Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q1 2025 Earnings Presentation
38 slides from Umh Properties's earnings presentation, May 2, 2025
Slide 1: Wellington Estates, Export, PA
WELLINGTON ESTATES, Export, PA Acquired in 2017
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this presentation that are not historical facts are forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Sect
Slide 3: Company Highlights
Company Highlights UMH Properties, Inc. (“UMH” or “the Company”) is Leading owner and operator of manufactured home communities; leasing manufactured homesites to private residential homeowners a publicly owned Real Estate Investment Trust (“REIT”) operating since 1968 and as a public company since
Slide 4: Quarterly Accomplishments
Quarterly Accomplishments Our accomplishments during the first quarter of 2025 include: • Increased Rental and Related Income by 8%; • Increased Community Net Operating Income (“NOI”) by 8%; • Increased Normalized Funds from Operations (“Normalized FFO”) by 25% and Normalized FFO per diluted share b
Slide 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities (1) 141 Developed Homesites (1) 26,500 States 11 Portfolio Occupancy 87.9% Average Monthly Site Rent $554 Total Rentals 10,400 Home Rentals as % of Sites 39.9% Home Rental Occupancy 94.6% Additional Acreage to Be Developed Approx. 2,400 Gross
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 U.S. Housing Trends
Favorable U.S. 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: Favorable U.S. Housing Trends (contd.)
Favorable U.S. Housing Trends (contd.) • Market conditions over the next several months imply a continuation in the gap between buying and renting. • Higher mortgage rates incentivize homeowners not to move, reducing supply. • The small number of homes being sold are in high demand, driving prices s
Slide 9: 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 (2) Pennsylvania 53 7,975 30.5% 88.0% $579 3,199 30.6% 94.7% $997 Ohio 38 7,292 27.9% 88.6% $511 3,0
Slide 10: Portfolio Growth
Portfolio Growth Total Sites (1) Rental Units Rental Units Occupancy Rate Developed Sites 28,000 12,000 98.0% No. of Communities 26,500 26,300 10,300 10,400 96.0% 25,800 10,000 26,000 25,600 141 10,000 139 9,100 134 135 8,300 8,700 94.0% 24,000 24,000 23,400 8,000 92.0% 127 124 22,000 6,000 90.0% 88
Slide 11: Occupancy
Occupancy Total Occupancy 89% 87.9% 88% 87.3% 87% 86.7% 86.0% 86% 85.0% 85% 84.6% 84% 83% 82% 81% 2020 2021 2022 2023 2024 Q1'25 Same Property Occupancy (1) 90.0% 89.0% HUDSON ESTATES, Peninsula, OH Acquired in 2014 88.0% 87.7% 87.8% 87.9% 87.7% 87.5% 87.0% 86.0% 85.0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25
Slide 12: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ Saddle Creek 1813% 67,000 Redbud Estates 10% 218,900 Hayden Heights 7% 48,300 Worthington Arms 5% 103,300 OZ Mighty Oak 774% 174,400 Pine Ridge/Pine Manor 10% 165,300 Birchwood Farms 7% 91,000 Forest Creek 5% 76,600 OZ
Slide 13: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) Three Months Ended % 3/31/2025 3/31/2024 Change Change Same Property Community Net Operating Income (“NOI”) Rental and Related Income $ 53,760 $ 49,714 $ 4,046 8.1% Community Operating Expenses 21,223 19,695 1,528 7.8% Same Property Community NOI $ 3
Slide 14: Potential for Significant Rental Unit Returns
Potential for Significant Rental Unit Returns Historical Investments ($ in mm except per unit data) 2020 2021 2022 2023 2024 Q1’25 Rental Units 8,300 8,700 9,100 10,000 10,300 10,400 Investment $349.9 $383.5 $422.8 $516.5 $566.2 $578.4 Average Investment Per Unit $42,157 $44,080 $46,462 $51,650 $54,
Slide 15: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Number of Acquired Sites Acquisition Volume ($mm) 25,000 $800 Cumulative Volume Cumulative Volume Annual Volume Acquisition Volume (in millions) Annual Volume $641.1 20,000 18,782 19,048 $612.8 $616.5 18,664 $600 No. of Acquired Sites 16,656 17,183 16,343 $526.6 $5
Slide 16: Vacant Land to Expand
Vacant Land to Expand UMH has 2,375 vacant acres available Potential for 4 sites per vacant acre at for future development. an estimated cost of $75,000 per site. Vacant Acreage Sites Engineered for Expansion Total – 2,375 acres Total – 3,028 sites MD, 48 MI, 19 AL, 7 900 SC, 79 822 811 1% 786 3% 3%
Slide 17: UMH Sales & Finance, Inc.
