(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 every Interactive Data File required to be submitted 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 such files).

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:

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:

	June 30, 2019			December 31, 2018			June 30, 2020			December 31, 2019
	(Unaudited)						(Unaudited)
- ASSETS -
Investment Property and Equipment
Land	$	68,157,110		$	68,154,110		$	72,575		$	72,459
Site and Land Improvements		540,855,031			533,547,154			626,574			618,041
Buildings and Improvements		25,299,420			25,156,183			27,403			27,380
Rental Homes and Accessories		271,518,626			254,598,641			323,641			297,401
Total Investment Property		905,830,187			881,456,088			1,050,193			1,015,281
Equipment and Vehicles		19,686,440			18,791,688			21,784			21,145
Total Investment Property and Equipment		925,516,627			900,247,776			1,071,977			1,036,426
Accumulated Depreciation		(214,179,651	)		(197,208,363	)		(252,436	)		(232,783	)
Net Investment Property and Equipment		711,336,976			703,039,413			819,541			803,643

Other Assets
Cash and Cash Equivalents		3,724,627			7,433,470			10,970			12,902
Marketable Securities at Fair Value		106,772,889			99,595,736			91,694			116,186
Inventory of Manufactured Homes		28,289,808			23,703,322			27,758			31,967
Notes and Other Receivables, net		35,421,826			31,493,555			40,614			37,995
Prepaid Expenses and Other Assets		12,696,012			6,195,596			13,205			10,762
Land Development Costs		17,044,705			9,441,025			19,455			11,998
Total Other Assets		203,949,867			177,862,704			203,696			221,810

TOTAL ASSETS	$	915,286,843		$	880,902,117		$	1,023,237		$	1,025,453

	June 30, 2019			December 31, 2018			June 30, 2020			December 31, 2019
	(Unaudited)						(Unaudited)
- LIABILITIES AND SHAREHOLDERS’ EQUITY -

LIABILITIES:
Mortgages Payable, net of unamortized debt issuance costs	$	327,609,085		$	331,093,063		$	369,715		$	373,658

Other Liabilities:
Accounts Payable		4,332,627			3,873,445			4,287			4,572
Loans Payable, net of unamortized debt issuance costs		38,722,816			107,985,353			66,050			83,686
Accrued Liabilities and Deposits		8,519,431			7,410,055			11,396			10,575
Tenant Security Deposits		6,115,133			5,842,161			7,059			6,623
Total Other Liabilities		57,690,007			125,111,014			88,792			105,456
Total Liabilities		385,299,092			456,204,077			458,507			479,114

Commitments and Contingencies

Shareholders’ Equity:
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 June 30, 2019 and December 31, 2018		95,030,000			95,030,000
Series C – 6.75% Cumulative Redeemable Preferred Stock, par value $0.10 per share, 9,750,000 and 5,750,000 shares authorized, issued and outstanding as of June 30, 2019 and December 31, 2018, respectively		243,750,000			143,750,000
Series D – 6.375% Cumulative Redeemable Preferred Stock, par value $0.10 per share, 2,300,000 shares authorized; 2,000,000 shares issued and outstanding as of June 30, 2019 and December 31, 2018		50,000,000			50,000,000
Common Stock - $0.10 par value per share; 123,363,800 and 111,363,800 shares authorized; 40,154,119 and 38,320,414 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively		4,015,412			3,832,041
Excess Stock - $0.10 par value per share; 3,000,000 shares authorized; no shares issued or outstanding as of June 30, 2019 and December 31, 2018		-0-			-0-
Series B – 8.0% Cumulative Redeemable Preferred Stock, par value $0.10 per share; 4,000 shares authorized; 3,801 shares issued and outstanding as of June 30, 2020 and December 31, 2019								95,017			95,030
Series C – 6.75% Cumulative Redeemable Preferred Stock, par value $0.10 per share, 13,750 shares authorized; 9,750 shares issued and outstanding as of June 30, 2020 and December 31, 2019								243,750			243,750
Series D – 6.375% Cumulative Redeemable Preferred Stock, par value $0.10 per share, 6,000 shares authorized; 5,211 and 2,651 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively								130,267			66,268
Common Stock - $0.10 par value per share; 143,664 and 123,664 shares authorized; 41,301 and 41,130 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively								4,130			4,113
Excess Stock - $0.10 par value per share; 3,000 shares authorized; 0 shares issued or outstanding as of June 30, 2020 and December 31, 2019								0			0
Additional Paid-In Capital		162,556,121			157,449,781			116,930			162,542
Undistributed Income (Accumulated Deficit)		(25,363,782	)		(25,363,782	)		(25,364	)		(25,364	)
Total Shareholders’ Equity		529,987,751			424,698,040			564,730			546,339

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	915,286,843		$	880,902,117		$	1,023,237		$	1,025,453

													June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
	THREE MONTHS ENDED						SIX MONTHS ENDED						THREE MONTHS ENDED						SIX MONTHS ENDED
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018			June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019

INCOME:
Rental and Related Income	$	31,388,423		$	28,237,771		$	62,032,140		$	55,508,248		$	35,051		$	31,388		$	69,409		$	62,032
Sales of Manufactured Homes		5,841,615			3,860,779			9,485,329			6,386,266			5,033			5,842			8,248			9,485
Total Income		37,230,038			32,098,550			71,517,469			61,894,514			40,084			37,230			77,657			71,517

EXPENSES:
Community Operating Expenses		14,969,705			12,715,180			30,113,958			25,469,996			15,438			14,970			30,946			30,114
Cost of Sales of Manufactured Homes		4,256,639			2,913,825			6,845,808			4,893,996			3,617			4,257			6,018			6,846
Selling Expenses		1,336,940			1,085,244			2,427,962			1,889,316			1,279			1,337			2,376			2,428
General and Administrative Expenses		3,156,267			3,282,682			5,330,900			5,641,238			2,742			3,156			5,328			5,331
Depreciation Expense		8,868,341			7,764,258			17,619,652			15,358,892			10,272			8,869			20,499			17,620
Total Expenses		32,587,892			27,761,189			62,338,280			53,253,438			33,348			32,589			65,167			62,339

OTHER INCOME (EXPENSE):
Interest Income		621,440			536,176			1,136,623			1,006,406			691			622			1,408			1,137
Dividend Income		1,938,145			2,474,180			3,875,559			4,899,320			1,555			1,939			3,298			3,876
Gain on Sales of Marketable Securities, net		-0-			-0-			-0-			20,107
Increase (Decrease) in Fair Value of Marketable Securities		(2,352,185	)		16,623,670			6,243,581			(9,275,149	)		13,411			(2,352	)		(25,182	)		6,244
Other Income		133,541			132,516			253,046			199,979			166			133			329			253
Interest Expense		(4,246,646	)		(3,966,992	)		(8,893,188	)		(7,547,460	)		(4,195	)		(4,246	)		(8,620	)		(8,893	)
Total Other Income (Expense)		(3,905,705	)		15,799,550			2,615,621			(10,696,797	)		11,628			(3,904	)		(28,767	)		2,617

Income (Loss) before Gain (Loss) on Sales of Investment Property and Equipment		736,441			20,136,911			11,794,810			(2,055,721	)		18,364			737			(16,277	)		11,795
Gain (Loss) on Sales of Investment Property and Equipment		12,262			(64,927	)		(8,714	)		(80,632	)		(39	)		12			(146	)		(9	)
Net Income (Loss)		748,703			20,071,984			11,786,096			(2,136,353	)		18,325			749			(16,423	)		11,786
Less: Preferred Dividends		6,285,756			5,123,257			11,409,013			10,069,430			(8,090	)		(6,286	)		(16,180	)		(11,409	)
Net Income (Loss) Attributable to Common Shareholders	$	(5,537,053	)	$	14,948,727		$	377,083		$	(12,205,783	)	$	10,235		$	(5,537	)	$	(32,603	)	$	377

											June 30, 2020		June 30, 2019			June 30, 2020			June 30, 2019
	THREE MONTHS ENDED					SIX MONTHS ENDED					THREE MONTHS ENDED					SIX MONTHS ENDED
	June 30, 2019			June 30, 2018		June 30, 2019		June 30, 2018			June 30, 2020		June 30, 2019			June 30, 2020			June 30, 2019

Basic Income (Loss) Per Share:

Net Income (Loss)	$	0.01		$	0.55	$	0.31	$	(0.06	)	$	0.44	$	0.01		$	(0.40	)	$	0.31
Less: Preferred Dividends		0.16			0.14		0.29		0.28			0.19		0.16			0.39			0.29
Net Income (Loss) Attributable to Common Shareholders	$	(0.15	)	$	0.41	$	0.02	$	(0.34	)	$	0.25	$	(0.15	)	$	(0.79	)	$	0.02

Diluted Income (Loss) Per Share:

Net Income (Loss)	$	0.01		$	0.54	$	0.30	$	(0.06	)	$	0.44	$	0.01		$	(0.40	)	$	0.30
Less: Preferred Dividends		0.16			0.14		0.29		0.28			0.19		0.16			0.39			0.29
Net Income (Loss) Attributable to Common Shareholders	$	(0.15	)	$	0.40	$	0.01	$	(0.34	)	$	0.25	$	(0.15	)	$	(0.79	)	$	0.01

Weighted Average Common Shares Outstanding:

Basic		39,649,318			36,600,643		39,145,310		36,245,684			41,210		39,649			41,195			39,145
Diluted		39,649,318			36,971,345		39,389,883		36,245,684			41,526		39,649			41,195			39,390

	Common Stock				Preferred		Preferred		Number			Amount			Series B			Series C
	Issued and Outstanding				Stock		Stock		Common Stock						Preferred			Preferred
	Number		Amount		Series B		Series C		Issued and Outstanding						Stock			Stock
									Number			Amount			Series B			Series C

Balance December 31, 2019										41,130		$	4,113		$	95,030		$	243,750

Common Stock Issued with the DRIP*										133			13			0			0
Common Stock Issued through Restricted Stock Awards										26			3			0			0
Common Stock Issued through Stock Options										29			3			0			0
Repurchase of Preferred Stock										0			0			(13	)		0
Repurchase of Common Stock										(152	)		(15	)		0			0
Preferred Stock Issued in connection with At-The-Market Offerings, net										0			0			0			0
Preferred Stock Issued through Underwritten Registered Public Offering, net
Distributions										0			0			0			0
Stock Compensation Expense										0			0			0			0
Net Loss										0			0			0			0

Balance March 31, 2020										41,166			4,117			95,017			243,750
Balance March 31, 2020										41,166			4,117			95,017			243,750
Common Stock Issued with the DRIP*										157			15			0			0
Repurchase of Common Stock										(22	)		(2	)		0			0
Distributions										0			0			0			0
Stock Compensation Expense										0			0			0			0
Net Income (Loss)										0			0			0			0

Balance June 30, 2020										41,301		$	4,130		$	95,017		$	243,750

Balance December 31, 2018		38,320,414	$	3,832,041	$	95,030,000	$	143,750,000		38,320		$	3,832		$	95,030		$	143,750

Common Stock Issued with the DRIP*										837			84			0			0
Common Stock Issued through Restricted Stock Awards										1			0			0			0
Distributions										0			0			0			0
Stock Compensation Expense										0			0			0			0
Net Income										0			0			0			0

Balance March 31, 2019										39,158			3,916			95,030			143,750
Balance March 31, 2019										39,158			3,916			95,030			143,750
Common Stock Issued with the DRIP*		836,847		83,685		-0-		-0-		834			83			0			0
Common Stock Issued through Restricted Stock Awards		1,000		100		-0-		-0-		120			12			0			0
Common Stock Issued through Stock Options		-0-		-0-		-0-		-0-		42			4			0			0
Preferred Stock Issued through Underwritten Registered Public Offering, net		-0-		-0-		-0-		-0-		0			0			0			100,000
Distributions		-0-		-0-		-0-		-0-		0			0			0			0
Stock Compensation Expense		-0-		-0-		-0-		-0-		0			0			0			0
Net Income (Loss)		-0-		-0-		-0-		-0-

