113,663,800 shares.

On October 2, 2017, the Company declared a dividend of $0.421875 per share for the period from September 1, 2017 through November 30, 2017 to be paid on December 15, 2017 to Series C Preferred shareholders of record as of the close of business on November 15, 2017.

19

NOTE 7 – STOCK BASED COMPENSATION

The Company accounts for awards of stock options and restricted stock in accordance with ASC 718-10, Compensation-Stock Compensation. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). The compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date less estimated forfeitures. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value of restricted stock awards is equal to the fair value of the Company’s stock on the grant date. Compensation costs of $328,002 and $998,059 have been recognized for the three and nine months ended September 30, 2017, respectively, and $419,746 and $896,519 for the three and nine months ended September 30, 2016, respectively.

On January 19, 2017, the Company granted options to purchase 60,000 shares of common stock to two participants in the Company’s 2013 Stock Option and Stock Award Plan. The fair value on the grant date of these options amounted to $93,000. These grants vest over one year.

On April 4, 2017, the Company awarded a total of 45,000 shares of restricted stock to Samuel A. Landy and Anna T. Chew, pursuant to their employment agreements. The fair value on the grant date of these restricted stock grants was $676,800. These grants vest ratably over 5 years.

On April 4, 2017, the Company granted options to purchase 516,000 shares of common stock to thirty-four participants in the Company’s 2013 Stock Option and Stock Award Plan. The grant date fair value of these options amounted to $949,440. The entire compensation cost of $184,000 for grants issued to a participant who is of retirement age was recognized at the time of the grant. The remaining grants vest over one year.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants during the nine months ended September 30, 2017 and 2016:

	2017			2016
Dividend yield		5.80	%		7.32	%
Expected volatility		26.30	%		26.30	%
Risk-free interest rate		2.37	%		1.49	%
Expected lives		10			8
Estimated forfeitures		-0-			-0-

The weighted-average fair value of options granted during the nine months ended September 30, 2017 and 2016 was $1.81 and $0.81 per share, respectively.

20

On September 27, 2017, the Company awarded 10,000 shares of restricted stock to ten participants under the Plan. The grant date fair value of these restricted stock grants was approximately $153,700. The entire compensation cost of $15,370 for grants issued to a participant who is of retirement age was recognized at the time of the grant. The remaining grants vest over 5 years.

On September 27, 2017, the Company awarded 1,000 shares of restricted stock to ten participants under the Plan. The grant date fair value of these restricted stock grants was approximately $15,370. The entire compensation cost of $1,537 for grants issued to a participant who is of retirement age was recognized at the time of the grant. The remaining grants vest over 3 months.

As of September 30, 2017, there were options outstanding to purchase 1,778,100 shares. There were 613,500 shares available for grant under the 2013 Stock Option and Stock Award Plan. During the nine months ended September 30, 2017, twenty-seven participants exercised options to purchase a total of 547,900 shares of common stock at a weighted-average exercise price of $9.92 per share for total proceeds of $5,435,634. During the nine months ended September 30, 2017, options to one participant to purchase a total of 10,000 shares were forfeited. As of September 30, 2016, there were options outstanding to purchase 1,900,500 shares and 1,235,500 shares were available for grant under the Company’s 2013 Stock Option and Stock Award Plan. The aggregate intrinsic value of options outstanding as of September 30, 2017 was $6,755,477 and the aggregate intrinsic value of options exercised during the nine months ended September 30, 2017 was $3,030,119.

NOTE 8 - FAIR VALUE MEASUREMENTS

In accordance with ASC 820-10, Fair Value Measurements and Disclosures, the Company measures certain financial assets and liabilities at fair value on a recurring basis, including Securities Available for Sale. The fair value of these financial assets and liabilities was determined using the following inputs at September 30, 2017 and December 31, 2016:

21

	Fair Value Measurements at Reporting Date Using
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
As of September 30, 2017:
Securities Available for Sale - Preferred stock	$	9,160,320		$	9,160,320	$	-0-		$	-0-
Securities Available for Sale - Common stock		123,052,090			123,052,090		-0-			-0-
Total	$	132,212,410		$	132,212,410	$	-0-		$	-0-
As of December 31, 2016:
Securities Available for Sale - Preferred stock	$	13,028,200		$	13,028,200	$	-0-		$	-0-
Securities Available for Sale - Common stock		95,726,972			95,726,972		-0-			-0-
Interest Rate Swap (1)		(3,983	)		-0-		(3,983	)		-0-
Total	$	108,751,189		$	108,755,172	$	(3,983	)	$	-0-

(1) Included in accrued liabilities and deposits.

In addition to the Company’s investments in securities available for sale and interest rate swaps, the Company is required to disclose certain information about the fair values of its other financial instruments, as defined in ASC 825-10, Financial Instruments. Estimates of fair value are made at a specific point in time, based upon, where available, relevant market prices and information about the financial instrument. Such estimates do not include any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. All of the Company’s Securities Available for Sale have quoted market prices and traded in active markets and are therefore classified in Level 1 of the fair value hierarchy. A quoted market price was indirectly available for our interest rate swap. This price was determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows, and reflected the contractual terms of the derivative, including the period to maturity, and used observable market-based inputs. As such, we had determined that the valuation of this interest rate swap is classified in Level 2 of the fair value hierarchy.

The fair value of Cash and Cash Equivalents and Notes Receivable approximates their current carrying amounts since all such items are short-term in nature. The fair value of variable rate Mortgages Payable and Loans Payable approximate their current carrying amounts since such amounts payable are at approximately a weighted-average current market rate of interest. As of September 30, 2017, the fair value of Fixed Rate Mortgages Payable amounted to $316,286,829 and the carrying value of Fixed Rate Mortgages Payable amounted to $316,337,850. The fair value of fixed rate Mortgages Payable is estimated based upon discounted cash flows at current market rates for instruments with similar remaining terms.

NOTE 9 – CONTINGENCIES, COMMITMENTS AND OTHER MATTERS

From time to time, the Company may be subject to claims and litigation in the ordinary course of business. Management does not believe that any such claims or litigation will have a material adverse effect on the financial position or results of operations.

22

The Company has an agreement with 21st Mortgage Corporation (“21st Mortgage”) under which 21st Mortgage can provide financing for home purchasers in the Company’s communities. The Company does not receive referral fees or other cash compensation under the agreement. If 21st Mortgage makes loans to purchasers and those purchasers default on their loans and 21st Mortgage repossesses the homes securing such loans, the Company has agreed to purchase from 21st Mortgage each such repossessed home for a price equal to 80% to 95% of the amount under each such loan, subject to certain adjustments. This agreement may be terminated by either party with 30 days written notice. As of September 30, 2017, the total loan balance under this agreement was approximately $3 million. Additionally, 21st Mortgage previously made loans to purchasers in certain communities we acquired. In conjunction with these acquisitions, the Company has agreed to purchase from 21st Mortgage each repossessed home, if those purchasers default on their loans. The purchase price ranges from 55% to 100% of the amount under each such loan, subject to certain adjustments. As of September 30, 2017, the total loan balance owed to 21st Mortgage with respect to homes in these acquired communities was approximately $4 million.

The Company entered into a Chattel Loan Origination, Sale and Servicing Agreement (“COP Program”) with Triad Financial Services, effective January 1, 2016. The Company does not receive referral fees or other cash compensation under the agreement. Customer loan applications are initially submitted to Triad for consideration by Triad’s portfolio of outside lenders. If the loan application does not meet the criteria for outside financing, the application is then considered for financing under the COP Program. If the loan is approved under the COP Program, then it is originated by Triad and subsequently purchased by the Company. Included in Notes and Other Receivables is approximately $7,507,000 of loans that the Company purchased under the COP Program as of September 30, 2017.

NOTE 10 - SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest during the nine months ended September 30, 2017 and 2016 was $11,851,093 and $12,277,517, respectively. Interest cost capitalized to Land Development was $368,967 and $265,341 for the nine months ended September 30, 2017 and 2016, respectively.

During the nine months ended September 30, 2017 and 2016, the Company had Dividend Reinvestments of $2,181,064 and $1,738,947, respectively, which required no cash transfers.

NOTE 11– SUBSEQUENT EVENTS

Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were issued.

NOTE 12 – PROFORMA FINANCIAL INFORMATION (UNAUDITED)

The following unaudited pro forma condensed financial information reflects the acquisitions during 2016 and through September 30, 2017. This information has been prepared utilizing the historical financial statements of the Company and the effect of additional Revenue and Expenses from the properties acquired during this period assuming that the acquisitions had occurred as of the first day of the applicable period, after giving effect to certain adjustments including: (a) Rental and Related Income; (b) Community Operating Expenses; (c) Interest Expense resulting from the assumed increase in Mortgages and Loans Payable related to the new acquisitions; and (d) Depreciation Expense related to the new acquisitions. The unaudited pro forma condensed financial information is not indicative of the results of operations that would have been achieved had the acquisitions reflected herein been consummated on the dates indicated or that will be achieved in the future.

23

	Three Months Ended						Nine Months Ended
	9/30/17			9/30/16			9/30/17			9/30/16
Rental and Related Income	$	25,855,000		$	24,502,000		$	76,009,000		$	71,594,000
Community Operating Expenses		12,318,000			11,441,000			35,833,000			34,206,000
Net Loss Attributable to Common Shareholders		(5,179,000	)		(628,000	)		(6,888,000	)		(2,261,000	)
Net Loss Attributable to Common Shareholders Per Share – Basic and Diluted	$	(0.15	)	$	(0.02	)	$	(0.22	)	$	(0.08	)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with the Consolidated Financial Statements and footnotes thereto included elsewhere herein and in the Company’s annual report on Form 10-K for the year ended December 31, 2016.

The Company is a self-administered, self-managed Real Estate Investment Trust (“REIT”) with headquarters in Freehold, New Jersey. The Company’s primary business is the ownership and operation of manufactured home communities which includes leasing manufactured home spaces to residential manufactured home owners. The Company also leases homes to residents and, through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (“S&F”), sells and finances the sale of manufactured homes to qualified residents and prospective residents of our communities.

As of September 30, 2017, the Company owned and operated 107 manufactured home communities containing approximately 19,400 developed home sites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland.

The Company earns income from the leasing of manufactured homesites, the rental of manufactured homes, the sale and finance of manufactured homes, the brokering of home sales, and from appreciation in the values of the manufactured home communities and vacant land owned by the Company. The Company also invests in securities of other REITs which the Company generally limits to no more than approximately 20% of its undepreciated assets.

24

The Company believes that its capital structure, which allows for the ownership of assets using a balanced combination of equity obtained through the issuance of common stock, preferred stock and debt, will enhance shareholder returns as the properties appreciate over time.

The macro-economic environment and current housing fundamentals continue to favor home rentals. Rental homes in a manufactured home community allow the resident to obtain the efficiencies of factory-built housing and the amenities of community living for less than the cost of other forms of affordable housing. We continue to see strong demand for rental homes. We have added an additional 690 rental homes during the first nine months of 2017, including 110 rental homes acquired with our recent community acquisitions. This brings the total number of rental homes to approximately 5,300 rental homes, or 27.8% of total sites. Occupied rental homes represent approximately 32.0% of total occupied sites at quarter end. Occupancy in rental homes continues to be strong and is at 94.2% as of September 30, 2017. We anticipate adding a total of approximately 800 rental homes in 2017, as the market dictates.

The Company intends to continue to increase its real estate investments. Our business plan includes acquiring communities that yield in excess of our cost of funds and then investing in physical improvements, including adding rental homes onto otherwise vacant sites. This has resulted in increased occupancy rates and improved operating results. Community Net Operating Income (“NOI”) increased 13% for the nine months ended September 30, 2017 from the prior year period. Same property occupancy, which includes communities owned and operated as of January 1, 2016, increased by 170 basis points to 83.0% over the prior year period. Year to date, same property NOI increased 8.5% over the prior year period. We have been positioning ourselves for future growth and will continue to seek opportunistic investments. There is no assurance that the Company can continue to buy existing manufactured home communities that meet the requirements of the business plan or that the demand for rental homes will continue in the future.

During the nine months ended September 30, 2017, the Company acquired four all-age communities and two age restricted communities containing a total of 1,354 homesites on 461 acres for an aggregate purchase price of approximately $40,510,000. The following is a summary of the communities acquired as of September 30, 2017:

Community	Date of Acquisition		State		Number of Sites		Purchase Price		Number of Acres		Occupancy at Acquisition
Marysville and Hillcrest		January 20, 2017		OH		532	$	9,588,000		149		57	%
Boardwalk and Parke Place		January 20, 2017		IN		559		24,437,000		155		77	%
Hillcrest Crossing		January 24, 2017		PA		200		2,485,000		78		40	%
Cinnamon Woods		May 31, 2017		MD		63		4,000,000		79		92	%
Total as of September 30, 2017						1,354	$	40,510,000		461		64	%

25

See PART I, Item 1 – Business in the Company’s 2016 annual report on Form 10-K for a more complete discussion of the economic and industry-wide factors relevant to the Company and the opportunities and challenges, and risks on which the Company is focused.

Significant Accounting Policies and Estimates

The discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of these Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of Assets and Liabilities, Revenues and Expenses, and related disclosure of contingent Assets and Liabilities at the date of the Company’s Consolidated Financial Statements. Actual results may differ from these estimates under different assumptions or conditions.

On a regular basis, management evaluates our assumptions, judgments and estimates. Management believes there have been no material changes to the items that we disclosed as our significant accounting policies and estimates under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2016.

