Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q4 2024 Earnings Presentation
37 slides from Umh Properties's earnings presentation, Feb 27, 2025
Slide 1: River Valley Estates, Marion, OH
RIVER VALLEY ESTATES, Marion, OH Acquired in 1986
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 Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking st
Slide 3: Company Highlights
Company Highlights UMH Properties, Inc. (“UMH” or “the Company”) is Leading owner and operator of manufactured home communities; 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 third quarter of 2024 include: • Increased Rental and Related Income by 8%; • Increased Sales of Manufactured Homes by 10%; • Increased Community Net Operating Income (“NOI”) by 7%; • Increased Same Property NOI by 7%; MELROSE VILLAGE, Wooster
Slide 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities (1) 139 Developed Homesites (1) 26,200 States 11 Portfolio Occupancy 87.4% Average Monthly Site Rent $534 Total Rentals 10,300 Home Rentals as % of Sites 39.7% Home Rental Occupancy 94.4% Additional Acreage to Be Developed Approx. 2,200 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 (3) Pennsylvania 53 7,976 30.9% 87.4% $561 3,163 30.8% 93.9% $966 Ohio 38 7,307 28.3% 87.6% $490 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 26,200 25,600 25,800 10,300 26,000 10,000 96.0% 139 10,000 23,400 24,000 134 135 8,700 9,100 24,000 23,100 8,300 94.0% 127 22,000 122 124 8,000 7,400 92.0% 20,000 6,000 90
Slide 11: Occupancy
Occupancy Total Occupancy 89% 88% 87.4% 87% 86.7% 86.0% 86% 85.0% 85% 84.6% 84% 83% 82.0% 82% 81% 2019 2020 2021 2022 2023 Q3'24 Same Property Occupancy (1) 90.0% 89.0% 88.4% 88.5% 87.9% 88.0% 87.7% 87.7% 87.5% COUNTRYSIDE VILLAGE, Memphis, TN 87.0% Acquired in 1986 87.0% 86.0% 85.0% Q1'23 Q2'23 Q3'
Slide 12: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ OZ Garden View Estates 86% 215,700 Mountaintop 11% 37,300 Brookside Village 8% 88,400 Kinnebrook Estates 6% 145,200 Hidden Creek 54% 585,100 Laurel Woods 11% 159,300 Broadmore Estates 8% 278,600 Melrose Village 5% 103,1
Slide 13: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) Three Months Ended Nine Months Ended % % 9/30/2024 9/30/2023 Change Change 9/30/2024 9/30/2023 Change Change Same Property Community Net Operating Income (“NOI”) Rental and Related Income $ 51,336 $ 47,673 $ 3,663 7.7% $ 151,976 $ 139,384 $ 12,592 9.
Slide 14: Potential for Significant Rental Unit Returns
Potential for Significant Rental Unit Returns Historical Investments ($ in mm except per unit data) 2019 2020 2021 2022 2023 Q3’24 Rental Units 7,400 8,300 8,700 9,100 10,000 10,300 Investment $297.4 $349.9 $383.5 $422.8 $516.5 $554.0 Average Investment Per Unit $40,189 $42,157 $44,080 $46,462 $51,6
Slide 15: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Number of Acquired Sites Acquisition Volume ($mm) 25,000 $700 Cumulative Volume $612.8 $616.5 Cumulative Volume Annual Volume Acquisition Volume (in millions) $600 20,000 Annual Volume 18,664 18,782 $526.6 $500.5 $508.3 No. of Acquired Sites 17,183 $500 16,343 16,6
Slide 16: Vacant Land to Expand
Vacant Land to Expand UMH has 2,176 vacant acres available for Potential for 4 sites per vacant acre at an future development. estimated cost of $75,000 per site. Vacant Acreage Sites Engineered for Expansion Total – 2,176 acres Total – 3,139 sites SC, 8 AL, 7 MI, 19 900 MD, 48 1% NJ, 164 776 IN, 19
Slide 17: UMH Sales & Finance, Inc.
