UMH PROPERTIES, INC. FIRST QUARTER 2025 OPERATIONS UPDATE

Rhea-AI Summary

UMH Properties (NYSE: UMH) has reported strong operational results for Q1 2025. The company converted 115 new homes to rental properties, now managing approximately 10,400 rental homes with a 94.7% occupancy rate. Same Property occupancy increased by 113 units during Q1 and 227 units year-over-year to 88%.

Rental and related charges grew 8.3% to $54.9 million, while gross home sales revenue decreased 9.5% to $6.7 million. The company raised capital through its At-the-Market programs, generating $9.4 million from common stock and $1.1 million from preferred shares.

UMH acquired two age-restricted communities in Mantua, New Jersey, for $24.6 million, adding 266 fully occupied homesites. The company increased its annual dividend for the fifth consecutive year to $0.90 per share, representing a 25% increase over five years.

Positive

• Rental home occupancy increased to 94.7% from 94.0%
• Same Property occupancy improved by 113 units in Q1
• Rental revenue grew 8.3% to $54.9 million
• Acquired two fully occupied communities for $24.6 million
• Fifth consecutive annual dividend increase to $0.90 per share

Negative

• Gross home sales revenue declined 9.5% to $6.7 million
• Share dilution through ATM program sales of common and preferred stock

Insights

REIT Investment Analyst

UMH Properties' Q1 2025 update demonstrates solid operational performance with meaningful revenue growth. Rental and related charges increased 8.3% year-over-year to $54.9 million, driven by both occupancy gains and rental rate increases. The company's same-property occupancy improved by 113 units in Q1 and 227 units year-over-year, bringing the portfolio to 88% occupancy.

Despite a 9.5% decline in gross sales to $6.7 million, this decrease is primarily attributable to a one-time inventory liquidation in the previous year. When adjusted for this non-recurring event, sales actually increased marginally by 0.5%.

The REIT continues executing its growth strategy through strategic acquisitions, purchasing two fully-occupied age-restricted communities in New Jersey for $24.6 million. These acquisitions added 266 developed homesites to UMH's portfolio, with additional acquisitions planned for Q2.

The company successfully raised capital through its ATM programs, generating $9.4 million from common stock and $1.1 million from preferred stock issuances. This capital position supports UMH's expansion plans, including the addition of 800 new rental homes.

Particularly notable is the company's fifth consecutive annual dividend increase, bringing the distribution to $0.90 per share annually. With a projected 90% payout ratio based on guidance midpoint, UMH's dividend policy reflects management's confidence in sustainable cash flow growth, having increased dividends by 25% over the past five years while gradually improving the payout ratio.

Real Estate Operations Specialist

UMH's operational metrics reveal a company effectively executing its manufactured housing community strategy. The conversion of 115 homes from inventory to revenue-generating rental units demonstrates UMH's ability to monetize its assets while maintaining high occupancy levels. The 94.7% occupancy rate across approximately 10,400 rental homes indicates strong demand and effective property management.

The 9% year-over-year increase in April 2025 rental and related charges reflects successful implementation of rental rate increases while simultaneously improving occupancy metrics. This combination is particularly challenging to achieve and speaks to the strong positioning of UMH's communities in their respective markets.

The company's acquisition of fully-occupied communities in New Jersey aligns with a low-risk expansion approach. By acquiring properties with 100% occupancy, UMH secures immediate cash flow without the lease-up risk associated with vacant properties. With additional acquisitions planned in Maryland, the company appears to be focusing on geographic clustering that can create operational efficiencies.

UMH's investment in 800 new rental homes represents a significant commitment to its rental-focused business model. This investment, combined with the 5% annual rent increase, positions the company for continued revenue growth. The improvement in same-property occupancy by 113 units during Q1 suggests the company's operational strategies are successfully addressing any previous vacancy challenges and building a stronger foundation for sustainable performance.

FREEHOLD, NJ, April 02, 2025 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE: UMH) (TASE: UMH), a real estate investment trust (REIT) specializing in the ownership and operation of manufactured home communities, is providing investors with an update on the first quarter of 2025 operating results:

1. UMH converted 115 new homes from inventory to revenue generating rental homes. UMH now owns approximately 10,400 rental homes with an occupancy rate of 94.7%.