Balance March 31, 2019		39,158,261		3,915,826		95,030,000		143,750,000

Common Stock Issued with the DRIP*		834,258		83,426		-0-		-0-
Common Stock Issued through Restricted Stock Awards		119,600		11,960		-0-		-0-
Common Stock Issued through Stock Options		42,000		4,200		-0-		-0-
Preferred Stock Issued through Underwritten Registered Public Offering, net		-0-		-0-		-0-		100,000,000
Distributions		-0-		-0-		-0-		-0-
Stock Compensation Expense		-0-		-0-		-0-		-0-
Net Income (Loss)		-0-		-0-		-0-		-0-
Net Income										0			0			0			0

Balance June 30, 2019		40,154,119	$	4,015,412	$	95,030,000	$	243,750,000		40,154		$	4,015		$	95,030		$	243,750

Balance December 31, 2017		35,488,068	$	3,548,807	$	95,030,000	$	143,750,000

Unrealized Net Holding Gain on Securities Available for Sale, Net of Reclassification Adjustment		-0-		-0-		-0-		-0-
Common Stock Issued with the DRIP*		809,076		80,907		-0-		-0-
Common Stock Issued through Restricted Stock Awards		2,000		200		-0-		-0-
Common Stock Issued through Stock Options		12,000		1,200		-0-		-0-
Preferred Stock Issued through Underwritten Registered Public Offering, net		-0-		-0-		-0-		-0-
Distributions		-0-		-0-		-0-		-0-
Stock Compensation Expense		-0-		-0-		-0-		-0-
Net Income (Loss)		-0-		-0-		-0-		-0-

Balance March 31, 2018		36,311,144		3,631,114		95,030,000		143,750,000

Unrealized Net Holding Gain on Securities Available for Sale, Net of Reclassification Adjustment		-0-		-0-		-0-		-0-
Common Stock Issued with the DRIP*		472,825		47,283		-0-		-0-
Common Stock Issued through Restricted Stock Awards		46,000		4,600		-0-		-0-
Common Stock Issued through Stock Options		67,000		6,700		-0-		-0-
Preferred Stock Issued through Underwritten Registered Public Offering, net		-0-		-0-		-0-		-0-
Distributions		-0-		-0-		-0-		-0-
Stock Compensation Expense		-0-		-0-		-0-		-0-
Net Income (Loss)		-0-		-0-		-0-		-0-

Balance June 30, 2018		36,896,969	$	3,689,697	$	95,030,000	$	143,750,000

							June 30, 2020			June 30, 2019
	SIX MONTHS ENDED						SIX MONTHS ENDED
	June 30, 2019			June 30, 2018			June 30, 2020			June 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$	11,786,096		$	(2,136,353	)	$	(16,423	)	$	11,786
Non-Cash items included in Net Income (Loss):
Depreciation		17,619,652			15,358,892			20,499			17,620
Amortization of Financing Costs		364,531			306,962			410			365
Stock Compensation Expense		1,058,873			853,554			887			1,059
Provision for Uncollectible Notes and Other Receivables		622,675			568,349			740			623
Gain on Sales of Marketable Securities, net		-0-			(20,107	)
(Increase) Decrease in Fair Value of Marketable Securities		(6,243,581	)		9,275,149			25,182			(6,244	)
Loss on Sales of Investment Property and Equipment		8,714			80,632			146			9
Changes in Operating Assets and Liabilities:
Inventory of Manufactured Homes		(4,586,486	)		(5,596,315	)		4,209			(4,586	)
Notes and Other Receivables, net of Notes Acquired with Acquisitions		(4,550,946	)		(3,061,827	)
Notes and Other Receivables								(3,359	)		(4,551	)
Prepaid Expenses and Other Assets		(6,272,861	)		(1,965,714	)		(2,270	)		(6,273	)
Accounts Payable		459,182			961,382			(285	)		459
Accrued Liabilities and Deposits		1,109,376			(577,796	)		820			1,109
Tenant Security Deposits		272,972			398,041			436			273
Net Cash Provided by Operating Activities		11,648,197			14,444,849			30,992			11,649

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Manufactured Home Communities		-0-			(21,010,527	)
Purchase of Investment Property and Equipment		(27,326,217	)		(23,559,057	)		(37,666	)		(27,326	)
Proceeds from Sales of Investment Property and Equipment		1,400,288			1,141,157			1,124			1,400
Additions to Land Development Costs		(7,603,680	)		(3,694,511	)		(7,457	)		(7,604	)
Purchase of Marketable Securities		(933,572	)		(14,622,458	)		(690	)		(934	)
Proceeds from Sales of Marketable Securities		-0-			268,675
Net Cash Used in Investing Activities		(34,463,181	)		(61,476,721	)		(44,689	)		(34,464	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net Payments on Short Term Borrowings		(69,330,342	)		(57,229	)		(17,733	)		(69,330	)
Principal Payments of Mortgages		(3,765,800	)		(3,393,435	)		(4,256	)		(3,766	)
Financing Costs on Debt		(14,904	)		(35,532	)		0			(15	)
Proceeds from At-The-Market Preferred Equity Program, net of offering costs								63,132			0
Proceeds from Issuance of Preferred Stock, net of offering costs		96,688,218			48,247,280			0			96,688
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments reinvestments		17,705,263			14,817,445			1,670			17,705
Repurchase of Preferred Stock, net								(12	)		0
Repurchase of Common Stock, net								(1,830	)		0
Proceeds from Exercise of Stock Options		434,660			835,120			306			435
Preferred Dividends Paid		(11,934,014	)		(9,803,805	)		(16,180	)		(11,934	)
Common Dividends Paid, net of Dividend Reinvestments		(10,449,385	)		(11,502,896	)		(13,159	)		(10,449	)
Net Cash Provided by Financing Activities		19,333,696			39,106,948			11,938			19,334

Net Decrease in Cash, Cash Equivalents and Restricted Cash		(3,481,288	)		(7,924,924	)		(1,759	)		(3,481	)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		12,777,411			27,891,249			18,996			12,777
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	9,296,123		$	19,966,325		$	17,237		$	9,296

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 ~~118~~122 manufactured home communities containing approximately ~~21,500~~23,100 developed homesites as of June 30, ~~2019.~~2020. 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~~also sells manufactured ~~home sales~~homes 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 ~~15%~~15% of its undepreciated assets. 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.

On March 11, 2020, the World Health Organization declared COVID-19, a respiratory illness caused by the novel coronavirus, a pandemic, and on March 13, 2020, the United States declared a national emergency with respect to COVID-19. The Company’s 122 residential communities remain open and operational. The effects of the COVID-19 pandemic did not significantly impact the Company’s operating results for the first six months of 2020. However, the future effects of the evolving impact of the COVID-19 pandemic are uncertain.

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 three and six months ended June 30, ~~2019~~2020 are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2019.~~2020. 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, ~~2018.~~2019.

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.

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

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 previously entered into various interest rate swap agreements that have had the effect of fixing interest rates relative to specific mortgage loans. As of December 31, 2019 and June 30, ~~2019,~~2020, these agreements ~~have~~had expired and the Company does not have any interest rate swap agreements in effect.

In August 2018, the Securities and Exchange Commission adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification”, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The first presentation of changes in stockholders’ equity was included in the Form 10-Q for the quarter ended March 31, 2019.

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 as a right-of-use asset and a corresponding liability. ASU 2016-02 also makes 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. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases”, which included amendments to clarify certain aspects of the new lease standard. In July 2018, the FASB also issued ASU No. 2018-11, “Leases (Topic 842) – Target Improvements.” ASU No. 2018-11 provides a new transition method and a practical expedient to separating contract components as required by ASU 2016-02. Under ASU 2018-11, an entity applying the new lease accounting standard may record a cumulative adjustment to the opening balance of undistributed income (accumulated deficit) in the period of adoption, instead of having to restate comparative results, as initially required. Additionally, ASU No. 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, toWe account for ~~those components as a single component if the non-lease components otherwise would be accounted for~~our leases under the new revenue guidance if both 1. the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same (instead of the timing and pattern of revenue recognition, as proposed); and 2. the lease component, if accounted for separately, would be classified as an operating lease. In December 2018, the FASB issued ASU 2018-20, “Leases (Topic 842) – Narrow-Scope Improvements for Lessors.ASC 842, “Leases.” ASU 2018-20 allow lessors to make an accounting policy election not to evaluate whether sales taxes and similar taxes imposed by a governmental authority on a specific lease revenue-producing transaction are the primary obligation of the lessor as owner of the underlying leased asset. The amendments also require a lessor to exclude lessor costs paid directly by a lessee to third parties on the lessor’s behalf from variable payments and include lessor costs that are paid by the lessor and reimbursed by the lessee in the measurement of variable lease revenue and the associated expense. In addition, the amendments clarify that when lessors allocate variable payments to lease and non-lease components they are required to follow the recognition guidance in the new lease standard for the lease component and other applicable guidance, such as the new revenue standard, for the non-lease component.

~~The Company adopted this standard effective January 1, 2019, and it did not have a material impact on the Company’s financial position, results of operations or cash flows.~~ Our primary source of revenue is generated from lease agreements for our sites and homes, where we are the lessor. ~~The non-lease components of our lease agreements consist primarily of utility reimbursements. We have elected~~These leases are generally for one-year or month-to-month terms and renewable by mutual agreement from us and the ~~lessor practical expedient to combine the lease and non-lease components.~~ resident, or in some cases, as provided by jurisdictional statute.

We are the lessee in other arrangements, primarily for our corporate office and a ground lease at one community. For leases with a term greater than one year, right-of-use assets and corresponding liabilities are included on the Consolidated Balance Sheet. The right-of-use asset and corresponding lease liabilities are measured as the estimated present value of minimum lease payments at the commencement of the lease agreement and discounted by our borrowing rate. As of June 30, ~~2019,~~2020, the right-of-use assets and corresponding lease liabilities of ~~$2,806,708~~$3.8 million is included in Prepaid Expenses and Other Assets and Accrued Liabilities and Deposits on the Consolidated Balance Sheets.

Future minimum lease payments under these leases over the remaining lease terms are as ~~follows:~~follows (in thousands):

2019	$	160,181
				Jun. 30, 2020
2020		324,246	$	213
2021		326,187		427
2022		178,504		417
2023		104,662		384
2024				384
Thereafter		7,954,333		8,432

Total Lease Payments	$	9,048,114	$	10,257

The weighted average remaining lease term for these leases is ~~166.8~~144.4 years. The right of use assets and lease liabilities was calculated using an interest rate of 5%5%. Additionally, for all leases, we have elected the package of practical expedients, which permits the Company not to reassess expired or existing contracts containing a lease, the lease classification for expired or existing contracts, and measurement of initial direct costs for any existing leases.

~~In November 2016, the FASB issued ASU 2016-18 “Statement of~~Restricted Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires inclusion of restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted this standard effective January 1, 2018.

