UMH Properties, Inc. Q4 FY2025 earnings call

• 2025 was a strong year with continued operational excellence, strategic growth, and solid financial performance.
• Made progress in increasing portfolio value, driving occupancy gains, breaking sales record, growing through acquisitions, and positioning for future growth.
• Refinanced 17 communities for $193.2 million, appraised at $309 million (121% increase from original investment).
• Issued $80.2 million in 5.85% bonds, repurchased 320,000 shares, realized $5.7 million from sale of Realty Income shares.
• Rental and related income grew 10% to $226.7 million; total revenue including home sales grew 9% to $261.8 million.
• Same property revenue grew 8.2% and same property NOI grew 9% in 2025, driven by site rent increases and occupancy gains.
• Added and rented 717 new homes, with rental home inventory at ~11,000 units and 93.8% occupancy.
• Acquired 5 communities, opened Honey Ridge greenfield development, and made progress on expansions and entitlements.

Rental and related income grew to $226.7 million for the year, representing a 10% increase. Total revenue including home sales was $261.8 million for the year, up 9% from last year. Normalized FFO was $0.24 per share in Q4 2025 vs $0.24 in prior year; full-year 2025 normalized FFO was $0.95 per share vs $0.93 in 2024, a 2% increase. Gross normalized FFO increased 7% for Q4 and 15% for the year. Same property revenue growth was 8.2% ($16.9 million) and same property NOI growth was 9% ($11.1 million) in 2025. Rental home inventory was ~11,000 units with 93.8% occupancy. Home sales generated gross revenue of $36.4 million in 2025, up 9% from 2024. Acquired 5 communities in 2025, adding 587 developed home sites.

• Announced 2026 normalized FFO guidance in range of $0.97 to $1.05 per share, representing an increase of approximately 2% to 10%.
• Anticipate strong earnings growth in 2026, with factors like organic growth from acquisitions, community improvements, joint ventures, and Opportunity Zone Fund contributing to FFO growth.

• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, detailed in earnings release and SEC filings.
• Risks include factors affecting home sales, capital raising, and potential impacts of economic or legislative changes on the business.

Q: Ask about rental versus home sale strategy and sweet spot in portfolio.

A: Rentals create buyers and fill sites quicker. Some communities 100% rental, some almost zero. As a company, likely 50% rentals.

Q: On same store performance and elevated expenses in Q4.

A: Elevated snow removal, overtime, tree removal, real estate tax and insurance increases. Normal quarter without bad winter expected in 10% range.

Q: On home prices, supply chain issues.

A: Prices similar to recent years. Factory backlogs in good shape, though snowy winter slows sets. Demand strong for sales and rentals.

Q: On guidance and what's holding back FFO per share.

A: Could be home sales worse than anticipated or capital raising. Guidance range is worst case and best case, not conservative or overly optimistic.

Q: On rental homes outlook timing.

A: Not evenly spread, seasonal. First quarter affected by cold temps, but 100 homes ready, 380 being set up. Majority growth in second and third quarters.

Q: On acquisition opportunities.

A: Acquisition market competitive, looking at smaller portfolio and one-off opportunities. Happy with 5 communities acquired in 2025.

Q: On new home sales contribution and scale.

A: Sales difficult to predict, but have more available expansion sites.

Q: On delinquency and bad debt outlook.

A: Collections strong (98.5% range), write-offs ~1% of rental and related income.

Q: On selling securities portfolio and continuation.

A: Have $100 million buyback, timing depends on acquisitions and investments. Intend to eventually take down securities program to zero but currently keep $26 million available for liquidity.