Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q2 2023 Earnings Presentation
34 slides from Umh Properties's earnings presentation, Aug 9, 2023
Slide 1: Investor Presentation
RIVER VALLEY ESTATES Marion, OH ae) N i=) N 51 yn > e)) = < INC. i Investor Presentation UMH PROPERTIES
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Also, when we use any of t
Slide 3: Company Highlights
Company Highlights UMH Properties, Inc. (“UMH” or “the Company”) Leading owner and operator of manufactured home communities; is a publicly owned Real Estate Investment Trust leasing manufactured homesites to private residential homeowners (“REIT”) operating since 1968 and as a public company since
Slide 4: Quarterly Accomplishments
Quarterly Accomplishments Our accomplishments during the second quarter of 2023 include: • Increased Rental and Related Income by 11.4%; • Increased Sales of Manufactured Homes by 17.6%; • Increased Community Net Operating Income (“NOI”) by 16.0%; FRIENDLY VILLAGE Perrysburg, OH • Increased Same Pro
Slide 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities 135 Developed Homesites 25,700 States 11 Portfolio Occupancy 85.9% Average Monthly Site Rent $509 Total Rentals 9,600 Home Rentals as % of Sites 37.4% Home Rental Occupancy 93.9% Additional Acreage to Be Developed Approx. 2,100 Gross Asset Va
Slide 6: Marcellus & Utica Shale Region Exposure
Marcellus & Utica Shale Region Exposure o The Marcellus and Utica Shale Regions are large natural gas fields located beneath much of Pennsylvania, Ohio, West Virginia and New York. o Fields have the potential to be among the largest sources of natural gas in the world. o Activity surrounding the dev
Slide 7: Favorable US Housing Trends
Favorable US Housing Trends UMH is well positioned to participate in the ongoing recovery of the US housing market. % of Households Owning a Single Family Home Price Single Family Household Income Single-Family Home Change Year-Over-Year Change Year-Over-Year 70% 20% 20% 69% 16% 16% 68% 12% 12% 67%
Slide 8: Portfolio and Rental Capacity by State
Portfolio and Rental Capacity by State Average Average Average Monthly Total Total Developed Sites Average Monthly Total Rentals Rental Home Communities No. % Occupancy Site Rent No. % Occupancy Rent (1) Pennsylvania 53 7,978 31.0% 86.0% $536 2,982 31.0% 93.5% $913 Ohio 38 7,251 28.2% 86.3% $467 2,8
Slide 9: Portfolio Growth
Portfolio Growth Total Sites Rental Units Rental Units Occupancy Rate Developed Sites 28,000 12,000 98.0% No. of Communities 25,600 25,700 26,000 96.0% 24,000 10,000 9,600 23,400 134 135 9,100 24,000 23,100 8,700 94.0% 127 8,300 21,500 124 8,000 7,400 22,000 122 92.0% 6,500 118 20,000 6,000 90.0% 18
Slide 10: Occupancy
Occupancy Total Occupancy 87% 86.0% 85.9% 86% 85.0% 85% 84.2% 84% 83% 82.0% 82.0% 82% 81% 80% 2018 2019 2020 2021 2022 Q2'23 Same Property Occupancy (1) 89.0% 87.9% 88.0% 87.0% 87.0% 86.3% 86.2% 86.0% 86.0% 86.0% VALLEY HIGH Ruffsdale, PA 85.0% 84.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Information a
Slide 11: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ Deer Run 191% 455,500 Moosic Heights 7% 70,900 Pleasant View Estates 5% 34,700 Cedarcrest Village 3% 83,000 Iris Winds 180% 457,200 Forest Creek 7% 98,200 Valley View Ephrata 2 5% 16,000 Sunnyside 3% 17,400 Camelot Wood
Slide 12: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) Three Months Ended Six Months Ended % % 6/30/2023 6/30/2022 Change Change 6/30/2023 6/30/2022 Change Change Community Net Operating Income Rental and Related Income $ 45,488 $ 41,716 $ 3,772 9.0% $ 89,303 $ 83,008 $ 6,295 7.6% Community Operating Exp
Slide 13: Potential for Significant Rental Unit Returns
Potential for Significant Rental Unit Returns Historical Investments ($ in mm except per unit data) 2018 2019 2020 2021 2022 Q2’23 Rental Units 6,500 7,400 8,300 8,700 9,100 9,600 Investment $254.6 $297.4 $349.9 $383.5 $422.8 $478.6 Average Investment Per Unit $39,169 $40,189 $42,157 $44,080 $46,462
Slide 14: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Number of Acquired Sites Acquisition Volume ($mm) 21,000 $700 Cumulative Volume 18,803 Annual Volume 18,685 Cumulative Volume $612.8 $616.5 Annual Volume Acquisition Volume (in millions) 18,000 17,199 $600 16,346 16,656 $526.6 14,851 $500.5 $508.3 No. of Acquired S
Slide 15: Vacant Land to Expand
Vacant Land to Expand UMH has approximately 2,126 Potential for 4 sites per vacant vacant acres available for future acre at an estimated cost of development. $75,000 per site. Vacant Acreage Sites Engineered for Expansion Total – 2,126 acres Total – 3,460 sites SC, 8 AL, 7 MI, 19 1,050 MD, 67 NJ, 1
Slide 16: UMH Sales & Finance, Inc.
