<SUBMISSION>
<ACCESSION-NUMBER>0000752642-08-000033
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20080630
<FILING-DATE>20080808
<DATE-OF-FILING-DATE-CHANGE>20080808
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>UMH PROPERTIES, INC.
<CIK>0000752642
<ASSIGNED-SIC>6798
<IRS-NUMBER>221890929
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-12690
<FILM-NUMBER>081000561
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3499 ROUTE 9 N, SUITE 3-C
<STREET2>JUNIPER BUSINESS PLAZA
<CITY>FREEHOLD
<STATE>NJ
<ZIP>07728
<PHONE>7325779997
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3499 ROUTE 9 N, SUITE 3-C
<STREET2>JUNIPER BUSINESS PLAZA
<CITY>FREEHOLD
<STATE>NJ
<ZIP>07728
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>UNITED MOBILE HOMES INC
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>umh10q20080630.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>FORM 10-Q</TITLE>
<META NAME="author" CONTENT="tolszewski">
<META NAME="date" CONTENT="08/07/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>UNITED STATES</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>FORM 10-Q</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-36pt; font-size:12pt" align=justify>( x )</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>For the quarterly period ended &nbsp;&nbsp;June 30, 2008</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-36pt; font-size:12pt" align=justify>( &nbsp;&nbsp;) </P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>TRANSITION &nbsp;&nbsp;REPORT &nbsp;&nbsp;PURSUANT &nbsp;&nbsp;TO SECTION &nbsp;&nbsp;13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>For the transition period from __________ to ___________</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Commission File Number &nbsp;<U>001-12690</U></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><U>UMH PROPERTIES, INC.</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><U>Maryland</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>22-1890929</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>(State or other jurisdiction of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I.R.S. Employer</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>incorporation or organization) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;identification number)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><U>Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, &nbsp;Freehold, &nbsp;NJ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;07728</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>(Address of Principal Executive 0ffices) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Registrant's telephone number, including area code &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>(732) 577-9997</U></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><U>_________________________________________________________________</U></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>(Former name, former address and former fiscal year, if changed since last report.)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>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. &nbsp;&nbsp;&nbsp;&nbsp;Yes <U>&nbsp;&nbsp;&nbsp;X &nbsp;&nbsp;</U>&nbsp;&nbsp;No ____</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. &nbsp;See definition of &#147;accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act (Check one):</P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>Large accelerated filer &nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:216pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X</U></P>
<P style="line-height:14pt; margin:0pt; text-indent:396pt; font-size:12pt" align=justify><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>Non-accelerated filer &nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P style="line-height:14pt; margin:0pt; text-indent:216pt; font-size:12pt" align=justify>Smaller reporting company &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt">Yes <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:76.5pt; font-size:12pt">No <U>&nbsp;&nbsp;&nbsp;X</U></P>
<P style="line-height:14pt; margin:0pt; text-indent:126pt; font-size:12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>The number of shares outstanding of issuer's common stock as of August 1, 2008 was 10,904,635 shares.</P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">1</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>UMH PROPERTIES, INC.</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>FORM 10-Q</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>FOR THE QUARTER ENDED JUNE 30, 2008</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>CONTENTS</B></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:468pt; font-size:12pt"><B><U>Page No.</U></B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">PART I - FINANCIAL INFORMATION</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">Item 1 - Financial Statements (Unaudited)</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:498pt; font-size:12pt"><A HREF="#_Toc197830728">3</A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;Consolidated Statements of Income</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:498pt; font-size:12pt"><A HREF="#_Toc197830729">4</A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt; color:#0000FF"><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows</FONT></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:498pt; font-size:12pt"><A HREF="#_Toc197830730"><FONT COLOR=#000000>5</FONT></A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt; color:#0000FF"><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;Notes To Consolidated Financial Statements</FONT></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:498pt; font-size:12pt"><A HREF="#_Toc197830731"><FONT COLOR=#000000>6</FONT></A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt; color:#0000FF"><A HREF="#_Toc197830732"><FONT COLOR=#0000FF><U>Item 2 - Management&#146;s Discussion and Analysis of Financial Condition and Results &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of Operations</U></FONT></A></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt"><A HREF="#_Toc197830732"><FONT COLOR=#000000>13</FONT></A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt; color:#0000FF"><A HREF="#_Toc197830733"><FONT COLOR=#0000FF><U>Item 3 - Quantitative and Qualitative Disclosures About Market Risk</U></FONT></A></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt"><A HREF="#_Toc197830733"><FONT COLOR=#000000>19</FONT></A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt; color:#0000FF"><A HREF="#_Toc197830734"><FONT COLOR=#0000FF><U>Item 4 - Controls And Procedures</U></FONT></A></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt"><A HREF="#_Toc197830734"><FONT COLOR=#000000>19</FONT></A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">PART II - OTHER INFORMATION</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt"><A HREF="#_Toc197830735">20</A><FONT COLOR=#0000FF></FONT></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1 - Legal Proceedings</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">20</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1A - Risk Factors</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">20</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">20</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 3 - Defaults Upon Senior Securities</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">20</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 4 - Submission of Matters to a Vote of Security Holders</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">20</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 5 - Other Information</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">21</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 6 - Exhibits</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt">21</P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-right:108pt; font-size:12pt; color:#0000FF"><A HREF="#_Toc197830736"><FONT COLOR=#0000FF><U>SIGNATURES</U></FONT></A></P>
<P style="line-height:14pt; margin:0pt; padding-right:108pt; text-indent:492pt; font-size:12pt"><A HREF="#_Toc197830736"><FONT COLOR=#000000>22</FONT></A><FONT COLOR=#0000FF><U></U></FONT></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">2</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><B>UMH PROPERTIES, INC.</B></P>
<A NAME="_Toc197830728"></A><P style="margin:0pt" align=center><B>CONSOLIDATED BALANCE SHEETS (UNAUDITED)</B></P>
<P style="margin:0pt" align=center><B>AS OF JUNE 30, 2008 AND DECEMBER 31, 2007</B></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=279></TD><TD width=72.9></TD><TD width=17.1></TD><TD width=77.05></TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt; padding-right:5.05pt" align=center>June 30,</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733><P style="margin:0pt; padding-right:5.05pt" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.2><P style="margin:0pt; padding-right:5.05pt" align=center>2008</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.733><P style="margin:0pt; padding-right:5.05pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">- ASSETS -</P>
</TD><TD valign=top width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">INVESTMENT PROPERTY AND EQUIPMENT</P>
</TD><TD valign=top width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Land</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>$ 13,300,614</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>$ 13,300,614</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Site and Land Improvements</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>85,814,689</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>84,949,200</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Buildings and Improvements</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>3,978,478</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>3,924,696</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Rental Homes and Accessories</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>15,437,765</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>14,206,317</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total Investment Property</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>118,531,546</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>116,380,827</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Equipment and Vehicles</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>7,393,158</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>7,320,666</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total Investment Property and Equipment</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>125,924,704</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>123,701,493</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Accumulated Depreciation</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51,282,224)</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(49,449,373)</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Net Investment Property and Equipment</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>74,642,480</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>74,252,120</P>
</TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">OTHER ASSETS</P>
</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Cash and Cash Equivalents</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>2,464,213</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>2,221,976</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Securities Available for Sale</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>23,916,221</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>23,523,231</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Inventory of Manufactured Homes</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>9,499,560</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>10,853,824</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Notes and Other Receivables, net</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>21,439,816</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>20,756,996</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Unamortized Financing Costs</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>666,459</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>541,360</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Prepaid Expenses</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>490,130</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>574,759</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Land Development Costs</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>5,298,499</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>3,779,197</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total Other Assets</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>63,774,898</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>62,251,343</P>
</TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;TOTAL ASSETS</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>$138,417,378</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>$136,503,463</P>
</TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD valign=top width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">- LIABILITIES AND SHAREHOLDERS&#146; EQUITY -</P>
</TD><TD valign=top width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">LIABILITIES:</P>
</TD><TD valign=top width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">MORTGAGES PAYABLE</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>$ 64,981,571</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>$ 61,749,700</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">OTHER LIABILITIES</P>
