Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q4 2023 Earnings Presentation
36 slides from Umh Properties's earnings presentation, Feb 29, 2024
Slide 1: Investor Presentation February 2024
RIVER VALLEY ESTATES Marion, OH UMH PROPERTIES, INC. February 2024 Investor Presentation
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”) 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: 2023 Accomplishments
2023 Accomplishments Our accomplishments during 2023 include: • Increased Rental and Related Income by 11%; • Increased Community Net Operating Income (“NOI”) by 14%; • Increased Normalized Funds from Operations (“Normalized FFO) by 16%; • Increased Same Property NOI by 13%; FRIENDLY VILLAGE • Incre
Slide 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities 135 Developed Homesites 25,800 States 11 Portfolio Occupancy 86.7% Average Monthly Site Rent $519 Total Rentals 10,000 Home Rentals as % of Sites 38.7% Home Rental Occupancy 94.0% Additional Acreage to Be Developed Approx. 2,100 Gross Asset V
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: Favorable US Housing Trends (contd.)
Favorable US 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 sig
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 (1) Pennsylvania 53 7,961 31.0% 87.0% $545 3,101 31.0% 93.4% $930 Ohio 38 7,296 28.3% 87.0% $478 2,9
Slide 10: 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 25,800 26,000 10,000 96.0% 24,000 135 10,000 23,400 134 8,700 9,100 24,000 23,100 8,300 94.0% 127 21,500 124 8,000 7,400 22,000 122 92.0% 6,500 118 20,000 6,000 90.0% 1
Slide 11: Occupancy
Occupancy Total Occupancy 88% 87% 86.7% 86.0% 86% 85.0% 85% 84.6% 84% 83% 82.0% 82.0% 82% 81% 80% 2018 2019 2020 2021 2022 2023 Same Property Occupancy (1) 89.0% 88.4% 88.5% 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 Q2'2
Slide 12: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ Deer Run 186% 693,500 Wayside 9% 41,100 Countryside Village 7% 179,200 Fairview Manor 5% 149,500 Iris Winds 156% 615,800 Redbud Estates 9% 178,300 Clinton 7% 42,800 Hayden Heights 5% 32,400 Chambersburg I and II 25% 113
Slide 13: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) For Three Months Ended For The Year Ended % % 12/31/2023 12/31/2022 Change Change 12/31/2023 12/31/2022 Change Change Community Net Operating Income Rental and Related Income $ 47,326 $ 42,678 $ 4,648 10.9% $ 182,944 $ 167,798 $ 15,146 9.0% Community
Slide 14: 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 2023 Rental Units 6,500 7,400 8,300 8,700 9,100 10,000 Investment $254.6 $297.4 $349.9 $383.5 $422.8 $516.5 Average Investment Per Unit $39,169 $40,189 $42,157 $44,080 $46,462
Slide 15: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Number of Acquired Sites Acquisition Volume ($mm) 25,000 $700 Cumulative Volume $612.8 $616.5 Acquisition Volume (in millions) Cumulative Volume $600 20,000 Annual Volume Annual Volume 18,685 18,803 $526.6 $500.5 $508.3 No. of Acquired Sites 17,199 $500 16,346 16,6
Slide 16: Vacant Land to Expand
Vacant Land to Expand UMH has 2,134 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 – 2,134 acres Total – 3,069 sites SC, 8 AL, 7 MI, 19 1,050 MD, 48 956 1% NJ, 164 3% 9
Slide 17: UMH Sales & Finance, Inc. (S&F)
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales reached $31.2mm in 2023, with a Sold approximately 5,500 homes sales price per unit of approximately $91k. since 1996. $78.7mm loan portfolio with a weighted average interest rate of Portfolio comprise
Slide 18: Financial Highlights
Financial Highlights Total Revenue ($mm) Rental Revenue Sales Interest/Dividend Income • Increased Total Revenue by 60%; $300 Up 13% Over the past • Increased Community NOI by 78%; $250 $228.2 5 years, • Increased Normalized FFO by 99% $200 $194.6 $202.7 $156.7 $172.2 UMH: and Normalized FFO per sha
Slide 19: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $3,000 $2,800 $2,600 $2,373 $2,400 $2,200 $2,022 $2,000 $1,914 $1,800 $1,600 $1,509 $1,585 $1,400 $1,157 $1,182 $1,200 $980 $1,000 $752 $800 $600 $582 $386 $495 $400 $200 $0 2012 2013 2014 2015 2016 2
Slide 20: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (2000 – 2023) $1.20 $0.99 $1.00 $1.00 $0.98 $0.95 $0.91 $0.87 $0.81 $0.82 $0.79 $0.80 $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 2006
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% 29.4% 20% 21.7% 20% 16.1% 10% 10% 11.4% 0% 0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Net Debt / Adjusted EBITDA (1) Fixe
Slide 22: Debt Analysis
Debt Analysis (in thousands) Year Ended 12/31/23 12/31/22 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 501,135 $ 513,709 Unamortized Debt Issuance Costs (4,652) (4,771) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 496,483 508,938 Loans Payable: $350 Un
Slide 23: Utilization of Capital
Utilization of Capital o Approximately 1,000 units x $75,000 per site = $75 million cost Installation of Rental Units o Average monthly home rent (includes home and site rent charges) as of December 31, 2023, is $933 o New homes expected to rent for over $1,000 per month Building of Expansion Sites
Slide 24: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside Equity Market Capitalization 51.5% $1,041.4 Preferred Stock 14.4% 290.2 Total Equity Capitalization 65.9% $1,331.6 Debt Outstanding 34.1% 690.0 Total Market Capitalization 100.0% $2,021.6 Less: Cash & Cash Equivalents $(57.3) Less: Securities Available fo
Slide 25: 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 26: 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 27: Environmental, Social & Governance
Environmental, Social & Governance Sustainalytics reviewed our Sustainable Finance Framework and recognized our ability to provide affordable housing to UMH hired a new VP of Corporate Security to help protect the target population of low-income earners as social. They residents and employees across
Slide 28: 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 29: Appendix
Appendix BAYSHORE ESTATES Sandusky, OH
Slide 30: 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 31: 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 $13,600,000 (including $9.9mm
Slide 32: 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 $8,478,000 (including $6.3mm in rental homes): Total
Slide 33: 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 34: 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: $14
Slide 35: Total Return Performance
Total Return Performance 1 Year 3 Year 5 Year 10 Year 35 Source: S&P Global Market Intelligence, as of February 22, 2024.
Slide 36: For additional information, visit www.umh.reit
For additional information including all SEC filings, please visit: www.umh.reit CLINTON MANUFACTURED HOME RESORT Tiffin, OH