2. Same Property occupancy increased by 113 units during the first quarter and 227 units over last year to 88%.

3. UMH achieved gross home sales revenue of $6.7 million compared to $7.4 million last year, representing a decrease of approximately 9.5%. Included in the first quarter sales last year was the liquidation of $730,000 of inventory at a sales center that was leased to a third-party operator. Excluding these sales, gross sales increased by 0.5% over last year.

4. Our occupancy gains and rent increases achieved throughout 2024 and thus far in 2025 have increased our April 2025 rental and related charges by approximately 9% over April 2024. Rental and related charges for the first quarter were approximately $54.9 million compared to $50.7 million last year, representing an increase of approximately 8.3%.

5. We issued and sold approximately 515,000 shares of Common Stock through our At-the-Market sale program at a weighted average price of $18.21 per share, generating gross proceeds of $9.4 million. Through the Preferred At-the-Market sale program, we issued and sold approximately 49,000 shares at a weighted average price of $23.03 per share, generating gross proceeds of approximately $1.1 million.

6. UMH closed on the acquisition of two age-restricted manufactured home communities, located in Mantua, New Jersey, for a total purchase price of $24.6 million. These communities contain 266 developed homesites, of which 100% are occupied. They are situated on approximately 38 acres.

Samuel A. Landy, President and CEO of UMH Properties, Inc., stated “2025 is off to a strong start. We continue to fill homes in our communities through our rental home and sales program. This is evidenced by our increase in same property occupancy of 113 units and the increase in our rental home occupancy by 70 bps from 94.0% to 94.7%. We expect to continue to see occupancy and sales growth as we move into the spring and summer seasons when demand typically increases.

“UMH is on track to generate increased revenue through our 5% annual rent increase and our investment in 800 new rental homes. Additionally, we have the potential to further increase our gross sales and sales profits as a result of our previous investments in our expansions and new developments.

“Our solid and growing operating results have given management and the Board of Directors the confidence to increase the dividend for a fifth consecutive year. Our annual distribution to shareholders is now $0.90 per share. Assuming we hit the mid-point of our guidance, our payout ratio continues to improve and would be 90%. Our long-term plan is to continue to increase the dividend while reducing our payout ratio. Over the past five years, we have increased the dividend by 25%.

“We are pleased to complete our first acquisitions of 2025. These communities fit well within our existing footprint and are great additions to our portfolio. We have two communities in Maryland under contract that should close in the second quarter. We anticipate being active in the acquisition market as we progress throughout the year.”

It should be noted that the financial information set forth above reflects our preliminary estimates with respect to such information, based on information currently available to management, and may vary from our actual financial results as of and for the first quarter ended March 31, 2025. UMH’s final first quarter results will be released on Thursday, May 1, 2025, after the close of trading on the New York Stock Exchange and will be available on the Company’s website at www.umh.reit, in the Financials section. Senior management will discuss the results, current market conditions and future outlook on Friday, May 2, 2025, at 10:00 a.m. Eastern Time.

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 141 manufactured home communities containing approximately 26,500 developed homesites, of which 10,400 contain rental homes, and over 1,000 self-storage units. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia. Included in the 141 communities are two communities in Florida, containing 363 sites that UMH has an ownership interest in and operates through its joint venture with Nuveen Real Estate.

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company’s annual report on Form 10-K and described from time to time in the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Contact: Nelli Madden
732-577-4062

FAQ

What is UMH Properties' rental home occupancy rate in Q1 2025?

UMH Properties achieved a 94.7% occupancy rate for its approximately 10,400 rental homes in Q1 2025.

How much did UMH Properties' rental revenue increase in Q1 2025?

Rental and related charges increased by 8.3% to $54.9 million compared to $50.7 million in Q1 2024.

What acquisitions did UMH complete in Q1 2025?

UMH acquired two age-restricted manufactured home communities in Mantua, New Jersey, for $24.6 million, featuring 266 fully occupied homesites.

What is UMH's new dividend payment for 2025?

UMH increased its annual dividend to $0.90 per share, marking the fifth consecutive year of dividend increases.

How much capital did UMH raise through its At-the-Market programs in Q1 2025?

UMH raised $10.5 million total: $9.4 million through common stock sales and $1.1 million through preferred stock sales.