Umh Properties, Inc. · NYSE:UMH
Umh Properties — IPO Roadshow (March 2016)
30 slides from Umh Properties's IPO roadshow presentation, Mar 28, 2016
Slide 1: UMH Properties, Inc. - Series B Preferred Offering
March 2016 UMH PROPERTIES, INC. UMH Properties, Inc. - Series B Preferred Offering Issuer Free Writing ProspectusDated March 28, 2016Filed Pursuant to Rule 433Registration Statement No. 333-209078Relating to Preliminary Prospectus Supplement Dated March 28, 2016 toProspectus Dated February 5, 2016
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
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Slide 4: Offering Summary
Offering Summary Offering: 1.2 million sharesSecurities: Series B Preferred StockLiquidation Preference: $25.00Dividend Rate: 8.00% ($2.00 per annum)Listing / Symbol: UMH-PB (NYSE)Liquidation Value: $30.0 millionUse of Proceeds: General corporate purposes, which may include purchases of manufactured
Slide 5: Company Overview
Company Overview 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 home spa
Slide 6: Extensive Operating History
2009 1968: UMH commences operations 1985:UMH completes Initial Public Offering 2012 1985 1990 1968 1995 2000 2005 2010 April 1, 2006: Corporate name changes from United Mobile Homes, Inc. to UMH Properties, Inc. to more accurately convey the quality of the Company’s communities. June 29, 2009: Addit
Slide 7: Favorable US Housing Trends
% of Households Owning a Single-Family Home Single Family Home Price Change Year-Over-Year The Cyclicality of Housing Favorable US Housing Trends - * - UMH is well positioned to participate in the ongoing recovery of the US housing market
Slide 8: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities* 98Developed Home Sites* 17,800States 7Portfolio Occupancy 79.5%Average Monthly Site Rent $411Home Rentals as % of Sites 21.2%Home Rental Occupancy 92.9%Annual Turnover Approx. 15%Additional Land to Be Developed (Acreage) Approx. 1,260Gross A
Slide 9: Portfolio Capacity by State
Portfolio Capacity by State - * - Capacity Communities Communities Developed Sites Developed Sites Avg. Monthly No. % No. % Avg. Occup. (1) Rent ($) PA 42 42.9% 6,524 36.7% 80.4% $419 OH 27 27.6% 4,310 24.2% 76.3% $345 TN 7 7.1% 1,817 10.2% 84.6% $415 NY 7 7.1% 1,130 6.4% 80.2% $471 IN 9 9.2% 2,652
Slide 10: Portfolio Occupancy
Occupancy - * - Information as of period ending dates and updated as of December 31, 2015.
Slide 11: Same Property Occupancy
Same Property Occupancy - * - *Same Property includes all properties owned as of January 1, 2014, with the exception of Memphis Blues. Information as of period ending dates and updated as of December 31, 2015.
Slide 12: Same Property Net Operating Income
Same Property Net Operating Income - * - *Same Property includes all properties owned as of January 1, 2014, with the exception of Memphis Blues. For Three Months Ended For Three Months Ended For Three Months Ended For Three Months Ended For Three Months Ended For Three Months Ended For Three Months
Slide 13: Marcellus and Utica Shale Regions
The Marcellus and Utica Shale Regions are large natural gas fields located beneath much of Pennsylvania, Ohio, West Virginia and New York Fields have the potential to be among the largest sources of natural gas in the world Activity surrounding the development of the shale regions is expected to acc
Slide 14: UMH Portfolio Growth
UMH Portfolio Growth - * - Since 2010, UMH’s portfolio of developed sites has grown by 123% 88 Information as of period ending dates.
Slide 15: UMH Rental Unit Growth
UMH Rental Unit Growth - * - Information as of period ending dates.