</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Accounts Payable</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>982,845</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>613,339</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Loans Payable</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>20,294,257</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>17,022,753</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Accrued Liabilities and Deposits</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>2,533,238</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>2,590,338</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Tenant Security Deposits</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>563,934</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>532,200</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;Total Other Liabilities</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>24,374,274</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>20,758,630</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Total Liabilities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>89,355,845</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>82,508,330</P>
</TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">SHAREHOLDERS&#146; EQUITY:</P>
</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Common Stock - $.10 par value per share, &nbsp;20,000,000 shares </P>
<P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; 10,898,054 and &nbsp;10,737,206 shares issued and </P>
<P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding as of June 30, 2008 and December 31, 2007, </P>
<P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respectively</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>1,089,805</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>1,073,721</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Excess Stock - $.10 par value per share, 3,000,000 shares </P>
<P style="margin:0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; no shares issued or outstanding</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>-0-</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>-0-</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Additional Paid-In Capital</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>56,189,673</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>54,631,309</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Accumulated Other Comprehensive Loss</P>
</TD><TD valign=top width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>(4,108,381)</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=top width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>(1,042,104)</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Cumulative Distributions in Excess of Net Income &nbsp;</P>
</TD><TD valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>(4,109,564)</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>(667,793)</P>
</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">&nbsp;&nbsp;Total Shareholders&#146; Equity</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>49,061,533</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>53,995,133</P>
</TD></TR>
<TR><TD valign=top width=372>&nbsp;</TD><TD valign=bottom width=97.2>&nbsp;</TD><TD valign=top width=22.8>&nbsp;</TD><TD valign=bottom width=102.733>&nbsp;</TD></TR>
<TR><TD valign=top width=372><P style="margin:0pt">TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=97.2><P style="margin:0pt; padding-right:5.05pt" align=right>$138,417,378</P>
</TD><TD valign=top width=22.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=102.733><P style="margin:0pt; padding-right:5.05pt" align=right>$136,503,463</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=center>&nbsp;</P>
<P style="margin:0pt" align=center>-UNAUDITED-</P>
<P style="margin:0pt" align=center>See Accompanying Notes to Consolidated Financial Statements</P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">3</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>UMH PROPERTIES, INC.</B></P>
<A NAME="_Toc197830729"></A><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>FOR THE THREE AND SIX MONTHS ENDED</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>JUNE 30, 2008 AND 2007</B></P>
<P style="margin:0pt">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=194.4></TD><TD width=72></TD><TD width=8.65></TD><TD width=72></TD><TD width=12.95></TD><TD width=78.5></TD><TD width=8.65></TD><TD width=74.85></TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=203.533 colspan=3><P style="margin:0pt" align=center>THREE MONTHS</P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=216 colspan=3><P style="margin:0pt" align=center>SIX MONTHS</P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt" align=center>2008</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt" align=center>2007</P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=104.667><P style="margin:0pt" align=center>2008</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=99.8><P style="margin:0pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=top width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">REVENUES: </P>
</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=top width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Rental and Related &nbsp;Income </P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 6,362,034 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 5,922,391 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$12,616,604 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$11,752,895 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Sales of Manufactured Homes</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,881,014 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,966,284 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,665,057 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,244,048 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Interest and Dividend &nbsp;Income </P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,129,477 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;927,766 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,020,906 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,564,801 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Gain (Loss) on Securities Transactions, net </P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55,023 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;463,929 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(595,537)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;496,779 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Other Income </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,448 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,650 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67,506 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92,843 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Total Revenues</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,458,996 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,351,020 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,774,536 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,151,366 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">EXPENSES:</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Community Operating Expenses</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,396,383 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,222,329 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,578,559 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,264,407 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Cost of Sales of &nbsp;Manufactured Homes</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,419,512 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,275,077 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,904,477 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,078,455 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Selling Expenses</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302,732 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;388,673 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;711,177 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;918,091 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">General and &nbsp;Administrative &nbsp;Expenses</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;911,541 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;885,563 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,897,428 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,713,654 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Interest Expense</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;886,201 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;750,545 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,386,859 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,605,045 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Depreciation Expense</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,017,795 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;888,648 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,032,545 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,775,972 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Amortization of &nbsp;Financing Costs</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,371 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,470 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77,815 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;96,698 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Total Expenses </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,972,535 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,457,305 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,588,860 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,452,322 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">&nbsp;Income before Gain on Sales of </P>
<P style="margin:0pt">&nbsp;&nbsp;&nbsp;Investment Property and Equipment</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,486,461 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,893,715 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,185,676 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,699,044 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Gain on Sales of Investment</P>
<P style="margin:0pt">&nbsp;&nbsp;Property and Equipment</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,613 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,612 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,358 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66,524 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Net Income</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 1,511,074 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$1,928,327 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$ 1,206,034 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2,765,568 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=top width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Net Income per Share - &nbsp;</P>
</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=top width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">&nbsp;&nbsp;Basic</P>
</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.14 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.18 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.11 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.27 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">&nbsp;&nbsp;Diluted</P>
</TD><TD style="border-top:2pt double #000000; border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.14 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-top:2pt double #000000; border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.18 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.11 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.26 </P>
</TD></TR>
<TR><TD valign=top width=259.2>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">Weighted Average Shares Outstanding - &nbsp;</P>
</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=96>&nbsp;</TD><TD valign=top width=17.267>&nbsp;</TD><TD valign=bottom width=104.667>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=99.8>&nbsp;</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Basic </P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,855,788 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,491,261 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,811,604 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,428,493 </P>
</TD></TR>
<TR><TD valign=top width=259.2><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Diluted </P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,855,788</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=96><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,501,414 </P>
</TD><TD valign=top width=17.267>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=104.667><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,811,604</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=99.8><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,442,080 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center>-UNAUDITED-</P>
<P style="margin:0pt" align=center>See Accompanying Notes to Consolidated Financial Statements</P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">4</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>UMH PROPERTIES, INC.</B></P>