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales reached $24.9mm in 2024, with a Sold approximately 5,900 homes sales price per unit of approximately $83k. since 1996. $85.6mm loan portfolio with a weighted average interest rate of Portfolio comprise
Slide 18: Financial Highlights
Financial Highlights Total Revenue ($mm) Over the past 5 years, Rental Revenue Sales Interest/Dividend Income UMH: $300 Up 9% $250 $228.2 $194.6 $202.7 $184.6 $200 • Increased Total Revenue by 60%; $142.2 $156.7 $172.2 $169.3 $150 • Increased Community NOI by 78%; $100 • Increased Normalized FFO by
Slide 19: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $3,000 $2,800 $2,600 $2,373 $2,470 $2,400 $2,200 $2,022 $2,000 $1,914 $1,800 $1,585 $1,600 $1,509 $1,400 $1,157 $1,182 $1,200 $1,000 $980 $752 $800 $582 $600 $495 $386 $400 $200 $0 2012 2013 2014 2015
Slide 20: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (2001 – 2024) (1) $1.20 $0.99 $1.00 $1.00 $0.98 $0.95 $0.91 $0.87 $0.85 $0.81 $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 2001 2002 2003 2004 2005 2006 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% 34.2% 29.6% 31.3% 27.7% 20% 20% 22.2% 20.8% 16.1% 10% 10% 11.4% 0% 0% 2020 2021 2022 2023 Q3'24 2020 2021 2022 2023 Q3'24 Net Debt / Adjusted EBITDA (1) Fi
Slide 22: Debt Analysis
Debt Analysis (in thousands) Nine Months Ended 9/30/24 9/30/23 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 494,248 $ 446,280 Unamortized Debt Issuance Costs (3,963) (4,116) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 488,285 442,164 Loans Payable: $3
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 September 30, 2024, is $969 o New homes expected to rent for over $1,000 per month Building of Expansion Sites f
Slide 24: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside Equity Market Capitalization 62.7% $1,548.0 Preferred Stock 12.4% 306.8 Total Equity Capitalization 75.1% $1,854.8 Debt Outstanding 24.9% 614.9 Total Market Capitalization 100.0% $2,469.7 Less: Cash & Cash Equivalents $(66.7) Less: Securities Available fo
Slide 25: 2024 Guidance
2024 Guidance As of November 6, 2024 Low Midpoint High Normalized FFO Per Share $0.92 $0.93 $0.94 Key Assumptions • Rent increases of 5% • Occupancy of 400 rental units in the second half of 2024 • Overall capital needs to fund rental home purchases, notes, expansions, and improvements of approximat
Slide 26: Harvesting Value
Harvesting Value Acquired Year Valuation Sites Per Pad Investment Gain Occupancy Birchwood Farms 2013 $ 11,270,000 143 $ 78,811 $ 3,430,000 $ 7,840,000 98% Colonial Heights 2012 $ 7,700,000 159 $ 48,428 $ 6,367,000 $ 1,333,000 97% Forest Creek 2013 $ 18,190,000 167 $ 108,922 $ 6,652,000 $ 11,538,000
Slide 27: Sustainability
Sustainability SPECIAL STRIDES NON-PROFIT ORGANIZATION, Monroe Twp., NJ Founded in 1998 Sustainability responsibilities have become increasingly important in recent years. At UMH, we take pride in our long-standing commitment to these principles, which are deeply rooted in our company's core values.
Slide 28: Sustainability
Sustainability VP of Corporate Security New ESG 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 • Introdu
Slide 29: Investment Highlights
Investment Highlights Long-term track record of profitability Strong history of dividend payments, with 4.9% and 2.5% increases announced in April 2024 and January 2023, respectively Well-positioned for future growth Proven ability to add value through acquisitions and expansions Greenfield developm
Slide 30: Appendix
Appendix PARKE PLACE ESTATES, Elkhart, IN Acquired in 2017
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: Countryside Village
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 $13,500,000 (including $10.2m
Slide 33: Value-Add Acquisition: Boardwalk and Parke Place
Value-Add Acquisition Case Study Boardwalk and Parke Place (1) Located in Elkhart, IN Number of Sites: 579 Date of Acquisition: January 20, 2017 Purchase Price: $21,222,000 Purchase Price per Site: $38,000 Capitalization Subsequent to Acquisition $10,278,000 (including $7.8mm in rental homes): Total
Slide 34: Value-Add Expansion: Fairview Manor
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): 148/316 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: Highland Estates
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 5 Year 10 Year 36 Source: S&P Global Market Intelligence, as of November 4, 2024.
Slide 37: For additional information, visit www.umh.reit
For additional information including all SEC filings, please visit: www.umh.reit WOODS EDGE, West Lafayette, IN Acquired in 2015