The Company’s restricted cash consists of amounts primarily held in deposit for tax, insurance and repair escrows held by lenders in accordance with certain debt agreements. Restricted cash is included in Prepaid Expenses and Other Assets on the Consolidated Balance Sheets. ~~Previously, changes in restricted cash are reported on the Consolidated Statements of Cash Flows as operating, investing or financing activities based on the nature of the underlying activity.~~

The following table reconciles beginning of period and end of period balances of cash, cash equivalents and restricted cash for the periods ~~shown:~~shown (in thousands):

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. The Company adopted this standard effective January 1, 2018. The Company previously classified its marketable securities as available-for-sale and carried at fair value with unrealized holding gains and losses excluded from earnings and reported as a separate component of Shareholders’ Equity until realized. The change in the unrealized net holding gains (losses) was reflected in the Company’s Comprehensive Income (Loss). As a result of adoption, these securities will continue to be measured at fair value; however, the change in the unrealized net holding gains and losses is now recognized through net income. As ofSCHEDULE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH

On January 1, 2018, ~~unrealized net holding gains of $11,519,582 were reclassed to beginning undistributed income (accumulated deficit) to recognize~~ the ~~unrealized gains previously recorded in “accumulated other comprehensive income” on our consolidated balance sheets.~~

~~In May 2014, the FASB issued~~Company adopted ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (ASC 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 adopted this standard effective January 1, 2018. For transactions in the scope of ~~ASU 2014-09,~~ASC 606, we recognize revenue when control of goods or services transfers to the customer, in the amount that we expect to receive for the transfer of goods or provision of services. The adoption of ASU 2014-09 did not result in any change to our accounting policies for revenue recognition. Accordingly, retrospective application to prior periods or a cumulative catch-up adjustment was unnecessary.

~~Our primary source of revenue~~Rental and related income is generated from lease agreements for our sites and homes. ~~Resident leases are generally for one-year or month-to-month terms, and are renewable by mutual agreement from us and the resident, or in some cases, as provided by jurisdictional statute.~~ The lease component of these agreements is accounted for under ASC ~~842~~840 “Leases.” The non-lease components of our lease agreements consist primarily of utility reimbursements, which are accounted for with the site lease as a single lease under ASC ~~842.~~840.

~~Prior to the adoption of ASC 606,~~Revenue from sales of manufactured homes ~~was~~is recognized ~~under ASC 605 “Revenue Recognition” since these homes are not permanent fixtures or improvements to the underlying real estate. In~~in accordance with the core principle of ASC 606, ~~we recognize revenue from home sales~~ at the time of closing when control of the home transfers to the customer. After closing of the sale transaction, we generally have no remaining performance obligation.

Interest income is primarily from notes receivables for the previous sales of manufactured homes. Interest income on these receivables is accrued based on the unpaid principal balances of the underlying loans on a level yield basis over the life of the loans. ~~Interest income is not in the scope of ASC 606.~~

Dividend income and gain on sales of marketable securities ~~net~~ are from our investments in marketable securities and are presented separately but are not in the scope of ASC 606.

Other income primarily consists of brokerage commissions for arranging for the sale of a home by a third party ~~service~~ and ~~marketing agreements with cable providers, and in 2017 included an upfront oil and gas bonus payment.~~other miscellaneous income. This income is recognized when the transactions are completed and our performance obligations have been fulfilled.

As of June 30, 2019 and 2018, the Company had notes receivable of $33,797,223 and $26,621,809, respectively. Notes receivables are presented as a component of Notes and Other Receivables, net on our Consolidated Balance Sheets. These receivables represent balances owed to us for previously completed performance obligations for sales of manufactured homes. Due to the nature of our revenue from contacts with customers, we do not have material contract assets or liabilities that fall under the scope of ASC 606.

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. As of January 1, 2020, we adopted the fair value option for our notes receivable and there was not a material impact. As of June 30, 2020 and 2019, the Company had notes receivable of $38.3 million and $33.1 million, net the fair value adjustment of $0.8 million and $0.7 million, respectively. Notes receivable are presented as a component of Notes and Other Receivables, net on our Consolidated Balance Sheets. These receivables represent balances owed to us for previously completed performance obligations for sales of manufactured homes.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement” which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC 820. This guidance is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that year. The Company ~~is currently evaluating the potential impact~~adopted this standard ~~may~~effective with its financial statements for the quarter ended March 31, 2020, and it did not have a material impact on ~~the consolidated financial statements.~~its fair value disclosures.

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.

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~~and when dilutive, the ~~weighted average number of~~potential net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. In periods with a net loss, the diluted loss per share equals the basic loss per share as all common stock equivalents are excluded from the per share calculation because they are anti-dilutive.

For the six months ended June 30, 2020, common stock equivalents resulting from employee stock options to purchase 3.3 million 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 months ended June 30, 2020, common stock equivalents resulting from employee stock options to purchase 3.3 million shares of common stock amounted to 316,000 shares, which were included in the computation of Diluted Net Income (Loss) per Share. For the three months ended June 30, 2019, common stock equivalents resulting from employee stock options to purchase ~~2,854,600~~2.9 million 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 six months ended June 30, 2019, common stock equivalents resulting from employee stock options to purchase ~~2,854,600~~2.9 million shares of common stock amounted to ~~244,573~~245,000 shares, which were included in the computation of Diluted Net Income (Loss) per Share. For the three months ended June 30, 2018, common stock equivalents resulting from employee stock options to purchase 2,239,100 shares amounted to 370,702 shares, which were included in the computation of Diluted Net Income (Loss) per Share. For the six months ended June 30, 2018, employee stock options to purchase 2,239,100 shares of common stock were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would be anti-dilutive.

The Company’s marketable securities consists primarily of marketable common and preferred stock of other REITs with a fair value of ~~$106,772,889~~$91.7 million as of June 30, ~~2019.~~2020, which represents 7.2% of undepreciated assets. The Company generally limits its investment in marketable securities to no more than approximately ~~15%~~15% 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.

On January 1, 2018, the Company adopted ASU 2016-01, which requires changes in the fair value of our marketable securities to be recorded in current period earnings. Previously, changes in the fair value of marketable securities were recognized in “Accumulated Other Comprehensive Income” on our Consolidated Balance Sheets. As a result, on January 1, 2018 the Company recorded an increase to beginning undistributed income (accumulated deficit) of $11,519,582 to recognize the unrealized gains previously recorded in “Accumulated Other Comprehensive Income” on our Consolidated Balance Sheets. Subsequent changes in the fair value of the Company’s marketable securities will be recorded to “Increase (Decrease) in Fair Value of Marketable Securities” on our Consolidated Statements of Income (Loss).

During the six months ended June 30, ~~2019,~~2020, the Company made purchases of ~~$933,572~~$690,000 in marketable securities. Of this amount, the Company made total purchases of ~~64,996~~54,000 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 ~~$836,555~~$637,000 or weighted average cost of ~~$12.87~~$11.72 per share. The Company owned a total of ~~2,511,049~~2.6 million MREIC common shares as of June 30, ~~2019~~2020 at a total cost of ~~$23,128,963~~$24.6 million and a fair value of ~~$34,024,715.~~$38.1 million.

As of June 30, ~~2019,~~2020, the Company had total net unrealized losses of ~~$(33,912,233)~~$50.4 million in its REIT securities portfolio. For the three and six months ended June 30, ~~2019,~~2020, the Company recorded a ~~$2,352,185 decrease~~$13.4 million increase and a ~~$6,243,581 increase,~~$25.2 million decrease, respectively, in the fair value of these marketable securities. The Company held ~~fourteen~~eighteen securities that had unrealized losses as of June 30, ~~2019.~~2020. The Company normally holds REIT securities long-term and has the ability and intent to hold these securities to recovery.

On November 29, 2018, the Company entered into a First Amendment to Amended and Restated Credit Agreement (the “Amendment”) to expand and extend its existing unsecured revolving credit facility (the “Facility”). The Facility is syndicated with two banks led by BMO Capital Markets Corp. (“BMO”), as sole lead arranger and sole book runner, with Bank of Montreal as administrative agent, and includes JPMorgan Chase Bank, N.A. (“J.P. Morgan”) as the sole syndication agent. The Amendment ~~provides~~provided for an increase from ~~$50~~$50 million in available borrowings to ~~$75~~$75 million in available borrowings with a ~~$50~~$50 million accordion feature, bringing the total potential availability up to ~~$125~~$125 million, subject to certain conditions including obtaining commitments from additional lenders. The Amendment also ~~extends~~extended the maturity date of the Facility from March 27, 2020 to November 29, 2022, with a one-year extension available at the Company’s option, subject to certain conditions including payment of an extension fee. Availability under the Facility is limited to 60% of the value of the unencumbered communities which the Company has placed in the Facility’s unencumbered asset pool (“Borrowing Base”). The Amendment increased the value of the Borrowing Base communities by reducing the capitalization rate applied to the Net Operating Income (“NOI”) generated by the communities in the Borrowing Base from 7.5% to 7.0%. As of June 30, ~~2019, there~~2020, the amount outstanding under the Facility was ~~no outstanding balance on this Facility.~~$15 million and the interest rate was 1.68%.

Loans Payable includes unamortized debt issuance costs of ~~$364,236~~$261,000 and ~~$432,126~~$358,000 at June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively. The weighted average interest rate was ~~5.1%~~2.0% and ~~4.2%~~3.7% at June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively, not including the effect of unamortized debt issuance costs. At June 30, ~~2019, $10,060,048~~2020, $32.8 million was outstanding on the margin loan at an interest rate of ~~3.0%~~0.75%.

On ~~April~~June 30, ~~2019,~~2020, the Company ~~expanded its~~entered into an amended and restated revolving line of credit for the financing of homes, increasing total availability from ~~$10~~ $15 million to ~~$15~~ $20 million. Interest was reduced from prime plus 25 basis points to prime with a floor of 3.25%. The amendment also extended the maturity date from June 1, 2020 to June 1, 2022, with a one yearextension at the Bank’s option. As of June 30, 2020, $5 million was outstanding on the revolving line of credit at an interest rate of 3.25%.

The following is a summary of our mortgages payable as of June 30, ~~2019~~2020 and December 31, ~~2018:~~2019 (in thousands):

As of June 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the weighted average loan maturity of mortgages payable was ~~5.8~~5.5 years and ~~6.3~~6.0 years, respectively.

On July 1, 2019, the Company obtained two Federal National Mortgage Association mortgages totaling $38,775,000 through Wells Fargo Bank, N.A on Oxford Village, Southwind Village and Woodlawn Village (See Note 10).

On June ~~17, 2019,~~15, 2020, the Company paid total cash dividends of ~~$7,159,331~~$7.4 million or ~~$0.18~~$0.18 per share to common shareholders of record as of the close of business on ~~June 17, 2019,~~May 15, 2020, of which ~~$1,886,004~~$771,000 was reinvested in the Dividend Reinvestment and Stock Purchase Plan (“DRIP”). Total dividends paid to our common shareholders for the six months ended June 30, ~~2019~~2020 amounted to ~~$14,139,383~~$14.8 million of which ~~$3,689,998~~$1.7 million was reinvested. On July 1, ~~2019,~~2020, the Company declared a dividend of ~~$0.18~~$0.18 per share to be paid September ~~16, 2019~~15, 2020 to common shareholders of record as of the close of business on August ~~15, 2019.~~17, 2020.

During the six months ended June 30, ~~2019, the~~2020, the Company received, including dividends reinvested of ~~$3,689,998,~~$1.7 million, a total of ~~$21,395,261~~$3.3 million from its DRIP. There were ~~1,671,105~~290,000 new shares issued under the DRIP during this period.

On January 15, 2020, the Board of Directors reaffirmed our Common Stock Repurchase Program (the “Repurchase Program”) that authorizes us to repurchase up to $25 million in the aggregate of the Company’s common stock. Purchases under the Repurchase Program may be made using a variety of methods, which may include open market purchases, privately negotiated transactions or block trades, or by any combination of such methods, in accordance with applicable insider trading and other securities laws and regulations. The size, scope and timing of any purchases will be based on business, market and other conditions and factors, including price, regulatory and contractual requirements or consents, and capital availability. The Repurchase Program does not require the Company to acquire any particular amount of common stock and may be suspended, modified or discontinued at any time at the Company’s discretion without prior notice. During the first six months of 2020, the Company repurchased approximately 174,000 shares of common stock at an aggregate cost of $1.8 million, or a weighted average price of $10.50 per share. The last repurchase was made on May 14, 2020.