<A NAME="_Toc197830730"></A><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>FOR THE SIX MONTHS ENDED</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>JUNE 30, 2008 AND 2007</B></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=306></TD><TD width=64.1></TD><TD width=8.65></TD><TD width=66.75></TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=85.467><P style="margin:0pt" align=center>2008</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=89><P style="margin:0pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD valign=top width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>CASH FLOWS FROM OPERATING ACTIVITIES:</P>
</TD><TD valign=top width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">Net (Loss) Income</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>&nbsp;$1,206,034 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2,765,568 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">Non-Cash Adjustments:</P>
</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Depreciation</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>2,032,545 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>1,775,972 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Amortization of Financing Costs</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>77,815 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>96,698 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Stock Compensation Expense </P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>51,834 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>63,940 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Increase in Provision for Uncollectible Notes and Other Receivables</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>146,700 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>143,888 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Loss (Gain) on Securities Transactions, net</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>595,537 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(496,779)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Gain on Sales of Investment Property and Equipment</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(20,358)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(66,524)</P>
</TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">Changes in Operating Assets and Liabilities:</P>
</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Inventory of Manufactured Homes</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>1,354,264 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(3,121,609)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Notes and Other Receivables</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(829,520)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(2,632,451)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Prepaid Expenses</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>84,629 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>307,183 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Accounts Payable</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>369,506 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(580,596)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Accrued Liabilities and Deposits</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(57,100)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>659,527 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">&nbsp;&nbsp;&nbsp;Tenant Security Deposits</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>31,734 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89><P style="margin:0pt" align=right>25,270 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt">Net Cash Provided by (Used In) Operating Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>5,043,620 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89><P style="margin:0pt" align=right>(1,059,913)</P>
</TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>CASH FLOWS FROM INVESTING ACTIVITIES:</P>
</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Purchase of Investment Property and Equipment</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(2,735,405)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(1,951,558)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Proceeds from Sales of Assets</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>332,858 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>662,269 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Additions to Land Development</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(1,519,302)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(2,603,033)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Purchase of Securities Available for Sale</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(3,961,484)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(258,151)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Settlement of Futures Transactions</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(304,088)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>-0-</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Net Proceeds from Sales of Securities Available for Sale</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>210,768 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89><P style="margin:0pt" align=right>2,339,910 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Net Cash Used in Investing Activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>(7,976,653)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89><P style="margin:0pt" align=right>(1,810,563)</P>
</TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>CASH FLOWS FROM FINANCING ACTIVITIES:</P>
</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Proceeds from Mortgages and Loans</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>13,700,000 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=89><P style="margin:0pt" align=right>13,480,000</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Principal Payments of Mortgages and Loans</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(7,196,625)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(9,214,857)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Financing Costs on Debt</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(202,914)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(173,147)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Proceeds from Issuance of Common Stock, net of amount reinvested</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>846,726 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>2,330,657 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Proceeds from Exercise of Stock Options</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>-0- </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>243,521 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Dividends Paid, net of amount reinvested</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>(3,971,917)</P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(4,335,485)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>Net Cash Provided By Financing Activities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>3,175,270 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=89><P style="margin:0pt" align=right>2,330,689 </P>
</TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD valign=bottom width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=89>&nbsp;</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>NET INCREASE (DECREASE) IN CASH</P>
<P style="margin:0pt" align=justify>&nbsp;&nbsp;AND CASH EQUIVALENTS</P>
</TD><TD valign=bottom width=85.467><P style="margin:0pt" align=right>242,237 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=bottom width=89><P style="margin:0pt" align=right>(539,787)</P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>CASH &amp; CASH EQUIVALENTS-BEGINNING</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>2,221,976 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=89><P style="margin:0pt" align=right>2,005,027 </P>
</TD></TR>
<TR><TD valign=top width=408><P style="margin:0pt" align=justify>CASH &amp; CASH EQUIVALENTS-ENDING</P>
</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=85.467><P style="margin:0pt" align=right>&nbsp;$2,464,213 </P>
</TD><TD valign=top width=11.533>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=89><P style="margin:0pt" align=right>&nbsp;$1,465,240 </P>
</TD></TR>
<TR><TD valign=top width=408>&nbsp;</TD><TD valign=top width=85.467>&nbsp;</TD><TD valign=top width=11.533>&nbsp;</TD><TD valign=top width=89>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>-UNAUDITED-</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>See Accompanying Notes to Consolidated Financial Statements</P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">5</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>UMH PROPERTIES, INC.</B></P>
<A NAME="_Toc197830731"></A><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>JUNE 30, 2008 (UNAUDITED)</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>NOTE 1 &#150; ORGANIZATION AND ACCOUNTING POLICY</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The interim consolidated financial statements furnished herein reflect all adjustments which were, in the opinion of management, necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2008 and for all periods presented. &nbsp;All adjustments made in the interim period were of a normal recurring nature. &nbsp;Certain footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements and notes thereto included in the annual report of the Company for the year ended December 31, 2007 have been omitted. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company, through its wholly-owned taxable subsidiary, UMH Sales and Finance, Inc. (S&amp;F), conducts manufactured home sales in its communities. This company was established to enhance the occupancy of the communities. &nbsp;The consolidated financial statements of the Company include S&amp;F and all of its other wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>Employee Stock Options</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company accounts for its stock option plan under the provisions of SFAS No. 123 (revised 2004), &#147;Share-Based Payment&#148; (SFAS No. 123R). &nbsp;SFAS 123R requires that compensation cost for all stock awards be calculated and recognized over the service period (generally equal to the vesting period). &nbsp;This compensation cost is determined using option pricing models, intended to estimate the fair value of the awards at the grant date. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Compensation cost which has been determined consistent with SFAS No. 123R, amounted to $25,917 and $51,834 for the three and six months ended June 30, 2008, respectively, and $31,970 and $63,940 for the three and six months ended June 30, 2007, respectively. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighed-average assumptions used for grants in the following years:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=87.05></TD><TD width=144.75></TD><TD width=10.45></TD><TD width=65.3></TD><TD width=10.45></TD><TD width=65.3></TD></TR>
<TR><TD valign=top width=116.067>&nbsp;</TD><TD valign=top width=193>&nbsp;</TD><TD valign=top width=13.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2008</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=116.067>&nbsp;</TD><TD valign=top width=193>&nbsp;</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067>&nbsp;</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067>&nbsp;</TD></TR>
<TR><TD valign=top width=116.067>&nbsp;</TD><TD valign=top width=193><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Dividend yield</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>7.48%</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>6.42%</P>
</TD></TR>
<TR><TD valign=top width=116.067>&nbsp;</TD><TD valign=top width=193><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Expected volatility</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>18.66%</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>18.08%</P>
</TD></TR>
<TR><TD valign=top width=116.067>&nbsp;</TD><TD valign=top width=193><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Risk-free interest rate</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>3.47%</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>4.66%</P>
</TD></TR>
<TR><TD valign=top width=116.067>&nbsp;</TD><TD valign=top width=193><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Expected lives</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>8</P>
</TD><TD valign=top width=13.933>&nbsp;</TD><TD valign=top width=87.067><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>8</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">6</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The weighted-average fair value of options granted during the six months ended June 30, 2008 and 2007 was $.65 and $1.36, respectively. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>During the six months ended June 30, 2008, the following stock options were granted:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=51.9></TD><TD width=51.9></TD><TD width=12></TD><TD width=72></TD><TD width=13.5></TD><TD width=67.5></TD><TD width=13.5></TD><TD width=60.6></TD><TD width=13.5></TD><TD width=67.5></TD></TR>
<TR><TD valign=top width=69.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=69.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Date of Grant</P>