Supplemental Measures

In addition to the results reported in accordance with GAAP, management’s discussion and analysis of financial condition and results of operations include certain non-GAAP financial measures that in management’s view of the business we believe are meaningful as they allow the investor the ability to understand key operating details of our business both with and without regard to certain accounting conventions or items that may not always be indicative of recurring annual cash flow of the portfolio. These non-GAAP financial measures as determined and presented by us may not be comparable to related or similarly titled measures reported by other companies, and include Community NOI, Funds from Operations (“FFO”), Core Funds from Operations (“Core FFO”) and Normalized Funds from Operations (“Normalized FFO”). A discussion of FFO, Core FFO and Normalized FFO, and a reconciliation to net income is included in the presentation of FFO included in Item 2 of this Form 10-Q.

We define Community NOI as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance, community salaries, utilities, insurance and other expenses. We believe that Community NOI is helpful to investors and analysts as a direct measure of the actual operating results of our manufactured home communities, rather than our Company overall. Community NOI should not be considered a substitute for the reported results prepared in accordance with GAAP. Community NOI should not be considered as an alternative to net income (loss) as an indicator of our financial performance, or to cash flows as a measure of liquidity; nor is it indicative of funds available for our cash needs, including our ability to make cash distributions.

26

The Company’s Community NOI for the three and nine months ended September 30, 2017 and 2016 is calculated as follows:

	Three Months Ended				Nine Months Ended
	9/30/17		9/30/16		9/30/17		9/30/16
Rental and Related Income	$	25,854,623	$	23,103,155	$	75,678,939	$	67,313,211
Less: Community Operating Expenses		12,317,856		10,719,289		35,669,793		31,993,965
Community NOI	$	13,536,767	$	12,383,866	$	40,009,146	$	35,319,246

Changes In Results Of Operations

Rental and Related Income increased 12% from $23,103,155 for the three months ended September 30, 2016 to $25,854,623 for the three months ended September 30, 2017. Rental and Related Income increased 12% from $67,313,211 for the nine months ended September 30, 2016 to $75,678,939 for the nine months ended September 30, 2017. These increases were primarily due to the acquisitions made during 2016 and 2017, as well as increases in rental rates, same property occupancy and additional rental homes. The Company has been raising rental rates by approximately 3% to 5% annually at most communities. Same property occupancy has increased 170 basis points from 81.3% as of September 30, 2016 to 83.0% as of September 30, 2017. Total number of rental homes increased 20% from approximately 4,400 homes at September 30, 2016 to approximately 5,300 homes at September 30, 2017.

Community Operating Expenses increased 15% from $10,719,289 for the three months ended September 30, 2016 to $12,317,856 for the three months ended September 30, 2017. Community Operating Expenses increased 11% from $31,993,965 for the nine months ended September 30, 2016 to $35,669,793 for the nine months ended September 30, 2017. These increases were primarily due to the acquisitions made during 2016 and 2017 and the additional rental homes.

Community NOI increased 9% from $12,383,866 for the three months ended September 30, 2016 to $13,536,767 for the three months ended September 30, 2017. Community NOI increased 13% from $35,319,246 for the nine months ended September 30, 2016 to $40,009,146 for the nine months ended September 30, 2017. These increases were primarily due to the acquisitions during 2016 and 2017 and increases in rental rates, occupancy and rental homes. The Company’s Operating Expense Ratio (defined as Community Operating Expenses divided by Rental and Related Income) increased from 46.4% for the three months ended September 30, 2016 to 47.6% for the three months ended September 30, 2017, primarily due to increases in real estate taxes. The Operating Expense Ratio decreased from 47.5% for the nine months ended September 30, 2016 to 47.1% for the nine months ended September 30, 2016. The same property Operating Expense Ratio was 44.5% and 44.0% for the three and nine months ended September 30, 2017, respectively, compared to 43.3% and 45.1% for the three and nine months ended September 30, 2016, respectively. Many recently acquired communities have experienced deferred maintenance, requiring higher than normal expenditures in the first few years of ownership. Because most of the community expenses consist of fixed costs, as occupancy rates increase, these expense ratios are expected to continue to improve. Since the Company has the ability to increase its rental rates annually, increasing costs due to inflation and changing prices have generally not had a material effect on revenues and income from continuing operations.

27

Sales of manufactured homes increased 26% from $2,251,896 for the three months ended September 30, 2016 to $2,830,314 for the three months ended September 30, 2017. Sales of manufactured homes increased 22% from $6,756,921 for the nine months ended September 30, 2016 to $8,272,395 for the nine months ended September 30, 2017. The Company has seen a 28% increase in the number of homes sold from 132 homes sold for the nine months ended September 30, 2016 to 169 homes sold for the nine months ended September 30, 2017. Cost of sales of manufactured homes amounted to $2,215,767 and $1,803,315 for the three months ended September 30, 2017 and 2016, respectively. Cost of sales of manufactured homes amounted to $6,465,665 and $5,278,587 for the nine months ended September 30, 2017 and 2016, respectively. The gross profit percentage was 22% and 20% for the three months ended September 30, 2017 and 2016, respectively. The gross profit percentage was 22% for both the nine months ended September 30, 2017 and 2016. Selling expenses, which includes salaries, commissions, advertising and other miscellaneous expenses, amounted to $836,939 and $812,392 for the three months ended September 30, 2017 and 2016, respectively. Selling expenses amounted to $2,461,780 and $2,270,861 for the nine months ended September 30, 2017 and 2016, respectively. Loss from the sales operations (defined as sales of manufactured homes less cost of sales of manufactured homes less selling expenses less interest on the financing of inventory) decreased from $515,720 or 23% of total sales for the three months ended September 30, 2016 to $319,996 or 11% of total sales for the three months ended September 30, 2017. Loss from the sales operations decreased from $1,308,765 or 19% of total sales for the nine months ended September 30, 2016 to $1,046,985 or 13% of total sales for the nine months ended September 30, 2017. Although sales of manufactured homes increased 26% over the prior year period, they have not yet returned to pre-recession levels. Many of the costs associated with sales, such as salaries, and to an extent, advertising and promotion, are fixed. The Company continues to be confident about increasing future sales and rental prospects given the fundamental need for affordable housing in its markets.

The U.S. homeownership rate was 63.9% in the third quarter of 2017, according to the U.S. Census. This is down from 69.2% at its peak at the end of 2004. The conventional single-family housing market is gradually strengthening. However, our sales continue to be negatively impacted as a result of the inability of our potential customers to sell their current homes, limited wage growth, stringent licensing laws and government regulations. The real estate sector and consumer spending are contributing to economic growth, which will benefit our industry. As single family residential pricing edges higher, the inherent affordability of our homes becomes more apparent. The Company continues to be optimistic about future sales and rental prospects given the fundamental need for affordable housing.

General and Administrative Expenses remained relatively stable for the three months ended September 30, 2017. General and Administrative Expenses increased 21% from $5,933,299 for the nine months ended September 30, 2016 to $7,190,665 for the nine months ended September 30, 2017. These increases were primarily due to an increase in personnel and personnel costs and an increase in stock compensation expense. Stock compensation expense increased from $896,519 for the nine months ended September 30, 2016 to $998,059 for the nine months ended September 30, 2017. These increases were primarily due to the increase in our stock price, which increased the fair value of the options granted, and to the issuance of stock options to one employee of retirement age. The weighted-average fair value of options granted increased from $0.81 per share for the nine months ended September 30, 2016 to $1.81 for the nine months ended September 30, 2017. Additionally, the entire compensation cost of approximately $201,000 for the employee of retirement age was recognized at the time of grant. General and Administrative expenses as a percentage of gross revenue (Total Income plus Interest, Dividend and Other Income) remains in line at 7.5% and 7.8% for the three and nine months ended September 30, 2017, respectively, compared with 8.5% and 7.4% for the three and nine months ended September 30, 2016, respectively.

28

Acquisition Costs amounted to $-0- for both the three and nine months ended September 30, 2017 and $51,360 for both the three and nine months ended September 30, 2016. As a result of the adoption of ASU 2017-01 prospectively as of January 1, 2017, we account for our property acquisitions as acquisitions of assets and no longer account for our property acquisitions as business combinations. In an acquisition of assets, certain acquisition costs are capitalized to real estate investments as part of the purchase price as opposed to being expensed as Acquisition Costs under the previous accounting treatment for business combinations.

Depreciation Expense increased 19% from $5,887,667 for the three months ended September 30, 2016 to $6,980,113 for the three months ended September 30, 2017. Depreciation Expense increased 19% from $17,092,676 for the nine months ended September 30, 2016 to $20,260,556 for the nine months ended September 30, 2017. These increases were primarily due to the acquisitions and the increase in rental homes during 2016 and 2017.

Interest Income increased 27% from $400,899 for the three months ended September 30, 2016 to $510,358 for the three months ended September 30, 2017. Interest Income increased 23% from $1,206,858 for the nine months ended September 30, 2016 to $1,479,495 for the nine months ended September 30, 2017. These increases were primarily due to an increase in the average balance of notes receivable. The average balance at September 30, 2017 and 2016 was approximately $20.7 million and $18.4 million, respectively.

Dividend Income increased 18% from $1,755,438 for the three months ended September 30, 2016 to $2,068,198 for the three months ended September 30, 2017. Dividend Income increased 18% from $4,834,817 for the nine months ended September 30, 2016 to $5,715,038 for the nine months ended September 30, 2017. These increases were primarily due to the increase in the average balance of Securities Available for Sale from $93.0 million at September 30, 2016 to $120.5 million at September 30, 2017. The dividends received from our securities investments were at a weighted average yield of approximately 7.1% and continue to meet our expectations. It is the Company’s intent to hold these securities long-term.

The Company recognized a Gain on Sales of Securities of $466,521 and $884,458 for the three months ended September 30, 2017 and 2016, respectively. The Company recognized a Gain on Sales of Securities of $1,518,289 and $1,898,836 for the nine months ended September 30, 2017 and 2016, respectively. In addition, the Company’s unrealized holding gains on its investment in securities decreased from an unrealized gain of $16,717,171 as of December 31, 2016 to an unrealized gain of $12,831,755 as of September 30, 2017, resulting in a decrease for the nine months ended September 30, 2017 of $3,885,416.

29

Interest Expense, including Amortization of Financing Costs, increased 3% from $3,774,341 for the three months ended September 30, 2016 to $3,871,046 for the three months ended September 30, 2017. Interest Expense increased 4% from $11,604,123 for the nine months ended September 30, 2016 to $12,040,990 for the nine months ended September 30, 2017. These increases were primarily due to an increase in the average balance of mortgages payable due to the new community acquisitions in 2016 and 2017, as well as additional community financings/re-financings in 2016 and 2017. The average balance of mortgages payable at September 30, 2017 and 2016 was approximately $302.9 million and $284.0 million, respectively. The weighted average interest rate on our mortgage debt was 4.4% and 4.5% at September 30, 2017 and 2016, respectively.

Changes in Financial Condition

Total Investment Property and Equipment increased 13% or $83,094,029 during the nine months ended September 30, 2017. During the nine month period, the Company purchased six communities and added 690 rental homes to its communities. The Company’s occupancy rate on its rental homes portfolio increased 270 basis points and was 94.2% at September 30, 2017 as compared to 91.5% at December 31, 2016.

Mortgages Payable increased 7% or $19,782,588 during the nine months ended September 30, 2017. This increase was due to new mortgages of approximately $44.4 million, partially offset by principal repayments of approximately $24.6 million.

Loans Payable decreased 29% or $16,796,246 during the nine months ended September 30, 2017. This decrease was mainly due to a decrease of $20 million on our unsecured line of credit and a decrease of $5 million on our revolving credit facilities for the purchase of inventory and other loans payable, offset by an increase of $8 million on our margin loan.

Liquidity and Capital Resources

The Company’s focus is on real estate investments, including investment in rental homes. Additionally, the Company invests in marketable debt and equity securities of other REITs. The REIT securities portfolio provides the Company with liquidity and additional income and serves as a proxy for real estate when more favorable risk adjusted returns are not available. The Company generally limits its marketable securities investments to no more than approximately 20% of its undepreciated assets.

The Company’s principal liquidity demands have historically been, and are expected to continue to be, distributions to the Company’s stockholders, acquisitions, capital improvements, development and expansions of properties, debt service, purchases of manufactured home inventory and rental homes, investment in marketable securities of other REITs, financing of manufactured home sales and payments of expenses relating to real estate operations. We anticipate that the liquidity demands of the recent properties acquired will be met by the operations of these acquisitions. The Company’s ability to generate cash adequate to meet these demands is dependent primarily on income from its real estate investments and securities portfolio, the sale of real estate investments and securities, refinancing of mortgage debt, leveraging of real estate investments, availability of bank borrowings, lines of credit, proceeds from the DRIP, and access to the capital markets.

30

In addition to cash generated through operations, the Company uses a variety of sources to fund its cash needs, including acquisitions. The Company may sell marketable securities from its investment portfolio, borrow on its unsecured credit facility or lines of credit, finance and refinance its properties, and/or raise capital through the DRIP and capital markets. The Company intends to continue to increase its real estate investments. Our business plan includes acquiring communities that yield in excess of our cost of funds and then investing in physical improvements, including adding rental homes onto otherwise vacant sites. There is no guarantee that any of these additional opportunities will materialize or that the Company will be able to take advantage of such opportunities. The growth of our real estate portfolio depends on the availability of suitable properties which meet the Company’s investment criteria and appropriate financing. Competition in the market areas in which the Company operates is significant. To the extent that funds or appropriate communities are not available, fewer acquisitions will be made.