On June ~~17, 2019,~~15, 2020, the Company paid ~~$1,900,600~~$1.9 million in dividends or ~~$0.50~~$0.50 per share for the period from March 1, ~~2019~~2020 through May 31, ~~2019~~2020 to holders of record as of the close of business on May 15, ~~2019~~2020 of our ~~8.0%~~8.0% Series B Cumulative Redeemable Preferred Stock, Liquidation Preference ~~$25.00~~$25.00 per share (“Series B ~~Preferred”~~Preferred Stock”). Dividends on our Series B Preferred Stock shares are cumulative and payable quarterly at an annual rate of ~~$2.00~~$2.00 per share. Total dividends paid to our Series B Preferred Stock shareholders for the six months ended June 30, ~~2019~~2020 amounted to ~~$3,801,200.~~$3.8 million.

On July 1, ~~2019,~~2020, the Company declareda dividend of ~~$0.50~~$0.50 per share for the period from June 1, ~~2019~~2020 through August 31, ~~2019~~2020 to be paid on September ~~16, 2019~~15, 2020 to Series B Preferred Stock shareholders of record as of the close of business on August ~~15, 2019.~~17, 2020.

On March 13, 2020, the Board of Directors approved our Series B Preferred Stock Repurchase Program (the “Series B Repurchase Program”) that authorizes us to repurchase up to $5 million in the aggregate of the Company’s Series B Preferred Stock. Purchases under the Series B Repurchase Program may be made using a variety of methods, which may include open market purchases, privately negotiated transactions or block trades, or by any combination of such methods, in accordance with applicable insider trading and other securities laws and regulations. The size, scope and timing of any purchases will be based on business, market and other conditions and factors, including price, regulatory and contractual requirements or consents, and capital availability. The Series B Repurchase Program does not require the Company to acquire any particular amount of Series B Preferred Stock and may be suspended, modified or discontinued at any time at the Company’s discretion without prior notice. During March 2020, the Company repurchased 531 shares of our Series B Preferred Stock for approximately $12,000.

On ~~April 29, 2019,~~June 15, 2020, the Company ~~issued and sold a total~~paid $4.1 million in dividends or $0.421875 per share for the period from March 1, 2020 through May 31, 2020 to holders of ~~4,000,000 shares, including~~record as ~~a result~~ of the ~~underwriters’ exercise in full~~close of ~~their overallotment option of 400,000 shares,~~business on May 15, 2020 of our ~~6.75%~~6.75% Series C Cumulative Redeemable Preferred Stock, Liquidation Preference ~~$25.00~~$25.00 per share (“Series C ~~Preferred”~~Preferred Stock”) ~~at an offering price of $25.00 per share in an underwritten registered public offering. The additional shares of~~. Dividends on our Series C Preferred ~~will form a single series with, will have the same terms as,~~Stock shares are cumulative and ~~will vote as a single class with, the 5,750,000 outstanding shares~~payable quarterly at an annual rate of $1.6875 per share. Total dividends paid to our Series C Preferred ~~issued in~~Stock shareholders for the six months ended June 30, 2020 amounted to $8.2 million.

On July ~~2017 and will rank~~1, 2020, the Company declareda dividend of $0.421875 per share for the period from June 1, 2020 through August 31, 2020 to be paid on ~~a parity with the Company’s outstanding 8.0%~~September 15, 2020 to Series ~~B Cumulative Redeemable~~C Preferred Stock ~~and its outstanding~~ shareholders of record as of the close of business on August 17, 2020.

6.375% Series D Cumulative Redeemable Preferred ~~Stock. After giving effect to the offering,~~Stock

On June 15, 2020, the Company ~~has a total~~paid $2.1 million in dividends or $0.3984375 per share for the period from March 1, 2020 through May 31, 2020 to holders of ~~9,750,000 shares of Series C Preferred outstanding.~~

~~The Company received net proceeds from the sale~~record as of the ~~4,000,000~~close of business on May 15, 2020 of our 6.375% Series D Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series D Preferred Stock”). Dividends on our Series D Preferred Stock shares are cumulative and payable quarterly at an annual rate of $1.59375 per share. Total dividends paid to our Series CD Preferred ~~of approximately $96.7 million, after deducting~~Stock shareholders for the ~~underwriting discount and other estimated offering expenses, and intends~~six months ended June 30, 2020 amounted to use the 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.$4.2 million.

~~In conjunction~~On July 1, 2020, the Company declareda dividend of $0.3984375 per share for the period from June 1, 2020 through August 31, 2020 to be paid on September 15, 2020 to Series D Preferred Stock shareholders of record as of the close of business on August 17, 2020.

On May 14, 2020, the Company filed with the ~~issuance~~State Department of Assessments and Taxation of the State of Maryland (the “Maryland SDAT”) an amendment to the Company’s charter to increase the Company’s authorized shares of common stock, par value $0.10 per share (“Common Stock”), by 20 million shares.

On June 30, 2020, the Company entered into an Equity Distribution Agreement (“Common ATM Program”) with BMO Capital Markets Corp., B. Riley FBR, Inc., Compass Point Research & Trading, LLC, D.A. Davidson & Co., Janney Montgomery Scott LLC, and J.P. Morgan Securities LLC, as distribution agents (the “Distribution Agents”) under which the Company may offer and sell shares of the Company’s Common Stock, having an aggregate sales price of up to $100 million from time to time through the Distribution Agents. Sales of the shares of Common Stock under the Common ATM Program, if any, will be in “at the market offerings” as defined in Rule 415 under the Securities Act, including, without limitation, sales made directly on or through the NYSE or on any other existing trading market for the Common Stock, as applicable, or to or through a market maker or any other method permitted by law, including, without limitation, negotiated transactions and block trades. Shares of Common Stock sold under the Common ATM Program are offered pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-238321), filed with the Securities and Exchange Commission (the “SEC”) on May 15, 2020, and declared effective on June 1, 2020 (the “2020 Registration Statement”), and the prospectus dated June 1, 2020 included in the 2020 Registration Statement and the related prospectus supplement dated June 30, 2020. The Company has not sold any shares under this program as of June 30, 2020.

On October 21, 2019, the Company entered into a Preferred Stock At-The-Market Sales Program (“2019 Preferred ATM Program”) with B. Riley FBR, Inc. (“B. Riley”), as distribution agent, under which the Company may offer and sell shares of the Company’s Series C Preferred Stock and/or Series D Preferred Stock, having an aggregate sales price of up to $100 million. Sales of shares under the 2019 Preferred ATM Program are “at the market offerings” as defined in Rule 415 under the Securities Act, including, without limitation, sales made directly on ~~April 26,~~or through the NYSE, or on any other existing trading market for the Series C Preferred Stock or Series D Preferred Stock, as applicable, or to or through a market maker or any other method permitted by law, including, without limitation, negotiated transactions and block trades. The Company began selling shares under the 2019 Preferred ATM Program on October 22, 2019 and through June 30, 2020, 3.2 million shares of Series D Preferred Stock were sold at a weighted average price of $25.09 per share, generating gross proceeds of $80.5 million and net proceeds of $79.1 million, after offering expenses. Of these amounts, during the six months ended June 30 2020, we sold 2.6 million shares at a weighted average price of $25.06 per share, generating gross proceeds of $64.1 million and net proceeds after offering expenses of $63.1 million. As of June 30, 2020, $19.5 million in shares of Series C Preferred Stock and/or Series D Preferred Stock remained eligible for sale under the 2019 Preferred ATM Program.

On July 15, 2020, the Company filed with the Maryland State Department of Assessments and Taxation ~~(the “Maryland~~(“Maryland SDAT”)~~, an amendment to the Company’s charter to increase the authorized number of~~ Articles Supplementary reclassifying and designating 3.3 million shares of the Company’s common stock by 16,000,000 shares. As a result of this amendment, the Company’s total authorized shares were increased from 126,413,800 shares (classified as 111,363,800 shares of Common Stock, 4,000,000 shares of Series B Preferred, 5,750,000 shares of Series C Preferred, 2,300,000 shares of Series D Preferred and 3,000,000 shares of excess stock) to 142,413,800 shares (classified as 127,363,800 shares of Common Stock, 4,000,000 shares of Series B Preferred, 5,750,000 shares of Series C Preferred, 2,300,000 shares of Series D Preferred and 3,000,000 shares of excess stock).

~~Immediately following this amendment, the Company filed with the Maryland SDAT Articles Supplementary reclassifying 4,000,000 shares of~~ Common Stock as shares of Series ~~C Preferred. After this amendment,~~D Preferred (See Note 10).

On July 22, 2020, the ~~Company’s authorized stock consists of 123,363,800~~Company entered into a new Preferred Stock At-The-Market Sales Program (“New Preferred ATM Program”) with B. Riley, as distribution agent, under which the Company may offer and sell shares of ~~Common Stock, 4,000,000 shares of Series B Preferred, 9,750,000 shares of~~the Company’s Series C Preferred ~~2,300,000 shares of~~Stock and/or Series D Preferred ~~and 3,000,000 shares~~Stock, having an aggregate sales price of ~~excess stock.~~

~~On June 17,~~up to $100million. The New Preferred ATM Program replaced the 2019 the Company paid $4,113,281 in dividends or $0.421875 per share for the period from March 1, 2019 through May 31, 2019 to holders of record as of the close of business on May 15, 2019 of our 6.75% Series C Preferred. Dividends on our Series C Preferred shares are cumulative and payable quarterly at an annual rate of $1.6875 per share. Total dividends paid to our Series C Preferred shareholders for the six months ended June 30, 2019 amounted to $6,539,063.ATM Program (See Note 10).

On July 1, 2019, the Company declared a dividend of $0.421875 per share for the period from June 1, 2019 through August 31, 2019 to be paid on September 16, 2019 to Series C Preferred shareholders of record as of the close of business on August 15, 2019.

On June 17, 2019, the Company paid $796,876 in dividends or $0.3984375 per share for the period from March 1, 2019 through May 31, 2019 to holders of record as of the close of business on May 15, 2019 of our 6.375% Series D Cumulative Redeemable Preferred Stock, Liquidation Preference $25.00 per share (“Series D Preferred”). Dividends on our Series D Preferred shares are cumulative and payable quarterly at an annual rate of $1.59375 per share. Total dividends paid to our Series D Preferred shareholders for the six months ended June 30, 2019 amounted to $1,593,751.

On July 1, 2019, the Company declared a dividend of $0.3984375 per share for the period from June 1, 2019 through August 31, 2019 to be paid on September 16, 2019 to Series D Preferred shareholders of record as of the close of business on August 15, 2019.

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 ~~$668,190~~$313,000 and ~~$1,058,873~~$887,000 have been recognized for the three and six months ended June 30, 2020, respectively, and $668,000 and $1.1 million have been recognized for the three and six months ended June 30, 2019, ~~respectively, and $571,492 and $853,554 have been recognized for the three and six months ended June 30, 2018,~~ respectively.

On January ~~2, 2019,~~8, 2020, the Company awarded a total of 15,000 shares of restricted stock to three employees. The grant date fair value of these restricted stock grants was $233,000. These grants vest ratably over five years.

On January 15, 2020, the Company awarded a total of 11,000 shares of common stock to the members of our Board of Directors. The grant date fair value of these awards was $177,000.