</TD><TD valign=top width=16>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Number of Employees</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Number of Shares</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=80.8><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Exercise</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Price</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Expiration Date</P>
</TD></TR>
<TR><TD valign=top width=69.2>&nbsp;</TD><TD valign=top width=69.2>&nbsp;</TD><TD valign=top width=16>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=80.8>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=69.2>&nbsp;</TD><TD valign=top width=69.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>1/8/08</P>
</TD><TD valign=top width=16>&nbsp;</TD><TD valign=top width=96><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>&nbsp;&nbsp;1</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>42,300</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=80.8><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>$12.97</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>1/8/16</P>
</TD></TR>
<TR><TD valign=top width=69.2>&nbsp;</TD><TD valign=top width=69.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>1/8/08</P>
</TD><TD valign=top width=16>&nbsp;</TD><TD valign=top width=96><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>&nbsp;&nbsp;1</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>7,700</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=80.8><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>&nbsp;&nbsp;11.79</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>1/8/16</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>As of June 30, 2008, there were options outstanding to purchase 476,000 shares and 1,050,188 shares were available for grant under the Company&#146;s 2003 Stock Option Plan. &nbsp;During the six months ended June 30, 2007, one employee exercised his stock option and purchased 17,812 shares for a total of $243,521. &nbsp;Additionally, stock options totaling 11,188 shares expired without being exercised. &nbsp;As of June 30, 2007, there were options outstanding to purchase 369,000 shares and 1,158,188 shares were available for grant under the Company&#146;s 2003 Stock Option Plan. &nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-size:12pt" align=justify><U>Recent Accounting Pronouncements</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>In February&nbsp;2007, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of Financial Accounting Standards No. 159, &#147;The Fair Value Option for Financial Assets and Financial Liabilities - including an amendment of FASB Statement No. 115&#148; (&#147;SFAS No. 159&#148;). SFAS No. 159 permits entities to elect to measure many financial instruments and certain other items at fair value. Upon adoption of SFAS No. 159, an entity may elect the fair value option for eligible items that exist at the adoption date. Subsequent to the initial adoption, the election of the fair value option may only be made at initial recognition of the asset or liability or upon a remeasurement event that gives rise to new-basis accounting. The decision about whether to elect the fair value option is applied on an instrument-by-instrument basis, is irrevocable and is applied only to an entire instrument and not only to specified risks, cash flows or portions of that instrument. SFAS No. 159 does not affect any existing accounting literature that requires certain assets and liabilities to be carried at fair value nor does it eliminate disclosure requirements included in other accounting standards. The Company adopted SFAS No.&nbsp;159 effective January&nbsp;1, 2008, and did not elect the fair value option for any existing eligible items.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>In September&nbsp;2006, the FASB issued SFAS No.&nbsp;157, &#147;Fair Value Measurements&#148; (&#147;SFAS No.&nbsp;157&#148;). SFAS No.&nbsp;157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS No.&nbsp;157 does not impose fair value measurements on items not already accounted for at fair value; rather it applies, with certain exceptions, to other accounting pronouncements that either require or permit fair value measurements. Under SFAS No.&nbsp;157, fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market. The standard clarifies that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In February&nbsp;2008, the FASB issued Staff Position No.&nbsp;157-2, &#147;Effective Date of FASB Statement No.&nbsp;157&#148; (FSP FAS 157-2&#148;), which delays the effective date of SFAS No.&nbsp;157 for all non-</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">7</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>financial assets and liabilities, except those that are recognized or disclosed at fair value in the Financial Statements on a recurring basis until fiscal years beginning after November&nbsp;15, 2008. The Company adopted the provisions of SFAS No.&nbsp;157 for assets and liabilities recognized at fair value on a recurring basis effective January&nbsp;1, 2008. The partial adoption of SFAS No.&nbsp;157 did not have a material impact on the Company&#146;s Financial Statements. &nbsp;See Note 7 for additional discussion.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141R, &#147;Business Combinations&#148; (&#147;SFAS 141R&#148;) and SFAS No.&nbsp;160, &#147;Noncontrolling Interests in Consolidated Financial Statements &#151; An Amendment of ARB No.&nbsp;51&#148; (&#147;SFAS 160&#148;). SFAS 141R and SFAS 160 require most identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination to be recorded at &#147;full fair value&#148; and require noncontrolling interests (previously referred to as minority interests) to be reported as a component of equity, which changes the accounting for transactions with noncontrolling interest holders. The provisions of SFAS 141R and SFAS 160 are effective for our fiscal year beginning January&nbsp;1, 2009. SFAS 141R will be applied to business combinations occurring after the effective date and SFAS 160 will be applied prospectively to all changes in noncontrolling interests, including any that existed at the effective date. &nbsp;The Company is currently evaluating the impact of of SFAS 141R and SFAS 160 but does not believe that the adoption of these statements will have a material effect on our financial condition or results of operations.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>&nbsp;In March&nbsp;2008, the FASB issued SFAS No.&nbsp;161, &#147;Disclosures about Derivative Instruments and Hedging Activities &#150; an amendment of FASB Statement No.&nbsp;133&#148; (&#147;SFAS 161&#148;). SFAS 161 requires enhanced disclosures about (a)&nbsp;how and why derivative instruments are used, (b)&nbsp;how derivative instruments and related hedged items are accounted for and (c)&nbsp;how derivative instruments and related hedged items affect an entity&#146;s financial position, financial performance and cash flows. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November&nbsp;15, 2008. &nbsp;The Company is evaluating the impact of SFAS 161 but does not believe that the adoption of this statement will have a material effect on our financial condition or results of operations.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>In May 2008, the FASB issued SFAS No.&nbsp;162, &#147;The Hierarchy of Generally Accepted Accounting Principles&#148; (&#147;SFAS 162&#148;). &nbsp;The current hierarchy of generally accepted accounting principles is set forth in the American Institute of Certified Public Accountants (AICPA)&nbsp;Statement on Auditing Standards (SAS) No.&nbsp;69, &#147;The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.&#148; SFAS&nbsp;162 is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements that are presented in conformity with U.S. generally accepted accounting principles for nongovernmental entities. This Statement is effective 60&nbsp;days following the Securities and Exchange Commission's approval of the Public Company Oversight Board Auditing amendments to SAS 69. The Company is evaluating the impact of SFAS 162 but does not believe that the adoption of this statement will have a material effect on our financial condition or results of operations, as the Statement does not directly impact the accounting principles applied in the preparation of the Company&#146;s financial statements.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">8</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>NOTE 2 &#150; NET INCOME PER SHARE AND COMPREHENSIVE INCOME</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Basic net income per share is calculated by dividing net income by the weighted average shares outstanding for the period. &nbsp;Diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding plus the weighted average number of net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. &nbsp;Options in the amount of 10,153 and 13,587 shares for the three and six months ended June 30, 2007, respectively are included in the diluted weighted average shares outstanding. &nbsp;No options were included for the three and six months ended June 30, 2008, since they were antidilutive.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The following table sets forth the components of the Company&#146;s comprehensive income for the three and six months ended June 30, 2008 and 2007:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=131.4></TD><TD width=72></TD><TD width=13.5></TD><TD width=67.5></TD><TD width=13.5></TD><TD width=76.5></TD><TD width=13.5></TD><TD width=67.5></TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=204 colspan=3><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Three Months</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=210 colspan=3><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Six Months</P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2008</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2007</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2008</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=90>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=175.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Net Income</P>
</TD><TD valign=top width=96><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$1,511,074</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$1,928,327</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$1,206,034</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$2,765,568</P>
</TD></TR>
<TR><TD valign=top width=175.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Change in unrealized </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;loss on securities </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;available for sale</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=96><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(2,928,588)</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(149,296)</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=102><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(3,066,277)</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(154,759)</P>
</TD></TR>
<TR><TD valign=top width=175.2><P style="line-height:14pt; margin:0pt; font-size:12pt">Comprehensive Income</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;(Loss)</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=96><P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>($1,417,514)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$1,779,031</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=102><P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>($1,860,243)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="margin:0pt" align=right><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$2,610,809</P>
</TD></TR>
