Umh Properties, Inc. · NYSE:UMH
Umh Properties — Investor Presentation (January 2015)
32 slides from Umh Properties's investor presentation, Jan 13, 2015
Slide 1: UMH Properties, Inc
UMH PROPERTIES, INC === January 2015
Slide 2: Forward Looking Statements
Forward Looking Statements pp EIEooeEeE 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
Slide 3: Slide 3
Slide 4: Company Overview
Company Overview a @ UMH Properties, Inc. (“UMH” or “the Company”) is a publicly owned Real Estate Investment Trust (“REIT”). The Company commenced operations in 1968 and has been operating as a public company since 1985. @ Owner and operator of manufactured home communities - leasing manufactured h
Slide 5: Extensive Operating History
Extensive Operating History 1985: January 1, 2001: June 29, 2009: March 2, 2012: REIT Mod Addit UMH Properties, Inc. iSee Aanimeeestneieecis jodernization Act .ddition of UMH 1H Properties, Inc. moves Offeri becomes effective. Legislation Properties, Inc. to common and preferred stock UMH commences
Slide 6: Favorable US Housing Trends
Favorable US Housing Trends @ UMH is well positioned to participate in the ongoing recovery of the US housing market ae Va f A 48 ———— \ A / 6 me il bes - a \ | 63% ns \ | i 62% 12% \ L 61% -16% a 60% -20% gszserzee sas esexee2eR geo ben eagraneun yen eaor-nnmaes PESSRERZSS PSR LEE S BS s Bis 2 os P
Slide 7: Portfolio Snapshot
Portfolio Snapshot North Dakota u Total Communities 88 Minnesota yl ag Neo S Developed Home Sites 15,100 Wisconsin af Vermont South Dakota s Ds States @ © o~ NeKauemptire Portfolio Occupancy 82.2% Michigan © New York f rece" Massachusetts Average Monthly Site Rent $396 lowa comnr y Rhode Island Nebr
Slide 8: Portfolio Capacity by State
Portfolio Capacity by State Dy a a ee ee PA 38 43.1% 5,916 39.3% 82.0% $408 OH 25 28.4% 3,636 24.1% 78.5% $312 TN z 8.0% 1,829 12.1% 87.6% $397 NY 7 8.0% 1,132 7.5% 79.9% $451 NJ 4 4.6% 1,007 6.7% 95.5% $556 IN 6 6.8% 1,395 9.3% 79.5% $368 Ml 1 1.1% 143 1.0% 76.9% $392 Grand Total 88 100% 15,058 100
Slide 9: Historical Occupancy
Historical Occupancy | 83% 82.2% 82% 81.1% 81% 80.5% 80% 79% 78.3% 78% 77.6% 77% 76.8% 76% 75% 74% i 1 1 2009 2010 2011 2012 2013 3Q14 Tou Information as of period ending dates and updated as of September 30, 2014. -9-
Slide 10: Same Store Occupancy
Same Store Occupancy 82.0% 81.0% 80.6% 80.0% 80.0% 79.8% 7 79.0% + 78.0% 4 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Information as of period ending dates and updated as of September 30, 2014. UMH “Excludes Memphis Mobile City. S10 PROPERTIES. INC *Reflects all communities in place as of July 1,
Slide 11: Marcellus & Utica Shale Region Exposure
Marcellus & Utica Shale Region Exposure = @ The Marcellus and Utica Shale Regions are large natural gas fields located beneath much of Pennsylvania, Ohio, West Virginia and New York @ Fields have the potential to be among the largest sources of natural gas in the world ¢@ Activity surrounding the de
Slide 12: UMH Historical Portfolio Growth
UMH Historical Portfolio Growth @ Since 2009, UMH’s portfolio of developed sites has grown by 122% 16,000 No. of Developed 15,100 14,000 “onmun Sites 13,500 88 / 74 12,000 \ J 10,600 10,000 8,500 57 8,000 8,000 6,800 35 6,000 28 4,000 2,000 0 T 1 1 1 12/2009 12/2010 12/2011 12/2012 12/2013 3Q14 Tow
Slide 13: UMH Historical Rental Unit Growth
UMH Historical Rental Unit Growth a 2,500 2,000 2,200 1,500 1,700 1,000 1,100 900 800 . 0 1 1 1 1 T 1 12/2009 12/2010 12/2011 12/2012 12/2013 3Q14 for Information as of period ending dates and updated as of September 30, 2014. PROPERTIES. INC 2135
Slide 14: Potential for Significant Rental Unit Returns
Potential for Significant Rental Unit Returns Historical Investments ($ in MM except per unit data) 2009 2010 2011 2012 2013 Q32014 Rental Units 600 800 900 1,100 1,700 2,200 Investment $17.7 $23.1 $26.6 $37.8 $61.7 $82.2 Average Investment Per Unit $29,473 $28,885 $29,567 $34,389 $36,322 $37,351 Av
Slide 15: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions 9,000 $250,000 - $233,370 8,000 2 7,000 S564 S $200,000 $190,820 3 ‘Cumulative Volume va Cumulative > &% 6,000 = 3 Volume z 5,000 Annual Volume = 2 $150,000 5 = 4,000 \ 2 3 Annual Volume 199 550 PS S $100,000 . S 3,000 4 = 3 Ss 2 2,000 $50,000 $54,950 1,000 s - 2 5
Slide 16: Value-Added Acquisitions
Value-Added Acquisitions ¢@ Located in Lebanon, TN, 28 miles east of Nashville, TN. Number of Sites: 270 Date of Acquisition: March 10, 2006 Purchase Price: $5,200,000 Purchase Price per Site: $19,000 Capitalization Subsequent to Acquisition (including $3.9m in rental homes): $4,300,000 Total Capita
Slide 17: Value-Added Acquisitions
Value-Added Acquisitions @ Located in Nashville, TN, “Music City” and home of the Grand Ole Opry. Number of Sites: 216 Date of Acquisition: June 29, 2011 Purchase Price: $3,719,000 Purchase Price per Site: $17,000 Capitalization Subsequent to Acquisition (including $1.0m in rental homes): $1,600,000