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales amounted to $6.7mm for the first Sold approximately 6,000 homes quarter of 2025, with a sales price per unit of approximately $94k. since 1996. $91.6mm loan portfolio with a weighted average interest r
Slide 18: Financial Highlights
Financial Highlights Total Revenue ($mm) Over the past 5 years (2), Rental Revenue Sales Interest/Dividend Income $300 UMH: $249.1 $250 $228.2 $194.6 $202.7 • Increased Total Revenue by 59%; $200 $172.2 $156.7 • Increased Community NOI by 79%; $150 Up 7% • Increased Normalized FFO by 176% $100 $59.6
Slide 19: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $3,000 $2,800 $2,600 $2,373 $2,482 $2,477 $2,400 $2,200 $2,022 $2,000 $1,914 $1,800 $1,585 $1,600 $1,509 $1,400 $1,200 $1,157 $1,182 $980 $1,000 $800 $752 $582 $600 $400 $200 $0 2014 2015 2016 2017 20
Slide 20: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (2002 – 2025) (1) $1.20 $0.99 $1.00 $1.00 $0.98 $0.95 $0.91 $0.89 $0.87 $0.85 $0.82 $0.79 $0.80 $0.80 $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 2002 2003 2004 2005 2006 2007 2
Slide 21: 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% 30% 29.6% 31.3% 20% 21.8% 20% 23.1% 19.5% 20.8% 16.1% 10% 10% 11.4% 0% 0% 2021 2022 2023 2024 Q1'25 2021 2022 2023 2024 Q1'25 Net Debt / Adjusted EBITDA (1) Fi
Slide 22: Debt Analysis
Debt Analysis (in thousands) Three Months Ended 3/31/25 3/31/24 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 479,879 $ 498,188 Unamortized Debt Issuance Costs (3,507) (4,421) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 476,372 493,767 Loans Payable: $
Slide 23: Utilization of Capital
Utilization of Capital o Approximately 800 units x $75,000 per site = $60 million cost Installation of Rental Units o Average monthly home rent (includes home and site rent charges) as of March 31, 2025, is $1,007 o New homes expected to rent for over $1,000 per month Building of Expansion Sites for
Slide 24: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside Equity Market Capitalization 62.5% $1,548.8 Preferred Stock 13.0% 321.8 Total Equity Capitalization 75.5% $1,870.6 Debt Outstanding 24.5% 606.3 Total Market Capitalization 100.0% $2,476.9 Less: Cash & Cash Equivalents $(35.2) Less: Securities Available fo
Slide 25: 2025 Guidance
2025 Guidance As of May 1, 2025 Low Midpoint High Normalized FFO Per Share $0.96 $1.00 $1.04 Key Assumptions • Rent increases of 5% • Occupancy of 800 rental units in 2025 • Overall capital needs to fund rental home purchases, notes, expansions, and improvements of approximately $120 - $150 million
Slide 26: Harvesting Value
Harvesting Value Acquired Year Valuation Sites Per Pad Investment Gain Occupancy Brookview Village 1977 $ 13,700,000 193 $ 70,984 $ 9,988,000 $ 3,712,000 91% Cedarcrest Village 1986 $ 26,300,000 283 $ 92,933 $ 6,636,000 $ 19,664,000 99% Cranberry Village 1986 $ 20,300,000 187 $ 108,556 $ 4,923,000 $
Slide 27: Sustainability
Sustainability SPECIAL STRIDES NON-PROFIT ORGANIZATION, Monroe Twp., NJ Founded in 1998 Sustainability has become increasingly important in recent years, and at UMH, we take pride in our long-standing commitment to these principles, which are deeply rooted in our company's core values. We understand
Slide 28: Sustainability
Sustainability VP of Corporate Security Sustainability Subcommittee • UMH has appointed a VP to enhance security for both • The UMH Board has established a subcommittee residents and employees. dedicated to overseeing all sustainability efforts. Renewable Energy Sustainalytics & MSCI Recognitions •
Slide 29: Investment Highlights
Investment Highlights Strong history of dividend payments with a 4.7% increase announced in April 2025, representing our fifth consecutive common stock dividend increase within the last five years, resulting in an increase of $0.18 or 25% over this period Long-term track record of profitability Well
Slide 30: Appendix
Appendix CRANBERRY VILLAGE, Cranberry Twp, PA Acquired in 1986
Slide 31: 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 32: 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 $14,100,000 (including $10.3m
Slide 33: Value-Add Acquisition
Value-Add Acquisition Case Study Boardwalk and Parke Place (1) Located in Elkhart, IN Number of Sites: 574 Date of Acquisition: January 20, 2017 Purchase Price: $21,222,000 Purchase Price per Site: $38,000 Capitalization Subsequent to Acquisition $16,678,000 (including $8.5mm in rental homes): Total
Slide 34: 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 35: 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): 186/318 Date of Acquisition: August 29, 1988 Purchase Price: $2,040,000 Purchase Price per Site: $11,000 Capitalization Subsequent to Acquisition: $13
Slide 36: Total Return Performance
Total Return Performance 1 Year 3 Year 36 Source: S&P Global Market Intelligence, as of May 29, 2025.
Slide 37: Total Return Performance (contd.)
Total Return Performance (contd.) 5 Year 10 Year 37 Source: S&P Global Market Intelligence, as of May 29, 2025.
Slide 38: For additional information including all SEC filings, please visit: www.umh.reit
For additional information including all SEC filings, please visit: www.umh.reit WOODS EDGE, West Lafayette, IN Acquired in 2015