<TR><TD valign=top width=175.2>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><U>NOTE 3 &#150; DERIVATIVE INSTRUMENTS</U></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company invested in futures contracts on ten-year Treasury notes with the objective of reducing the exposure of the debt securities portfolio to market rate fluctuations. &nbsp;During the quarter ended June 30, 2008, we have settled our position and no longer invest in these contracts. The notional amount of these contracts amounted to $9,000,000 at June 30, 2007. &nbsp;Changes in the market value of these derivatives have been recorded in gain (loss) on securities transactions, net with corresponding amounts recorded in other assets or other liabilities on the balance sheet. &nbsp;The fair value of the derivatives at December 31, 2007 was an asset of $40,781. &nbsp;During the three and six months ended June 30, 2008, the Company recorded a realized gain (loss) of $346,472 and ($304,088), respectively, on settled and open futures contracts. &nbsp;During the three and six months ended June 30, 2007, the Company recorded a realized gain of $202,329 and $140,987, respectively, on settled and open futures contracts. &nbsp;These gains (losses) are included in gain (loss) on securities transactions, net. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company had entered into three interest rate swap agreements to effectively convert a portion of its variable rate debt to fixed rate debt. &nbsp;Changes in the fair value of these agreements have been recorded as an increase or deduction from interest expense with corresponding amounts in other assets or other liabilities. &nbsp;The change in the fair value of these agreements for the three and six months ended June 30, 2008 amounted to $214,199 and ($134,341), respectively, and has been recorded as a deduction from (addition to) interest expense. &nbsp;The </P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">9</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>change in the fair value of these agreements for the three and six months ended June 30, 2007 amounted to $74,286 and $47,974, respectively, and has been recorded as a deduction from interest expense. &nbsp;The fair value of these agreements at June 30, 2008 and December 31, 2007 amounted to liabilities of $198,072 and $63,731, respectively, which have been included in accrued liabilities and deposits.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>NOTE 4 &#150; LOANS AND MORTGAGES PAYABLE</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>On February 27, 2008, the Company increased and refinanced its mortgage loans on D&amp;R Village and Waterfalls Village with Bank of America. &nbsp;The new principal balance is $8,700,000. This mortgage payable is due on February 27, 2013 with interest at a fixed rate of 5.614%. &nbsp;Proceeds were primarily used to pay off the existing mortgages on D&amp;R Village and Waterfalls Village and to pay down our margin loans.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>On April 28, 2008, the Company closed on a revolving line of credit with Sun National Bank with a maximum availability of $10,000,000. &nbsp;This revolving line of credit has a maturity date of April 1, 2011 and is secured by the Company's eligible notes receivables. &nbsp;Interest under this new line is at the prime rate which is currently 5%. &nbsp;On April 29, 2008, the Company used $5,000,000 of this line of credit to pay down our margin loans. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>NOTE 5 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>On June 30, 2008, the Company paid $1,955,780, of which $273,000 was reinvested, as a dividend of $.18 per share to shareholders of record as of June 16, 2008. &nbsp;Total dividends paid for the six months ended June 30, 2008 amounted to $4,647,805 of which $675,888 was reinvested. &nbsp;On July 1, 2008, the Company declared a dividend of $.18 per share to be paid on September 15, 2008 to shareholders of record August 15, 2008. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>During the six months ended June 30, 2008, the Company received, including dividends reinvested, a total of $1,522,614 from the Dividend Reinvestment and Stock Purchase Plan. &nbsp;There were 160,848 new shares issued under the Plan. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><U>NOTE 6 &#150; SECURITIES AVAILABLE FOR SALE</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The following table summarizes the Company&#146;s gain (loss) on securities transactions, net for the three and six months ended June 30, 2008 and 2007:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=178.1></TD><TD width=61.3></TD><TD width=12.6></TD><TD width=63.8></TD><TD width=4.6></TD><TD width=7.2></TD><TD width=64.8></TD><TD width=13.5></TD><TD width=66.6></TD></TR>
<TR><TD valign=top width=237.467>&nbsp;</TD><TD valign=top width=189.733 colspan=4><P style="margin:0pt" align=center><U>Three Months</U></P>
</TD><TD valign=top width=202.8 colspan=4><P style="margin:0pt" align=center><U>Six Months</U></P>
</TD></TR>
<TR><TD valign=top width=237.467>&nbsp;</TD><TD valign=top width=81.733><P style="margin:0pt" align=center><U>2008</U></P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=center><U>2007</U></P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=center><U>2008</U></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=center><U>2007</U></P>
</TD></TR>
<TR><TD valign=top width=237.467>&nbsp;</TD><TD valign=top width=81.733>&nbsp;</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067>&nbsp;</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8>&nbsp;</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Gain on sale of securities, net</P>
</TD><TD valign=top width=81.733><P style="margin:0pt" align=right>$10,951</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=right>$261,600</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=right>$10,951</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=right>$355,792</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Impairment loss</P>
</TD><TD valign=top width=81.733><P style="margin:0pt" align=right>(302,400)</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=right>-0-</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=right>(302,400)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=right>-0-</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Gain (loss) on settled futures contracts</P>
</TD><TD valign=top width=81.733><P style="margin:0pt" align=right>346,472</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=right>309,908</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=right>(304,088)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=right>188,097</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Loss on open futures contracts</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=81.733><P style="margin:0pt" align=right>-0-</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=85.067><P style="margin:0pt" align=right>(107,579)</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=86.4><P style="margin:0pt" align=right>-0-</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.8><P style="margin:0pt" align=right>(47,110)</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt"><BR></P>
<P style="margin:0pt">Gain (loss) on securities transactions, net</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=81.733><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>$55,023</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=85.067><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>$463,929</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=86.4><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>($595,537)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=88.8><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>$496,779</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">10</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>During the three and six months ended June 30, 2008, the Company recognized a loss of $302,400 due to the write-down of the carrying value of a security which was considered other than temporarily impaired. &nbsp;The Company also recognized a total gain (loss) on settled and open futures contracts of $346,472 and ($304,088), respectively. &nbsp;The Company invested in futures contracts of ten-year treasury notes with the objective of reducing the risks of rolling over its fixed-rate mortgages at higher interest rates and reducing the exposure of the preferred equity and debt securities portfolio to interest rate fluctuations. &nbsp;As of May 15, 2008, we have settled our position and no longer invest in these contracts.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><U>NOTE 7 - FAIR VALUE MEASUREMENTS</U></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>On January&nbsp;1, 2008, the Company adopted SFAS No.&nbsp;157, Fair Value Measurements (&#147;SFAS No.&nbsp;157&#148;), for financial assets and liabilities recognized at fair value on a recurring basis. We measure certain financial assets and liabilities at fair value on a recurring basis, including securities available for sale and interest rate swap agreements. The fair value of these certain financial assets and liabilities was determined using the following inputs at June 30, 2008: </P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=127></TD><TD width=70.7></TD><TD width=11.8></TD><TD width=69></TD><TD width=11.8></TD><TD width=69></TD><TD width=11.8></TD><TD width=66.35></TD></TR>
<TR><TD valign=bottom width=169.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=413.933 colspan=7><P style="margin:0pt" align=center>Fair Value Measurements at Reporting Date Using</P>
</TD></TR>
<TR><TD valign=bottom width=169.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=94.267><P style="margin:0pt" align=center>Total</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92><P style="margin:0pt" align=center>Quoted Prices in Active Markets for Identical Assets &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Level 1)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92><P style="margin:0pt" align=center>Significant Other Observable Inputs &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Level 2)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88.467><P style="margin:0pt" align=center>Significant Unobservable Inputs &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Level 3)</P>
</TD></TR>
<TR><TD valign=bottom width=169.333>&nbsp;</TD><TD valign=bottom width=94.267>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=88.467>&nbsp;</TD></TR>
<TR><TD valign=bottom width=169.333><P style="margin:0pt">Securities available for sale</P>
</TD><TD valign=bottom width=94.267><P style="margin:0pt" align=right>&nbsp;$ 23,916,221 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92><P style="margin:0pt" align=right>&nbsp;$ 17,916,221 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=92><P style="margin:0pt" align=right>&nbsp;$ 6,000,000 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=88.467><P style="margin:0pt" align=right>$ -0-</P>
</TD></TR>
<TR><TD valign=bottom width=169.333><P style="margin:0pt">Interest rate swaps (1)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=94.267><P style="margin:0pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(198,072)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92><P style="margin:0pt" align=right>-0- </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=92><P style="margin:0pt" align=right>(198,072)</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=88.467><P style="margin:0pt" align=right>-0-</P>
</TD></TR>
<TR><TD valign=bottom width=169.333>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=94.267><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>&nbsp;$ 23,718,149 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=92><P style="margin:0pt" align=right>$ 17,916,221</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=92><P style="margin:0pt" align=right>&nbsp;$ 5,801,928 </P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=88.467><P style="margin:0pt" align=right>$ -0-</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt" align=justify>(1) &nbsp;Included in accrued liabilities and deposits.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><U>NOTE 8 &#150; RELATED PARTY TRANSACTIONS AND OTHER MATTERS</U></P>
<P style="line-height:14pt; margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>On April 14, 2008, the Company executed a Second Amendment to the Employment Agreement with the Eugene W. Landy, Chairman of the Board (the second amendment). &nbsp;The amendment provides that in the event of a change in control, Eugene W. Landy shall receive a lump sum payment of $1,200,000, provided the sale price of the Company is at least $16 per share of common stock. &nbsp;A change of control shall be defined as the consummation of a reorganization, merger, share exchange, consolidation, or sale or disposition of all or substantially all of the assets of the Company. &nbsp;This change of control provision shall not apply to any combination between the Company and Monmouth Real Estate Investment Corporation. &nbsp;Payment shall be made simultaneously with the closing of the transaction, and only in the event that the transaction closes.</P>
<P style="line-height:14pt; margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">11</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><U>NOTE 9 - &nbsp;CONTINGENCIES</U></P>
<P style="line-height:14pt; margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company is subject to claims and litigation in the ordinary course of business. &nbsp;Management does not believe that any such claim or litigation will have a material adverse effect on the consolidated balance sheet or results of operations.</P>