On May 31, 2017, the Company issued and sold 1,400,000 shares of its Common Stock in a registered direct placement, and received net proceeds from the offering after expenses of approximately $22.5 million. The Company also raised $48,746,736 from the issuance of common stock in the DRIP during the nine months ended September 30, 2017, which included Dividend Reinvestments of $2,181,064. Dividends paid on the common stock for the nine months ended September 30, 2017 were $17,305,824, of which $2,181,064 were reinvested. Dividends paid on the Company’s Series A Preferred shares, Series B Preferred shares and Series C Preferred shares for the nine months ended September 30, 2017 totaled $12,339,553.

On July 26, 2017, the Company issued 5,000,000 shares of its new 6.75% Series C Cumulative Redeemable Preferred Stock at an offering price of $25.00 per share in an underwritten public offering, for net proceeds, after deducting the underwriting discount and other estimated offering expenses, of approximately $120,800,000. On August 2, 2017, the Company issued an additional 750,000 shares of Series C Preferred Stock pursuant to the underwriters’ exercise of their overallotment option and received additional net proceeds of approximately $18,200,000. The Company used a portion of the net proceeds to redeem all of the 3,663,800 outstanding shares of our Series A Preferred Stock. The balance of the proceeds will be used for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of our existing communities, potential acquisitions of additional properties and possible repayment of indebtedness on a short-term basis.

On August 31, 2017, the Company redeemed all 3,663,800 issued and outstanding shares of its 8.25% Series A Preferred Stock at a redemption price of $25.00 per share, totaling $91,595,000. Unpaid dividends on the Series A Preferred Stock accruing through the redemption date were paid on September 15, 2017 to holders of record as of the August 15, 2017 record date previously established by the Company’s Board of Directors and accordingly such dividends was not included in the redemption price.

Net Cash provided by Operating Activities amounted to $29,090,188 and $21,403,450 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the Company had Cash and Cash Equivalents of $14.8 million, Securities Available for Sale of $132.2 million, encumbered by $30.8 million in margin loans, $6.0 million available on its revolving line of credit for the financing of home sales and approximately $28 million available on its revolving credit facilities for the financing of inventory purchases.

31

In March 2017, the Company entered into an amended and restated credit agreement to renew and expand its existing unsecured revolving credit facility. The Facility provides for an increase from $35 million in available borrowings to $50 million in available borrowings with a $75 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions. As of September 30, 2017, no amounts were outstanding under the Facility.

The Company owns 107 communities, of which 34 are unencumbered. The Company’s marketable securities, non-mortgaged properties, and lines of credit provide the Company with additional sources of liquidity. The Company has been raising capital through its DRIP and through public offerings and registered direct placements of its common and preferred stock.

As of September 30, 2017, the Company had total assets of $785,795,154 and total liabilities of $368,055,835. The Company’s net debt (net of unamortized debt issuance costs and cash and cash equivalents) to total market capitalization as of September 30, 2017 was approximately 30% and the Company’s net debt, less securities to total market capitalization as of September 30, 2017 was approximately 18%. The Company believes that it has the ability to meet its obligations and to generate funds for new investments.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

Funds from Operations

We also assess and measure our overall operating results based upon an industry performance measure referred to as Funds from Operations (“FFO”), which management believes is a useful indicator of our operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure of a REIT. FFO, as defined by The National Association of Real Estate Investment Trusts (“NAREIT”), represents net income (loss) attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (“U.S. GAAP”), excluding extraordinary items, as defined under U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, and impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance. We define Core Funds from Operations (“Core FFO”), as FFO, excluding acquisition costs, costs of early extinguishment of debt and costs associated with the Redemption of Preferred Stock. We define Normalized Funds from Operations (“Normalized FFO”), as Core FFO, excluding gains and losses realized on securities investments and certain one-time charges. FFO, Core FFO and Normalized FFO should be considered as supplemental measures of operating performance used by REITs. FFO, Core FFO and Normalized FFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO, Core FFO and Normalized FFO and, accordingly, our FFO, Core FFO and Normalized FFO may not be comparable to all other REITs. The items excluded from FFO, Core FFO and Normalized FFO are significant components in understanding the Company’s financial performance.

32

FFO, Core FFO and Normalized FFO (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as alternatives to net income (loss) as a measure of operating performance or to cash flows from operating, investing and financing activities; and (iii) are not alternatives to cash flow as a measure of liquidity.

The reconciliation of the Company’s U.S. GAAP Net Income (Loss) to the Company’s FFO, Core FFO and Normalized FFO for the three and nine months ended September 30, 2017 and 2016 are calculated as follows:

	Three Months Ended						Nine Months Ended
	9/30/17			9/30/16			9/30/17			9/30/16
Net Loss Attributable to Common Shareholders	$	(5,179,423	)	$	(589,734	)	$	(6,883,500	)	$	(2,155,741	)
Depreciation Expense		6,980,113			5,887,667			20,260,556			17,092,676
Loss on Sales of Depreciable Assets		18,898			572			29,540			23,510
FFO Attributable to Common Shareholders		1,819,588			5,298,505			13,406,596			14,960,445
Adjustments:
Acquisition Costs		-0-			51,360			-0-			51,360
Redemption of Preferred Stock		3,502,487			-0-			3,502,487			-0-
Core FFO Attributable to Common Shareholders		5,322,075			5,349,865			16,909,083			15,011,805
Adjustments:
Gain on Sales of Securities, net		(466,521	)		(884,458	)		(1,518,289	)		(1,898,836	)
Normalized FFO Attributable to Common Shareholders	$	4,855,554		$	4,465,407		$	15,390,794		$	13,112,969

33

The following are the cash flows provided (used) by operating, investing and financing activities for the nine months ended September 30, 2017 and 2016:

	Nine Months Ended
	9/30/17			9/30/16
Operating Activities	$	29,090,188		$	21,403,450
Investing Activities		(115,409,261	)		(59,957,952	)
Financing Activities		96,943,425			35,728,502

Cautionary Statement Regarding Forward-Looking Statements

Statements contained in this Form 10-Q, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about the Company’s expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, performance and underlying assumptions and other statements that are not historical facts. Forward-looking statements can be identified by their use of forward-looking words, such as “may,” “will,” “anticipate,” “expect,” “believe,” “intend,” “plan,” “should,” “seek” or comparable terms, or the negative use of those words, but the absence of these words does not necessarily mean that a statement is not forward-looking.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of these factors are described below and under the headings “Business”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These and other risks, uncertainties and factors could cause our actual results to differ materially from those included in any forward-looking statements we make. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from our expectations include, among others:

● changes in the real estate market conditions and general economic conditions;

● the inherent risks associated with owning real estate, including local real estate market conditions, governing laws and regulations affecting manufactured housing communities and illiquidity of real estate investments;

● increased competition in the geographic areas in which we own and operate manufactured housing communities;

34

● our ability to continue to identify, negotiate and acquire manufactured housing communities and/or vacant land which may be developed into manufactured housing communities on terms favorable to us;

● our ability to maintain rental rates and occupancy levels;

● changes in market rates of interest;

● our ability to repay debt financing obligations;

● our ability to refinance amounts outstanding under our credit facilities at maturity on terms favorable to us;

● our ability to comply with certain debt covenants;

● our ability to integrate acquired properties and operations into existing operations;

● the availability of other debt and equity financing alternatives;

● continued ability to access the debt or equity markets;

● the loss of any member of our management team;

● our ability to maintain internal controls and processes to ensure all transactions are accounted for properly, all relevant disclosures and filings are timely made in accordance with all rules and regulations, and any potential fraud or embezzlement is thwarted or detected;

● the ability of manufactured home buyers to obtain financing;

● the level of repossessions by manufactured home lenders;

● market conditions affecting our investment securities;

● changes in federal or state tax rules or regulations that could have adverse tax consequences;

● our ability to qualify as a real estate investment trust for federal income tax purposes; and,

● those risks and uncertainties referenced under the heading “Risk Factors” contained in this Form 10-Q and the Company’s other filings with the Securities and Exchange Commission.

You should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. The forward-looking statements contained in this Form 10-Q speak only as of the date hereof and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to information required regarding quantitative and qualitative disclosures about market risk from the end of the preceding year to the date of this Quarterly Report on Form 10-Q.

Item 4. Controls and Procedures

The Company’s President and Chief Executive Officer (principal executive officer) and the Company’s Vice President and Chief Financial Officer (principal financial and accounting officer), with the assistance of other members of the Company’s management, have evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, the Company’s President and Chief Executive Officer and Vice President and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective as of the end of such period.

Changes In Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarterly period ended September 30, 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

35

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to information required regarding risk factors from the end of the preceding year to the date of this Quarterly Report on Form 10-Q. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A – “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, which could materially affect the Company’s business, financial condition or future results. The risks described in the Company’s Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

(a)	Information Required to be Disclosed in a Report on Form 8-K, but not Reported – None.
(b)	Material Changes to the Procedures by which Security Holders may Recommend Nominees to the Board of Directors – None.

36

Item 6. Exhibits

31.1	Certification of Samuel A. Landy, President and Chief Executive Officer of the Company, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (Filed herewith).
31.2	Certification of Anna T. Chew, Chief Financial Officer of the Company, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (Filed herewith).
32	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Samuel A. Landy, President and Chief Executive Officer, and Anna T. Chew, Chief Financial Officer (Furnished herewith).
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income (Loss), (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements.
	As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

37

SIGNATURES

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

	UMH PROPERTIES, INC.
DATE: November 2, 2017	By:	/s/ Samuel A. Landy
		Samuel A. Landy
		President and Chief Executive Officer
		(Principal Executive Officer)
DATE: November 2, 2017	By:	/s/ Anna T. Chew
		Anna T. Chew
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

38

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Samuel A. Landy, certify that:

1. I have reviewed this quarterly report on Form 10-Q of UMH Properties, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2017

/s/ Samuel A. Landy

Samuel A. Landy

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Anna T. Chew, certify that:

1. I have reviewed this quarterly report on Form 10-Q of UMH Properties, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 2, 2017

/s/ Anna T. Chew

Anna T. Chew

Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION OF CEO PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of UMH Properties, Inc. (the “Company”) for the quarterly period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Samuel A. Landy, as President and Chief Executive Officer of the Company, and Anna T. Chew, as Vice President and Chief Financial Officer, each hereby certifies, pursuant to 18 U.S.C. (section) 1350, as adopted pursuant to (section) 906 of the Sarbanes-Oxley Act of 2002, that, to the best of their knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Samuel A. Landy
Name:	Samuel A. Landy
Title:	President and Chief Executive Officer
Date:	November 2, 2017

By:	/s/ Anna T. Chew
Name:	Anna T. Chew
Title:	Vice President and Chief Financial Officer
Date:	November 2, 2017

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 30, 2017
Document And Entity Information
Entity Registrant Name	UMH PROPERTIES, INC.
Entity Central Index Key	0000752642
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,926,759
Trading symbol	UMH
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2017

XML

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Investment Property and Equipment
Land	$ 58,679,126	$ 47,476,314
Site and Land Improvements	434,687,047	398,776,390
Buildings and Improvements	22,537,450	21,101,836
Rental Homes and Accessories	205,808,456	172,862,227
Total Investment Property	721,712,079	640,216,767
Equipment and Vehicles	16,584,913	14,986,196
Total Investment Property and Equipment	738,296,992	655,202,963
Accumulated Depreciation	(159,593,306)	(140,255,603)
Net Investment Property and Equipment	578,703,686	514,947,360
Other Assets
Cash and Cash Equivalents	14,840,944	4,216,592
Securities Available for Sale at Fair Value	132,212,410	108,755,172
Inventory of Manufactured Homes	17,493,173	17,424,574
Notes and Other Receivables, net	24,366,221	20,323,191
Prepaid Expenses and Other Assets	5,635,719	4,497,937
Land Development Costs	12,543,001	10,279,992
Total Other Assets	207,091,468	165,497,458
TOTAL ASSETS	785,795,154	680,444,818
LIABILITIES:
Mortgages Payable, net of unamortized debt issuance costs	312,808,180	293,025,592
Other Liabilities:
Accounts Payable	3,709,828	2,962,037
Loans Payable, net of unamortized debt issuance costs	41,489,139	58,285,385
Accrued Liabilities and Deposits	5,078,658	4,820,142
Tenant Security Deposits	4,970,030	4,319,695
Total Other Liabilities	55,247,655	70,387,259
Total Liabilities	368,055,835	363,412,851
Commitments and Contingencies
Shareholders' Equity:
Series A - 8.25% Cumulative Redeemable Preferred Stock, par value $0.10 per share; -0- and 3,663,800 shares authorized, issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	0	91,595,000
Series B - 8.0% Cumulative Redeemable Preferred Stock, par value $0.10 per share; 4,000,000 shares authorized; 3,801,200 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	95,030,000	95,030,000
Series C - 6.75% Cumulative Redeemable Preferred Stock, par value $0.10 per share; 5,750,000 and -0- shares authorized, issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	143,750,000	0
Common Stock - $0.10 par value per share; 113,663,800 and 75,000,000 shares authorized, 34,686,428 and 29,388,811 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	3,468,643	2,938,881
Excess Stock - $0.10 par value per share; 3,000,000 shares authorized; no shares issued or outstanding as of September 30, 2017 and December 31, 2016, respectively	0	0
Additional Paid-In Capital	163,326,714	111,422,691
Accumulated Other Comprehensive Income	12,831,755	16,713,188
Accumulated Deficit	(667,793)	(667,793)
Total Shareholders' Equity	417,739,319	317,031,967
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 785,795,154	$ 680,444,818

