So we’re working on that to make some of the assets that are not currently earning income to make them productive for us because we have 2,100 vacant acres not earning anything. And I think we have $200 million invested in vacant rental homes, expansions and other things that are not yet earning money. So we have all of those internal things to grow, and we’re trying to balance that issue with acquisitions.

• UMH deploys capital into projects that take time to come online and become profitable.
• And then again, I consider that ratio, operating expense ratio, extremely important because that’s your profitability.
• Community operating expenses increased 6% during the quarter.
• So we’re proud that our operating income went up so much with just a 5% increase to our existing residents.
• Some of UMH’s communities have extra amenities that you might expect to see in apartments such as a community pool and community gym.
• The consensus among Wall Street equities research analysts is that investors should “moderate buy” UMH shares.

Over the years, the company has acquired a good mix of developed properties as well as unbuilt land and it was able to triple the amount of sites it owns and manages since 2010 through these acquisitions. There is little reason to expect this trend to change anytime soon since the company’s cash flow levels remain healthy and its liquidity levels are strong. Perhaps its acquisitions might be a bit slower for the next couple years due to high inflation rates but they should go back to accelerating after rates are back to normal levels especially if it can come across some discounted deals. UMH is well positioned to succeed now and into the future.

UMH PROPERTIES, INC. REPORTS RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2023

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And they’re the communities, one of them has 1% occupancy. We purchased them that way knowing we’d fill them and we, in fact, are filling them. And so that investment is not currently earning money. But as it fills up, it will hit a break-even point and then it will become profitable. And those communities, 87% occupied or more, every new unit is like 70% additional profit.

But on existing, we really try to limit that to the 5% increase. So for the first 6 months of the year, we converted 614 new homes from inventory to rental units. I do realize that the number in the supp is 534, but that also includes some rental homes that were sold during the quarter. And Sam here, and I think now is a good point to mention the decline in the expense ratio. Additionally, we entered into a new $25 million line of credit secured by rental homes and their leases.

The ex-dividend date of this dividend is Monday, August 14th. Supported by world-class markets data from Dow Jones and FactSet, and partnering with Automated Insights, MarketWatch Automation brings you the latest, most pertinent content at record speed and with unparalleled accuracy. So the combination of both of those allow us to get a portion of it stabilized and allow us to generate some of the long-term growth opportunity that we’ve seen before.

Valuation-wise, we can look at a few metrics to value a REIT. One of them is dividend yield which I mentioned above. For example the company is doing better than most of its peers in Price to Sales metric but it’s higher than its peers in Price to Cash Flow.

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UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate. We are in a position to grow UMH on a national level and implement our proven business model in new markets. We have internal growth opportunities through the occupancy of our vacant sites, increase in rents and through the development of our vacant land. We are well positioned to grow income and per-share earnings through the successful implementation of our proven business plan.

And that’s what I was getting at earlier with my point about stacking quarters. As we get to the fourth quarter, which as you pointed out, is seasonally a little bit slower, we expect to fill rental units and continue to reduce our inventory. But you’ll have the rent roll growth that we achieved during the first, second and third quarters, which are helping to boost that fourth quarter number as well.

This new line of credit also has a 5-year term and has a variable rate tied to prime. We view this as a good short-term source of capital to invest in our rental program until we are able to secure long-term capital at more advantageous rates. We are pleased to have another line secured by our rental units.

UMH Properties started at outperform with $27.50 stock price target at Wedbush

UMH deploys capital into projects that take time to come online and become profitable. At any given time, we have $100 million or more invested that is not yet income-producing. It’s important to recognize that earnings per share are an important metric, but not the only important metric. We also had $99.7 million available on our other lines of credit for the financing of home sales and the purchase of inventory and rental homes. The weighted average interest rate on our mortgage debt was 3.88% at quarter end compared to 3.77% at quarter end last year. The weighted average maturity on our mortgage debt was 5.2 years at quarter end and 4.9 years at quarter end last year.

Of course we can’t expect the company to be able to hike rates at that rate forever. As inflation rate returns back to long term average of 2%, the company’s rent hikes are likely to stabilize around 3-4% as we see in most residential REITs. There are also cases where the company could acquire a site that is in less than perfect shape, fix up the place, add more amenities and hike rents as a result of improving the property significantly. These actions can drive further revenue growth for the company as long as it’s done strategically. As our real estate increases in value, we should be able to recapture this trapped equity through refinancing.

And see no reason to believe that, that should slow down anytime soon. So new inventory that was actually converted was 614 homes. So we are averaging over 100 homes per month and that includes the slow first quarter, which is obviously the winter and it’s seasonal, as you mentioned earlier.

