Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q1 2023 Earnings Presentation
32 slides from Umh Properties's earnings presentation, May 10, 2023
Slide 1: UMH Properties, Inc. Investor Presentation May 2023
RIVER VALLEY ESTATES Marion, OH UMH PROPERTIES, INC. May 2023 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements 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 use any of t
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: 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 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities 135 Developed Homesites 25,700 States 11 Portfolio Occupancy 84.9% Average Monthly Site Rent $506 Total Rentals 9,300 Home Rentals as % of Sites 36.2% Home Rental Occupancy 93.7% Additional Acreage to Be Developed Approx. 2,100 Gross Asset Va
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: 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 7,977 31.0% 85.8% $530 2,914 31.2% 93.6% $902 Ohio 38 7,255 28.2% 85.3% $464 2,7
Slide 8: Portfolio Growth
Portfolio Growth Total Sites Rental Units Rental Units Occupancy Rate Developed Sites 28,000 10,000 98.0% No. of Communities 9,100 9,300 25,700 25,700 8,700 26,000 8,300 96.0% 24,000 24,000 23,100 23,400 135 135 8,000 7,400 94.0% 21,500 124 22,000 118 122 6,500 92.0% 20,000 112 6,000 90.0% 18,000 16
Slide 9: Occupancy
Occupancy Total Occupancy 87% 86.0% 86% 85.0% 84.9% 85% 84.2% 84% 83% 82.0% 82.0% 82% 81% 80% 79% 78% 2018 2019 2020 2021 2022 Q1'23 Same Property Occupancy (1) 88.0% 87.0% 87.0% 86.3% 86.2% 86.0% 86.0% 86.0% 85.0% VALLEY HIGH 84.0% Ruffsdale, PA 83.0% 82.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Information
Slide 10: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ Deer Run 116% 267,000 Forest Creek 7% 100,500 Valley View Ephrata 2 5% 15,700 Youngstown MHC 4% 13,500 Iris Winds 113% 283,100 Melrose West 7% 12,000 Twin Pines 5% 86,200 Valley View Ephrata 1 4% 29,400 Camelot Woods 34
Slide 11: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) For Three Months Ended % 3/31/2023 3/31/2022 Change Change Community Net Operating Income Rental and Related Income $ 43,815 $ 41,292 $ 2,523 6.1% Community Operating Expenses 18,446 17,277 1,169 6.8% Community NOI $ 25,369 $ 24,015 $ 1,354 5.6% 3/31
Slide 12: 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 Q1’23 Rental Units 6,500 7,400 8,300 8,700 9,100 9,300 Investment $254.6 $297.4 $349.9 $383.5 $422.8 441.5 Average Investment Per Unit $39,169 $40,189 $42,157 $44,080 $46,462
Slide 13: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Number of Acquired Sites Acquisition Volume ($mm) 20,000 $700 Cumulative Volume 18,685 18,803 18,000 Annual Volume 17,199 Cumulative Volume $612.8 $616.5 Annual Volume Acquisition Volume (in millions) 16,346 16,656 $600 16,000 $526.6 14,851 $508.3 No. of Acquired S
Slide 14: Vacant Land to Expand
Vacant Land to Expand UMH has approximately 2,066 Potential for 4 sites per vacant vacant acres available for future acre at an estimated cost of development. $75,000 per site. Vacant Acreage Sites Engineered for Expansion Total – 2,066 acres Total – 3,460 sites SC, 8 AL, 7 MI, 19 1,050 MD, 67 918 N
Slide 15: UMH Sales & Finance, Inc.
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales reached $7.3mm in 2023, with a sales price per unit of approximately Sold approximately 5,300 homes $88k. since 1996. $67.7mm loan portfolio with a weighted average interest rate of approximately Portf
Slide 16: Financial Highlights
Financial Highlights Total Revenue ($mm) Rental Revenue Sales Interest/Dividend Income $250 • Increased Total Revenue by 65%; $194.6 $202.7 Over the past • Increased Community NOI by 76%; $200 $172.2 5 years, • Increased Normalized FFO by $150 $142.2 $156.7 $122.8 Up 14% UMH: 116% and Normalized FFO
Slide 17: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $2,600 $2,373 $2,400 $2,200 $2,000 $1,807 $1,886 $1,800 89% $1,585 $1,600 Up 3 $1,509 $1,400 $1,157 $1,182 $1,200 $980 $1,000 $800 $752 $495 $582 $600 $386 $400 $200 $0 2012 2013 2014 2015 2016 2017 2
Slide 18: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (2000 – 2023) (1) $1.20 $0.99 $1.00 $1.00 $0.98 $0.95 $0.91 $0.87 $0.81 $0.79 $0.82 $0.80 $0.76 $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 2000 2001 2002 2003 2004 2005 2
Slide 19: Balance Sheet Metrics
Balance Sheet Metrics Net Debt / Total Market Capitalization Net Debt - Securities / Total Market Capitalization 50% 40% 40% 36.0% 36.0% 38.2% 38.1% 30% 30% 34.2% 27.7% 29.4% 20% 21.7% 20% 16.1% 10% 10% 11.4% 0% 0% 2019 2020 2021 2022 Q1'23 2019 2020 2021 2022 Q1'23 Net Debt / Adjusted EBITDA Fixed
Slide 20: Debt Analysis
Debt Analysis (in thousands) Three Months Ended 3/31/23 3/31/22 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 465,495 $ 479,454 Unamortized Debt Issuance Costs (4,552) (4,988) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 460,943 474,466 Loans Payable: $
Slide 21: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside Equity Market Capitalization 47.0% $887.2 Preferred Stock 13.1% 247.2 Total Equity Capitalization 60.2% $1,134.4 Debt Outstanding 39.8% 751.5 Total Market Capitalization 100.0% $1,885.9 Less: Cash & Cash Equivalents $(32.9) Less: Securities Available for
Slide 22: 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 23: Environmental, Social & Governance
Environmental, Social & Governance 01 The company has been heavily investing in our communities by submetering 64% of our portfolio, significantly reducing 3 water consumption by promoting water conservation. Energy efficiency is top priority. Currently, 104 of our communities have been retrofitted
Slide 24: 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 25: Appendix
Appendix BAYSHORE ESTATES Sandusky, OH
Slide 26: Extensive Operating History
Extensive Operating History 1985 1968 January 1, 1992 UMH completes UMH commences operations UMH elects REIT status 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 27: Value-Add Acquisition: Countryside Village
Value-Add Acquisition Case Study Countryside Village 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 $12,700,000 (including $9.2mm in
Slide 28: Value-Add Acquisition: Boardwalk and Parke Place
Value-Add Acquisition Case Study Boardwalk and Parke Place 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 $7,578,000 (including $5.8mm in rental homes): Total Capi
Slide 29: Value-Add Expansion: Fairview Manor
Value-Add Expansion Case Study Fairview Manor 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: $12,05
Slide 30: 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): 186/317 Date of Acquisition: August 29, 1988 Purchase Price: $2,040,000 Purchase Price per Site: $11,000 Capitalization Subsequent to Acquisition: $13
Slide 31: Total Return Performance
Total Return Performance 1 Year 3 Year 5 Year 10 Year 31 Source: S&P Global Market Intelligence, as of May 5, 2023.
Slide 32: For additional information including all SEC filings, please visit www.umh.reit
For additional information including all SEC filings, please visit: www.umh.reit CLINTON Clinton, PA