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	113,663,800	75,000,000
Common stock, shares issued	34,686,428	29,388,811
Common stock, shares outstanding	34,686,428	29,388,811
Excess stock, par value	$ 0.10	$ 0.10
Excess stock, shares authorized	3,000,000	3,000,000
Excess stock, shares issued
Excess stock, shares outstanding
Series A Cumulative Redeemable Preferred Stock [Member]
Percentage rate on cumulative redeemable preferred stock	8.25%	8.25%
Cumulative redeemable preferred stock, par value	$ 0.10	$ 0.10
Cumulative redeemable preferred stock, shares authorized	0	3,663,800
Cumulative redeemable preferred stock, shares issued	0	3,663,800
Cumulative redeemable preferred stock, shares outstanding	0	3,663,800
Series B Cumulative Redeemable Preferred Stock [Member]
Percentage rate on cumulative redeemable preferred stock	8.00%	8.00%
Cumulative redeemable preferred stock, par value	$ 0.10	$ 0.10
Cumulative redeemable preferred stock, shares authorized	4,000,000	4,000,000
Cumulative redeemable preferred stock, shares issued	3,801,200	3,801,200
Cumulative redeemable preferred stock, shares outstanding	3,801,200	3,801,200
Series C Cumulative Redeemable Preferred Stock [Member]
Percentage rate on cumulative redeemable preferred stock	6.75%	6.75%
Cumulative redeemable preferred stock, par value	$ 0.10	$ 0.10
Cumulative redeemable preferred stock, shares authorized	5,750,000	0
Cumulative redeemable preferred stock, shares issued	5,750,000	0
Cumulative redeemable preferred stock, shares outstanding	5,750,000	0

XML

Consolidated Statements of Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
INCOME:
Rental and Related Income	$ 25,854,623	$ 23,103,155	$ 75,678,939	$ 67,313,211
Sales of Manufactured Homes	2,830,314	2,251,896	8,272,395	6,756,921
Total Income	28,684,937	25,355,051	83,951,334	74,070,132
EXPENSES:
Community Operating Expenses	12,317,856	10,719,289	35,669,793	31,993,965
Cost of Sales of Manufactured Homes	2,215,767	1,803,315	6,465,665	5,278,587
Selling Expenses	836,939	812,392	2,461,780	2,270,861
General and Administrative Expenses	2,354,054	2,293,366	7,190,665	5,933,299
Acquisition Costs	0	51,360	0	51,360
Depreciation Expense	6,980,113	5,887,667	20,260,556	17,092,676
Total Expenses	24,704,729	21,567,389	72,048,459	62,620,748
OTHER INCOME (EXPENSE):
Interest Income	510,358	400,899	1,479,495	1,206,858
Dividend Income	2,068,198	1,755,438	5,715,038	4,834,817
Gain on Sales of Securities, net	466,521	884,458	1,518,289	1,898,836
Other Income	126,660	146,469	592,251	395,682
Interest Expense	(3,871,046)	(3,774,341)	(12,040,990)	(11,604,123)
Total Other Income (Expense)	(699,309)	(587,077)	(2,735,917)	(3,267,930)
Income before Loss on Sales of Investment Property and Equipment	3,280,899	3,200,585	9,166,958	8,181,454
Loss on Sales of Investment Property and Equipment	(18,898)	(572)	(29,540)	(23,510)
Net Income	3,262,001	3,200,013	9,137,418	8,157,944
Less: Preferred Dividends	(4,938,937)	(3,789,747)	(12,518,431)	(10,313,685)
Less: Redemption of Preferred Stock	(3,502,487)	0	(3,502,487)	0
Net Loss Attributable to Common Shareholders	$ (5,179,423)	$ (589,734)	$ (6,883,500)	$ (2,155,741)
Basic and Diluted Income (Loss) Per Share:
Net Income	$ 0.10	$ 0.12	$ 0.29	$ 0.30
Less: Preferred Dividends	$ (0.14)	$ (0.14)	$ (0.39)	$ (0.38)
Less: Redemption of Preferred Stock	(0.11)	0	(0.11)	0
Net Loss Attributable to Common Shareholders	$ (0.15)	$ (0.02)	$ (0.21)	$ (0.08)
Weighted Average Common Shares Outstanding:
Basic and Diluted	34,102,231	27,891,370	31,918,211	27,450,747

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net Income	$ 3,262,001	$ 3,200,013	$ 9,137,418	$ 8,157,944
Other Comprehensive Income (Loss):
Unrealized Holding Gain (Loss) Arising During the Period	2,486,402	5,489,522	(2,367,127)	24,911,089
Reclassification Adjustment for Net Gains Realized in Income	(466,521)	(884,458)	(1,518,289)	(1,898,836)
Change in Fair Value of Interest Rate Swap Agreements	(3,164)	25,410	3,983	(15,455)
Comprehensive Income	5,278,718	7,830,487	5,255,985	31,154,742
Less: Preferred Dividends	(4,938,937)	(3,789,747)	(12,518,431)	(10,313,685)
Less: Redemption of Preferred Stock	(3,502,487)	0	(3,502,487)	0
Comprehensive Income (Loss) Attributable to Common Shareholders	$ (3,162,706)	$ 4,040,740	$ (10,764,933)	$ 20,841,057

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 9,137,418	$ 8,157,944
Non-Cash items included in Net Income:
Depreciation	20,260,556	17,092,676
Amortization of Financing Costs	496,225	580,335
Stock Compensation Expense	998,059	896,519
Provision for Uncollectible Notes and Other Receivables	(934,794)	650,382
Gain on Sales of Securities, net	(1,518,289)	(1,898,836)
Loss on Sales of Investment Property and Equipment	29,540	23,510
Changes in Operating Assets and Liabilities:
Inventory of Manufactured Homes	(68,599)	(2,024,369)
Notes and Other Receivables, net of Notes Acquired with Acquisitions	167,229	(1,542,870)
Prepaid Expenses and Other Assets	(1,137,782)	(875,188)
Accounts Payable	747,791	977,426
Accrued Liabilities and Deposits	262,499	(1,189,041)
Tenant Security Deposits	650,335	554,962
Net Cash Provided by Operating Activities	29,090,188	21,403,450
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities	(40,877,655)	(2,954,000)
Purchase of Investment Property and Equipment	(48,095,917)	(44,239,188)
Proceeds from Sales of Investment Property and Equipment	1,651,685	844,097
Additions to Land Development Costs	(2,263,009)	(2,484,948)
Purchase of Securities Available for Sale	(38,002,778)	(23,453,933)
Proceeds from Sales of Securities Available for Sale	12,178,413	12,330,020
Net Cash Used in Investing Activities	(115,409,261)	(59,957,952)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Mortgages	44,420,000	15,458,000
Net Payments on Short Term Borrowings	(16,791,278)	(1,330,266)
Principal Payments of Mortgages	(24,543,481)	(13,629,215)
Financing Costs on Debt	(595,124)	(390,961)
Proceeds from Issuance of Preferred Stock, net of offering costs	138,983,808	49,120,853
Redemption of 8.25% Series A Preferred Stock	(91,595,000)	0
Proceeds from Registered Direct Placement of Common Stock, net of offering costs	22,527,507	0
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments	46,565,672	9,267,775
Proceeds from Exercise of Stock Options	5,435,634	1,081,380
Preferred Dividends Paid	(12,339,553)	(10,773,898)
Common Dividends Paid, net of Dividend Reinvestments	(15,124,760)	(13,075,166)
Net Cash Provided by Financing Activities	96,943,425	35,728,502
Net Increase (Decrease) in Cash and Cash Equivalents	10,624,352	(2,826,000)
Cash and Cash Equivalents at Beginning of Period	4,216,592	6,535,897
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 14,840,944	$ 3,709,897

XML

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2017
Statement of Cash Flows [Abstract]
Redemption of preferred stock, percentage	8.25%

XML

Organization and Accounting Policies

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Organization and Accounting Policies

NOTE 1 – ORGANIZATION AND ACCOUNTING POLICIES

UMH Properties, Inc., a Maryland corporation, together with its subsidiaries (“we”, “our”, “us” or “the Company”) operates as a real estate investment trust (“REIT”) deriving its income primarily from real estate rental operations. The Company owns and operates one hundred seven manufactured home communities containing approximately 19,400 developed home sites as of September 30, 2017. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. The Company, through its wholly-owned taxable subsidiary, UMH Sales and Finance, Inc. (“S&F”), conducts manufactured home sales to residents and prospective residents in its communities. Inherent in the operations of manufactured home communities are site vacancies. S&F was established to fill these vacancies and enhance the value of the communities. The Company also owns a portfolio of REIT securities which the Company generally limits to no more than approximately 20% of its undepreciated assets, which is the Company’s total assets excluding accumulated depreciation. The consolidated financial statements of the Company include S&F and all of its other wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code (the “Code”), and intends to maintain its qualification as a REIT in the future. As a qualified REIT, with limited exceptions, the Company will not be taxed under federal and certain state income tax laws at the corporate level on taxable income that it distributes to its shareholders. For special tax provisions applicable to REITs, refer to Sections 856-860 of the Code. The Company is subject to franchise taxes in some of the states in which the Company owns property.

The interim Consolidated Financial Statements furnished herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

In preparing the consolidated financial statements in accordance with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as contingent assets and liabilities as of the dates of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates and assumptions.

Reclassifications

Certain amounts in the financial statements for the prior periods have been reclassified to conform to the statement presentation for the current periods.

Derivative Instruments and Hedging Activities

In the normal course of business, the Company is exposed to financial market risks, including interest rate risk on its variable rate debt. The Company attempts to limit these risks by following established risk management policies, procedures and strategies, including the use of derivative financial instruments. The Company’s primary strategy in entering into derivative contracts is to minimize the variability that changes in interest rates could have on its future cash flows. The Company generally employs derivative instruments that effectively convert a portion of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes. The Company had entered into various interest rate swap agreements that have had the effect of fixing interest rates relative to specific mortgage loans. As of September 30, 2017, these agreements have expired and the Company no longer had any interest rate swap agreements in effect.

Recently Adopted Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business.” ASU 2017-01 seeks to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, intangible assets and consolidation. The adoption of ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments should be applied prospectively on or after the effective dates. Early adoption is permitted. The Company adopted this standard effective January 1, 2017, on a prospective basis. The Company evaluated its acquisitions and has determined that its acquisitions of manufactured home communities during 2017 should be accounted for as acquisitions of assets. As such, transaction costs of approximately $368,000 have been capitalized as part of the cost of the acquisitions, which is then subject to a purchase price allocation based on relative fair value.

In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation.” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company adopted this standard effective January 1, 2017, and it did not have a material impact on our financial position, results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” ASU 2015-11 applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (“IFRS”). The Company adopted this standard effective January 1, 2017, and it did not have a material impact on our financial position, results of operations or cash flows.

Other Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” ASU 2017-09 clarifies which changes to the terms or conditions of a share based payment award are subject to the guidance on modification accounting under FASB Accounting Standards Codification Topic 718. Entities would apply the modification accounting guidance unless the value, vesting requirements and classification of a share based payment award are the same immediately before and after a change to the terms or conditions of the award. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

On February 22, 2017, the FASB issued ASU No. 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets.” ASU 2017-05 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance non-financial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any non-controlling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. As a result of the new guidance, the guidance specific to real estate sales in ASC 360-20 will be eliminated. As such, sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2017. Early adoption is permitted. The Company believes that the adoption of this standard will not have a material impact on our financial position, results of operations or cash flows. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2019. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements and the timing of adoption.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements and the timing of adoption.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)”. The objective of this amendment is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this amendment, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. This amendment applies to all contracts with customers except those that are within the scope of other topics in the FASB ASC. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. In July 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has not yet selected which transition method it will apply upon adoption. Our primary source of revenue is generated through leasing arrangements, which is specifically excluded from ASU 2014-09. We continue to evaluate and are in the process of quantifying the impact, if any, the adoption of ASU 2014-09 will have on our non-lease revenue streams, including sales of manufactured homes, interest income, dividend income and other income. While our evaluations are ongoing, we do not expect material changes to our accounting policies for these revenue streams.

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements.

XML

Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

NOTE 2 – NET INCOME (LOSS) PER SHARE

Basic Net Income (Loss) per Share is calculated by dividing Net Income (Loss) by the weighted average shares outstanding for the period. Diluted Net Income (Loss) per Share is calculated by dividing Net Income (Loss) by the weighted average number of common shares outstanding plus the weighted average number of net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. For the three and nine months ended September 30, 2017, employee stock options to purchase 1,778,100 shares of common stock were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would be anti-dilutive. For the three and nine months ended September 30, 2016, employee stock options to purchase 1,900,500 shares of common stock were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would be anti-dilutive.

XML

Investment Property and Equipment

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

Investment Property and Equipment

NOTE 3 – INVESTMENT PROPERTY AND EQUIPMENT

Acquisitions

On January 20, 2017, the Company acquired two manufactured home communities, Hillcrest Estates and Marysville Estates, located in Ohio, for approximately $9,588,000. These all-age communities contain a total of 532 developed homesites that are situated on approximately 149 total acres. At the date of acquisition, the average occupancy for these communities was approximately 57%.

