UMH PROPERTIES, INC. Forward Looking Statements
Certain 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. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about the Company's expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, performance and underlying assumptions and other statements that are not historical facts. Forward-looking statements can be identified by their use of forward-looking words, such as "may," "will," "anticipate," "expect," "believe," "intend," "plan," "should," "seek" or comparable terms, or the negative use of those words, but the absence of these words does not necessarily mean that a statement is not forward-looking. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. These and other risks, uncertainties and factors could cause our actual results to differ materially from those included in any forward-looking statements we make. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from our expectations include, among others: changes in the real estate market conditions and general economic conditions; the inherent risks associated with owning real estate, including local real estate market conditions, governing laws and regulations affecting manufactured housing communities and illiquidity of real estate investments; increased competition in the geographic areas in which we own and operate manufactured housing communities; our ability to continue to identify, negotiate and acquire manufactured housing communities and/or vacant land which may be developed into manufactured housing communities on terms favorable to us; our ability to maintain or increase rental rates and occupancy levels; changes in market rates of interest; inflation and increases in costs, including personnel, insurance and the cost of purchasing manufactured homes; our ability to purchase manufactured homes for rental or sale; our ability to repay debt financing obligations; our ability to refinance amounts outstanding under our credit facilities at maturity on terms favorable to us; our ability to comply with certain debt covenants; our ability to integrate acquired properties and operations into existing operations; the availability of other debt and equity financing alternatives; continued ability to access the debt or equity markets; the loss of any member of our management team; our ability to maintain internal controls and processes to ensure all transactions are accounted for properly, all relevant disclosures and filings are made in a timely manner in accordance with all rules and regulations, and any potential fraud or embezzlement is thwarted or detected; the ability of manufactured home buyers to obtain financing; the level of repossessions by manufactured home lenders; market conditions affecting our investment securities; changes in federal or state tax rules or regulations that could have adverse tax consequences; our ability to qualify as a real estate investment trust for federal income tax purposes and risks and uncertainties related to the COVID-19 pandemic or other highly infectious or contagious diseases.
You should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. The forward-looking statements contained in this presentation speak only as of the date hereof and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Recipients are strongly advised to read the Company's filings with the Securities and Exchange Commission because they contain important information.
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Company Highlights
Leading owner and operator of manufactured home communities; leasing manufactured homesites to private residential homeowners
Robust portfolio of 136 manufactured home communities containing approximately 25,800 developed homesites, an increase of 1 community totaling approximately 100 sites from a year ago, located across NJ, NY, OH, PA, TN, IN, MI, MD, AL, SC & GA
Expanding rental portfolio of approximately 10,000 units, an increase of 697 in the last 12 months; anticipate an additional 800 homes this year
Well-positioned for growth with 3,300 existing vacant lots to fill, and over 2,100 vacant acres on which to build approximately 8,500 future lots
Transformative joint venture with Nuveen Real Estate, in which UMH has an ownership in and operates two communities in Florida, allows UMH to pursue accretive development deals while reducing the need for capital
UMH Properties, Inc. ("UMH" or "the Company") is a publicly owned Real Estate Investment Trust ("REIT") operating since 1968 and as a public company since 1985.
SEBRING SQUARE, Sebring, FL
Joint Venture - Acquired in 2021
Sales | Loan | |
& | ||
Wholly-owned | Portfolio | |
Finance | taxable REIT | Approximate $80.5mm |
subsidiary, selling | portfolio of loans, an | |
homes to residents; | increase of $12.7mm | |
353 homes sold over | from a year ago | |
past 12 months |
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Financial information as of March 31, 2024.
