Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q2 2024 Earnings Presentation
37 slides from Umh Properties's earnings presentation, Aug 7, 2024
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 second quarter of 2024 include: • Increased Rental and Related Income by 9%; • Increased Sales of Manufactured Homes by 7%; • Increased Community Net Operating Income (“NOI”) by 11%; • Increased Same Property NOI by 11%; MELROSE VILLAGE, Woost
Slide 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities 136 Developed Homesites 25,800 States 11 Portfolio Occupancy 87.4% Average Monthly Site Rent $531 Total Rentals 10,100 Home Rentals as % of Sites 39.3% Home Rental Occupancy 95.0% Additional Acreage to Be Developed Approx. 2,200 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 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 (1) Pennsylvania 53 7,968 30.9% 87.4% $558 3,130 30.9% 94.4% $957 Ohio 38 7,302 28.3% 87.7% $488 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 25,800 25,600 25,800 26,000 10,000 10,100 96.0% 136 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 90.0%
Slide 11: Occupancy
Occupancy Total Occupancy 88% 87.4% 87% 86.7% 86.0% 86% 85.0% 85% 84.6% 84% 83% 82.0% 82% 81% 80% 2019 2020 2021 2022 2023 Q2'24 Same Property Occupancy (1) 90.0% 89.0% 88.4% 88.5% 87.9% 88.0% 87.7% 87.5% COUNTRYSIDE VILLAGE, Columbia, TN 87.0% Acquired in 1986 87.0% 86.0% 85.0% Q1'23 Q2'23 Q3'23 Q4
Slide 12: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ OZ Garden View Estates 98% 207,600 Meadows of Perrysburg 12% 128,500 Shady Hills 8% 132,800 Worthington Arms 6% 116,000 Deer Run 82% 568,700 Moosic Heights 12% 127,300 Hillside Estates 8% 49,400 Twin Pines 6% 102,900 Hi
Slide 13: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) Three Months Ended Six Months Ended % % 6/30/2024 6/30/2023 Change Change 6/30/2024 6/30/2023 Change Change Same Property Community Net Operating Income (“NOI”) Rental and Related Income $ 50,939 $ 46,722 $ 4,217 9.0% $ 100,639 $ 91,711 $ 8,928 9.7%
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 Q2’24 Rental Units 7,400 8,300 8,700 9,100 10,000 10,100 Investment $297.4 $349.9 $383.5 $422.8 $516.5 $539.7 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 – 3,161 sites SC, 8 AL, 7 MI, 19 1,050 MD, 48 2% 1% NJ, 164 909 I
Slide 17: UMH Sales & Finance, Inc.
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales reached $16.2mm in 2024, with a Sold approximately 5,800 homes sales price per unit of approximately $81k. since 1996. $83.3mm loan portfolio with a weighted average interest rate of Portfolio comprise
Slide 18: Financial Highlights
Financial Highlights Total Revenue ($mm) Over the past 5 years, Rental Revenue Sales Interest/Dividend Income UMH: $300 $250 $228.2 $194.6 $202.7 Up 9% • Increased Total Revenue by 60%; $200 $156.7 $172.2 $142.2 • Increased Community NOI by 78%; $150 $121.8 $111.5 • Increased Normalized FFO by 99% a
Slide 19: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $3,000 $2,800 $2,600 $2,373 $2,400 $2,200 $2,128 $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% 27.7% 28.2% 31.3% 29.6% 20% 20% 16.1% 10% 10% 11.4% 0% 0% 2020 2021 2022 2023 Q2'24 2020 2021 2022 2023 Q2'24 Net Debt / Adjusted EBITDA (1) Fi
Slide 22: Debt Analysis
Debt Analysis (in thousands) Six Months Ended 6/30/24 6/30/23 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 495,219 $ 449,126 Unamortized Debt Issuance Costs (4,189) (4,329) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 491,030 444,797 Loans Payable: $35
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 June 30, 2024, is $960 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 54.7% $1,163.3 Preferred Stock 13.9% 295.8 Total Equity Capitalization 68.6% $1,459.1 Debt Outstanding 31.4% 668.9 Total Market Capitalization 100.0% $2,128.0 Less: Cash & Cash Equivalents $(39.5) Less: Securities Available fo
Slide 25: 2024 Guidance
2024 Guidance As of August 6, 2024 Low Midpoint High Normalized FFO Per Share $0.91 $0.93 $0.95 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 approximatel
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 New VP of Corporate Security New ESG Subcommittee • UMH has appointed a new 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 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
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 $13,300,000 (including $10mm
Slide 33: Value-Add Acquisition
Value-Add Acquisition Case Study Boardwalk and Parke Place (1) Located in Elkhart, IN Number of Sites: 575 Date of Acquisition: January 20, 2017 Purchase Price: $21,222,000 Purchase Price per Site: $38,000 Capitalization Subsequent to Acquisition $9,878,000 (including $7.5mm 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): 148/316 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
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 July 30, 2024.
Slide 37: 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