On January 20, 2017, the Company also acquired two manufactured home communities located in Indiana for approximately $24,437,000. This acquisition consists of Boardwalk, an age restricted community containing 195 homesites, and Parke Place, an all-age community containing 364 homesites. These communities are situated on approximately 155 total acres. At the date of acquisition, the average occupancy for these communities was approximately 77%. In conjunction with this acquisition, the Company obtained a 10-year, $14,250,000 mortgage with an interest rate of 4.56% and a 30-year amortization (See Note 5).

On January 24, 2017, the Company acquired Hillcrest Crossing, a manufactured home community located in Pennsylvania, for approximately $2,485,000. This all-age community contains a total of 200 developed homesites that are situated on approximately 78 total acres. At the date of acquisition, the occupancy for this community was approximately 40%.

On May 31, 2017, the Company acquired Cinnamon Woods, a manufactured home community located in Maryland, for $4,000,000. This age restricted community contains a total of 63 developed homesites that are situated on approximately 79 total acres, of which approximately 61 acres are available for expansion. At the date of acquisition, the occupancy for this community was approximately 92%.

These acquisitions have been accounted for utilizing the acquisition method of accounting in accordance with ASC 805, Business Combinations, and accordingly, the results of the acquired assets are included in the statements of income (loss) from the date of acquisition. The following table summarizes the estimated fair value of the assets acquired, including transaction costs of approximately $368,000, for the nine months ended September 30, 2017:

	At Acquisition Date
Assets Acquired:
Land	$	11,045,000
Depreciable Property		26,557,190
Notes Receivable and Other		3,275,465
Total Assets Acquired	$	40,877,655

The allocations of the fair value of the assets acquired are subject to further adjustment as final costs and valuations are determined.

See Note 12 for the Unaudited Pro Forma Financial Information relating to these acquisitions.

Other

Many oil and gas companies compete for the opportunity to drill for oil and gas. Successful bidders pay an upfront purchase price (“bonus payment”). In May 2017, the Company received a bonus payment of $251,680 at one of its communities, which has been recorded as Other Income. This amount is not refundable and has been earned since the Company has no further obligation relating to it. In addition to this upfront bonus payment, the Company entered into an agreement (“Lease”) whereby the oil and gas company may remove the oil and gas from the property, provided that it pays the Company an 18% fee (“royalty”) based on the amount of the oil and gas removed. The term of the Lease is for five years.

XML

Securities Available for Sale

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

NOTE 4 – SECURITIES AVAILABLE FOR SALE

The Company’s Securities Available for Sale at Fair Value consists primarily of marketable common and preferred stock of other REITs with a fair value of $132,212,410 as of September 30, 2017. The Company generally limits its investment in marketable securities to no more than approximately 20% of its undepreciated assets. The REIT securities portfolio provides the Company with additional liquidity and additional income and serves as a proxy for real estate when more favorable risk adjusted returns are not available.

During the nine months ended September 30, 2017, the Company sold securities with a cost basis of $10,660,124 and recognized a Gain on Sale of $1,518,289. The Company also made purchases of $38,002,778 in Securities Available for Sale. Of this amount, the Company made total purchases of 75,836 common shares of Monmouth Real Estate Investment Corporation (“MREIC”), a related REIT, through MREIC’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $1,084,324 or weighted average cost of $14.30 per share. The Company owned a total of 2,313,424 MREIC common shares as of September 30, 2017 at a total cost of $20,315,735 and a fair value of $37,454,330.

As of September 30, 2017, the Company had total net unrealized gains of $12,831,755 in its REIT securities portfolio. The Company held ten securities that had unrealized losses as of September 30, 2017. The Company considers many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment. The Company normally holds REIT securities long-term and has the ability and intent to hold these securities to recovery.

The following is a summary of the securities that the Company has determined to be temporarily impaired as of September 30, 2017:

	Less Than 12 Months					12 Months or Longer
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Preferred Stock	$	542,280	$	(2,396	)	$	-0-	$	-0-
Common Stock		67,438,450		(5,249,555	)		-0-		-0-
Total	$	67,980,730	$	(5,251,951	)	$	-0-	$	-0-

The following is a summary of the range of the losses on these temporarily impaired securities:

Number of Individual Securities	Fair Value		Unrealized Loss			Range of Loss
8	$	52,273,480	$	(1,364,570	)		0-4	%
1		3,332,000		(302,882	)		8	%
1		12,375,250		(3,584,499	)		22	%
10	$	67,980,730	$	(5,251,951	)

XML

Loans and Mortgages Payable

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Loans and Mortgages Payable

NOTE 5 – LOANS AND MORTGAGES PAYABLE

Unsecured Line of Credit

On March 28, 2017, the Company entered into an amended and restated credit agreement to renew and expand its existing unsecured revolving credit facility. The new unsecured revolving credit facility (the “Facility”) was syndicated with BMO Capital Markets (“BMO”), as sole lead arranger and sole book runner, with Bank of Montreal as administrative agent. The Facility provides for an increase from $35 million in available borrowings to $50 million in available borrowings with a $75 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions. The maturity date of the Facility is March 27, 2020, with a one year extension option. Borrowings will bear interest at the Company’s option of LIBOR plus 1.75% to 2.50% or BMO’s prime lending rate plus 0.75% to 1.50%, based on the Company’s overall leverage. Based on the Company’s current leverage ratio, borrowings under the Facility will bear interest at LIBOR plus 2% or at BMO’s prime lending rate plus 1%. As of September 30, 2017, there were no amounts outstanding under the Facility.

Loans Payable

Loans Payable includes unamortized debt issuance costs of $113,022 and $108,054 at September 30, 2017 and December 31, 2016, respectively. The weighted average interest rate was 2.7% and 3.1% at September 30, 2017 and December 31, 2016. At September 30, 2017, $30,842,204 was outstanding on the margin loan at a 2.05% interest rate.

In June 2017, the Company entered into an amended and restated revolving line of credit with OceanFirst Bank (“OceanFirst Line”), secured by the Company’s eligible notes receivable. The maximum availability on the OceanFirst Line is $10 million. Interest was reduced from prime plus 50 basis points to prime plus 25 basis points. The new maturity date is June 1, 2020. As of September 30, 2017, the amount outstanding under the OceanFirst Line was $4 million and the interest rate was 4.5%.

Mortgages Payable

On January 20, 2017, the Company obtained a $14,250,000 Federal Home Loan Mortgage Corporation (“Freddie Mac”) mortgage through Wells Fargo Bank, N.A. (“Wells Fargo”) on Boardwalk and Parke Place in connection with the Company’s acquisition of these communities. This mortgage is at a fixed rate of 4.56% and matures on February 1, 2027. Principal repayments are based on a 30-year amortization schedule.

On May 31, 2017, the Company obtained a $16,800,000 Freddie Mac mortgage through Wells Fargo on Highland Estates. This mortgage is at a fixed rate of 4.12% and matures on September 1, 2027. Principal repayments are based on a 30-year amortization schedule. Proceeds from this mortgage was used to repay the existing $9,000,000 mortgage with an interest rate of 6.175%.

On August 28, 2017, the Company obtained a $13,370,000 mortgage loan on six communities from Sun National Bank. This mortgage is at a fixed rate of 4.18% and matures on August 1, 2027. Principal repayments are based on a 30-year amortization schedule. Proceeds from this mortgage was used to repay the existing $10,000,000 mortgage, secured by eleven communities with an interest rate of LIBOR plus 3%, which was fixed at 3.89% with an interest rate swap.

The following is a summary of our mortgages payable as of September 30, 2017 and December 31, 2016:

	9/30/2017						12/31/2016
	Amount			Rate			Amount			Rate
Fixed rate mortgages	$	316,337,850			4.3	%	$	285,584,102			4.4	%
Variable rate mortgages (1)		102,651			4.3	%		10,979,881			3.9	%
Total mortgages before unamortized debt issuance costs		316,440,501			4.3	%		296,563,983			4.3	%
Unamortized debt issuance costs		(3,632,321	)					(3,538,391	)
Mortgages, net of unamortized debt issuance costs	$	312,808,180			4.4	%	$	293,025,592			4.4	%

(1) Includes a variable rate mortgage with a balance of $-0- and $10,625,352 as of September 30, 2017 and December 31, 2016, respectively, which was effectively fixed at an interest rate of 3.89% with an interest rate swap agreement.

XML

Shareholders' Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Shareholders' Equity

NOTE 6 - SHAREHOLDERS’ EQUITY

Common Stock

On June 5, 2017, the Company issued and sold 1,400,000 shares of its Common Stock in a registered direct placement at a sale price of $16.60 per share. The Company received net proceeds from the offering after expenses of approximately $22.5 million and intends to use the net proceeds for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of its existing communities, potential acquisitions of additional properties and possible repayment of indebtedness on a short-term basis.

On September 15, 2017, the Company paid total cash dividends of $6,188,961 or $0.18 per share to common shareholders of record as of the close of business on August 15, 2017, of which $794,744 was reinvested in the Dividend Reinvestment and Stock Purchase Plan (“DRIP”). Total dividends paid to our common shareholders for the nine months ended September 30, 2017 amounted to $17,305,824, of which $2,181,064, was reinvested. On October 2, 2017, the Company declared a dividend of $0.18 per share to be paid December 15, 2017 to common shareholders of record as of the close of business on November 15, 2017.

During the nine months ended September 30, 2017, the Company received, including dividends reinvested of $2,181,064 a total of $48,746,736 from its DRIP. There were 3,293,638 new shares issued under the DRIP during this period.

8.25% Series A Cumulative Redeemable Preferred Stock

On August 31, 2017, the Company redeemed all 3,663,800 issued and outstanding shares of its 8.25% Series A Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series A Preferred”) at a redemption price of $25.00 per share, totaling $91,595,000. Unpaid dividends on the Series A Preferred accruing for the period from June 1, 2017 through the redemption date, totaling $1,889,147 (or $0.515625 per share) were paid on September 15, 2017 to holders of record as of the August 15, 2017 record date previously established by the Company’s Board of Directors and accordingly such dividends were not included in the redemption price. The Company recognized a preferred share redemption charge of approximately $3,502,000 related to the original issuance costs.

During the nine months ended September 30, 2017, the Company paid $5,667,441 in Preferred Dividends, or $1.546875 per share, on its then outstanding Series A Preferred.

8.0% Series B Cumulative Redeemable Preferred Stock

On September 15, 2017, the Company paid $1,900,600 in dividends or $0.50 per share for the period from June 1, 2017 through August 31, 2017 to holders of record as of the close of business on August 15, 2017 of our 8.0% Series B Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series B Preferred”). Dividends on our Series B Preferred shares are cumulative and payable quarterly at an annual rate of $2.00 per share. Total dividends paid to our Series B Preferred shareholders for the nine months ended September 30, 2017 amounted to $5,701,800.

On October 2, 2017, the Company declared a dividend of $0.50 per share for the period from September 1, 2017 through November 30, 2017 to be paid on December 15, 2017 to Series B Preferred shareholders of record as of the close of business on November 15, 2017.

6.75% Series C Cumulative Redeemable Preferred Stock

On July 26, 2017, the Company issued 5,000,000 shares of its new 6.75% Series C Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series C Preferred”) at an offering price of $25.00 per share in an underwritten public offering. The Company received net proceeds from the sale of these 5,000,000 shares, after deducting the underwriting discount and other estimated offering expenses, of approximately $120,800,000. On August 2, 2017, the Company issued an additional 750,000 shares of Series C Preferred pursuant to the underwriters’ exercise of their overallotment option and received additional net proceeds of approximately $18,200,000.

The Company used a portion of the net proceeds from the sale of Series C Preferred to redeem all of the 3,663,800 outstanding shares of our Series A Preferred. The balance of the offering proceeds will be used for general corporate purposes, which may include purchase of manufactured homes for sale or lease to customers, expansion of our existing communities, potential acquisitions of additional properties and possible repayment of indebtedness on a short-term basis.

Dividends on the Series C Preferred shares are cumulative from July 26, 2017 at an annual rate of $1.6875 per share and will be payable quarterly in arrears on March 15, June 15, September 15, and December 15. The first quarterly dividend on the Series C Preferred was payable September 15, 2017 and amounted to $970,312 or $0.16875 per share for the dividend period from July 26, 2017 to August 31, 2017.

The Series C Preferred, par value $0.10 per share, has no maturity and will remain outstanding indefinitely unless redeemed or otherwise repurchased. Except in limited circumstances relating to the Company’s qualification as a REIT, and as described below, the Series C Preferred is not redeemable prior to July 26, 2022. On and after July 26, 2022, the Series C Preferred will be redeemable at the Company’s option for cash, in whole or, from time to time, in part, at a price per share equal to $25.00, plus all accrued and unpaid dividends (whether or not declared) to the date of redemption. The Series C Preferred shares rank on a parity with the Company’s Series B Preferred shares with respect to dividend rights and rights upon liquidation, dissolution or winding up.

Upon the occurrence of a Delisting Event or Change of Control, each as defined in the Prospectus pursuant to which the shares of Series C Preferred were offered, each holder of the Series C Preferred will have the right to convert all or part of the shares of the Series C Preferred held into common stock of the Company, unless the Company elects to redeem the Series C Preferred.

Holders of the Series C Preferred Stock generally have no voting rights, except if the Company fails to pay dividends for nine or more quarterly periods, whether or not consecutive, or with respect to certain specified events.