On January 17, 2020, the Company granted options to purchase ~~60,000~~10,000 shares of common stock to one participant in the Company’s Amended and Restated 2013 Incentive Award Plan. The grant date fair value of these options amounted to $16,000. This grant vests ratably over three years.

On March 25, 2020, the Company granted options to purchase 690,000 shares of common stock to forty participants in the Company’s Amended and Restated 2013 Incentive Award Plan. The grant date fair value of these options amounted to $653,000. These grants vest ratably over five years. Compensation costs for grants issued to a participant who is of retirement age is recognized at the time of the grant.

On May 20, 2020, the Company granted options to purchase 15,000 shares of common stock to two participants in the Company’s Amended and Restated 2013 Incentive Award Plan. The grant date fair value of these options amounted to ~~$95,332. These grants vest over one year.~~

On April 2, 2019, the Company awarded a total of 117,600 shares of restricted stock to Samuel A. Landy and Anna T. Chew, pursuant to their employment agreements. The grant date fair value of these restricted stock grants was $1,634,640.$17,000. These grants vest ratably over ~~5 years.~~five years.

On April 2, 2019, the Company granted options to purchase 584,000 shares of common stock to forty participants in the Company’s Amended and Restated 2013 Incentive Award Plan. The grant date fair value of these options amounted to $1,012,293. These grants vest over one year. Compensation costs for grants issued to a participant who is of retirement age is recognized at the time of the grant.

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 six months ended June 30, ~~2019~~2020 and ~~2018:~~2019:

The weighted-average fair value of options granted during the six months ended June 30, 2020 and 2019 was $0.96and ~~2018 was $1.72 and $2.04~~$1.72 per share, respectively.

During the six months ended June 30, ~~2019, four~~2020, three participants exercised options to purchase a total of ~~42,000~~29,000 shares of common stock at a weighted-average exercise price of ~~$10.35~~$10.55 per share for total proceeds of ~~$434,660.~~ $306,000. The aggregate intrinsic value of options exercised was $175,000.

As of June 30, ~~2019,~~2020, there were options outstanding to purchase ~~2,854,600 shares.~~3.3 million shares, with an aggregate intrinsic value of $2.7 million. There were ~~1,196,900~~455,000 shares available for grant under the Amended and Restated 2013 Incentive Award Plan. ~~The aggregate intrinsic value of options outstanding as of June 30, 2019 was $2,577,698 and the aggregate intrinsic value of options exercised during the six months ended June 30, 2019 was $133,240.~~

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 marketable securities. The fair value of these financial assets and liabilities was determined using the following inputs at June 30, ~~2019~~2020 and December 31, ~~2018:~~2019 (in thousands):

SUMMARY OF FINANCIAL ASSETS AND LIABILITIES RECOGNIZED AT FAIR VALUE ON A RECURRING BASIS

In addition to the Company’s investments in marketable securities, 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 Marketable Securities have quoted market prices and traded in active markets and are therefore classified in Level 1 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 June 30, ~~2019,~~2020, the fair value of Fixed Rate Mortgages Payable amounted to ~~$334,224,345~~$383.5 million and the carrying value of Fixed Rate Mortgages Payable amounted to ~~$330,645,711.~~$372.8 million.

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~~On May 7, 2020, the Company entered into contracts to purchase ~~four~~two communities, one in New York and one in Pennsylvania, for a total purchase price of approximately ~~$56,237,000.~~$8.0 million. These all-age communities contain a total of 315 developed homesites with a weighted-average occupancy of 63%. The purchase of ~~three of these communities have~~one community closed subsequent to quarter end (see Note 10) and the purchase of the remaining community is expected to close later in the third quarter of ~~2019.~~2020.

The Company has an agreement with 21st MortgageCorporation (“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%~~80% to ~~95%~~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 June 30, ~~2019,~~2020, the total loan balance under this agreement was approximately ~~$2.7~~ $2.3 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%~~55% to ~~100%~~100% of the amount under each such loan, subject to certain adjustments. As of June 30, ~~2019,~~2020, the total loan balance owed to 21st Mortgage with respect to homes in these acquired communities was approximately ~~$2.8~~ $2.2 million. Although this agreement is still ~~active,~~in effect, this program is not being utilized by the Company’s new customers as a source of financing.

S&F entered into a Chattel Loan Origination, Sale and Servicing Agreement (“COP Program”) with Triad Financial Services, effective January 1, 2016. Neither the Company, nor S&F, 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 a 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, assigned to S&F and then assigned by S&F to the Company. Included in Notes and Other Receivables is approximately ~~$21,675,000~~$29.2 million of loans that the Company acquired under the COP Program as of June 30, ~~2019.~~2020.

Cash paid for interest during the six months ended June 30, 2020 and 2019 was $8.8 million and ~~2018 was $9,172,403 and $7,669,068~~$9.2 million, respectively. Interest cost capitalized to Land Development was ~~$614,467~~$547,000 and ~~$398,852~~$614,000 for the six months ended June 30, 2020 and 2019, ~~and 2018,~~ respectively.

During the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, the Company had Dividend Reinvestments of ~~$3,689,998~~$1.7 million and ~~$1,590,384~~$3.7 million respectively, which required no cash transfers.

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

On July ~~1, 2019,~~15, 2020, the Company ~~obtained two Federal National Mortgage Association (“Fannie Mae”) mortgages totaling $38,775,000 through Wells Fargo Bank, N.A. (“Wells Fargo”) on Oxford Village, Southwind Village~~filed with the Maryland SDAT Articles Supplementary reclassifying and Woodlawn Village. The interest rate on these mortgages are fixed at 3.41%. These mortgages mature on July 1, 2029, with principal repayments based on a 30-year amortization schedule. Proceeds from these mortgages were used to repaydesignating 3.3 million shares of the ~~existing Oxford Village~~Company’s Common Stock as shares of Series D Preferred. Following the filing of the Articles Supplementary, the authorized capital stock of the Company consists of 140.4 million shares of Common Stock, 4 million shares of Series B Preferred Stock, 13.8 million shares of Series C Preferred Stock, 9.3 million shares of Series D Preferred Stock and ~~Southwind Village mortgages~~3 million shares of ~~approximately $11.5 million, which had a weighted average interest rate of 5.94%.~~excess stock, par value $0.10per share.

On July 3,22, 2020, the Company entered into the New Preferred ATM Program with B. Riley, as distribution agent, under which the Company may offer and sell shares of the Company’s Series C Preferred Stock and/or Series D Preferred Stock, having an aggregate sales price of up to $100 million. Sales of shares under the New Preferred ATM Program are “at the market offerings” as defined in Rule 415 under the Securities Act, including, without limitation, sales made directly on or through the NYSE, or on any other existing trading market for the Series C Preferred Stock or Series D Preferred Stock, as applicable, or to or through a market maker or any other method permitted by law, including, without limitation, negotiated transactions and block trades. Shares of Series C Preferred Stock and/or Series D Preferred Stock sold under the New Preferred ATM Program are offered pursuant to the Company’s 2020 Registration Statement and are sold and issued pursuant to the Company’s prospectus dated June 1, 2020 included in the 2020 Registration Statement and the related prospectus supplement dated July 22, 2020. The New Preferred ATM Program replaced the 2019 Preferred ATM Program.

On July 23, 2020, the Company drew down an additional $5 million on its unsecured revolving credit facility.

On July 24, 2020, the Company acquired ~~Friendly Village,~~Camelot Woods, located in ~~Perrysburg, Ohio,~~Pennsylvania, for approximately ~~$19,386,000.~~$3.3 million. This ~~all-age~~ community contains a total of ~~824~~147 developed homesites that are situated on approximately ~~101~~27 total acres. At the date of acquisition, the average occupancy for this community was approximately ~~46%~~56%. In conjunction with this acquisition, the Company assumed a mortgage of approximately $7,300,000 on this property. The interest rate on this mortgage is fixed at 4.6175%. This mortgage matures on June 6, 2023.

On July 30, 2019, the Company acquired two communities, New Colony and 51 Estates, located in Pennsylvania, for approximately $11,650,000. These communities contain a total of 285 developed homesites that are situated on approximately 60 acres. At the date of acquisition, the average occupancy for these communities was approximately 76%.

The following unaudited pro forma condensed financial information reflects the acquisitions during ~~2018~~2019 and through July ~~30, 2019.~~24, 2020. 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.~~future (in thousands).

The following discussion is intended to provide certain information regarding the impact of the COVID-19 pandemic on our business and ~~Analysis~~management’s efforts to respond to those impacts.

We continue to closely monitor our operations and government recommendations and have taken steps to make the safety, security and welfare of ~~Financial Condition~~our employees, their families and ~~Results~~our residents a top priority.

We have complied with government “stay-at-home” orders and “social distancing” practices. We have implemented remote working arrangements for our non-essential employees. Our IT system and website allow for virtual tours of ~~Operations~~our homes for sale or rent, online execution of applications and lease agreements, online payment of rent, and other enhancements. We are experiencing high demand for our rental homes and fewer move-outs. We continue to maintain our communities and deliver essential services to our residents while following social distancing protocols. We have suspended the mailing of rent increase notifications in March and April which will delay these increases. These increases would have been effective May 1, 2020 and June 1, 2020. This affected May’s rental income by approximately $24,000 and June’s rental income by an additional $20,000. We have suspended eviction actions and have instituted deferred payment plans, as needed, to our residents who have experienced financial hardship related to COVID-19. Less than 100 residents (less than 1%) have executed these payment plans. Rent collections for April through July are at pre-pandemic levels. We have collected 95% of July’s rent compared to 95% of the same time last year. We anticipate many of our residents have or will receive unemployment benefits and/or economic stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act which will assist our residents with paying rent.

~~Overview~~The significance, extent and duration of the impact of COVID-19 remains largely uncertain and dependent on future developments that cannot be accurately predicted at this time. We will continue to monitor these rapidly evolving developments and respond in the best interests of our employees, residents and shareholders. At this time, we believe that the fallout from COVID-19 will not have a material adverse effect on our operations.

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, ~~2018.~~2019.

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 on an annual or month-to-month basis to residential manufactured homeowners. 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.~~communities and for placement on customers’ privately-owned land.

As of June 30, ~~2019,~~2020, the Company owned and operated ~~118~~122 manufactured home communities containing approximately ~~21,500~~23,100 developed home sites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. ~~Subsequent to quarter end, the~~The Company ~~purchased~~acquired an additional ~~3 communities containing approximately 1,100 developed home sites.~~community located in Pennsylvania in July 2020.

The Company earns income from the operation of its manufactured home communities, 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 marketable securities of other REITs, which the Company generally limits to no more than approximately 15% of its undepreciated assets. As of June 30, 2020, the securities portfolio represented 7.2% of undepreciated assets.

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 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. For the three months ended June 30, ~~2019,~~2020, total income increased ~~16%~~8% from the prior year period and Community Net Operating Income (“NOI”), as defined below, increased 6%19%. For the six months ended June 30, ~~2019,~~2020, total income increased ~~16%~~9% from the prior year period and Community Net Operating Income (“NOI”), as defined below, increased 6%21%. Same property ~~occupancy,~~NOI, which includes communities owned and operated as of January 1, ~~2018,~~2019, increased ~~by 140 basis points to 83.6%~~14% for the six months ended June 30, 2020 over the prior year ~~period. Year~~period driven by a 250 basis point increase in occupancy to ~~date, same property NOI increased 4.3% over the prior year period.~~85.8%. 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~~acquire existing manufactured home communities that meet the requirements of the business plan or that the demand for rental homes will continue in the future.