Quarterly Accomplishments
Our accomplishments during the first quarter of 2024 include:
- Increased Rental and Related Income by 11%;
- Increased Community Net Operating Income ("NOI") by 16%;
- Increased Normalized Funds from Operations ("Normalized FFO) by 28% and Normalized FFO per diluted share by 10%;
• Increased Same Property Community NOI by 16%;
MELROSE VILLAGE, Wooster, OH
Acquired in 2013
• Increased Same Property Occupancy by 200 basis points from 85.5% to 87.5%;
• Improved our Same Property expense ratio from 42.3% in the first quarter of 2023 to 39.6% at quarter end;
• Subsequent to quarter end, amended our unsecured credit facility to expand available borrowings from $180 million to $260 million syndicated with BMO Capital Markets Corp., JPMorgan Chase Bank, NA and Wells Fargo, N.A.
• Subsequent to quarter end, raised our quarterly common stock dividend by $0.01 representing a 4.9% increase to $0.215 per share or $0.86 annually.
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Portfolio Snapshot
Portfolio Statistics
Total Communities | 136 |
Developed Homesites | 25,800 |
States | 11 |
Portfolio Occupancy | 87.1% |
Average Monthly Site Rent | $528 |
Total Rentals | 10,000 |
Home Rentals as % of Sites | 38.9% |
Home Rental Occupancy | 95.1% |
Additional Acreage to Be Developed | Approx. 2,100 |
Gross Asset Value ($bn) (1) | $1.8 |
Gross Real Estate Book Value ($bn) (2) | $1.6 |
Total Market Capitalization ($bn) | $2.1 |
Acquired prior to 2023: 134 communities and 25,700 sites
Acquired in 2023: 1 community and 100 sites
220 acres to be developed into a manufactured home community Joint Venture:
2 communities and 400 sites
61 acres to be developed into a manufactured home community
Financial information as of March 31, 2024.
(1) Gross asset value based on the book value of total real estate and other assets as of March 31, 2024, plus accumulated depreciation.5
(2) Gross real estate book value is based on the book value of total real estate assets as of March 31, 2024, plus accumulated depreciation.
Marcellus & Utica Shale Region Exposure
-
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 development of the shale regions is expected to accelerate over the next few years.
- Economies in the shale region are expected to benefit from increased employment, wealth of landowners and state and local tax revenues.
- UMH is seeing increased demand for residential units in the region as a result of Marcellus and Utica Shale related activity. Demand for rental homes has increased substantially over the past year. UMH added an additional 56 rental homes during the first three months of 2024.
- With approximately 3,800 acres in existing communities, UMH benefits from significant exposure to the Marcellus and Utica Shale Regions.
Existing Home Communities | Total Acreage |
Shale region Home Community | |
220 acres to be developed into a manufactured home community |
Source: WallStreet Research.
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Favorable U.S. 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% | ||||||||||
69% | |||||||||||
16% | |||||||||||
68% | |||||||||||
12% | |||||||||||
67% | |||||||||||
8% | |||||||||||
66% | |||||||||||
4% | |||||||||||
65% | |||||||||||
0% | |||||||||||
64% | -4% | ||||||||||
63% | -8% | ||||||||||
62% | -12% | ||||||||||
61% | -16% | ||||||||||
60% | -20% | ||||||||||
2001 | 2003 | 2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 | 2021 | 2023 |
20% | ||||||||||||
16% | ||||||||||||
12% | ||||||||||||
8% | ||||||||||||
4% | ||||||||||||
0% | ||||||||||||
-4% | ||||||||||||
-8% | ||||||||||||
-12% | ||||||||||||
-16% | ||||||||||||
2001 | 2003 | 2005 | 2007 | 2009 | 2011 | 2013 | 2015 | 2017 | 2019 | 2021 | 2023 | -20% |
2000 | 2002 | 2004 | 2006 | 2008 | 2010 | 2012 | 2014 | 2016 | 2018 | 2020 | 2022 |
The Cyclicality of Housing
2,000
1,600
1,200
800
400
0
1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
SF Housing Starts | Multi-Family Housing Starts | MH Shipments | 7 | ||
Favorable U.S. 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 significantly higher.