In conjunction with the issuance of the Company’s Series C Preferred, the Company filed with the Maryland State Department of Assessments and Taxation (the “Maryland SDAT”), an amendment to the Company’s charter to increase the authorized number of shares of the Company’s common stock by 30,750,000 shares.  As a result of this amendment, the Company’s total authorized shares were increased from 95,663,800 shares (classified as 85,000,000 shares of Common Stock, 3,663,800 shares of Series A Preferred, 4,000,000 shares of Series B Preferred and 3,000,000 shares of excess stock) to 126,413,800 shares (classified as 115,750,000 shares of Common Stock, 3,663,800 shares of Series A Preferred, 4,000,000 shares of Series B Preferred and 3,000,000 shares of excess stock). Immediately following this amendment, the Company filed with the Maryland SDAT Articles Supplementary setting forth the rights, preferences and terms of the Series C Preferred and reclassifying 5,750,000 shares of Common Stock as shares of Series C Preferred.  After the reclassification, the Company’s authorized stock consisted of 110,000,000 shares of Common Stock, 3,663,800 shares of Series A Preferred, 4,000,000 shares of Series B Preferred, 5,750,000 shares of Series C Preferred and 3,000,000 shares of excess stock. Additionally, upon the redemption on August 31, 2017 of all 3,663,800 outstanding shares of the Series A Preferred, the authorized shares of Series A Preferred automatically converted to authorized Common Stock, which increased our authorized Common Stock to 113,663,800 shares.

On October 2, 2017, the Company declared a dividend of $0.421875 per share for the period from September 1, 2017 through November 30, 2017 to be paid on December 15, 2017 to Series C Preferred shareholders of record as of the close of business on November 15, 2017.

XML

Stock Based Compensation

9 Months Ended

Sep. 30, 2017

Compensation Related Costs [Abstract]

Stock Based Compensation

NOTE 7 – STOCK BASED COMPENSATION

The Company accounts for awards of stock options and restricted stock in accordance with ASC 718-10, Compensation-Stock Compensation. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). The compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date less estimated forfeitures. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value of restricted stock awards is equal to the fair value of the Company’s stock on the grant date. Compensation costs of $328,002 and $998,059 have been recognized for the three and nine months ended September 30, 2017, respectively, and $419,746 and $896,519 for the three and nine months ended September 30, 2016, respectively.

On January 19, 2017, the Company granted options to purchase 60,000 shares of common stock to two participants in the Company’s 2013 Stock Option and Stock Award Plan. The fair value on the grant date of these options amounted to $93,000. These grants vest over one year.

On April 4, 2017, the Company awarded a total of 45,000 shares of restricted stock to Samuel A. Landy and Anna T. Chew, pursuant to their employment agreements. The fair value on the grant date of these restricted stock grants was $676,800. These grants vest ratably over 5 years.

On April 4, 2017, the Company granted options to purchase 516,000 shares of common stock to thirty-four participants in the Company’s 2013 Stock Option and Stock Award Plan. The grant date fair value of these options amounted to $949,440. The entire compensation cost of $184,000 for grants issued to a participant who is of retirement age was recognized at the time of the grant. The remaining grants vest over one year.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants during the nine months ended September 30, 2017 and 2016:

	2017			2016
Dividend yield		5.80	%		7.32	%
Expected volatility		26.30	%		26.30	%
Risk-free interest rate		2.37	%		1.49	%
Expected lives		10			8
Estimated forfeitures		-0-			-0-

The weighted-average fair value of options granted during the nine months ended September 30, 2017 and 2016 was $1.81 and $0.81 per share, respectively.

On September 27, 2017, the Company awarded 10,000 shares of restricted stock to ten participants under the Plan. The grant date fair value of these restricted stock grants was approximately $153,700. The entire compensation cost of $15,370 for grants issued to a participant who is of retirement age was recognized at the time of the grant. The remaining grants vest over 5 years.

On September 27, 2017, the Company awarded 1,000 shares of restricted stock to ten participants under the Plan. The grant date fair value of these restricted stock grants was approximately $15,370. The entire compensation cost of $1,537 for grants issued to a participant who is of retirement age was recognized at the time of the grant. The remaining grants vest over 3 months.

As of September 30, 2017, there were options outstanding to purchase 1,778,100 shares. There were 613,500 shares available for grant under the 2013 Stock Option and Stock Award Plan. During the nine months ended September 30, 2017, twenty-seven participants exercised options to purchase a total of 547,900 shares of common stock at a weighted-average exercise price of $9.92 per share for total proceeds of $5,435,634. During the nine months ended September 30, 2017, options to one participant to purchase a total of 10,000 shares were forfeited. As of September 30, 2016, there were options outstanding to purchase 1,900,500 shares and 1,235,500 shares were available for grant under the Company’s 2013 Stock Option and Stock Award Plan. The aggregate intrinsic value of options outstanding as of September 30, 2017 was $6,755,477 and the aggregate intrinsic value of options exercised during the nine months ended September 30, 2017 was $3,030,119.

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 8 - FAIR VALUE MEASUREMENTS

In accordance with ASC 820-10, Fair Value Measurements and Disclosures, the Company measures certain financial assets and liabilities at fair value on a recurring basis, including Securities Available for Sale. The fair value of these financial assets and liabilities was determined using the following inputs at September 30, 2017 and December 31, 2016:

	Fair Value Measurements at Reporting Date Using
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
As of September 30, 2017:
Securities Available for Sale - Preferred stock	$	9,160,320		$	9,160,320	$	-0-		$	-0-
Securities Available for Sale - Common stock		123,052,090			123,052,090		-0-			-0-
Total	$	132,212,410		$	132,212,410	$	-0-		$	-0-
As of December 31, 2016:
Securities Available for Sale - Preferred stock	$	13,028,200		$	13,028,200	$	-0-		$	-0-
Securities Available for Sale - Common stock		95,726,972			95,726,972		-0-			-0-
Interest Rate Swap (1)		(3,983	)		-0-		(3,983	)		-0-
Total	$	108,751,189		$	108,755,172	$	(3,983	)	$	-0-

(1) Included in accrued liabilities and deposits.

In addition to the Company’s investments in securities available for sale and interest rate swaps, the Company is required to disclose certain information about the fair values of its other financial instruments, as defined in ASC 825-10, Financial Instruments. Estimates of fair value are made at a specific point in time, based upon, where available, relevant market prices and information about the financial instrument. Such estimates do not include any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. All of the Company’s Securities Available for Sale have quoted market prices and traded in active markets and are therefore classified in Level 1 of the fair value hierarchy. A quoted market price was indirectly available for our interest rate swap. This price was determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows, and reflected the contractual terms of the derivative, including the period to maturity, and used observable market-based inputs. As such, we had determined that the valuation of this interest rate swap is classified in Level 2 of the fair value hierarchy.

The fair value of Cash and Cash Equivalents and Notes Receivable approximates their current carrying amounts since all such items are short-term in nature. The fair value of variable rate Mortgages Payable and Loans Payable approximate their current carrying amounts since such amounts payable are at approximately a weighted-average current market rate of interest. As of September 30, 2017, the fair value of Fixed Rate Mortgages Payable amounted to $316,286,829 and the carrying value of Fixed Rate Mortgages Payable amounted to $316,337,850. The fair value of fixed rate Mortgages Payable is estimated based upon discounted cash flows at current market rates for instruments with similar remaining terms.

XML

Contingencies, Commitments and Other Matters

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Contingencies, Commitments and Other Matters

NOTE 9 – CONTINGENCIES, COMMITMENTS AND OTHER MATTERS

From time to time, the Company may be subject to claims and litigation in the ordinary course of business. Management does not believe that any such claims or litigation will have a material adverse effect on the financial position or results of operations.

The Company has an agreement with 21st Mortgage Corporation (“21st Mortgage”) under which 21st Mortgage can provide financing for home purchasers in the Company’s communities. The Company does not receive referral fees or other cash compensation under the agreement. If 21st Mortgage makes loans to purchasers and those purchasers default on their loans and 21st Mortgage repossesses the homes securing such loans, the Company has agreed to purchase from 21st Mortgage each such repossessed home for a price equal to 80% to 95% of the amount under each such loan, subject to certain adjustments. This agreement may be terminated by either party with 30 days written notice. As of September 30, 2017, the total loan balance under this agreement was approximately $3 million. Additionally, 21st Mortgage previously made loans to purchasers in certain communities we acquired. In conjunction with these acquisitions, the Company has agreed to purchase from 21st Mortgage each repossessed home, if those purchasers default on their loans. The purchase price ranges from 55% to 100% of the amount under each such loan, subject to certain adjustments. As of September 30, 2017, the total loan balance owed to 21st Mortgage with respect to homes in these acquired communities was approximately $4 million.

The Company entered into a Chattel Loan Origination, Sale and Servicing Agreement (“COP Program”) with Triad Financial Services, effective January 1, 2016. The Company does not receive referral fees or other cash compensation under the agreement. Customer loan applications are initially submitted to Triad for consideration by Triad’s portfolio of outside lenders. If the loan application does not meet the criteria for outside financing, the application is then considered for financing under the COP Program. If the loan is approved under the COP Program, then it is originated by Triad and subsequently purchased by the Company. Included in Notes and Other Receivables is approximately $7,507,000 of loans that the Company purchased under the COP Program as of September 30, 2017.

XML

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

NOTE 10 - SUPPLEMENTAL CASH FLOW INFORMATION

Cash paid for interest during the nine months ended September 30, 2017 and 2016 was $11,851,093 and $12,277,517, respectively. Interest cost capitalized to Land Development was $368,967 and $265,341 for the nine months ended September 30, 2017 and 2016, respectively.

During the nine months ended September 30, 2017 and 2016, the Company had Dividend Reinvestments of $2,181,064 and $1,738,947, respectively, which required no cash transfers.

XML

Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

NOTE 11– SUBSEQUENT EVENTS

Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were issued.

XML

Proforma Financial Information (Unaudited)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Proforma Financial Information (Unaudited)

NOTE 12 – PROFORMA FINANCIAL INFORMATION (UNAUDITED)

The following unaudited pro forma condensed financial information reflects the acquisitions during 2016 and through September 30, 2017. This information has been prepared utilizing the historical financial statements of the Company and the effect of additional Revenue and Expenses from the properties acquired during this period assuming that the acquisitions had occurred as of the first day of the applicable period, after giving effect to certain adjustments including: (a) Rental and Related Income; (b) Community Operating Expenses; (c) Interest Expense resulting from the assumed increase in Mortgages and Loans Payable related to the new acquisitions; and (d) Depreciation Expense related to the new acquisitions. The unaudited pro forma condensed financial information is not indicative of the results of operations that would have been achieved had the acquisitions reflected herein been consummated on the dates indicated or that will be achieved in the future.

	Three Months Ended						Nine Months Ended
	9/30/17			9/30/16			9/30/17			9/30/16
Rental and Related Income	$	25,855,000		$	24,502,000		$	76,009,000		$	71,594,000
Community Operating Expenses		12,318,000			11,441,000			35,833,000			34,206,000
Net Loss Attributable to Common Shareholders		(5,179,000	)		(628,000	)		(6,888,000	)		(2,261,000	)
Net Loss Attributable to Common Shareholders Per Share – Basic and Diluted	$	(0.15	)	$	(0.02	)	$	(0.22	)	$	(0.08	)

XML

Organization and Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

In preparing the consolidated financial statements in accordance with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as contingent assets and liabilities as of the dates of the consolidated balance sheets and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from these estimates and assumptions.

Reclassifications

Reclassifications

Certain amounts in the financial statements for the prior periods have been reclassified to conform to the statement presentation for the current periods.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

In the normal course of business, the Company is exposed to financial market risks, including interest rate risk on its variable rate debt. The Company attempts to limit these risks by following established risk management policies, procedures and strategies, including the use of derivative financial instruments. The Company’s primary strategy in entering into derivative contracts is to minimize the variability that changes in interest rates could have on its future cash flows. The Company generally employs derivative instruments that effectively convert a portion of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes. The Company had entered into various interest rate swap agreements that have had the effect of fixing interest rates relative to specific mortgage loans. As of September 30, 2017, these agreements have expired and the Company no longer had any interest rate swap agreements in effect.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business.” ASU 2017-01 seeks to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, intangible assets and consolidation. The adoption of ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments should be applied prospectively on or after the effective dates. Early adoption is permitted. The Company adopted this standard effective January 1, 2017, on a prospective basis. The Company evaluated its acquisitions and has determined that its acquisitions of manufactured home communities during 2017 should be accounted for as acquisitions of assets. As such, transaction costs of approximately $368,000 have been capitalized as part of the cost of the acquisitions, which is then subject to a purchase price allocation based on relative fair value.

In March 2016, the FASB issued ASU 2016-09, “Compensation—Stock Compensation.” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016. The Company adopted this standard effective January 1, 2017, and it did not have a material impact on our financial position, results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” ASU 2015-11 applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. An entity should measure inventory within the scope of ASU 2015-11 at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonable predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards (“IFRS”). The Company adopted this standard effective January 1, 2017, and it did not have a material impact on our financial position, results of operations or cash flows.