Sales of manufactured homes ~~continued to perform well, increasing by approximately 51% and 49% for~~decreased 13% during the ~~three and~~ six months ended June 30, ~~2019, respectively.~~2020 from the prior year period primarily due to the impact of COVID-19 and governmental stay-at-home orders and social distancing. We anticipate that sales will improve as the impact of the virus is reduced. Demand for quality affordable housing remains healthy due to improvements in the economy, sustained wage and job growth and still favorable interest rates. Conventional single-family home prices continue their rise supported by low inventories and increasing sales. As household formation strengthens and for-salewhile inventory ~~remains limited, a large share of housing demand will be looking at alternative forms of housing.~~is scarce. Our property type offers substantial comparative value that should result in increased demand.

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 ~~336~~367 rental homes during the first six months of ~~2019.~~2020. This brings the total number of rental homes to approximately ~~6,800~~7,800 rental homes, or ~~31.8%~~33.6% of total sites. Occupied rental homes represent approximately ~~35.7%~~38.0% of total occupied sites at quarter end. Occupancy in rental homes continues to be strong and is at ~~93.6%~~95.2% as of June 30, ~~2019.~~2020. We compare favorably with other types of rental housing, including apartments, and we will continue to allocate capital to rental home purchases, as demand dictates. WeAlthough COVID-19 delayed our rental home purchases, we continue to anticipate adding ~~a total of~~ approximately 750 - 800 rental homes in ~~2019.~~2020.

See PART I, Item 1 – Business in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019 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.

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, ~~2018.~~2019.

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 Attributable to Common Shareholders (“FFO”), and Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”).

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.

The Company’s Community NOI for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019 is calculated as ~~follows:~~follows (in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	6/30/19		6/30/18		6/30/19		6/30/18		6/30/20		6/30/19		6/30/20		6/30/19

Rental and Related Income	$	31,388,423	$	28,237,771	$	62,032,140	$	55,508,248	$	35,051	$	31,388	$	69,409	$	62,032
Less: Community Operating Expenses		14,969,705		12,715,180		30,113,958		25,469,996		15,438		14,970		30,946		30,114
Community NOI	$	16,418,718	$	15,522,591	$	31,918,182	$	30,038,252	$	19,613	$	16,418	$	38,463	$	31,918

We ~~also~~ assess and measure our overall operating results based upon an industry performance measure referred to as Funds from Operations Attributable to Common Shareholders (“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~~U.S. 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, impairment charges related to depreciable real estate assets, and the change in the fair value of marketable securities plus certain non-cash items such as real estate asset depreciation and amortization. Included in the NAREIT FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of NAREIT FFO to make an election to include or exclude gains and losses on the sale of these assets, such as marketable equity securities and include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude the change in the fair value of marketable securities from our FFO calculation. Prior to the adoption of the FFO White Paper – 2018 Restatement, we utilized Core Funds from Operations (Core FFO), which we defined as FFO, excluding the change in the fair value of marketable securities. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance. We define Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), as FFO, excluding gains and losses realized on marketable securities investments and certain one-time charges. FFO and Normalized FFO should be considered as supplemental measures of operating performance used by REITs. 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 and Normalized FFO and, accordingly, our FFO and Normalized FFO may not be comparable to all other REITs. The items excluded from FFO and Normalized FFO are significant components in understanding the Company’s financial performance.

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 and Normalized FFO for the three and six months ended June 30, ~~2019~~2020 and ~~2018~~2019 are calculated as ~~follows:~~follows (in thousands):

~~(1) (Increase) Decrease in Fair Value of Marketable Securities, if any, were previously recorded in Core FFO.~~

The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended June 30, 2020 and 2019 ~~and 2018:~~(in thousands):

	Six Months Ended						Six Months Ended
	6/30/19			6/30/18			6/30/20			6/30/19

Operating Activities	$	11,648,197		$	14,444,849		$	30,992		$	11,649
Investing Activities		(34,463,181	)		(61,476,721	)		(44,689	)		(34,464	)
Financing Activities		19,333,696			39,106,948			11,938			19,334

Rental and Related Income increased ~~11%~~12% from ~~$28,237,771~~$31.4 million for the three months ended June 30, ~~2018~~2019 to ~~$31,388,423~~$35.1 million for the three months ended June 30, ~~2019.~~2020. Rental and Related Income increased 12% from ~~$55,508,248~~$62.0 million for the six months ended June 30, ~~2018~~2019 to ~~$62,032,140~~$69.4 million for the six months ended June 30, ~~2019.~~2020. These increases were primarily due to the acquisitions made during ~~2018,~~2019, as well as increases in rental rates and 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 ~~140~~250 basis points from ~~82.2%~~83.3% as of June 30, ~~2018~~2019 to ~~83.6%~~85.8% at quarter-end. Occupied rental homes increased ~~14%~~15% from approximately ~~5,600 homes at June 30, 2018 to~~ 6,400 homes at June 30, ~~2019.~~2019 to 7,400 homes at June 30, 2020.

Community Operating Expenses ~~increased 18%~~remained relatively stable increasing 3% from ~~$12,715,180~~$15.0 million for the three months ended June 30, ~~2018~~2019 to ~~$14,969,705~~$15.4 million for the three months ended June 30, ~~2019. Community Operating Expenses increased 18%~~2020 and 3% from ~~$25,469,996~~$30.1 million for the six months ended June 30, ~~2018~~2019 to ~~$30,113,958~~$30.9 million for the six months ended June 30, 2019. These increases were primarily due to an increase in water and sewer costs, rental home expenses and payroll and personnel costs primarily from the acquisitions made during 2018 and the increase in rental homes. In addition, for2020. For the six months ended June 30, 2019, there was a one-time settlement of ~~$375,250~~$375,000 for a utility billing dispute over a prior 10-year period.

Community NOI increased 6%19% from ~~$15,522,591~~$16.4 million for the three months ended June 30, ~~2018~~2019 to ~~$16,418,718~~$19.6 million for the three months ended June 30, ~~2019.~~2020. Community NOI increased 6%21% from ~~$30,038,252~~$31.9 million for the six months ended June 30, ~~2018~~2019 to ~~$31,918,182~~$38.5 million for the six months ended June 30, ~~2019.~~2020. These increases were primarily due to the acquisitions during ~~2018,~~2019, 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) was ~~45.0%~~47.7% and ~~47.7%~~44.0% for the three months ended June 30, ~~2018~~2019 and ~~2019,~~2020, respectively. The Company’s Operating Expense Ratio was ~~45.9%~~48.5% and ~~48.5% for the six months ended June 30, 2018 and 2019, respectively. Excluding the one-time settlement charge of $375,250, the Company’s Operating Expense Ratio~~44.6% for the six months ended June 30, 2019 ~~was 47.9%.~~and 2020, respectively. Many recently acquired communities have 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.

Sales of manufactured homes ~~increased 51%~~decreased 14% from ~~$3,860,779~~$5.8 million, or 93 homes, for the three months ended June 30, ~~2018~~2019 to ~~$5,841,615~~$5.0 million, or 82 homes, for the three months ended June 30, ~~2019.~~2020. Sales of manufactured homes ~~increased 49%~~decreased 13% from ~~$6,386,266~~$9.5 million, or 159 homes, for the six months ended June 30, ~~2018~~2019 to ~~$9,485,329~~$8.2 million, or 144 homes, for the six months ended June 30, ~~2019. The Company has seen a 28% increase in the number of homes sold from 124 homes sold for the six months ended June 30, 2018 to 159 homes sold for the six months ended June 30, 2019.~~2020. Cost of sales of manufactured homes amounted to ~~$4,256,639~~$3.6 million and ~~$2,913,825~~$4.3 million for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. Cost of sales of manufactured homes amounted to ~~$6,845,808~~$6.0 million and ~~$4,893,996~~$6.8 million for the six months ended June 30, 2020 and 2019, respectively. The gross profit percentage was 28% and ~~2018,~~27% for the three months ended June 30, 2020 and 2019, respectively. The gross profit percentage was 27% and ~~25% for the three months ended June 30, 2019 and 2018, respectively. The gross profit percentage was~~ 28% ~~and 23%~~ for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. Selling expenses, which includes salaries, commissions, advertising and other miscellaneous expenses, amounted to ~~$1,336,940 and $1,085,244~~$1.3 million for both the three months ended June 30, ~~2019~~2020 and ~~2018, respectively.~~2019. Selling expenses amounted to ~~$2,427,962 and $1,889,316~~$2.4 million for both the six months ended June 30, ~~2019~~2020 and ~~2018, respectively.~~2019. Income (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) amounted to income of ~~$178,070~~$118,000 or 3%2% of total sales and ~~a loss~~income of ~~$(287,951)~~$178,000 or 7%3% of total sales for the three months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. Income (Loss) from the sales operations amounted to ~~income~~a loss of ~~$75,502~~$197,000 or 1%2% of total sales and ~~a loss~~income of ~~$(580,961)~~$75,000 or 9%1% of total sales for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. Many of the costs associated with sales, such as salaries, and to an extent, advertising and promotion, are fixed.

The ~~U.S. homeownership rate was 64.1% in~~impact of COVID-19 has also taken its toll on the ~~second quarter~~conventional housing market. The National Association of ~~2019, according to the U.S. Census. This is down~~Realtors reported that as of June, sales of existing homes fell 11.3% from ~~69.2% at its peak at the end of 2004. Conventional~~a year ago. However, home prices continue ~~to rise.~~their rise as fewer sellers are listing homes and inventories decline. The inherent affordability of our property type becomes more and more apparent, which should result in increased demand. The Company continues to be optimistic about future sales and rental prospects given the fundamental need for affordable housing. The Company believes that sales of new homes produces new rental revenue and is an investment in the upgrading of our communities.

General and Administrative Expenses decreased 4%13% from ~~$3,282,682~~$3.2 million for the three months ended June 30, ~~2018~~2019 to ~~$3,156,267~~$2.7 million for the three months ended June 30, ~~2019.~~2020. General and Administrative Expenses ~~decreased 6% from $5,641,238~~remained relatively stable at $5.3 million for the six months ended June 30, ~~2018~~2020 and 2019, respectively. Personnel costs decreased due to ~~$5,330,900~~a decrease in our stock price which decreased the fair value of stock options granted. The weighted-average fair value of options granted decreased from $1.72 per share for the six months ended June 30, ~~2019. This decrease was primarily due~~2019 to ~~a decrease in personnel costs.~~$0.96 for the six months ended June 30, 2020. General and Administrative expenses as a percentage of gross revenue (Total Income plus Interest, Dividend and Other Income) was 6.5% and 6.4% for the three and six months ended June 30, 2020, respectively, compared and 7.9% and 6.9% for the three and six months ended June 30, 2019, ~~respectively, compared and 7.8% and 7.5% for the three and six months ended June 30, 2018,~~ respectively.

Depreciation Expense increased ~~14%~~16% from ~~$7,764,258~~$8.9 million for the three months ended June 30, ~~2018~~2019 to ~~$8,868,341~~$10.3 million for the three months ended June 30, ~~2019.~~2020. Depreciation Expense increased ~~15%~~16% from ~~$15,358,892~~$17.6 million for the six months ended June 30, ~~2018~~2019 to ~~$17,619,652~~$20.5 million for the six months ended June 30, ~~2019.~~2020. This increase was primarily due to the acquisitions in 2019 and the increase in rental homes during ~~2018~~2019 and ~~2019.~~2020.

Interest Income increased ~~16%~~11% from ~~$536,176~~$622,000 for the three months ended June 30, ~~2018~~2019 to ~~$621,440~~$691,000 for the three months ended June 30, ~~2019.~~2020. Interest Income increased ~~13%~~24% from ~~$1,006,406~~$1.1 million for the six months ended June 30, ~~2018~~2019 to ~~$1,136,623~~$1.4 million for the six months ended June 30, ~~2019. These increases were~~2020. This increase was primarily due to an increase in the average balance of notes ~~receivable. The average balance~~receivable from $31.8 million at June 30, 2019 ~~and 2018 was approximately $31.8~~to $35.2 million ~~and $25.3 million, respectively.~~at June 30, 2020.