Slide 16: Potential for Significant Rental Unit Returns
Potential for Significant Rental Unit Returns - * - Historical Investments Historical Investments Historical Investments ($ in MM except per unit data) ($ in MM except per unit data) ($ in MM except per unit data) 2010 2011 2012 2013 2014 2015 Rental Units Rental Units 800 900 1,100 1,700 2,600 3,70
Slide 17: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions - * - Average Price Per Site Acquisition Volume Number of Acquired Sites Financial information as of December 31, 2015.
Slide 18: Vacant Land to Expand
Vacant Land to Expand UMH has over 1,261 vacant acres available for future development.Potential for 4 sites per vacant acre at an estimated cost of $40,000 per site.UMH plans to acquire acreage within 5 miles of its communities for self storage. - * - Sites Planned for ExpansionTotal – 1,054 sites
Slide 19: UMH Sales & Finance, Inc.
Commenced operations in 2001 as a taxable REIT subsidiaryConducts sales and financing of manufactured homes in its communitiesFocus on increasing occupancy and enhancing the value of communitiesSales price per unit was approximately $50k over the past twelve monthsSales reached a record of $15.8mm i
Slide 20: Loan Portfolio Overview
Historically, UMH provided financing to qualified buyers of its manufactured homesDue to regulatory issues, commencing in 2014, new loans were financed by 21st Mortgage Corporation, a division of Berkshire Hathaway$18.3mm loan portfolio with a weighted average interest rate of approximately 9.1%Port
Slide 21: REIT Securities Portfolio Overview
Total value of $75.0mm as of 12/31/15 UMH’s REIT securities portfolio provides attractive yields (currently 7.7%), diversification and additional liquiditySecurities portfolio represents approximately 10% of total undepreciated assets$22.2mm of securities portfolio is invested in the common stock of
Slide 22: Historical Performance
Core Funds from Operations1 ($mm) Total Gross Assets ($mm) Normalized Funds from Operations2 ($mm) Revenue and Other Income ($mm) Rental revenue Sales Summary Historical Performance - * - Interest/Dividend Income FFO $77.6 Financial Information as of December 31, 2015. We define Core Funds From Oper
Slide 23: Summary Capitalization
Summary Capitalization Undepreciated Book Capitalization Total Market Capitalization Total: $755.4MM Total: $708.6MM - * - At 12/31/15 ($US in thousands) (As Reported) Cash & Cash Equivalents $ 6,536 Total Debt 344,624 Preferred Stock- Liquidation 136,625 Equity- Market Value 274,119 Total Market Ca
Slide 24: Balance Sheet Metrics
Net Debt / Total Market Capitalization Net Debt - Securities / Total Market Capitalization Net Debt / EBITDA Fixed Charge Coverage1 1 Fixed charges include interest expense, capitalized interest and preferred distributions Balance Sheet Metrics - * - Financial Information as of December 31, 2015.
Slide 25: Mortgage Debt Maturity Schedule
Mortgage Debt Maturity Schedule ($US in millions) Weighted average mortgage debt maturity is 7.1 yearsWeighted average interest rate is 4.5%Fixed rate mortgage debt is 99.8% of total mortgage debtMortgage debt as a percentage of total debt is 83.2% In 2015, completed the financing of twenty-one manu
Slide 26: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (1993 – 2015) - * -
Slide 27: Investment Highlights
Long-term track record of profitabilityStrong acquisition track recordWell positioned for housing market rebound Significant upside in real estate portfolio – 79.5% occupancyStrong balance sheet and stable credit metricsWell positioned to benefit from the rapidly expanding energy sector investments
Slide 28: Funds from Operations Definitions
Funds from operations (“FFO”), as defined by The National Association of Real Estate Investment Trusts (NAREIT), is calculated to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. GAAP, gains or losses from sale
Slide 29: For additional information visit WWW.UMH.REIT
For additional information including all SEC filings please visit: WWW.UMH.REIT
Slide 30: Registration statement and prospectus notice
UMH Properties, Inc. has filed a registration statement (including a prospectus dated February 5, 2016 and a preliminary prospectus supplement dated March 28, 2016) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registrati