Other Recent Accounting Pronouncements

Other Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” ASU 2017-09 clarifies which changes to the terms or conditions of a share based payment award are subject to the guidance on modification accounting under FASB Accounting Standards Codification Topic 718. Entities would apply the modification accounting guidance unless the value, vesting requirements and classification of a share based payment award are the same immediately before and after a change to the terms or conditions of the award. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

On February 22, 2017, the FASB issued ASU No. 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets.” ASU 2017-05 provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and in-substance non-financial assets in contracts with non-customers, unless other specific guidance applies. The standard requires a company to derecognize nonfinancial assets once it transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset. Additionally, when a company transfers its controlling interest in a nonfinancial asset, but retains a noncontrolling ownership interest, the company is required to measure any non-controlling interest it receives or retains at fair value. The guidance requires companies to recognize a full gain or loss on the transaction. As a result of the new guidance, the guidance specific to real estate sales in ASC 360-20 will be eliminated. As such, sales and partial sales of real estate assets will now be subject to the same derecognition model as all other nonfinancial assets. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2017. Early adoption is permitted. The Company believes that the adoption of this standard will not have a material impact on our financial position, results of operations or cash flows. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2019. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases.” ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements and the timing of adoption.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. ASU 2016-01 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements and the timing of adoption.

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)”. The objective of this amendment is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying this amendment, companies will perform a five-step analysis of transactions to determine when and how revenue is recognized. This amendment applies to all contracts with customers except those that are within the scope of other topics in the FASB ASC. An entity should apply the amendments using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. In July 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has not yet selected which transition method it will apply upon adoption. Our primary source of revenue is generated through leasing arrangements, which is specifically excluded from ASU 2014-09. We continue to evaluate and are in the process of quantifying the impact, if any, the adoption of ASU 2014-09 will have on our non-lease revenue streams, including sales of manufactured homes, interest income, dividend income and other income. While our evaluations are ongoing, we do not expect material changes to our accounting policies for these revenue streams.

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements.

XML

Investment Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

Schedule of Estimated Fair Value of Assets Acquired

	At Acquisition Date
Assets Acquired:
Land	$	11,045,000
Depreciable Property		26,557,190
Notes Receivable and Other		3,275,465
Total Assets Acquired	$	40,877,655

XML

Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of Temporarily Impaired Securities

The following is a summary of the securities that the Company has determined to be temporarily impaired as of September 30, 2017:

	Less Than 12 Months					12 Months or Longer
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Preferred Stock	$	542,280	$	(2,396	)	$	-0-	$	-0-
Common Stock		67,438,450		(5,249,555	)		-0-		-0-
Total	$	67,980,730	$	(5,251,951	)	$	-0-	$	-0-

Summary of Range of Losses

The following is a summary of the range of the losses on these temporarily impaired securities:

Number of Individual Securities	Fair Value		Unrealized Loss			Range of Loss
8	$	52,273,480	$	(1,364,570	)		0-4	%
1		3,332,000		(302,882	)		8	%
1		12,375,250		(3,584,499	)		22	%
10	$	67,980,730	$	(5,251,951	)

XML

Loans and Mortgages Payable (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Summary of Mortgages Payable

The following is a summary of our mortgages payable as of September 30, 2017 and December 31, 2016:

	9/30/2017						12/31/2016
	Amount			Rate			Amount			Rate
Fixed rate mortgages	$	316,337,850			4.3	%	$	285,584,102			4.4	%
Variable rate mortgages (1)		102,651			4.3	%		10,979,881			3.9	%
Total mortgages before unamortized debt issuance costs		316,440,501			4.3	%		296,563,983			4.3	%
Unamortized debt issuance costs		(3,632,321	)					(3,538,391	)
Mortgages, net of unamortized debt issuance costs	$	312,808,180			4.4	%	$	293,025,592			4.4	%

(1) Includes a variable rate mortgage with a balance of $-0- and $10,625,352 as of September 30, 2017 and December 31, 2016, respectively, which was effectively fixed at an interest rate of 3.89% with an interest rate swap agreement.

XML

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Compensation Related Costs [Abstract]

Schedule of Fair Value of Option Grant of Weighted-average Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants during the nine months ended September 30, 2017 and 2016:

	2017			2016
Dividend yield		5.80	%		7.32	%
Expected volatility		26.30	%		26.30	%
Risk-free interest rate		2.37	%		1.49	%
Expected lives		10			8
Estimated forfeitures		-0-			-0-

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Recognized at Fair Value On a Recurring Basis

The fair value of these financial assets and liabilities was determined using the following inputs at September 30, 2017 and December 31, 2016:

	Fair Value Measurements at Reporting Date Using
	Total			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
As of September 30, 2017:
Securities Available for Sale - Preferred stock	$	9,160,320		$	9,160,320	$	-0-		$	-0-
Securities Available for Sale - Common stock		123,052,090			123,052,090		-0-			-0-
Total	$	132,212,410		$	132,212,410	$	-0-		$	-0-
As of December 31, 2016:
Securities Available for Sale - Preferred stock	$	13,028,200		$	13,028,200	$	-0-		$	-0-
Securities Available for Sale - Common stock		95,726,972			95,726,972		-0-			-0-
Interest Rate Swap (1)		(3,983	)		-0-		(3,983	)		-0-
Total	$	108,751,189		$	108,755,172	$	(3,983	)	$	-0-

(1) Included in accrued liabilities and deposits.

XML

Proforma Financial Information (Unaudited) (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Summary of Pro Forma Financial Information

The unaudited pro forma condensed financial information is not indicative of the results of operations that would have been achieved had the acquisitions reflected herein been consummated on the dates indicated or that will be achieved in the future.

	Three Months Ended						Nine Months Ended
	9/30/17			9/30/16			9/30/17			9/30/16
Rental and Related Income	$	25,855,000		$	24,502,000		$	76,009,000		$	71,594,000
Community Operating Expenses		12,318,000			11,441,000			35,833,000			34,206,000
Net Loss Attributable to Common Shareholders		(5,179,000	)		(628,000	)		(6,888,000	)		(2,261,000	)
Net Loss Attributable to Common Shareholders Per Share – Basic and Diluted	$	(0.15	)	$	(0.02	)	$	(0.22	)	$	(0.08	)

XML

Organization and Accounting Policies (Details Narrative)	9 Months Ended
	Sep. 30, 2017 USD ($) HomeSites HomeCommunity
Number of operates manufacture home communities | HomeSites	107
Number of developed home sites company own and operates | HomeCommunity	19,400
Transaction costs | $	$ 368,000
Real Estate Investment Trusts [Member]
Portfolio of gross assets	The Company also owns a portfolio of REIT securities which the Company generally limits to no more than approximately 20% of its undepreciated assets.
Maximum percentage of undepreciated assets	20.00%

XML

Net Income (Loss) Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Antidilutive securities	1,778,100	1,900,500	1,778,100	1,900,500

XML

Investment Property and Equipment (Details Narrative)				1 Months Ended
	May 31, 2017 USD ($) a HomeSites Security	Jan. 24, 2017 USD ($) a HomeSites	Jan. 20, 2017 USD ($) a HomeSites HomeCommunity	May 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Mortgage loan					$ 312,808,180	$ 293,025,592
Transaction costs					$ 368,000
Bonus payment				$ 251,680
Royalty fee percentage				18.00%
Lease term				5 years
Ohio Manufactured Home Communities [Member]
Number of manufactured home communities acquired | HomeCommunity			2
Purchase price of acquired entity			$ 9,588,000
Number of property sites | HomeSites			532
Area of acquired real estate property | a			149
Percentage of average occupancy			57.00%
Indiana Manufactured Home Communities [Member]
Number of manufactured home communities acquired | HomeCommunity			2
Purchase price of acquired entity			$ 24,437,000
Area of acquired real estate property | a			155
Percentage of average occupancy			77.00%
Term of mortgage			10 years
Mortgage loan			$ 14,250,000
Interest rate on mortgage			4.56%
Amortization of principal repayments term			30 years
Boardwalk,Age Restricted Community [Member]
Number of property sites | HomeSites			195
Parke Place, All-age Community [Member]
Number of property sites | HomeSites			364
Hillcrest Crossing Manufactured Home Communities [Member]
Purchase price of acquired entity		$ 2,485,000
Number of property sites | HomeSites		200
Area of acquired real estate property | a		78
Percentage of average occupancy		40.00%
Cinnamon Woods Manufactured Home Communities [Member]
Purchase price of acquired entity	$ 4,000,000			$ 4,000,000
Number of property sites | HomeSites	63
Age Restricted Community [Member]
Area of acquired real estate property | a	79
Percentage of average occupancy	92.00%
Acreage available for expansion | Security	61

XML

Investment Property and Equipment - Schedule of Estimated Fair Value of Assets Acquired (Details)	Sep. 30, 2017 USD ($)
Real Estate [Abstract]
Land	$ 11,045,000
Depreciable Property	26,557,190
Notes Receivable and Other	3,275,465
Total Assets Acquired	$ 40,877,655

XML

Securities Available for Sale (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Available for sale securities	$ 132,212,410		$ 132,212,410		$ 108,755,172
Securities sold			10,660,124
Gain on sale of securities available for sale	$ 466,521	$ 884,458	1,518,289	$ 1,898,836
Purchases of securities available for sale			38,002,778	$ 23,453,933
Total net unrealized gains in REIT securities portfolio			$ 12,831,755
Real Estate Investment Trusts [Member]
Maximum percentage of undepreciated assets			20.00%
Monmouth Real Estate Investment Corporation [Member]
Common stock purchased from Monmouth Real Estate Investment Corporation			75,836
Common stock purchased from Monmouth Real Estate Investment Corporation, value			$ 1,084,324
Weighted average cost per shares			$ 14.30
Company owns total number of shares in MREIC			2,313,424
Cost of common stock owned by the company for MREIC shares			$ 20,315,735
Fair value of common stock owned by the company for MREIC shares			$ 37,454,330

XML

Securities Available for Sale - Summary of Temporarily Impaired Securities (Details)	9 Months Ended
	Sep. 30, 2017 USD ($)
Less Than 12 Months, Fair Value	$ 67,980,730
Less Than 12 Months, Unrealized Loss	(5,251,951)
12 Months or Longer, Fair Value	0
12 Months or Longer, Unrealized Loss	0
Preferred Stock [Member]
Less Than 12 Months, Fair Value	542,280
Less Than 12 Months, Unrealized Loss	(2,396)
12 Months or Longer, Fair Value	0
12 Months or Longer, Unrealized Loss	0
Common Stock [Member]
Less Than 12 Months, Fair Value	67,438,450
Less Than 12 Months, Unrealized Loss	(5,249,555)
12 Months or Longer, Fair Value	0
12 Months or Longer, Unrealized Loss	$ 0

XML

Securities Available for Sale - Summary of Range of Losses (Details)	9 Months Ended
	Sep. 30, 2017 USD ($) Security
Number of Individual Securities | Security	10
Fair Value	$ 67,980,730
Unrealized Loss	$ (5,251,951)
Securities Group One [Member]
Number of Individual Securities | Security	8
Fair Value	$ 52,273,480
Unrealized Loss	$ (1,364,570)
Securities Group One [Member] | Minimum [Member]
Range of Loss	0.00%
Securities Group One [Member] | Maximum [Member]
Range of Loss	4.00%
Securities Group Two [Member]
Number of Individual Securities | Security	1
Fair Value	$ 3,332,000
Unrealized Loss	$ (302,882)
Range of Loss	8.00%
Securities Group Three [Member]
Number of Individual Securities | Security	1
Fair Value	$ 12,375,250
Unrealized Loss	$ (3,584,499)
Range of Loss	22.00%

XML

Loans and Mortgages Payable (Details Narrative) - USD ($)					1 Months Ended	9 Months Ended
	Aug. 28, 2017	May 31, 2017	Mar. 28, 2017	Jan. 20, 2017	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Lines of credit
Loans payable includes unamortized debt issuance costs						$ 113,022		$ 108,054
Weighted average interest rate						2.70%		3.10%
Outstanding on margin loan						$ 30,842,204
Percentage of margin loan interest rate						2.05%
Mortgage loan						$ 312,808,180		$ 293,025,592
Principal payments of mortgages						$ (24,543,481)	$ (13,629,215)
Unsecured Revolving Credit Facility [Member]
Line of credit increase decrease			$ 35,000,000
Line of credit facility, available borrowings			50,000,000
Line of credit accordion feature			75,000,000
Line of credit facility, maximum borrowing capacity			$ 125,000,000
Borrowing capacity, description			The Facility provides for an increase from $35 million in available borrowings to $50 million in available borrowings with a $75 million accordion feature, bringing the total potential availability up to $125 million, subject to certain conditions. The maturity date of the Facility is March 27, 2020, with a one year extension option.
Maturity date of facility			Mar. 27, 2020
Line of credit facility interest rate, description			Borrowings will bear interest at the Company’s option of LIBOR plus 1.75% to 2.50% or BMO’s prime lending rate plus 0.75% to 1.50%, based on the Company’s overall leverage. Based on the Company’s current leverage ratio, borrowings under the Facility will bear interest at LIBOR plus 2% or at BMO’s prime lending rate plus 1%.
Unsecured Revolving Credit Facility [Member] | LIBOR [Member]
Lines of credit, interest rate			2.00%
Unsecured Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member]
Lines of credit, interest rate			1.75%
Unsecured Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member]
Lines of credit, interest rate			2.50%
Unsecured Revolving Credit Facility [Member] | Prime Rate [Member]
Lines of credit, interest rate			1.00%
Unsecured Revolving Credit Facility [Member] | Prime Rate [Member] | Minimum [Member]
Lines of credit, interest rate			0.75%
Unsecured Revolving Credit Facility [Member] | Prime Rate [Member] | Maximum [Member]
Lines of credit, interest rate			1.50%
Revolving Credit Facility [Member] | OceanFirst Bank [Member]
Line of credit facility, maximum borrowing capacity					$ 10,000,000
Borrowing capacity, description					Interest was reduced from prime plus 50 basis points to prime plus 25 basis points.
Maturity date of facility					Jun. 01, 2020
Lines of credit, interest rate						4.50%
Lines of credit						$ 4,000,000
Wells Fargo Bank, N.A [Member] | Federal Home Loan Mortgage Corporation [Member]
Mortgage loan				$ 14,250,000
Interest rate on mortgage				4.56%
Maturity date				Feb. 01, 2027
Amortization of principal repayments term				30 years
Wells Fargo Bank, N.A [Member] | Freddie Mac Mortgage [Member]
Mortgage loan		$ 16,800,000
Interest rate on mortgage		4.12%				6.175%
Maturity date		Sep. 01, 2027
Amortization of principal repayments term		30 years
Principal payments of mortgages						$ 9,000,000
Sun National Bank [Member]
Mortgage loan	$ 13,370,000
Interest rate on mortgage	4.18%
Maturity date	Aug. 01, 2027
Amortization of principal repayments term	30 years
Principal payments of mortgages						$ 10,000,000
Sun National Bank [Member] | Interest Rate Swap [Member]
Interest rate on mortgage						3.89%
Sun National Bank [Member] | LIBOR [Member]
Interest rate on mortgage						3.00%