<P style="line-height:14pt; margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><U>NOTE 10 - SUPPLEMENTAL CASH FLOW INFORMATION</U></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Cash paid during the six months ended June 30, 2008 and 2007 for interest was $2,416,548 and $1,816,580, respectively. &nbsp;Interest cost capitalized to Land Development was $140,000 and $137,200 for the six months ended June 30, 2008 and 2007, respectively. &nbsp;The change in fair value of the interest rate swap agreements amounted to ($134,341) and $47,974 for the six months ended June 30, 2008 and 2007, respectively.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>During the six months ended June 30, 2008 and 2007, the Company had dividend reinvestments of $675,888 and $883,270, respectively, which required no cash transfers.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc197830732"></A><P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">12</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B>ITEM 2 - MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt; font-size:12pt"><B><U>Overview</U></B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>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 notes thereto included elsewhere herein and in our annual report on Form 10-K for the year ended December 31, 2007.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company is a real estate investment trust (REIT). &nbsp;The Company&#146;s primary business is the ownership and operation of manufactured home communities &#150; leasing manufactured home spaces on a month-to-month basis to private manufactured home owners. &nbsp;The Company also leases homes to residents and, through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&amp;F), sells and finances homes to residents and prospective residents of our communities. &nbsp;The Company owns twenty-eight communities containing approximately 6,800 sites. &nbsp;These communities are located in New Jersey, New York, Ohio, Pennsylvania and Tennessee. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company also holds a portfolio of securities of other REITs and home manufacturers with a balance of $23,916,221 at June 30, 2008. &nbsp;The Company invests in these securities on margin from time to time when the Company can achieve an adequate yield spread and when suitable acquisitions of real property cannot be found. &nbsp;At June 30, 2008, the Company&#146;s portfolio consisted of 19% preferred stocks, 56% common stocks and 25% debentures. &nbsp;The securities portfolio provides the Company with liquidity and additional income until suitable acquisitions of real property are found.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>The Company&#146;s revenue primarily consists of rental and related income from the operation of its manufactured home communities. &nbsp;Revenues also include sales of manufactured homes, interest and dividend income and gain on securities transactions, net. &nbsp;Total revenues decreased by approximately 8% from $11,351,020 for the quarter ended June 30, 2007 to $10,458,996 for the quarter ended June 30, 2008. &nbsp;Total revenues decreased by approximately 7% from $20,151,366 for the six months ended June 30, 2007 to $18,774,536 for the six months ended June 30, 2008. &nbsp;These decreases were primarily due to a decrease in sales of manufactured homes and a decrease in the gain (loss) on securities transactions, partially offset by an increase in rental and related income and interest and dividend income. &nbsp;Gain (loss) on securities transactions decreased by $408,906 and $1,092,316, respectively, for the quarter and six months ended June 30, 2008 as compared to the quarter and six months ended June 30, 2007. &nbsp;This was primarily due to the write-down of a security which was considered other than temporarily impaired and the loss on settled futures contracts for the six months ended June 30, 2008. &nbsp;Sales of manufactured homes decreased by approximately 27% and 25%, respectively, for the quarter and six months ended June 30, 2008 as compared to the quarter and six months ended June 30, 2007. &nbsp;Over the past several years, the availability of liberal terms on loans on conventional housing created a difficult competitive market for sales of manufactured homes. &nbsp;This resulted in a loss of occupancy from approximately 86% in 2005 to approximately 81% currently. &nbsp;Although the conventional home lending environment has returned to more disciplined lending practices, the return to affordability and the recovery of manufactured home communities have been slow.</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">13</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>Total expenses decreased by approximately 5% and increased by approximately 1% for the quarter and six months, respectively, ended June 30, 2008 as compared to the quarter and six months ended June 30, 2007. &nbsp;This was primarily due to an increase in interest expense partially offset by a decrease in cost of sales of manufactured homes and selling expenses. &nbsp;The increase in interest expense was primarily due to an increase in the balance of mortgages and loans payable and the change in fair value of the Company&#146;s interest rate swaps. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>Net income decreased by approximately 22% and 56%, respectively, for the quarter and six months ended June 30, 2008. &nbsp;This decrease was due primarily to the write-down of $302,400 for the quarter and six months ended June 30, 2008 of a security which was considered other than temporarily impaired, the loss of $304,088 for the six months ended June 30, 2008 on settled futures contracts, the increase in interest expense and the decrease in sales of manufactured homes. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>See PART I, Item 1 &#150; Business in the Company&#146;s 2007 annual report on Form 10-K for a more complete discussion of the economic and industry-wide factors relevant to the Company and the opportunities and challenges, and risks on which the Company is focused. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B><U>Changes In Results Of Operations</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Rental and related income increased from $5,922,391 for the quarter ended June 30, 2007 to $6,362,034 for the quarter ended June 30, 2008. &nbsp;Rental and related income increased from $11,752,895 for the six months ended June 30, 2007 to $12,616,604 for the six months ended June 30, 2008. &nbsp;This was primarily due to rental increases to residents and an increase in home rental income. &nbsp;The Company has been raising rental rates by approximately 3% to 6% annually. &nbsp;Occupancy remained relatively stable at approximately 81% at both December 31, 2007 and June 30, 2008. &nbsp;The Company has faced many challenges in filling vacant homesites. &nbsp;The relatively low interest rates and liberal lending practice in 2006 and 2007 made site-built housing more accessible. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Interest and dividend income increased from $927,766 for the quarter ended June 30, 2007 to $1,129,477 for the quarter ended June 30, 2008. &nbsp;Interest and dividend income increased from $1,564,801 for the six months ended June 30, 2007 to $2,020,906 for the six months ended June 30, 2008. &nbsp;This was primarily as a result of an increase in dividend income due to a higher average balance of securities available for sale during 2008 as a result of purchases made toward the end of 2007. &nbsp;The average balance of securities at June 30, 2008 and 2007 was $23,719,726 and $17,038,726, respectively. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">14</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Gain (loss) on securities available for sale transactions, net for the three and six months ended June 30, 2008 and 2007 consisted of the following:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=178.1></TD><TD width=61.3></TD><TD width=12.6></TD><TD width=63.8></TD><TD width=4.6></TD><TD width=7.2></TD><TD width=64.8></TD><TD width=13.5></TD><TD width=66.6></TD></TR>
<TR><TD valign=top width=237.467>&nbsp;</TD><TD valign=top width=189.733 colspan=4><P style="margin:0pt" align=center><U>Three Months</U></P>
</TD><TD valign=top width=202.8 colspan=4><P style="margin:0pt" align=center><U>Six Months</U></P>
</TD></TR>
<TR><TD valign=top width=237.467>&nbsp;</TD><TD valign=top width=81.733><P style="margin:0pt" align=center><U>2008</U></P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=center><U>2007</U></P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=center><U>2008</U></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=center><U>2007</U></P>
</TD></TR>
<TR><TD valign=top width=237.467>&nbsp;</TD><TD valign=top width=81.733>&nbsp;</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067>&nbsp;</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8>&nbsp;</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Gain on sale of securities, net</P>
</TD><TD valign=top width=81.733><P style="margin:0pt" align=right>$10,951</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=right>$261,600</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=right>$10,951</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=right>$355,792</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Impairment loss</P>
</TD><TD valign=top width=81.733><P style="margin:0pt" align=right>(302,400)</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=right>-0-</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=right>(302,400)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=right>-0-</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Gain (loss) on settled futures contracts</P>
</TD><TD valign=top width=81.733><P style="margin:0pt" align=right>346,472</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD valign=top width=85.067><P style="margin:0pt" align=right>309,908</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD valign=top width=86.4><P style="margin:0pt" align=right>(304,088)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=88.8><P style="margin:0pt" align=right>188,097</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt">Loss on open futures contracts</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=81.733><P style="margin:0pt" align=right>-0-</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=85.067><P style="margin:0pt" align=right>(107,579)</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=86.4><P style="margin:0pt" align=right>-0-</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.8><P style="margin:0pt" align=right>(47,110)</P>
</TD></TR>
<TR><TD valign=top width=237.467><P style="margin:0pt"><BR></P>
<P style="margin:0pt">Gain (loss) on securities transactions, net </P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=81.733><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>$55,023</P>
</TD><TD valign=top width=16.8>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=85.067><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>$463,929</P>
</TD><TD valign=top width=15.733 colspan=2>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=86.4><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>($595,537)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=88.8><P style="margin:0pt" align=right><BR></P>
<P style="margin:0pt" align=right>$496,779</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Gain (loss) on securities transactions, net decreased from $463,929 for the quarter ended June 30, 2007 to $55,023 for the quarter ended June 30, 2008 and from a gain of $496,779 for the six months ended June 30, 2007 to a loss of ($595,537) for the six months ended June 30, 2009. &nbsp;During the three and six months ended June 30, 2008, the Company recognized a loss of $302,400 due to the write-down of the carrying value of a security which was considered other than temporarily impaired. &nbsp;The Company also recognized a total gain (loss) on settled and open futures contracts of $346,472 and ($304,088), respectively. &nbsp;The Company invested in futures contracts of ten-year treasury notes with the objective of reducing the risks of rolling over its fixed-rate mortgages at higher interest rates and reducing the exposure of the preferred equity and debt securities portfolio to interest rate fluctuations. &nbsp;We have settled our position and no longer invest in these contracts.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Community operating expenses increased from $3,222,329 for the quarter ended June 30, 2007 to $3,396,383 for the quarter ended June 30, 2008. &nbsp;Community operating expenses increased from $6,264,407 for the six months ended June 30, 2007 to $6,578,559 for the six months ended June 30, 2008. &nbsp;This was primarily due to an increase in salaries and health insurance costs. &nbsp;General and administrative expenses increased from $885,563 for the quarter ended June 30, 2007 to $911,541 for the quarter ended June 30, 2008. &nbsp;General and administrative expenses increased from $1,713,654 for the six months ended June 30, 2007 to $1,897,428 for the six months ended June 30, 2008. &nbsp;This was primarily due to an increase in professional fees and state franchise taxes. &nbsp;&nbsp;Interest expense increased from $750,545 for the quarter ended June 30, 2007 to $886,201 for the quarter ended June 30, 2008. &nbsp;Interest expense increased from $1,605,045 for the six months ended June 30, 2007 to $2,386,859 for the six months ended June 30, 2008. &nbsp;This was primarily due to an increase in the average balance of mortgages and loans payable and the change in fair value of the Company&#146;s interest rate swaps which decreased interest expense by $47,974 for the six months ended June 30, 2007 but increased interest expense by $134,341 for the six months ended June 30, 2008. &nbsp;Cash paid for interest during the three and six months ended June 30, 2008 amounted to $1,175,400 and $2,416,548, respectively. &nbsp;Cash paid for interest during the three and six months ended June 30, 2007 amounted to $902,031 and $1,816,580, respectively. &nbsp;Depreciation expense increased from $888,648 for the quarter ended June 30, 2007 to $1,017,795 for the quarter ended June 30, 2008. &nbsp;Depreciation expense increased from $1,775,972 for the six months ended June 30, 2007 to $2,032,545 for the six months ended June 30, 2008. &nbsp;This was primarily due to the expansions placed in service in 2007. &nbsp;Amortization of financing costs remained relatively stable for the quarter and six months ended June 30, 2008 as compared to the quarter ended June 30, 2007. &nbsp;</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">15</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Sales of manufactured homes amounted to $2,881,014 and $3,966,284 for the quarters ended June 30, 2008 and 2007, respectively. &nbsp;Sales of manufactured homes amounted to $4,665,057 and $6,244,048 for the six months ended June 30, 2008 and 2007, respectively. &nbsp;Cost of sales of manufactured homes amounted to $2,419,512 and $3,275,077 for the quarters ended June 30, 2008 and 2007, respectively. Cost of sales of manufactured homes amounted to $3,904,477 and $5,078,455 for the six months ended June 30, 2008 and 2007, respectively. Selling expenses amounted to $302,732 and $388,673 for the quarters ended June 30, 2008 and 2007, respectively. &nbsp;Selling expenses amounted to $711,177 and $918,091 for the six months ended June 30, 2008 and 2007, respectively. These decreases are directly attributable to the decrease in sales. &nbsp;Income from sales operations (defined as sales of manufactured homes less cost of sales of manufactured homes less selling expenses) amounted to $158,770, or 6% of total sales, for the quarter ended June 30, 2008 as compared to $302,534, or 8% of total sales, for the quarter ended June 30, 2007. &nbsp;Income from sales operations amounted to $49,403, or 1% of total sales, for the six months ended June 30, 2008 as compared to $247,502, or 4% of total sales, for the six months ended June 30, 2007. &nbsp;The Company believes that sales of new homes produces new rental revenue and is an investment in the upgrading of the communities.