Slide 18: Value-Added Acquisitions
Value-Added Acquisitions ¢ Located in Nashville, TN, “Music City” and home of the Grand Ole Opry. Number of Sites: 274 Date of Acquisition: April 2, 2013 Purchase Price: $7,250,000 Purchase Price per Site: $26,000 Capitalization Subsequent to Acquisition (including $1.4m in rental homes): $2,100,000
Slide 19: Value-Added Expansion
Value-Added Expansion ¢ Located in Vineland, NJ, 35 miles west of Atlantic City, NJ Number of Sites (at Acquisition/Today): 148/318 Date of Acquisition: November 15, 1985 Purchase Price: $1,350,000 Purchase Price per Site: $9,000 Capitalization Subsequent to Acquisition: $6,400,000 Total Capital Inv
Slide 20: Value-Added Expansion
Value-Added Expansion Located in Kutztown, PA, located 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: $10,000,000 Total Cap
Slide 21: Vacant Land to Expand
Vacant Land to Expand Es @ UMH has over 1,100 vacant acres available for future development. ¢ Potential for 4 sites per vacant acre at an estimated cost of $40,000 per site. Vacant Acreage Sites Planned for Expansion Total - 1,142 acres Total - 848 sites IN, 49 400 NJ, 162 350 36 PA, 298 300 NY,316
Slide 22: UMH Sales & Finance, Inc. ("S&F")
UMH Sales & Finance, Inc. (“S&F”) ¢- ¢ © @ ° (SUS in millions) Commenced operations in 2001 as a taxable REIT subsidiary Conducts sales and financing of manufactured homes in its communities Focus on increasing occupancy and enhancing the value of communities Sales price per unit was approximately $
Slide 23: Loan Portfolio Overview
Loan Portfolio Overview ¢ — Historically, UMH provided financing to qualified buyers of its manufactured homes @ Due to regulatory issues, commencing in 2014, all new loans are currently being referred to 21°t Mortgage @ $21.4mm loan portfolio with a weighted average interest rate of approximately 9
Slide 24: REIT Securities Portfolio Overview
REIT Securities Portfolio Overview @ Total value of $62.4mm as of 9/30/14 (inclusive of approximately $2.6 million of unrealized gains) @ UMH’s REIT securities portfolio provides attractive yields (currently 6.6%), diversification and additional liquidity @ Securities portfolio represents approximat
Slide 25: Summary Historical Performance
Summary Historical Performance m Rental revenue mSales mlnterest/Dividend Income mm FFO $100 $14 $80 $80.3 $12 $11.6. su4 $11.6 $io 4 $9.2 $10.0 $60 s3 $8.0 $40 $6 4 s4 4 $20 $2 4 ao so 4 r ; r ; 2010 2011 2012 2013 LQA 9/13 LQA 9/14 2010 2011 2012 2013 LQA 9/13 LQA9/14 $600 $561.6 $1.00 és00 $492.6
Slide 26: Balance Sheet Metrics
Balance Sheet Metrics 10.0x 40% =m 8.0x 30% 6.0x 20% 4.0x 10% 2,0x 0% Ox 2010 2011 2012 2013 Q3'14 2010 2011 2012 2013 Q3'14 3.0x 2.5x 2.0x 1.5x 1.0x Ox «5x x r r r r +Ox T r 2010 2011 2012 2013 Q3'l4 2010 2011 2012 2013 Q3'l4 ' Fixed charges include interest expense, capitalized interest and prefer
Slide 27: Limited Mortgage Debt Maturities
Limited Mortgage Debt Maturities @ Weighted average mortgage debt maturity is 5.5 years ¢@ Weighted average interest rate is 4.8% @ Fixed rate mortgage debt is 95.7% of total mortgage debt @ Mortgage debt as a percentage of total debt is 71.8% @ Exploring value added opportunities in this current at
Slide 28: Strong Record of Regular Distributions
Strong Record of Regular Distributions $1.00 $0.98 $0.99 $1.00 $0.91 $0.95 $0.80 $0.74 $0.75 $0.70 $0.72 $0.72 $0.72 $0.72 $0.72 $0.60 4 $0.40 $0.20 $0.00 4 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PROPERTIES, INC 228
Slide 29: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside a * Current market valuation significantly undervalues portfolio at less than $26k per site * Private market valuations for sites range from $40k to $70k per site Public Private Market Equity Market Capitalization 38.9% $221.2 Site Valuations $25,269 $40,
Slide 30: Investment Highlights
Investment Highlights — ¢@ Long-term track record of profitability ¢@ Strong balance sheet and stable credit metrics @ Well positioned for housing market rebound ¢@ Significant upside in real estate portfolio - 82.2% occupancy ¢@ Significant potential growth through adding rental units @ Well positi
Slide 31: Total Return Performance
Total Return Performance UMH Properties, Inc. - Total Return (%) — UMH (+78.80%) — MSCI US REIT (RMS) (+129.70%) 140) 120 100 80 60 Total Return (%) 40 20 T T T T T T a Jan Jul Jan Jul Jan Jul Jsn Jul Jan Jul 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 PROPERTIES, INC Source: SNL as of October
Slide 32: For additional information including all SEC filings please visit
For additional information including all SEC filings please visit: WWW.UMH.COM
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