- Once rates do decline, pent up demand could still support an overheated housing market.
- UMH benefits from both selling affordable homes and providing attractive rental options.
- Average cost of manufactured home - $127,000 compared with - $413,000 of a site-built home.
- At UMH, in 1Q24 rentals averaged $951/month and new home sales averaged $162,000.
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Source: Visual Capitalist, Reventure Consulting, Zillow, Case Shiller, BLS, S&P CoreLogic Case-Shiller Home Price Index
Portfolio and Rental Capacity by State
Average | Average | Average | |||||||||||||||
Total | Total Developed Sites | Average | Monthly | ||||||||||||||
Monthly | Total Rentals | Rental | Home | ||||||||||||||
Communities | No. | % | Occupancy | Site Rent | No. | % | Occupancy | Rent | |||||||||
(1) | |||||||||||||||||
Pennsylvania | 53 | 7,968 | 30.9% | 87.2% | $554 | 3,111 | 31.0% | 94.1% | $952 | ||||||||
Ohio | 38 | 7,305 | 28.3% | 87.7% | $485 | 2,932 | 29.4% | 96.3% | $905 | ||||||||
Indiana | 14 | 4,021 | 15.6% | 89.1% | $489 | 1,928 | 19.4% | 94.9% | $943 | ||||||||
New York | 8 | 1,365 | 5.3% | 86.2% | $621 | 476 | 4.8% | 93.9% | $1,109 | ||||||||
Tennessee | 8 | 1,943 | 7.5% | 94.1% | $543 | 910 | 9.3% | 97.6% | $979 | ||||||||
New Jersey | 5 | 1,266 | 4.9% | 96.4% | $705 | 43 | 0.5% | 90.7% | $1,247 | ||||||||
Michigan | 4 | 1,089 | 4.2% | 84.4% | $491 | 382 | 3.4% | 94.0% | $985 | ||||||||
Alabama | 2 | 325 | 1.3% | 40.0% | $190 | 103 | 0.1% | 96.1% | $1,035 | ||||||||
South Carolina | 2 | 322 | 1.2% | 57.8% | $212 | 133 | 1.2% | 85.7% | $1,025 | ||||||||
Georgia | 1 | 118 | 0.6% | 5.9% | $450 | 7 | -0- | 100.0% | $1,046 | ||||||||
Maryland | 1 | 63 | 0.2% | 98.4% | $621 | -0- | -0- | 0.0% | N/A | ||||||||
Total (2) | 136 | 25,785 | 100.0% | 87.1% | $528 | 10,025 | 100.0% | 95.1% | $951 | ||||||||
(1) | Includes home and site rent charges. | 9 |
(2) | Information as of March 31, 2024. |
Portfolio Growth
Total Sites | Rental Units | ||||||||||||||
28,000 | Developed Sites | 12,000 | Rental Units | Occupancy Rate | 98.0% | ||||||||||
No. of Communities | 25,600 | 25,800 | 25,800 | 10,000 | |||||||||||
26,000 | 10,000 | 96.0% | |||||||||||||
24,000 | 136 | 10,000 | |||||||||||||
24,000 | 23,100 | 23,400 | 134 | 135 | 8,300 | 8,700 | 9,100 | 94.0% | |||||||
127 | 8,000 | ||||||||||||||
124 | |||||||||||||||
22,000 | 122 | 7,400 | 92.0% | ||||||||||||
20,000 | 6,000 | 90.0% | |||||||||||||
18,000 | 88.0% | ||||||||||||||
4,000 | |||||||||||||||
16,000 | 86.0% | ||||||||||||||
14,000 | 2,000 | 84.0% | |||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Q1'24 | ||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Q1'24 | ||||||||||
PINE MANOR, Carlisle, PA | 10 | |
Acquired in 1969 | ||
Information as of period ending dates. | ||
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Disclaimer
UMH Properties Inc. published this content on 04 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2024 12:39:05 UTC.