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B><U>Liquidity And Capital Resources</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company&#146;s principal liquidity demands have historically been, and are expected to continue to be, distributions to the Company&#146;s stockholders, acquisitions, capital improvements, development and expansions of properties, debt service, purchases of manufactured home inventory, investment in debt and equity securities of other REITs and payments of expenses relating to real estate operations. &nbsp;The Company&#146;s ability to generate cash adequate to meet these demands is dependent primarily on income from its real estate investments and securities portfolio, the sale of real estate investments and securities, refinancing of mortgage debt, leveraging of real estate investments, availability of bank borrowings, proceeds from the DRIP, and access to the capital markets. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>Net cash provided by operating activities increased from net cash used by operating activities of $1,059,913 for the six months ended June 30, 2007 to net cash provided by operating activities of $5,043,620 for the six months ended June 30, 2008. &nbsp;This increase was primarily due to a decrease in inventory of manufactured homes and a smaller increase in notes and other receivables. &nbsp;The Company received, including dividends reinvested of $675,888, new capital of $1,522,614 through its Dividend Reinvestment and Stock Purchase Plan (DRIP). &nbsp;The Company sold and wrote-down $502,217, at cost, and purchased $3,961,484 of securities of other real estate investment trusts. Mortgages payable increased by $3,231,871 and loans payable increased by $3,271,504. &nbsp;The Company refinanced its D&amp;R Village and Waterfalls Village mortgages for $8,700,000, took down $5,000,000 of its new $10,000,000 revolving line of credit and paid off the existing mortgages and paid down our margin loans. &nbsp;The Company believes that funds generated from operations together with the financing and refinancing of its properties will be sufficient to meet its needs over the next several years.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">16</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B><U>Funds From Operations</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Funds from Operations (FFO) is defined as net income excluding gains (or losses) from sales of depreciable assets, plus depreciation. &nbsp;FFO should be considered as a supplemental measure of operating performance used by real estate investment trust (REITs). &nbsp;FFO excludes historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost bases. &nbsp;The items excluded from FFO are significant components in understanding and assessing the Company&#146;s financial performance. &nbsp;FFO (1) does not represent cash flow from operations as defined by generally accepted accounting principles; (2) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (3) is not an alternative to cash flow as a measure of liquidity. &nbsp;FFO, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company&#146;s FFO for the three and six months ended June 30, 2008 and 2007 is calculated as follows:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=153></TD><TD width=9></TD><TD width=63></TD><TD width=9></TD><TD width=67.5></TD><TD width=13.5></TD><TD width=67.5></TD><TD width=9></TD><TD width=67.5></TD></TR>
<TR><TD valign=top width=204>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=186 colspan=3><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Three Months</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=192 colspan=3><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>Six Months</P>
</TD></TR>
<TR><TD valign=top width=204>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2008</P>
</TD><TD valign=top width=12 rowspan=7>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2007</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2008</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=204>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=90>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=204><P style="line-height:14pt; margin:0pt; font-size:12pt">Net Income</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;$1,511,074</P>
</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;$1,928,327</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;$1,206,034</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;$2,765,568</P>
</TD></TR>
<TR><TD valign=top width=204><P style="line-height:14pt; margin:0pt; font-size:12pt">Gain on Sales of </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;Depreciable Assets</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;(24,613)</P>
</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;(34,612)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(20,358)</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(66,524)</P>
</TD></TR>
<TR><TD valign=top width=204><P style="line-height:14pt; margin:0pt; font-size:12pt">Depreciation Expense</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,017,795</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;888,648</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,032,545</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,775,972</P>
</TD></TR>
<TR><TD valign=top width=204>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=204><P style="line-height:14pt; margin:0pt; font-size:12pt">FFO </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;$2,504,256</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;$2,782,363</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;$3,218,221 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;$4,475,016 </P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended June 30, 2008 and 2007:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=22.5></TD><TD width=135></TD><TD width=76.5></TD><TD width=18></TD><TD width=81></TD></TR>
<TR><TD valign=top width=30>&nbsp;</TD><TD valign=top width=180>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2008</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2007</P>
</TD></TR>
<TR><TD valign=top width=30>&nbsp;</TD><TD valign=top width=180>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD></TR>
<TR><TD valign=top width=30>&nbsp;</TD><TD valign=top width=180><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Operating Activities</P>
</TD><TD valign=top width=102><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>$5,043,620</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=108><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>($1,059,913)</P>
</TD></TR>
<TR><TD valign=top width=30>&nbsp;</TD><TD valign=top width=180><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Investing Activities</P>
</TD><TD valign=top width=102><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(7,976,653)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=108><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>(1,810,563)</P>
</TD></TR>
<TR><TD valign=top width=30>&nbsp;</TD><TD valign=top width=180><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Financing Activities</P>
</TD><TD valign=top width=102><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>3,175,270</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=108><P style="line-height:14pt; margin:0pt; font-size:12pt" align=right>2,330,689</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt"><B><U>Safe Harbor Statement</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>Statements contained in this Form 10-Q, including the documents that are incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), and Section&nbsp;21E of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;). Also, when we use any of the words &#147;anticipate,&#148; &#147;assume,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;expect,&#148; &#147;intend,&#148; or similar expressions, we are making forward-looking statements. &nbsp;These forward-looking statements are not guaranteed. &nbsp;They reflect the Company&#146;s current views with respect to future events and finance performance, but are based upon current assumptions regarding the Company&#146;s </P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">17</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>operations, future results and prospects, and are subject to many uncertainties and factors, some of which are beyond our control, relating to the Company&#146;s operations and business environment which could cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>Such factors include, but are not limited to, the following: &nbsp;changes in the real estate market and general economic climate; increased competition in the geographic areas in which the Company owns and operates manufactured housing communities; changes in government laws and regulations affecting manufactured housing communities; the ability of the Company 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 the Company; the ability to maintain rental rates and occupancy levels; competitive market forces; changes in market rates of interest; our ability to repay debt financing obligations; our ability to comply with certain debt covenants; continued ability to access the debt or equity markets; the availability of other debt and equity financing alternatives; 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&nbsp; disclosures and filings are timely made in accordance with all rules&nbsp;and regulations, and any potential fraud or embezzlement is thwarted or detected; changes in federal or state tax rules&nbsp;or regulations that could have adverse tax consequences; our ability to qualify as a real estate investment trust for federal income tax purposes; the ability of manufactured home buyers to obtain financing; the level of repossessions by manufactured home lenders; and those risks and uncertainties referenced under the heading &quot;Risk Factors&quot; contained in the Company&#146;s Form 10-K and other filings with the Securities and Exchange Commission. &nbsp;You should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. &nbsp;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.</P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc197830733"></A><P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">18</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B>ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>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.</P>
<P style="margin:0pt" align=justify><BR></P>
<A NAME="_Toc197830734"></A><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B>ITEM 4 - CONTROLS AND PROCEDURES</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>The Company&#146;s Chief Executive Officer and Chief Financial Officer, with the assistance of other members of the Company&#146;s management, have evaluated the effectiveness of the Company&#146;s disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. &nbsp;Based on such evaluation, the Company&#146;s Chief Executive Officer and Chief Financial Officer have concluded that the Company&#146;s disclosure controls and procedures are effective.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify><B><U>Changes In Internal Control Over Financial Reporting</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:45.8pt; font-size:12pt" align=justify>&nbsp;There were no changes in the Company&#146;s internal control over financial reporting during the quarterly period ended June 30, 2008 that have materially affected, or are reasonably likely to materially affect, the Company&#146;s internal control over financial reporting. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">19</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B><U>PART II</U></B></P>
<P style="margin:0pt" align=center><BR></P>