Dividend Income decreased ~~22%~~20% from ~~$2,474,180~~$1.9 million for the three months ended June 30, ~~2018~~2019 to ~~$1,938,145~~$1.6 million for the three months ended June 30, ~~2019.~~2020. Dividend Income decreased ~~21%~~15% from ~~$4,899,320~~$3.9 million for the six months ended June 30, ~~2018~~2019 to ~~$3,875,559~~$3.3 million for the six months ended June 30, ~~2019. These decreases were primarily~~2020. This decrease was due to ~~a reduction in~~reduced dividends from ~~two securities. It is the Company’s intent to hold these marketable securities long-term.~~our holdings. Dividends received from our marketable securities investments were at a weighted average yield of approximately ~~7.4%~~5.5% and ~~8.1%~~7.4%, at June 30, 2020 and 2019, ~~and 2018, respectively, and continue~~respectively. It is the Company’s intent to ~~meet our expectations.~~hold these marketable securities long-term.

Increase (Decrease) in Fair Value of Marketable Securities increased from a loss of $2.4 million for the three months ended June 30, 2019 to a gain of $13.4 million for the three months ended June 30, 2020. Increase (Decrease) in Fair Value of Marketable Securities decreased from a gain of $16,623,670 for the three months ended June 30, 2018 to a loss of $(2,352,185) for the three months ended June 30, 2019. Increase (Decrease) in Fair Value of Marketable Securities increased from a loss of $(9,275,149)$6.2 million for the six months ended June 30, ~~2018~~2019 to a ~~gain~~loss of ~~$6,243,581~~$25.2 million for the six months ended June 30, ~~2019.~~2020. This decrease was due to the effects of the COVID-19 pandemic on prices in the securities market. As of June 30, ~~2019,~~2020, the Company had total net unrealized losses of ~~$33,912,233~~$50.4 million in its REIT securities portfolio.

Interest Expense, including Amortization of Financing Costs, ~~increased 7% from $3,966,992~~was $4.2 million for both the three months ended June 30, ~~2018 to $4,246,646 for the three months ended June 30, 2019.~~2019 and 2020. Interest Expense ~~increased 18%~~decreased 3% from ~~$7,547,460~~$8.9 million for the six months ended June 30, ~~2018~~2019 to ~~$8,893,188~~$8.6 million for the six months ended June 30, ~~2019. The weighted average balance of our mortgages payable increased from approximately $303 million as of June 30, 2018~~2020. This decrease was primarily due to ~~approximately $329 million as of June 30, 2019. Additionally,~~a decrease in the weighted average interest rate on our mortgages payable ~~increased~~ from ~~4.2% at June 30, 2018 to~~ 4.3% at June 30, 2019 to 4.1% at June 30, 2020, not including the effect of unamortized debt issuance costs. This was partially offset by an increase in the weighted average balance of our mortgages payable from approximately $329 million as of June 30, 2019 to approximately $372 million as of June 30, 2020.

Total Investment Property and Equipment increased 3% or ~~$24,374,099~~$34.9 million during the six months ended June 30, ~~2019.~~2020. The Company added ~~336~~367 rental homes to its communities. The Company’s occupancy rate on its rental homes portfolio increased ~~130~~290 basis points and was ~~93.6%~~95.2% at June 30, ~~2019~~2020 as compared to 92.3% at December 31, ~~2018.~~2019.

Marketable Securities ~~increased 7%~~decreased 21% or ~~$7,177,153~~$24.5 million during the six months ended June 30, ~~2019.~~2020. This ~~increase~~decrease was due to a net ~~increase~~decrease in the fair value of ~~$6,243,581~~$25.2 million and purchases of ~~$933,572.~~$690,000.

Mortgages Payable, net of unamortized debt issuance costs, decreased 1% or ~~$3,483,978~~$3.9 million during the six months ended June 30, ~~2019.~~2020. The decrease was primarily due to principal payments.

Loans Payable, net of unamortized debt issuance costs, decreased ~~64%~~21% or ~~$69,262,537~~$17.6 million during the six months ended June 30, ~~2019.~~2020. This decrease was ~~primarily~~ due to a decrease of ~~$21.9~~$7.4 million on our revolving lines of credit for the financing of home sales and the purchase of inventory, a decrease of $4.8 million on our margin loan and a decrease of ~~$50 million on our credit facility, decrease of $3 million on our revolving credit facilities for the purchase of inventory, offset by an increase of $6~~$5 million on our revolving line of credit secured by the Company’s eligible notes receivable.

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 15% 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,~~shareholders, 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 marketable securities portfolio, the sale of real estate investments and marketable 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.

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.~~ markets, including through the Company’s ATM Programs. In order to provide financial flexibility to opportunistically access the capital markets, the Company has implemented both a Common ATM Program and subsequent to quarter end, a New Preferred ATM Program. The Common ATM Program allows the Company to offer and sell shares of the Company’s Common Stock, having an aggregate sales price of up to $100 million from time to time through the Distribution Agents. The New Preferred ATM Program allows the Company to offer and sell shares of the Company’s Series C Preferred Stock and/or Series D Preferred Stock, having an aggregate sales price of up to $100 million. To date, the Company has not sold any shares under the Common ATM Program or the New Preferred ATM Program.

The Company continues to strengthen its capital and liquidity positions. ~~On April 29, 2019,~~During the six months ended June 30, 2020, the Company ~~issued and~~ sold ~~an additional 4,000,000 shares, including as a result of the underwriters’ exercise in full of their overallotment option of 400,000~~2.6 million shares of ~~its~~our Series CD Preferred Stock through our 2019 Preferred ATM Program at ~~an offering~~a weighted average price of ~~$25.00~~$25.06 per share, ~~in an underwritten registered public offering. The Company received~~generating gross proceeds of $64.1 million and net proceeds ~~from the sale of the 4,000,000 shares of Series C Preferred of approximately $96.7 million,~~ after ~~deducting the underwriting discount and other estimated~~ offering expenses ~~and intends to use the 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.~~$63.1 million. The 2019 Preferred ATM Program was subsequently replaced by our New Preferred ATM Program.

The Company also raised ~~$21,395,261~~$3.3 million from the issuance of common stock in the DRIP during the six months ended June 30, ~~2019,~~2020, which included Dividend Reinvestments of ~~$3,689,998.~~$1.7 million. Dividends paid on the common stock for the six months ended June 30, ~~2019~~2020 were ~~$14,139,383,~~$14.8 million, of which ~~$3,689,998~~$1.7 million were reinvested. Dividends paid on the Series B Preferred ~~shares,~~Stock, the Series C Preferred ~~shares~~Stock and the Series D Preferred ~~shares~~Stock for the six months ended June 30, ~~2019~~2020 totaled ~~$11,934,014.~~$16.2 million.

Net Cash provided by Operating Activities amounted to ~~$11,648,197~~$31.0 million and ~~$14,444,849~~$11.6 million for the six months ended June 30, ~~2019~~2020 and ~~2018,~~2019, respectively. As of June 30, ~~2019,~~2020, the Company had Cash and Cash Equivalents of ~~$3.7~~$11.0 million, Marketable Securities of ~~$106.8~~$91.7 million, encumbered by ~~$10.1~~$32.8 million in margin loans, approximately ~~$20.7~~$31.5 million available on ~~its~~our revolving lines of credit ~~facilities~~ for the financing of home sales and ~~the purchase~~purchases of inventory and ~~$75~~$60 million available on our unsecured credit facility, with an additional $50 million potentially available pursuant to an accordion feature. Subsequent to quarter end, we drew down an additional $5 million on our unsecured credit facility for an acquisition.

The extent to which COVID-19 and related actions impact our operations, financial condition and cash flows will depend on future developments, which are highly uncertain and cannot be predicted with any degree of confidence, including the scope, severity, duration and geographies of the outbreak, the actions taken to contain the COVID-19 pandemic or mitigate its impact requested or mandated by governmental authorities or otherwise voluntarily taken by individuals or businesses, the success of governmental actions undertaken to support the economy during the pandemic and the duration and severity of direct and indirect economic effects of the illness and containment measures, among others. As previously discussed, at this time, we believe that the fallout from COVID-19 will not have a material adverse effect on our financial condition.

As of June 30, ~~2019,~~2020, the Company owned ~~118~~122 communities, of which 4647 were unencumbered. Except for 1415 communities in the borrowing base for our unsecured credit facility, these unencumbered communities can be used to raise additional funds. Our marketable securities, unencumbered properties, and lines of credit provide the Company with additional liquidity.

As of June 30, ~~2019,~~2020, the Company had total assets of ~~$915,286,843~~$1.0 billion and total liabilities of ~~$385,299,092.~~$458.5 million. The Company’s net debt (net of unamortized debt issuance costs and cash and cash equivalents) to total market capitalization as of June 30, ~~2019~~2020 was approximately ~~29%~~30% and the Company’s net debt, less securities to total market capitalization as of June 30, ~~2019~~2020 was approximately ~~20%~~23%. As of June 30, ~~2019,~~2020, the Company ~~has three~~had no mortgages due inwithin the next 12 ~~months of approximately $13.8 million. Two of these mortgages were refinanced on July 1, 2019 (see Note 10).~~months. The Company believes that it has the ability to meet its obligations and to generate funds for new investments.

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:

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.

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.

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.

There were no changes in the Company’s internal control over financial reporting during the quarterly period ended June 30, ~~2019~~2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

~~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, ~~2018,~~2019, 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. There have been no material changes to the Risk Factors except as set forth below:

We face various risks and uncertainties related to public health crises, including the recent and ongoing global outbreak of the novel coronavirus (COVID-19). The COVID-19 pandemic is growing and its impact is uncertain and hard to measure, but may have a material adverse effect on us.

We face various risks and uncertainties related to public health crises, including the recent and ongoing global COVID-19 pandemic, which has disrupted financial markets and significantly impacted worldwide economic activity to date and is likely to continue to do so.

The COVID-19 pandemic and social and governmental responses to the pandemic have caused, and are likely to continue to cause, severe economic, market and other disruptions in the United States and worldwide, including unprecedented job losses and an economic downturn. The extent to which COVID-19 and related actions impact our operations will depend on future developments, which are highly uncertain and cannot be predicted with any degree of confidence, including the scope, severity, duration and geographies of the outbreak, the actions taken to contain the COVID-19 pandemic or mitigate its impact requested or mandated by governmental authorities or otherwise voluntarily taken by individuals or businesses, the success of governmental actions undertaken to support the economy during the pandemic and the duration and severity of direct and indirect economic effects of the illness and containment measures, among others. In response to the outbreak, the United States, like many countries around the world, has taken a variety of countermeasures, such as quarantines, “shelter in place” and stay-at-home orders and restrictions on business activities, group gatherings and travel, which have caused disruptions in the U.S. and global economy, financial markets and supply chains and have adversely impacted many businesses and industries and created significant economic uncertainty. Residents in our communities have lost jobs or experienced financial hardship related to COVID-19, which may adversely affect their ability to make rent payments in full or on a timely basis. In addition, individual states and localities have adopted or may consider adopting policies requiring temporary rent freezes and forbearance with respect to delinquent rent and mortgage payments, evictions and foreclosures, and the nature, timing and impact of any future public policy decisions and actions with respect to these matters cannot be predicted. The pandemic and related governmental orders may also cause us to incur increased costs, require us to provide employees with additional time off and increase our vulnerability to cyber-attacks while employees work from home. In addition, an economic downturn due to the pandemic may adversely affect the market values of our communities and our portfolio of REIT securities as well as our stock price and may impair our access to capital and our ability to incur indebtedness. As a result, while the extent and duration of the COVID-19 pandemic and the direct and indirect impacts of the pandemic on us are uncertain and will depend on numerous factors beyond our control, the pandemic and the actions taken in response could have a material adverse effect on our business, financial condition, results of operations, liquidity, and prospects.