XML

Loans and Mortgages Payable - Summary of Mortgages Payable (Details) - USD ($)		Sep. 30, 2017	Dec. 31, 2016
Total mortgages before unamortized debt issuance costs		$ 316,440,501	$ 296,563,983
Unamortized debt issuance costs		(3,632,321)	(3,538,391)
Mortgages, net of unamortized debt issuance costs		$ 312,808,180	$ 293,025,592
Mortgages before unamortized debt issuance costs percentage		4.30%	4.30%
Mortgages, net of unamortized debt issuance costs percentage		4.40%	4.40%
Fixed Rate Mortgages [Member]
Total mortgages before unamortized debt issuance costs		$ 316,337,850	$ 285,584,102
Mortgages before unamortized debt issuance costs percentage		4.30%	4.40%
Variable Rate Mortgages [Member]
Total mortgages before unamortized debt issuance costs	[1]	$ 102,651	$ 10,979,881
Mortgages before unamortized debt issuance costs percentage	[1]	4.30%	3.90%

[1] Includes a variable rate mortgage with a balance of $-0- and $10,625,352 as of September 30, 2017 and December 31, 2016, respectively, which has been effectively fixed at an interest rate of 3.89% with an interest rate swap agreement.

XML

Loans and Mortgages Payable - Summary of Mortgages Payable (Details) (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Variable rate mortgage balance	$ 0	$ 10,625,352
Interest Rate Swap [Member]
Percentage of fixed interest rate	3.89%

XML

Shareholders' Equity (Details Narrative) - USD ($)							3 Months Ended		9 Months Ended
	Sep. 15, 2017	Aug. 31, 2017	Aug. 15, 2017	Aug. 02, 2017	Jul. 26, 2017	Jun. 05, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Proceeds from issuance of offering									$ 22,527,507	$ 0
Proceed from dividend reinvestment and stock purchase plan (DRIP)									2,181,064	1,738,947
Preferred stock redemption charge							$ 0		0		$ 91,595,000
Preferred stock dividends							$ 4,938,937	$ 3,789,747	12,518,431	10,313,685
Net proceeds from issuance of shares									$ 138,983,808	$ 49,120,853
Common stock shares authorized							113,663,800		113,663,800		75,000,000
Excess stock, shares authorized							3,000,000		3,000,000		3,000,000
DRIP [Member]
New shares issued under DRIP, value									$ 48,746,736
New shares issued under DRIP									3,293,638
Common Stock [Member]
Proceed from dividend reinvestment and stock purchase plan (DRIP)									$ 2,181,064
Common Stock [Member] | Maryland State Department of Assessments and Taxation [Member]
Excess stock, shares authorized							85,000,000		85,000,000
8.25% Series A Cumulative Redeemable Preferred Stock [Member]
Dividends paid		$ 1,889,147
Dividend declared per share, paid		$ 0.515625							$ 1.546875
Dividend paid date		Sep. 15, 2017
Record date of dividend		Aug. 15, 2017
Cumulative redeemable preferred stock, authorized		3,663,800
Cumulative redeemable preferred stock percentage		8.25%
Preferred Stock, Liquidation Preference Per Share		$ 25.00
Preferred stock, redemption price per share		$ 25.00
Preferred stock redemption charge		$ 91,595,000
Preferred stock dividends									$ 5,667,441
8.25% Series A Cumulative Redeemable Preferred Stock [Member] | Board of Directors [Member]
Preferred stock redemption charge		$ 3,502,000
8.0% Series B Cumulative Redeemable Preferred Stock [Member]
Dividends paid	$ 1,900,600								$ 5,701,800
Dividend declared per share, paid	$ 0.50
Annual rate on dividend per share payable quarterly	$ 2.00
Record date of dividend	Aug. 15, 2017
Cumulative redeemable preferred stock percentage	8.00%
Preferred Stock, Liquidation Preference Per Share	$ 25.00
6.75% Series C Cumulative Redeemable Preferred Stock [Member]
Number of stock sold during period					5,000,000
Proceeds from issuance of offering					$ 120,800,000
Dividends paid					$ 970,312
Dividend declared per share, paid					$ 0.16875
Annual rate on dividend per share payable quarterly					$ 1.6875
Dividend paid date					Sep. 15, 2017
Record date of dividend					Aug. 31, 2017
Preferred Stock, Liquidation Preference Per Share					$ 25.00
Preferred stock, redemption price per share					$ 25.00
Cumulative redeemable preferred stock, shares issued					5,000,000
Exercised overallotment option and purchased additional shares				750,000
Net proceeds from issuance of shares				$ 18,200,000
Description of preferred stock dividend					Annual rate of $1.6875 per share and will be payable quarterly in arrears on March 15, June 15, September 15, and December 15.
Series A Cumulative Redeemable Preferred Stock [Member]
Cumulative redeemable preferred stock, authorized							3,663,800		3,663,800
Cumulative redeemable preferred stock, shares issued							0		0		3,663,800
Preferred stock, shares outstanding		3,663,800					0		0		3,663,800
Preferred stock par value							$ 0.10		$ 0.10		$ 0.10
Increase in authorized number of shares									113,663,800
Series C Preferred Stock [Member]
Preferred stock, redemption price per share							25.00		$ 25.00
Preferred stock par value							$ 0.10		$ 0.10
Common stock shares authorized							110,000,000		110,000,000
Series C Preferred Stock [Member] | Maryland State Department of Assessments and Taxation [Member]
Increase in authorized number of shares									30,750,000
Excess stock, shares authorized							95,663,800		95,663,800
Series C Preferred Stock [Member] | Maryland State Department of Assessments and Taxation [Member] | Maximum [Member]
Increase in authorized number of shares									126,413,800
Series A Preferred Shares [Member]
Cumulative redeemable preferred stock, authorized							3,663,800		3,663,800
Series A Preferred Shares [Member] | Maximum [Member]
Common stock shares authorized							115,750,000		115,750,000
Series B Preferred Shares [Member]
Cumulative redeemable preferred stock, authorized							4,000,000		4,000,000
Excess stock, shares authorized							3,000,000		3,000,000
Series B Preferred Shares [Member] | Maximum [Member]
Cumulative redeemable preferred stock, authorized							4,000,000		4,000,000
Excess stock, shares authorized							3,000,000		3,000,000
Series C Preferred Shares [Member]
Cumulative redeemable preferred stock, authorized							5,750,000		5,750,000
Excess stock, shares authorized							3,000,000		3,000,000
Series B Preferred Shares One [Member]
Cumulative redeemable preferred stock, authorized							4,000,000		4,000,000
October 2, 2017 [Member] | 8.0% Series B Cumulative Redeemable Preferred Stock [Member]
Dividend declared per share, paid									$ 0.50
Dividend paid date									Dec. 15, 2017
Record date of dividend									Nov. 15, 2017
October 2, 2017 [Member] | Series C Preferred Stock [Member]
Dividend declared per share, paid									$ 0.421875
Dividend paid date									Dec. 15, 2017
Record date of dividend									Nov. 15, 2017
Common Stock [Member]
Number of stock sold during period						1,400,000
Sale of stock price per share						$ 16.60
Proceeds from issuance of offering						$ 22,500,000
Common Stock [Member] | October 2, 2017 [Member]
Annual rate on dividend per share payable quarterly							$ 0.18		$ 0.18
Dividend paid date									Dec. 15, 2017
Record date of dividend									Nov. 15, 2017
Common Stock [Member] | Common Shareholders [Member]
Dividends paid	$ 6,188,961								$ 17,305,824
Dividend declared per share, paid	$ 0.18
Proceed from dividend reinvestment and stock purchase plan (DRIP)			$ 794,744						$ 2,181,064

XML

Stock Based Compensation (Details Narrative) - USD ($)				3 Months Ended		9 Months Ended
	Sep. 27, 2017	Jan. 19, 2017	Apr. 04, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Compensation costs				$ 328,002	$ 419,746	$ 998,059	$ 896,519
Weighted-average fair value of options granted						$ 1.81	$ 0.81
Options outstanding				1,778,100	1,900,500	1,778,100	1,900,500
Proceeds from stock options exercised						$ 5,435,634	$ 1,081,380
Aggregate intrinsic value of outstanding				$ 6,755,477		6,755,477
Aggregate intrinsic value of options exercised						$ 3,030,119
Twenty Seven Participants [Member]
Number of options to purchase shares of common stock						547,900
Share-based compensation arrangements by share-based payment award, options, exercises in period, weighted average exercise price				$ 9.92		$ 9.92
Proceeds from stock options exercised						$ 5,435,634
One Participants [Member]
Number of shares expired or forfeited						10,000
2013 Stock Option and Stock Award Plan [Member]
Compensation costs			$ 184,000
Number of stock options shares granted		60,000	516,000
Fair value of stock options granted		$ 93,000	$ 949,440
Stock option vested term		1 year	1 year
2013 Stock Option and Stock Award Plan [Member]
Available for grant under plan				613,500	1,235,500	613,500	1,235,500
Restricted Stock One [Member]
Compensation costs	$ 15,370
Stock option vested term	5 years
Number of shares awarded during period	10,000
Fair value of restricted stock grants	$ 153,700
Restricted Stock Two [Member]
Compensation costs	$ 1,537
Stock option vested term	3 months
Number of shares awarded during period	1,000
Fair value of restricted stock grants	$ 15,370
Employment Agreements [Member] | Samuel A. Landy And Anna T. Chew [Member] | Restricted Stock [Member]
Stock option vested term			5 years
Number of shares awarded during period			45,000
Fair value of restricted stock grants			$ 676,800

XML

Stock Based Compensation - Schedule of Fair Value of Option Grant of Weighted-average Assumptions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Compensation Related Costs [Abstract]
Dividend yield	5.80%	7.32%
Expected volatility	26.30%	26.30%
Risk-free interest rate	2.37%	1.49%
Expected lives	10 years	8 years
Estimated forfeitures	$ 0	$ 0

XML

Fair Value Measurements (Details Narrative)	Sep. 30, 2017 USD ($)
Fair Value Disclosures [Abstract]
Fair value of fixed rate mortgages payable	$ 316,286,829
Carrying value of fixed rate mortgages payable	$ 316,337,850

XML

Fair Value Measurements - Summary of Financial Assets and Liabilities Recognized at Fair Value On a Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap		$ (3,983)	[1]
Total	132,212,410	108,751,189
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap		0	[1]
Total	132,212,410	108,755,172
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap		(3,983)	[1]
Total	0	(3,983)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap		0	[1]
Total	0	0
Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	9,160,320	13,028,200
Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	9,160,320	13,028,200
Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	0	0
Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	0	0
Common Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	123,052,090	95,726,972
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	123,052,090	95,726,972
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	0	0
Common Stock [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available for Sale	$ 0	$ 0

[1] Included in accrued liabilities and deposits.

XML

Contingencies, Commitments and Other Matters (Details Narrative)	9 Months Ended
	Sep. 30, 2017 USD ($)
Total original loan amount	$ 3,000,000
Total loan balance	4,000,000
Notes and other receivables	$ 7,507,000
Minimum [Member]
Range of purchase price repossessed	80.00%
Minimum [Member] | Purchase Price [Member]
Range of purchase price repossessed	55.00%
Maximum [Member]
Range of purchase price repossessed	95.00%
Maximum [Member] | Purchase Price [Member]
Range of purchase price repossessed	100.00%

XML

Supplemental Cash Flow Information (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 11,851,093	$ 12,277,517
Interest cost capitalized to land development	368,967	265,341
Reinvestment of dividends	$ 2,181,064	$ 1,738,947

XML

Proforma Financial Information (Unaudited) - Summary of Pro Forma Financial Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Rental and Related Income	$ 25,855,000	$ 24,502,000	$ 76,009,000	$ 71,594,000
Community Operating Expenses	12,318,000	11,441,000	35,833,000	34,206,000
Net Loss Attributable to Common Shareholders	$ (5,179,000)	$ (628,000)	$ (6,888,000)	$ (2,261,000)
Net Loss Attributable to Common Shareholders Per Share - Basic and Diluted	$ (0.15)	$ (0.02)	$ (0.22)	$ (0.08)