<A NAME="_Toc197830735"></A><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B><U>OTHER INFORMATION</U></B></P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=54></TD><TD width=405.75></TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 1 -</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Legal Proceedings &#150; none</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 1A - </P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Risk Factors</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:9pt; padding-right:8.25pt; text-indent:18pt; font-size:12pt" align=justify>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. &nbsp;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 &#150; &#147;Risk Factors&#148; in the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2007, which could materially affect the Company&#146;s business, financial condition or future results. The risks described in the Company&#146;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&#146;s business, financial condition and/or operating results. </P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 2 -</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Unregistered Sale of Equity Securities and Use of Proceeds &#150; none</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 3 -</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Defaults Upon Senior Securities &#150; none</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 4 -</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Submission of Matters to a Vote of Security Holders </P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:9pt; padding-right:8.25pt; text-indent:18pt; font-size:12pt" align=justify>The annual meeting of shareholders was held on June 18, 2008. &nbsp;The proposals submitted to the vote of the shareholders and the results of the votes were as follows:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; font-size:12pt">Proposal One &#150; For the election of the following nominees for Director:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; font-size:12pt">&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:117pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>For</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; text-indent:189pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Against</U></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; font-size:12pt">Richard H. Molke</P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; text-indent:117pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,064,737.61 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;396,626.56</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; font-size:12pt">Eugene Rothenberg</P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; text-indent:153pt; font-size:12pt">9,026,417.97 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;434,946.20</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; font-size:12pt">Proposal Two &#150; For the approval of Reznick Group, P.C. as independent auditors for the Company for the fiscal year ending December 31, 2008:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; font-size:12pt">&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:45pt; font-size:12pt"><U>For</U></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; text-indent:153pt; font-size:12pt"><U>Against</U></P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; text-indent:261pt; font-size:12pt"><U>Abstain</U></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:27pt; font-size:12pt">&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; padding-left:27pt; text-indent:9pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,329,222.97 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,451.00 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32,691.19</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">20</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=54></TD><TD width=405.75></TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 5 -</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Other Information</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">(a) &nbsp;Information Required to be Disclosed in a Report on Form 8-K, but </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not Reported &#150; none</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=72><P style="margin:0pt; font-size:12pt">&nbsp;</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">(b) &nbsp;Material Changes to the Procedures by which Security Holders May </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recommend Nominees to the Board of Directors &#150; none</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=54></TD><TD width=405.75></TD></TR>
<TR><TD valign=top width=72><P style="line-height:14pt; margin:0pt; font-size:12pt">Item 6 -</P>
</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">Exhibits &#150;</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt">10</P>
<P style="line-height:14pt; margin:0pt; padding-left:9pt; padding-right:8.25pt; font-size:12pt" align=justify>Second Amendment to Employment Contract of Eugene W. Landy, dated April 14, 2008. &nbsp;(incorporated by reference to the 8-K filed by the Registrant with the Securities and Exchange Commission on April 16, 2008. &nbsp;(Registration No. 001-12690)</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>31.1</P>
<P style="line-height:14pt; margin:0pt; padding-left:9pt; padding-right:8.25pt; font-size:12pt" align=justify>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).</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>31.2</P>
<P style="line-height:14pt; margin:0pt; padding-left:9pt; padding-right:8.25pt; font-size:12pt" align=justify>Certification of Anna T. Chew, Vice President and Chief Financial Officer of the Company, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (Filed herewith).</P>
</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541>&nbsp;</TD></TR>
<TR><TD valign=top width=72>&nbsp;</TD><TD valign=top width=541><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>32</P>
<P style="line-height:14pt; margin:0pt; padding-left:9pt; padding-right:8.25pt; font-size:12pt" align=justify>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. &nbsp;Landy, President and Chief Executive Officer, and Anna T. Chew, Vice President and Chief Financial Officer (Furnished herewith).</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<A NAME="_Toc197830736"></A><P style="margin:0pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">21</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B><U>SIGNATURES</U></B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt" align=justify>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.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt">UMH PROPERTIES, INC.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>DATE:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>&nbsp;&nbsp;August 8, 2008</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>By /s/ Samuel A. Landy</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>Samuel A. Landy</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>President and </P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>Chief Executive Officer</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>DATE:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;August 8, 2008</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:180pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>By /s/ Anna T. Chew</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>Anna T. Chew</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>Vice President and </P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:252pt; font-size:12pt" align=justify>Chief Financial Officer</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">22</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>cert31182008doc.htm
<DESCRIPTION>EXHIBIT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>CERTIFICATION</TITLE>
<META NAME="date" CONTENT="08/06/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=right><B>Exhibit 31.1</B></P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=center><B>CERTIFICATION</B></P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>I, Samuel A. Landy, certify that: </P>
<P style="line-height:14pt; margin-top:5.15pt; margin-bottom:0pt; font-size:12pt" align=justify>1. I have reviewed this quarterly report on Form 10-Q of UMH Properties, Inc.; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>4. The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: </P>
<P style="line-height:14pt; margin-top:5.15pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>d) Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>5. The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </P>
<P style="margin-top:10.3pt; margin-bottom:0pt" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin-top:5.15pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt; page-break-before:always" align=justify>a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting. </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:-14pt; padding-left:12.2pt; text-indent:-12.25pt; font-size:12pt" align=justify>Date: </P>
<P style="line-height:14pt; margin:0pt; padding-left:12.2pt; text-indent:23.8pt; font-size:12pt" align=justify>August 8, 2008</P>
<P style="margin-top:10.3pt; margin-bottom:0pt" align=justify><BR></P>
<P style="margin:0pt; font-size:12pt" align=justify>&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=221.4></TD><TD width=221.4></TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2>&nbsp;</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2><P style="line-height:14pt; margin-top:5pt; margin-bottom:0.85pt; padding-bottom:3pt; font-size:12pt; border-bottom:0.75pt solid #000000" align=justify>/s/ Samuel A. Landy</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Samuel A. Landy</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>cert31282008doc.htm
<DESCRIPTION>EXHIBIT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>CERTIFICATION</TITLE>
<META NAME="date" CONTENT="08/06/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=right><B>Exhibit 31.2</B></P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=center><B>CERTIFICATION</B></P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>I, Anna T. Chew, certify that: </P>
<P style="line-height:14pt; margin-top:5.15pt; margin-bottom:0pt; font-size:12pt" align=justify>1. I have reviewed this quarterly report on Form 10-Q of UMH Properties, Inc.; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>4. The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: </P>
<P style="line-height:14pt; margin-top:5.15pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>c) Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>d) Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; font-size:12pt" align=justify>5. The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </P>
<P style="margin-top:10.3pt; margin-bottom:0pt" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin-top:5.15pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt; page-break-before:always" align=justify>a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and </P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:0pt; padding-left:18pt; font-size:12pt" align=justify>b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting. </P>
<P style="margin-top:10.3pt; margin-bottom:0pt" align=justify><BR></P>
<P style="margin-top:10.3pt; margin-bottom:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:10.3pt; margin-bottom:-14pt; padding-left:12.2pt; text-indent:-12.25pt; font-size:12pt" align=justify>Date: </P>
<P style="line-height:14pt; margin:0pt; padding-left:12.2pt; text-indent:23.8pt; font-size:12pt" align=justify>August 8, 2008</P>
<P style="margin:0pt; font-size:12pt" align=justify>&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=221.4></TD><TD width=221.4></TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2>&nbsp;</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2><P style="line-height:14pt; margin-top:5pt; margin-bottom:0.85pt; padding-bottom:3pt; font-size:12pt; border-bottom:0.75pt solid #000000" align=justify>/s/ Anna T. Chew</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Anna T. Chew</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=295.2><P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Vice President and Chief Financial Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>cert3282008doc.htm
<DESCRIPTION>EXHIBIT
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1350 Certification</TITLE>
<META NAME="date" CONTENT="08/06/2008">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="line-height:14pt; margin:0pt; text-indent:360pt; font-size:12pt" align=right><B>Exhibit 32</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>CERTIFICATION OF CEO PURSUANT TO </B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>18 U.S.C. SECTION 1350, </B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>AS ADOPTED PURSUANT TO </B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>In connection with the Quarterly Report on Form 10-Q of UMH Properties, Inc. (the &#147;Company&#148;) for the quarterly period ended June 30, 2008 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), Samuel A. Landy, as President and Chief Executive Officer of the Company, and Anna T. Chew, as Vice President and Chief Financial Officer, each hereby certifies, pursuant to 18 U.S.C. (section) 1350, as adopted pursuant to (section) 906 of the Sarbanes-Oxley Act of 2002, that, to the best of their knowledge: </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">By: </P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">/s/Samuel A. Landy</P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Samuel A. Landy</P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">Title:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">President and Chief Executive Officer</P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">Date: &nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">August 8, 2008</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">By: </P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">/s/Anna T. Chew</P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">Name:</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Anna T. Chew</P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">Title: &nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">Vice President and Chief Financial Officer</P>
<P style="line-height:16pt; margin-top:0pt; margin-bottom:-16pt; font-size:12pt">Date: &nbsp;</P>
<P style="line-height:14pt; margin:0pt; text-indent:36pt; font-size:12pt">August 8, 2008</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:10pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
