UMH Properties (UMH) Q2 2024 earnings summary

Executive summary

• Owns and operates 136 manufactured home communities with 25,800 sites across 11 states, focusing on affordable housing and rental growth, with joint ventures in Florida and Pennsylvania.

• Rental portfolio expanded to 10,100 homes, with 500 added in the last year and 95% occupancy; plans for 800 more in 2024.

• Achieved year-over-year Normalized FFO per share growth of 10% to $0.23, and sequential growth of 5% from Q1 2024.

• Strong demand in Marcellus and Utica Shale regions is driving increased occupancy and rental home additions.

• Sustainability initiatives include renewable energy contracts, solar technology, and a new ESG subcommittee.

Financial highlights

• Q2 2024 rental and related income rose 9% year-over-year to $51.5 million; manufactured home sales up 7% to $8.8 million, with gross margin up from 30% to 38%.

• Community NOI increased 11% year-over-year to $29.9 million; same property NOI also up 11%.

• Net income attributable to common shareholders was $527,000 in Q2 2024, reversing a $4.4 million loss in Q2 2023.

• Operating expense ratio improved to 41.9% from 42.6% last year.

• Over the past five years, total revenue grew 60%, community NOI 78%, and normalized FFO 99%.

Outlook and guidance

• Full-year 2024 Normalized FFO guidance set at $0.91–$0.95 per diluted share, midpoint $0.93, representing 8% growth over 2023.

• Assumes 5% rent increases, occupancy of 400 new rental units in H2 2024, and $110–$120 million capital needs.

• Guidance excludes potential acquisitions, dispositions, and new development projects.

• Projecting continued occupancy, revenue, and earnings growth, with 800 new rental units expected to be added.

• No mortgage refinancings planned for 2024; $117 million expected to be refinanced in 2025.