Umh Properties, Inc. · NYSE:UMH
Umh Properties — Q3 2023 Earnings Presentation
35 slides from Umh Properties's earnings presentation, Nov 9, 2023
Slide 1: Investor Presentation
RIVER VALLEY ESTATES Marion, OH ae iN is) N — ® me} i= © > iS) Zz INC. i Investor Presentation UMH PROPERTIES
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: Quarterly Accomplishments
Quarterly Accomplishments Our accomplishments during the third quarter of 2023 include: • Increased Rental and Related Income by 12.2%; • Increased Community Net Operating Income (“NOI”) by 15.8%; • Increased Same Property NOI by 12.9%; FRIENDLY VILLAGE Perrysburg, OH • Increased Same Property Occup
Slide 5: Portfolio Snapshot
Portfolio Snapshot Portfolio Statistics Total Communities 135 Developed Homesites 25,800 States 11 Portfolio Occupancy 86.5% Average Monthly Site Rent $922 Total Rentals 9,900 Home Rentals as % of Sites 38.3% Home Rental Occupancy 94.2% 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: 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 8: Favorable US Housing Trends (contd.)
Favorable US 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 sig
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 7,972 31.0% 86.9% $540 3,084 31.2% 93.9% $924 Ohio 38 7,301 28.3% 86.9% $469 2,8
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 25,600 25,800 26,000 9,900 96.0% 24,000 10,000 23,400 134 135 8,700 9,100 24,000 23,100 8,300 94.0% 127 21,500 124 8,000 7,400 22,000 122 92.0% 6,500 118 20,000 6,000 90.0% 18
Slide 11: Occupancy
Occupancy Total Occupancy 88% 87% 86.5% 86.0% 86% 85.0% 85% 84.2% 84% 83% 82.0% 82.0% 82% 81% 80% 2018 2019 2020 2021 2022 Q3'23 Same Property Occupancy (1) 89.0% 88.4% 87.9% 88.0% 87.0% 87.0% 86.3% 86.2% 86.0% 86.0% 86.0% VALLEY HIGH Ruffsdale, PA 85.0% 84.0% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'
Slide 12: Change in Rental Revenue
Change in Rental Revenue Community % $ Community % $ Community % $ Community % $ Deer Run 215% 617,400 Brookview Village 8% 120,300 Hudson Estates 6% 60,100 Cedarcrest Village 4% 98,800 Iris Winds 199% 593,800 River Valley Estates 8% 115,100 Pine Valley Estates 6% 80,000 Oxford Village 4% 80,900 Cam
Slide 13: Same Property Net Operating Income
Same Property Net Operating Income (in thousands) Three Months Ended Nine Months Ended % % 9/30/2023 9/30/2022 Change Change 9/30/2023 9/30/2022 Change Change Community Net Operating Income Rental and Related Income $ 46,316 $ 42,113 $ 4,203 10.0% $ 135,618 $ 125,121 $ 10,497 8.4% Community Operatin
Slide 14: 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 Q3’23 Rental Units 6,500 7,400 8,300 8,700 9,100 9,900 Investment $254.6 $297.4 $349.9 $383.5 $422.8 $504.4 Average Investment Per Unit $39,169 $40,189 $42,157 $44,080 $46,462
Slide 15: Pace of Opportunistic Acquisitions
Pace of Opportunistic Acquisitions Number of Acquired Sites Acquisition Volume ($mm) 21,000 $700 Cumulative Volume 18,803 Annual Volume 18,685 Cumulative Volume $612.8 $616.5 Annual Volume Acquisition Volume (in millions) 18,000 17,199 $600 16,346 16,656 $526.6 14,851 $500.5 $508.3 No. of Acquired S
Slide 16: Vacant Land to Expand
Vacant Land to Expand UMH has 2,126 vacant acres available Potential for 4 sites per vacant acre at for future development. an estimated cost of $75,000 per site. Vacant Acreage Sites Engineered for Expansion Total – 2,126 acres Total – 3,789 sites SC, 8 AL, 7 MI, 19 1,200 MD, 67 NJ, 164 3%1% 8% 1,0
Slide 17: UMH Sales & Finance, Inc. ("S&F")