To the extent the COVID-19 pandemic or the actions taken in response adversely affect our business, financial condition, results of operations, liquidity or prospects, this may also have the effect of heightening many of the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2019 under the heading “Risk Factors”.

~~Item 2. Unregistered Sales of Equity Securities and Use of Proceeds~~None.

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.

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

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, $.10 par value	UMH	New York Stock Exchange
8.0% Series B Cumulative Redeemable Preferred Stock, $.10 par value	UMH PRB	New York Stock Exchange
6.75% Series C Cumulative Redeemable Preferred Stock, $.10 par value	UMH PRC	New York Stock Exchange
6.375% Series D Cumulative Redeemable Preferred Stock, $.10 par value	UMH PRD	New York Stock Exchange

Class		Outstanding Common Shares as of August 1, ~~2019~~2020
Common Stock, $.10 par value per share		~~40,431,330~~41,341,656

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets	3

	Consolidated Statements of Income (Loss)	5

	Consolidated Statements of ~~Stockholders’~~Shareholders’ Equity	7

	Consolidated Statements of Cash Flows	9

	Notes To Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3435

Item 4.	Controls and Procedures	3435

PART II - OTHER INFORMATION		36

Item 1.	Legal Proceedings	3536

Item 1A.	Risk Factors	3536

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3536

Item 3.	Defaults Upon Senior Securities	3536

Item 4.	Mine Safety Disclosures	35
~~Item 5.~~	~~Other Information~~	35
~~Item 6.~~	~~Exhibits~~	36

Item 5.	Other Information	36

Item 6.	Exhibits	37

SIGNATURES		3738

	6/30/2020						12/31/2019
	Amount			Rate			Amount			Rate

Fixed rate mortgages	$	372,788			4.14	%	$	377,045			4.14	%
Unamortized debt issuance costs		(3,073	)					(3,387	)
Mortgages, net of unamortized debt issuance costs	$	369,715			4.17	%	$	373,658			4.18	%

Large accelerated filer ~~[ ]~~	☐	Accelerated filer ~~[X]~~	☒
Non-accelerated filer~~[ ]~~	☐	Smaller reporting company ~~[ ]~~	☐
		Emerging growth company ~~[ ]~~	☐

	Preferred Stock		Additional Paid-In			Accumulated Other Comprehensive			Undistributed Income (Accumulated			Total Shareholders’
	Series D		Capital			Income (Loss)			Deficit)			Equity

Balance December 31, 2018	$	50,000,000	$	157,449,781		$	-0-		$	(25,363,782	)	$	424,698,040

Common Stock Issued with the DRIP*		-0-		10,588,019			-0-			-0-			10,671,704
Common Stock Issued through Restricted Stock Awards		-0-		(100	)		-0-			-0-			-0-
Common Stock Issued through Stock Options		-0-		-0-			-0-			-0-			-0-
Preferred Stock Issued through Underwritten Registered Public Offering, net		-0-		-0-			-0-			-0-			-0-
Distributions		-0-		(1,065,916	)		-0-			(11,037,393	)		(12,103,309	)
Stock Compensation Expense		-0-		390,683			-0-			-0-			390,683
Net Income (Loss)		-0-		-0-			-0-			11,037,393			11,037,393

Balance March 31, 2019		50,000,000		167,362,467			-0-			(25,363,782	)		434,694,511

Common Stock Issued with the DRIP*		-0-		10,640,131			-0-			-0-			10,723,557
Common Stock Issued through Restricted Stock Awards		-0-		(11,960	)		-0-			-0-			-0-
Common Stock Issued through Stock Options		-0-		430,460			-0-			-0-			434,660
Preferred Stock Issued through Underwritten Registered Public Offering, net		-0-		(3,311,782	)		-0-			-0-			96,688,218
Distributions		-0-		(13,221,385	)		-0-			(748,703	)		(13,970,088	)
Stock Compensation Expense		-0-		668,190			-0-			-0-			668,190
Net Income (Loss)		-0-		-0-			-0-			748,703			748,703

Balance June 30, 2019	$	50,000,000	$	162,556,121		$	-0-		$	(25,363,782	)	$	529,987,751

Balance December 31, 2017	$	-0-	$	168,034,868		$	11,519,582		$	(667,793	)	$	421,215,464

Unrealized Net Holding Gain on Securities Available for Sale, Net of Reclassification Adjustment		-0-		-0-			(11,519,582	)		11,519,582			-0-
Common Stock Issued with the DRIP*		-0-		9,970,592			-0-			-0-			10,051,499
Common Stock Issued through Restricted Stock Awards		-0-		(200	)		-0-			-0-			-0-
Common Stock Issued through Stock Options		-0-		132,720			-0-			-0-			133,920
Preferred Stock Issued through Underwritten Registered Public Offering, net		50,000,000		(1,752,720	)		-0-			-0-			48,247,280
Distributions		-0-		(11,173,321	)		-0-			-0-			(11,173,321	)
Stock Compensation Expense		-0-		282,062			-0-			-0-			282,062
Net Income (Loss)		-0-		-0-			-0-			(22,208,337	)		(22,208,337	)

Balance March 31, 2018		50,000,000		165,494,001			-0-			(11,356,548	)		446,548,567

Unrealized Net Holding Gain on Securities Available for Sale, Net of Reclassification Adjustment		-0-		-0-			-0-			-0-			-0-
Common Stock Issued with the DRIP*		-0-		6,309,047			-0-			-0-			6,356,330
Common Stock Issued through Restricted Stock Awards		-0-		(4,600	)		-0-			-0-			-0-
Common Stock Issued through Stock Options		-0-		694,500			-0-			-0-			701,200
Distributions		-0-		(11,723,764	)		-0-			-0-			(11,723,764	)
Stock Compensation Expense		-0-		571,492			-0-			-0-			571,492
Net Income (Loss)		-0-		-0-			-0-			20,071,984			20,071,984

Balance June 30, 2018	$	50,000,000	$	161,340,676		$	-0-		$	8,715,436		$	462,525,809

	Series D		Capital			(Deficit)			Equity
	Preferred Stock		Additional Paid-In			Undistributed Income (Accumulated			Total Shareholders’
	Series D		Capital			Deficit)			Equity

Balance December 31, 2019	$	66,268	$	162,542		$	(25,364	)	$	546,339

Common Stock Issued with the DRIP*		0		1,588			0			1,601
Common Stock Issued through Restricted Stock Awards		0		(3	)		0			0
Common Stock Issued through Stock Options		0		303			0			306
Repurchase of Preferred Stock		0		1			0			(12	)
Repurchase of Common Stock		0		(1,589	)		0			(1,604	)
Preferred Stock Issued in connection with At-The-Market Offerings, net		63,999		(867	)		0			63,132
Preferred Stock Issued through Underwritten Registered Public Offering, net
Distributions		0		(50,255	)		34,748			(15,507	)
Stock Compensation Expense		0		574			0			574
Net Loss		0		0			(34,748	)		(34,748	)

Balance March 31, 2020		130,267		112,294			(25,364	)		560,081
Balance March 31, 2020		130,267		112,294			(25,364	)		560,081
Common Stock Issued with the DRIP*		0		1,728			0			1,743
Repurchase of Common Stock		0		(223	)		0			(225	)
Distributions		0		2,818			(18,325	)		(15,507	)
Stock Compensation Expense		0		313			0			313
Net Income (Loss)		0		0			18,325			18,325

Balance June 30, 2020	$	130,267	$	116,930		$	(25,364	)	$	564,730

Balance December 31, 2018	$	50,000	$	157,450		$	(25,364	)	$	424,698

Common Stock Issued with the DRIP*		0		10,587			0			10,671
Common Stock Issued through Restricted Stock Awards		0		0			0			0
Distributions		0		(1,066	)		(11,037	)		(12,103	)
Stock Compensation Expense		0		391			0			391
Net Income		0		0			11,037			11,037

Balance March 31, 2019		50,000		167,362			(25,364	)		434,694
Balance March 31, 2019		50,000		167,362			(25,364	)		434,694
Common Stock Issued with the DRIP*		0		10,641			0			10,724
Common Stock Issued through Restricted Stock Awards		0		(12	)		0			0
Common Stock Issued through Stock Options		0		431			0			435
Preferred Stock Issued through Underwritten Registered Public Offering, net		0		(3,312	)		0			96,688
Distributions		0		(13,221	)		(749	)		(13,970	)
Stock Compensation Expense		0		668			0			668
Net Income (Loss)		0		0			749			749

Balance June 30, 2019	$	50,000	$	162,557		$	(25,364	)	$	529,988

	6/30/19		12/31/18		6/30/18		12/31/17

Cash and Cash Equivalents	$	3,724,627	$	7,433,470	$	15,227,599	$	23,242,090
Restricted Cash		5,571,496		5,343,941		4,738,726		4,649,159
Cash, Cash Equivalents And Restricted Cash	$	9,296,123	$	12,777,411	$	19,966,325	$	27,891,249

	6/30/20		12/31/19		6/30/19		12/31/18

Cash and Cash Equivalents	$	10,970	$	12,902	$	3,725	$	7,433
Restricted Cash		6,267		6,094		5,571		5,344
Cash, Cash Equivalents And Restricted Cash	$	17,237	$	18,996	$	9,296	$	12,777

	6/30/2019						12/31/2018
	Amount			Rate			Amount			Rate

Fixed rate mortgages	$	330,645,711			4.3	%	$	334,411,425			4.3	%
Total mortgages before unamortized debt issuance costs		330,645,711			4.3	%		334,411,425			4.3	%
Unamortized debt issuance costs		(3,036,626	)					(3,318,362	)
Mortgages, net of unamortized debt issuance costs	$	327,609,085			4.3	%	$	331,093,063			4.3	%

	2019			2018

Dividend yield		5.13	%		4.77	%
Expected volatility		24.04	%		25.83	%
Risk-free interest rate		2.50	%		2.73	%
Expected lives		10			10
Estimated forfeitures		-0-			-0-

	Fair Value Measurements at Reporting Date Using
			Quoted Prices		Significant
			In Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
As of June 30, 2019:
Marketable Securities - Preferred stock	$	3,801,821	$	3,801,821	$	-0-	$	-0-
Marketable Securities - Common stock		102,971,068		102,971,068		-0-		-0-
Total	$	106,772,889	$	106,772,889	$	-0-	$	-0-

As of December 31, 2018:
Marketable Securities - Preferred stock	$	3,399,558	$	3,399,558	$	-0-	$	-0-
Marketable Securities - Common stock		96,196,178		96,196,178		-0-		-0-
Total	$	99,595,736	$	99,595,736	$	-0-	$	-0-

	●	changes in the real estate market conditions and general economic conditions;
	●	risks and uncertainties related to the ongoing global outbreak of the novel coronavirus (COVID-19);
	●	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;
	●	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 made in a timely ~~made~~manner 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, including its Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019.

	(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.

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 June 30, ~~2019~~2020 formatted in ~~XBRL (eXtensible~~iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income (Loss), (iii) the Consolidated Statements of Shareholders’ Equity, (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.

	UMH PROPERTIES, INC.

DATE: August ~~8, 2019~~5, 2020	By	/s/ Samuel A. Landy
		Samuel A. Landy
		President and Chief Executive Officer
		(Principal Executive Officer)

DATE: August ~~8, 2019~~5, 2020	By	/s/ Anna T. Chew
		Anna T. Chew
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)