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales reached $15.5mm in 2023, with a Sold approximately 5,400 homes sales price per unit of approximately $89k. since 1996. $72.9mm loan portfolio with a weighted average interest rate of approximately Port
Slide 17: Financial Highlights
Financial Highlights Total Revenue ($mm) Rental Revenue Sales Interest/Dividend Income $250 • Increased Total Revenue by 65%; $194.6 $202.7 Over the past • Increased Community NOI by 76%; $200 $172.2 Up 13% 5 years, • Increased Normalized FFO by $150 $142.2 $156.7 $122.8 $111.5 UMH: 116% and Normali
Slide 18: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $2,600 $2,373 $2,400 $2,200 $2,000 $1,807 $2,000 $1,800 $1,585 $1,600 $1,509 $1,400 $1,200 $1,157 $1,182 $980 $1,000 $800 $752 $582 $600 $495 $386 $400 $200 $0 2012 2013 2014 2015 2016 2017 2018 2019
Slide 19: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (2000 – 2023) (1) $1.20 $0.99 $1.00 $1.00 $0.98 $0.95 $0.91 $0.87 $0.81 $0.79 $0.80 $0.82 $0.80 $0.76 $0.76 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.72 $0.60 $0.40 $0.20 $0.00 2000 2001 2002 2003 2004 2005 2
Slide 20: Balance Sheet Metrics
Balance Sheet Metrics Net Debt / Total Market Capitalization Net Debt - Securities / Total Market Capitalization 50% 40% 40% 36.0% 38.2% 30% 32.4% 30% 34.2% 34.3% 27.7% 29.4% 20% 21.7% 20% 16.1% 10% 10% 11.4% 0% 0% 2019 2020 2021 2022 Q2'23 2019 2020 2021 2022 Q2'23 Net Debt / Adjusted EBITDA Fixed
Slide 21: Debt Analysis
Debt Analysis (in thousands) Six Months Ended 6/30/23 6/30/22 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 449,126 $ 473,559 Unamortized Debt Issuance Costs (4,329) (4,748) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 444,797 468,811 Loans Payable: $35
Slide 22: Utilization of Capital
Utilization of Capital o Approximately 1,000 units x $75,000 per site = $75,000,000 cost Installation of Rental Units o Average monthly home rent (includes home and site rent charges) as of June 30, 2023 is $905 o New homes expected to rent for over $1,000 per month Building of Expansion Sites for o
Slide 23: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside Equity Market Capitalization 50.4% $1,007.9 Preferred Stock 13.3% 265.0 Total Equity Capitalization 63.7% $1,272.9 Debt Outstanding 36.3% 726.9 Total Market Capitalization 100.0% $1,999.8 Less: Cash & Cash Equivalents $(41.5) Less: Securities Available fo
Slide 24: Environmental, Social & Governance
Environmental, Social & Governance SPECIAL STRIDES NON-PROFIT ORGANIZATION Monroe Twp., NJ Environmental, social, and corporate governance (“ESG”) responsibilities have become increasingly important in recent years. At UMH, we take pride in our long-standing commitment to these principles, which are
Slide 25: Environmental, Social & Governance
Environmental, Social & Governance 01 The company has been heavily investing in our communities by submetering 64% of our portfolio, significantly reducing 3 water consumption by promoting water conservation. Energy efficiency is top priority. Currently, 104 of our communities have been retrofitted
Slide 26: Investment Highlights
Investment Highlights Long-term track record of profitability Strong history of dividend payments, with 2.5% and 5.3% increases announced in January 2023 and January 2022, respectively Well positioned for future growth Proven ability to add value through acquisitions and expansions Greenfield develo
Slide 27: Appendix
Appendix BAYSHORE ESTATES Sandusky, OH
Slide 28: Extensive Operating History
Extensive Operating History 1968 1985 January 1, 1992 UMH commences UMH completes UMH elects REIT status operations Initial Public Offering March 2, 2012 2005 June 29, 2009 UMH moves common and Communities: 27 Addition of UMH Properties, preferred stock listings from Homesites: 6,400 Inc. to Russell
Slide 29: Value-Add Acquisition
Value-Add Acquisition Case Study Countryside Village (1) Located in Columbia, TN, 46 miles south of Nashville, TN Number of Sites: 349 Date of Acquisition: June 29, 2011 Purchase Price: $7,300,000 Purchase Price per Site: $21,000 Capitalization Subsequent to Acquisition $13,000,000 (including $9.5mm
Slide 30: Value-Add Acquisition
Value-Add Acquisition Case Study Boardwalk and Parke Place (1) Located in Elkhart, IN Number of Sites: 560 Date of Acquisition: January 20, 2017 Purchase Price: $21,222,000 Purchase Price per Site: $38,000 Capitalization Subsequent to Acquisition $7,778,000 (including $5.9mm in rental homes): Total
Slide 31: Value-Add Expansion
Value-Add Expansion Case Study Fairview Manor (1) Located in Vineland, NJ, 35 miles west of Atlantic City, NJ Number of Sites (at Acquisition/Today): 148/317 Date of Acquisition: November 15, 1985 Purchase Price: $1,350,000 Purchase Price per Site: $9,000 Capitalization Subsequent to Acquisition: $1
Slide 32: Value-Add Expansion
Value-Add Expansion Case Study Highland Estates Located in Kutztown, PA, 70 miles outside of Philadelphia, PA Number of Sites (at Acquisition/Today): 186/317 Date of Acquisition: August 29, 1988 Purchase Price: $2,040,000 Purchase Price per Site: $11,000 Capitalization Subsequent to Acquisition: $13
Slide 33: Total Return Performance
Total Return Performance 1 Year 3 Year 5 Year 10 Year 33 Source: S&P Global Market Intelligence, as of August 3, 2023.
Slide 34: For additional information including all SEC filings, please visit: www.umh.reit
For additional information including all SEC filings, please visit: www.umh.reit CLINTON Clinton, PA