UMH Sales & Finance, Inc. (“S&F”) Commenced operations in 2001 as a taxable REIT subsidiary. Sales reached $23.4mm in 2023, with a sales price per unit of approximately Sold approximately 5,500 homes $89k. since 1996. $75.6mm loan portfolio with a weighted average interest rate of approximately Port
Slide 18: Financial Highlights
Financial Highlights Total Revenue ($mm) Rental Revenue Sales Interest/Dividend Income $250 • Increased Total Revenue by 65%; $194.6 $202.7 Up 11% Over the past • Increased Community NOI by 76%; $200 $172.2 $169.3 $156.7 5 years, • Increased Normalized FFO by $150 $122.8 $142.2 $152.3 UMH: 116% and
Slide 19: Company Growth
Company Growth Total Market Capitalization ($mm) Equity Market Capitalization Preferred Equity Debt $2,600 $2,373 $2,400 $2,200 $2,000 $1,914 $1,894 $1,800 $1,585 $1,600 $1,509 $1,400 $1,157 $1,182 $1,200 $980 $1,000 $800 $752 $582 $600 $495 $386 $400 $200 $0 2012 2013 2014 2015 2016 2017 2018 2019
Slide 20: 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 $0.82 $0.79 $0.80 $0.80 $0.76 $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 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% 32.8% 30% 34.2% 34.2% 27.7% 29.4% 20% 21.7% 20% 16.1% 10% 10% 11.4% 0% 0% 2019 2020 2021 2022 Q3'23 2019 2020 2021 2022 Q3'23 Net Debt / Adjusted EBITDA Fixed
Slide 22: Debt Analysis
Debt Analysis (in thousands) Nine Months Ended 9/30/23 9/30/22 DEBT OUTSTANDING Mortgages Payable: Fixed Rate Mortgages $ 446,280 $ 504,647 Unamortized Debt Issuance Costs (4,116) (4,950) Debt Maturity Schedule ($mm) Mortgages, Net of Unamortized Debt Issuance Costs 442,164 499,697 Loans Payable: $3
Slide 23: Utilization of Capital
Utilization of Capital o Approximately 1,000 units x $75,000 per site = $75,000,000 cost Installation of Rental Units o Average monthly home rent (includes home and site rent charges) as of September 30, 2023 is $922 o New homes expected to rent for over $1,000 per month Building of Expansion Sites
Slide 24: Compelling Valuation with Significant Upside
Compelling Valuation with Significant Upside Equity Market Capitalization 49.0% $927.7 Preferred Stock 14.7% 279.5 Total Equity Capitalization 63.7% $1,207.2 Debt Outstanding 36.3% 686.6 Total Market Capitalization 100.0% $1,893.8 Less: Cash & Cash Equivalents $(38.6) Less: Securities Available for
Slide 25: 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 26: 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 27: 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 28: Appendix
Appendix BAYSHORE ESTATES Sandusky, OH
Slide 29: 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 30: 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 $9.7mm
Slide 31: Value-Add Acquisition
Value-Add Acquisition Case Study Boardwalk and Parke Place (1) Located in Elkhart, IN Number of Sites: 574 Date of Acquisition: January 20, 2017 Purchase Price: $21,222,000 Purchase Price per Site: $38,000 Capitalization Subsequent to Acquisition $7,878,000 (including $6.0mm in rental homes): Total
Slide 32: 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): 148/317 Date of Acquisition: November 15, 1985 Purchase Price: $1,350,000 Purchase Price per Site: $9,000 Capitalization Subsequent to Acquisition: $1
Slide 33: 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 34: Total Return Performance
Total Return Performance 1 Year 3 Year 5 Year 10 Year 34 Source: S&P Global Market Intelligence, as of November 1, 2023.
Slide 35: 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 MANUFACTURED HOME RESORT Tiffin, OH