Our same-property expense ratio decreased from 42% last year to 40% for the second quarter of 2023. The company owns a lot of sites in Pennsylvania, Ohio and western New York. This area is known as Marcellus & Utica Shale Region which is one of the largest and potentially most productive natural gas fields. There is a lot of development in this area with more to come. The company’s management seems to believe that UMH will benefit greatly from this development since it will provide thousands of high paying jobs where many of its sites are located. This could increase the overall economic activity in the area which could result in higher overall demand for housing and higher rent prices overall but we will have to wait and see if it actually materializes.

UMH Properties Inc. UMH (U.S.: NYSE)

The stock’s current dividend yield of 5.46% is pretty decent and significantly above what it was just a year ago (about 3%) but it’s still slightly below its long-term average of 6%. Meanwhile, after shying away from raising its dividends for several years, the company finally started to hike its dividends again a couple years ago. Once a manufactured home is installed on a lot, it is incredibly difficult and expensive to move it to another lot, so most people who own these types of homes don’t move around much unless they sell their home and buy another one. This allows the company to generate stable and predictable levels of income each year with very few fluctuations. In addition to collecting rent from its land lots, UMH Properties also has a subsidiary that sells manufactured homes to interested people which could add fuel to the company’s future growth.

View analysts price targets for UMH or view top-rated stocks among Wall Street analysts. And not all but almost all of the managers say yes, which means on those rental homes, you’re going to get growth over 5%. Every month that we fill 100 homes, it’s basically another $100,000 in revenue. You add our rent increases on top of that, our monthly rent roll is growing anywhere from $125,000 to $175,000 a month.

Same-property occupancy is now 87.9% as compared to 86% last year. Our same-property rental home occupancy increased from 93.4% at year-end to 94.1% at the end of the second quarter. Our same-property monthly rent trading fractals per site increased 4.7%, and our same-property monthly rent per home increased by 7% over the second quarter of last year. And as I mentioned earlier that, that also includes some sales of older rental units.

And the proper number is probably below 500 homes, and we’re approaching that right now. We view ourselves as an important piece of the affordable housing solution. We have a product and model that has proven to work time and time again.

UMH PROPERTIES, INC. WILL HOST FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS WEBCAST AND CONFERENCE CALL

Demand throughout our portfolio remains strong as evidenced by our monthly rent roll and occupancy growth. For the first two months of the third quarter, approximately 234 rental homes in inventory were occupied, making them income producing, and 25 new homes were sold, creating additional site rent. This resulted in an increase in overall occupancy of approximately 167 units. Year-to-date, approximately 845 rental homes in inventory were rented, making them income producing, and 108 new homes were sold. UMH Properties, Inc. operates as a real estate investment trust.

All of these growth initiatives provide long-term value for our shareholders and should continue to result in a growing dividend and stock price. The rapid occupancy of inventory should result in the further acceleration of our revenue growth this year. We are pleased with our high single-digit percentage increase in same-property NOI for the first 6 months of 2023 and our double-digit percentage increase in same-property NOI for the second quarter of 2023.

Research & Ratings UMH Properties Inc.(UMH)

During the quarter, we sold 91 total homes, of which 43 were new homes. Our average new home sales price was $141,000, and our average used home sale price was $45,000. The company buys large empty land and cuts them into lots to prepare them to accommodate manufactured or mobile homes.

Our mission statement is — for the entire industry is to build 500 new communities a year, of 200 units per community. The manufactured housing industry can double its production and provide 100,000 units, and that would be just the beginning of helping to solve the affordable housing crisis. And so we’re doing everything in our power to be able to grow our company and to build these additional homes.

Just kind of curious where your top-of-funnel demand is today versus this time last year just to get a better feel for where true demand levels are at. We pass on opportunities all of the time and substantial opportunities all of the time. And now Anna will provide you with greater detail on our results for the quarter and for the year. Upgrade to MarketBeat All Access to add more stocks to your watchlist. The company is scheduled to release its next quarterly earnings announcement on Tuesday, November 14th 2023.

Additionally, we had $36.7 million in our REIT securities portfolio unencumbered. This portfolio represents only approximately 2.1% of our undepreciated assets. We are committed to not increasing our investments in this REIT securities portfolio and have, in fact, sold certain positions. In addition, during today’s call, we will be discussing non-GAAP financial metrics. In addition to the 10-Q that we filed with the SEC yesterday, we have filed an unaudited second quarter supplemental information presentation. This supplemental information presentation, along with our 10-Q, are available on the company’s website at umh.reit.

This increase in occupancy, together with rent increases implemented throughout the year, generated an increase in monthly rental charges of approximately $243,000 as of September 1, 2023, compared to August 1, 2023. For the first two months of the quarter, monthly rental charges increased by $377,000. Year-to-date, monthly rental charges have increased by $1.2 million. At the start of this year, our inventory was over 1,000 homes and has been substantially reduced over the last eight months. Our current inventory is approximately 488 homes, which is still above our normal levels, but is continuing to rapidly decrease as we continue to fill over 100 homes a month.