UMH Properties, Inc. Q3 FY2025 earnings call

• Normalized FFO per diluted share for the third quarter of 2025 was $0.25, up 4% year-over-year and 9% sequentially. - The company owns 145 communities with approximately 27,000 developed homesites and 10,800 rental homes, with a 87.2% occupancy rate. - Total revenue for the third quarter of 2025 increased 10% from the same period last year. - Issued $80 million of new 5.85% Series B Israeli bonds. - At quarter end, had approximately $673 million in debt, with 99% fixed rate and a weighted average interest rate of 4.83%. - Acquired 2 Maryland communities and 1 Georgia community year-to-date. - The Marcellus and Utica Shale strategy has led to land appreciation, and there is increased interest in leasing oil and gas rights.

Normalized FFO per diluted share for the third quarter of 2025 was $0.25, an increase of 4% compared to the same period last year and 9% sequentially. Total revenue for the third quarter of 2025 was $66.9 million, up 10% from $60.7 million in the third quarter of 2024. For the 9 months ended September 30, 2025, total income was $194.8 million, an increase of 9% from the prior year period. Rental and related income for the quarter was $57.8 million, a 11% increase from $51.9 million a year ago. Community operating expenses increased 11% during the quarter, resulting in a 11% net increase in community NOI. Same-property income increased by 9% for the quarter, with same-property community NOI increasing by 12%, and same-property NOI increased by $9.2 million for the 9 months ended September 30, 2025.

• Anticipate achieving a 5% annual rent increase, generating $11 million in new revenue. - Aim to install and rent 800 new rental homes, generating an additional $10 million in revenue. - Expect a substantial increase in sales revenue and sales profit. - On track to surpass $250 million in total income in 2025.

• Market uncertainties that could impact business performance. - Fluctuations in interest rates affecting borrowing costs. - Potential regulatory changes that may impact the manufactured housing sector.

Q: Can you provide color on the 4Q acquisition in Georgia and occupancy upside?

A: The property in Albany, Georgia is 130 sites, currently ~30% occupied. The plan is to make immediate improvements, add amenities, and bring in rental homes. Expect rental rates to be in the $1,000 to $1,200 a month range once underway, with substantial occupancy upside potential.

Q: How do share repurchases fit in your capital allocation plan going forward?

A: Part of the plan involves using proceeds from asset sales and preferred stock issuance to fund growth and potentially repurchase stock.

Q: Any update on manufactured home sales quarter-to-date?

A: The sales pipeline is strong, with ~$3 million in October so far. Positioned to beat last year's sales record.

Q: Are the 100 homes on site contributing to the vacancy number?

A: Inventory homes are not included in the occupancy or rental pool until they are rented.