UMH Properties (UMH) Q3 2024 earnings summary

Executive summary

• Achieved third consecutive quarter of year-over-year normalized FFO growth, with Q3 normalized FFO per diluted share up 9% to $0.24 and year-to-date normalized FFO up 28% to $50.3 million compared to last year.

• Rental and related income rose 8% year-over-year to $51.9 million for Q3 2024, with net income attributable to common shareholders at $8.2 million, reversing a $5.8 million loss in Q3 2023.

• Owns and operates 139 manufactured home communities with 26,200 homesites, including 10,300 rental homes, and expanded joint ventures and opportunity zone investments.

• Strong demand for homes led to increased occupancy, revenue, sales income, and earnings per share.

• Joint venture with Nuveen Real Estate supports accretive development while reducing capital needs.

Financial highlights

• Q3 normalized FFO was $18.5 million or $0.24 per diluted share, up from $14.4 million or $0.22 per share in Q3 2023.

• Rental and related income rose 8% year-over-year to $51.9 million.

• Community NOI increased 7% to $29.4 million for Q3 2024, with same property NOI up 11% year-to-date.

• Total income for Q3 2024 was $60.7 million, up from $56.0 million in Q3 2023; nine-month total income reached $178.7 million, up 9% year-over-year.

• Gross home sales revenue grew 10% to $8.7 million, with gross sales margin up 500 basis points to 38%.

Outlook and guidance

• 2024 normalized FFO guidance tightened to $0.92–$0.94 per diluted share, representing about 8% annual growth at the midpoint over 2023.

• Anticipates $10 million revenue increase in 2025 from 800 new rental homes and another $10 million from 5% annual rent increases.

• Plans to issue 2025 guidance with Q4 and year-end results.

• Management remains optimistic about future sales and rental prospects due to the ongoing need for affordable housing and strong demand for rental homes.