Umh Properties, Inc. · NYSE:UMH
Umh Properties — IPO Roadshow (October 2015)
29 slides from Umh Properties's IPO roadshow presentation, Oct 6, 2015
Slide 1: UMH Properties, Inc. Series B Preferred Offering
October 2015 UMH PROPERTIES, INC. Series B Preferred Offering Issuer Free Writing Prospectus Dated October 6, 2015 Filed Pursuant to Rule 433 Registration Statement No. 333-186084 Relating to Preliminary Prospectus Supplement Dated October 5, 2015 to Prospectus Dated February 15, 2013
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: == Tomar
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Slide 4: Offering Summary
Offering Summary Offering: Up to 2.0 million shares Securities: Series B Preferred Stock Liquidation Preference: $25.00 Dividend Rate: 7.375% - 7.50% Listing / Symbol: NYSE (Pending) Liquidation Value: Up to $50.0 million Use of Proceeds: Acquisitions, repayment of debt, & general corporate purposes
Slide 5: Company Overview
Company Overview u UMH Properties, Inc. (“UMH” or “the Company”) is a publicly owned Real Estate Investment Trust (“REIT”). The Company commenced operations in 1968 and has been operating as a public company since 1985. u Owner and operator of manufactured home communities - leasing manufactured hom
Slide 6: Extensive Operating History
2012 1985 1990 1968 1995 2000 2005 2010 . 2013 2014 1968: UMH commences operations 1985: UMH completes Initial Public Offering April 1, 2006: Corporate name changes from United Mobile Homes, Inc. to UMH Properties, Inc. to more accurately convey the quality of the Company’s communities. June 29, 200
Slide 7: The Cyclicality of Housing
The Cyclicality of Housing Favorable US Housing Trends u UMH is well positioned to participate in the ongoing recovery of the US housing market
Slide 8: Portfolio Snapshot
Portfolio Snapshot West Virginia Delaware Virginia Rhode Island Connecticut Massachusetts New Hampshire Vermont North Carolina Louisiana Nebraska Texas Florida Kansas Oklahoma Minnesota Tennessee Alabama Arkansas Georgia Iowa Illinois Indiana Kentucky Missouri Mississippi North Dakota South Carolina
Slide 9: Portfolio Capacity by State
Capacity Communities No. % Developed Sites No. % Avg. Occup.(1) Avg. Monthly Rent ($) PA 42 44.2% 6,528 39.4% 79.8% $409 OH 25 26.3% 3,627 21.9% 78.2% $321 TN 7 7.4% 1,822 11.0% 83.1% $407 NY 7 7.4% 1,132 6.8% 79.6% $466 IN 6 6.3% 1,396 8.4% 81.9% $381 NJ 4 4.2% 1,006 6.1% 95.3% $570 MI 1 1.1% 143 0
Slide 10: Historical Occupancy
Historical Occupancy Information as of period ending dates and updated as of June 30, 2015.
Slide 11: Same Property Occupancy
Same Property Occupancy *Excludes Memphis Mobile City. **Reflects all communities in place as of April 1, 2013. Information as of period ending dates and updated as of June 30, 2015.
Slide 12: Same Property Net Operating Income
Same Property Net Operating Income SS COMMUNITY NET OPERATING INCOME: s1s0r2015 s120/0014 change change Number of Properties 74 74 ® NIA Developed Acreage 2,907 2,907 # N/A Vacant Acreage 722 722 # N/A Total Sites 13,270 13,301 [cab (0.2%) Monthly Rent Per Site $ 413 $ 400 $ 13 3.3% UME «zamerroperv
Slide 13: Marcellus and Utica Shale Regions
u The Marcellus and Utica Shale Regions are large natural gas fields located beneath much of Pennsylvania, Ohio, West Virginia and New York u Fields have the potential to be among the largest sources of natural gas in the world u Activity surrounding the development of the shale regions is expected
Slide 14: UMH Historical Portfolio Growth
88 UMH Historical Portfolio Growth u Since 2010, UMH’s portfolio of developed sites has grown by 106% Information as of period ending dates and updated to include 3 acquisitions completed on August 19, 2015.
Slide 15: UMH Historical Rental Unit Growth
UMH Historical Rental Unit Growth Information as of period ending dates and updated as of June 30, 2015.
Slide 16: Historical Investments and Illustrative Rental Unit Economics
Historical Investments ($ in MM except per unit data) 2010 2011 2012 2013 2014 6/30/15 Rental Units 800 900 1,100 1,700 2,600 2,900 Investment $23.1 $26.6 $37.8 $61.7 $91.7 $107.0 Average Investment Per Unit $28,885 $29,567 $34,389 $36,322 $35,277 $36,897 Average Monthly Rents per Unit $615 $615 $63
Slide 17: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Average Price Per Site Acquisition Volume Number of Acquired Sites YTD 2015 reflects 3 acquisitions completed on 8/19/15.
Slide 18: Vacant Land to Expand
28% 8% 21% 13% 4% 26% Vacant Land to Expand u UMH has over 1,209 vacant acres available for future development. u Potential for 4 sites per vacant acre at an estimated cost of $40,000 per site. Sites Planned for Expansion Total - 1,235 sites Information reflects the 3 acquisitions completed on 8/19/
Slide 19: UMH Sales & Finance, Inc.
u Commenced operations in 2001 as a taxable REIT subsidiary u Conducts sales and financing of manufactured homes in its communities u Focus on increasing occupancy and enhancing the value of communities u Sales price per unit was approximately $54k over the past twelve months u Sales reached a recor
Slide 20: Loan Portfolio Overview
u Historically, UMH provided financing to qualified buyers of its manufactured homes u Due to regulatory issues, commencing in 2014, all new loans are currently being financed by 21 st Mortgage Corporation, a division of Berkshire Hathaway u $19.2mm loan portfolio with a weighted average interest ra
Slide 21: REIT Securities Portfolio Overview
u Total value of $63.3mm as of 6/30/15 u UMH’s REIT securities portfolio provides attractive yields (currently 7.0%), diversification and additional liquidity u Securities portfolio represents approximately 10% of total undepreciated assets u $20.0mm of securities portfolio is invested in the common
Slide 22: Summary Historical Performance
$0.61 $0.55 $0.26 $0.25 $0.25 $0.20 $0.48 $0.39 $0.36 $0.45 Core Funds from Operations 1 ($mm) Total Gross Assets ($mm) Normalized Funds from Operations 2 ($mm) Revenue and Other Income ($mm) Rental revenue Sales Summary Historical Performance Interest/Dividend Income FFO $77.6 Financial Information
Slide 23: Summary Capitalization
Summary Capitalization 1 Excludes impact of $32.5m of acquisitions and $43.1m of financings announced on August 20, 2015, and approximately $30 million of financings announced on October 2, 2015. Also excludes impact of preferred offering. 2 Calculated using H1 2015 Annualized EBITDA.
Slide 24: Balance Sheet Metrics
Net Debt / Total Market Capitalization Net Debt - Securities / Total Market Capitalization 1 Fixed charges include interest expense, capitalized interest and preferred distributions Balance Sheet Metrics Financial Information as of 6/30/15.
Slide 25: Limited Mortgage Debt Maturities
Mortgage Debt Maturity Schedule ($US in millions) u Weighted average mortgage debt maturity is 6.2 years u Weighted average interest rate is 4.6% u Fixed rate mortgage debt is 99.6% of total mortgage debt u Mortgage debt as a percentage of total debt is 77.5% u Completed the financing of ten manufac
Slide 26: Strong Record of Regular Distributions
Strong Record of Regular Distributions Annual Dividend per Share (1993 - 2014)
Slide 27: Investment Highlights
u Long-term track record of profitability u Strong acquisition track record with a sizeable current acquisition pipeline u Well positioned for housing market rebound u Significant upside in real estate portfolio - 82.0% occupancy u Strong balance sheet and stable credit metrics u Well positioned to
Slide 28: Funds From Operations
Funds From Operations Funds from operations (FFO"), as defined by The National Association of Real Estate Investment Trusts INAREIT), is calculatedto be equal to net income (loss) applicable to common shareholders, as defined by US. GAAP, excluding extraordinary itemsas defined by US. GAAP, gains or
Slide 29: For additional information visit WWW.UMH.COM
For additional information including all SEC filings please visit: WWW.UMH.COM UMH Properties, Inc. has filed a registration statement (including a prospectus dated February 15, 2013 and a preliminary prospectus supplement dated October 5, 2015) with the SEC for the offering to which this communicat