UMH Properties, Inc. (UMH) Bundle
A Brief History of UMH Properties, Inc.
UMH Properties, Inc. is a real estate investment trust (REIT) that specializes in acquiring and operating manufactured home communities. As of 2024, UMH operates 139 communities across the United States, with a total asset value of approximately $1.5 billion and total liabilities of about $643.1 million.
Financial Performance Overview
For the nine months ending September 30, 2024, UMH reported:
- Rental and related income increased by 9% to $153.8 million from $140.5 million in the same period of 2023.
- Community operating expenses rose by 7% to $65.2 million from $60.8 million year-over-year.
- Net income attributable to common shareholders was $2.4 million, compared to a net loss of $15.6 million for the same period in 2023.
Cash Flow Analysis
The cash flows from operating, investing, and financing activities for the nine months ended September 30, 2024, are as follows:
| Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $54,331 | $91,114 |
| Investing Activities | ($97,014) | ($135,726) |
| Financing Activities | $52,676 | $49,306 |
Occupancy and Rental Rates
As of September 30, 2024, UMH's occupancy rate for its rental homes increased to 94.4%, compared to 94.0% at the end of 2023. The company has raised rental rates by approximately 5% to 6% annually, contributing to an increase in same property occupancy by 70 basis points from 87.0% to 87.7%.
Shareholder Equity and Dividends
As of September 30, 2024, UMH's total shareholders' equity stood at approximately $858.4 million. The company declared dividends totaling $45.3 million during the nine months ended September 30, 2024, with $2.4 million reinvested. The Series D Preferred Stock dividends paid were $14.2 million.
Market Activity and Stock Issuance
During the nine months ending September 30, 2024, UMH issued a total of 9.4 million shares of common stock at a weighted average price of $17.55 per share, generating gross proceeds of $166.0 million. The company also engaged in an At-The-Market (ATM) sales program, which allowed for flexible capital raising.
Debt Management
As of September 30, 2024, UMH had a net debt to total market capitalization ratio of approximately 22%. The weighted average interest rate on total debt was reported at 4.4%, down from 4.7% in the previous year.
Outlook
Despite challenges such as high mortgage rates, UMH remains optimistic about future sales and rental prospects, driven by the fundamental need for affordable housing. The company believes that maintaining a strong portfolio of manufactured home communities positions it well for growth.
A Who Owns UMH Properties, Inc. (UMH)
Major Shareholders
As of 2024, the ownership structure of UMH Properties, Inc. (UMH) is comprised of institutional investors, individual shareholders, and management. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Nuveen Real Estate | Approximately 40% |
| BlackRock, Inc. | Approximately 10% |
| The Vanguard Group, Inc. | Approximately 8% |
| State Street Corporation | Approximately 5% |
| Management and Board Members | Approximately 2% |
Stock Performance
As of September 30, 2024, UMH Properties, Inc. reported the following stock performance metrics:
| Metric | Value |
|---|---|
| Stock Price | $16.50 |
| Market Capitalization | $1.2 billion |
| Dividend Yield | 7.5% |
| Annual Dividends Paid (2024) | $45.3 million |
| Shares Outstanding | 72.75 million |
Recent Financing Activities
In the nine months ended September 30, 2024, UMH Properties raised significant capital through various financing activities:
| Activity | Amount Raised |
|---|---|
| Common Stock ATM Program | $166 million |
| Series D Preferred Stock ATM Program | $15.3 million |
| DRIP (Dividend Reinvestment Plan) | $7.6 million |
Joint Ventures
UMH Properties has established a joint venture with Nuveen Real Estate, which includes the following details:
| Joint Venture Details | Value |
|---|---|
| Equity Interest | 40% |
| Number of Communities Owned | 3 |
| Value of Joint Venture Assets | $50 million |
Financial Overview
As of September 30, 2024, the financial position of UMH Properties is as follows:
| Financial Metric | Value |
|---|---|
| Total Assets | $1.5 billion |
| Total Liabilities | $643.1 million |
| Net Debt to Total Market Capitalization | 22% |
| Net Income (Loss) for Nine Months | $2.4 million |
| Cash and Cash Equivalents | $66.7 million |
Conclusion
UMH Properties, Inc. continues to evolve with a stable ownership structure, significant institutional backing, and a robust financial position as of 2024.
UMH Properties, Inc. (UMH) Mission Statement
Company Overview
UMH Properties, Inc. is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and operation of manufactured home communities. As of September 30, 2024, the Company owned and operated 139 communities, with a total of approximately 9,700 rental homes.
Mission Statement
The mission of UMH Properties, Inc. is to enhance shareholder value through the acquisition and operation of high-quality manufactured home communities while providing affordable housing solutions to families across the United States. The Company aims to achieve sustainable growth by focusing on increasing rental rates, occupancy levels, and community operating efficiencies.
Financial Performance
As of September 30, 2024, UMH Properties, Inc. reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Rental and Related Income | $51.9 million | $48.1 million | +8% |
| Community Operating Expenses | $22.5 million | $20.7 million | +9% |
| Net Income (Loss) Attributable to Common Shareholders | $8.2 million | $(5.8 million) | +241% |
| Net Income (Loss) Per Share | $0.11 | $(0.09) | +223% |
| Occupancy Rate | 94.4% | 94.0% | +0.4% |
Key Operational Highlights
During the nine months ended September 30, 2024, the Company achieved the following operational milestones:
- Increased occupied rental homes from approximately 9,300 to 9,700.
- Raised rental rates by approximately 5% to 6% at most communities.
- Achieved a community net operating income (NOI) of $88.6 million, reflecting an 11% increase from the prior year.
Market Position
UMH Properties, Inc. maintains a strong market position within the manufactured housing sector, focusing on strategic acquisitions and operational efficiencies. The Company has increased its total investment property by 4%, amounting to $1.5 billion as of September 30, 2024.
Debt and Liquidity
The Company's financial strategy emphasizes maintaining liquidity and managing debt effectively. As of September 30, 2024, UMH reported:
| Debt Metric | Amount |
|---|---|
| Total Liabilities | $643.1 million |
| Net Debt to Total Market Capitalization | 22% |
| Available Credit Facility | $260 million |
Dividend Policy
UMH Properties, Inc. continues to prioritize shareholder returns through its dividend policy. The Company declared dividends totaling $14.2 million on its Series D Preferred Stock during the nine months ended September 30, 2024.
Conclusion
UMH Properties, Inc. remains committed to its mission of providing quality manufactured home communities while delivering value to its shareholders through strategic growth and operational excellence.
How UMH Properties, Inc. (UMH) Works
Overview of Operations
UMH Properties, Inc. (UMH) operates as a real estate investment trust (REIT) that focuses on owning and managing manufactured home communities. As of September 30, 2024, the company owns and operates 139 communities, which include 52 unencumbered properties. The company generates income primarily from leasing manufactured home sites and rental homes, as well as from the sale and financing of manufactured homes.
Financial Performance
For the three months ended September 30, 2024, UMH reported rental and related income of $51.9 million, an increase of 8% from $48.1 million in the same period of 2023. For the nine months ended September 30, 2024, the rental and related income increased 9% to $153.8 million from $140.5 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Rental and Related Income | $51.9 million | $48.1 million | $153.8 million | $140.5 million |
| Community NOI | $29.4 million | $27.5 million | $88.6 million | $79.7 million |
| Occupied Rental Homes | 9,700 homes | 9,300 homes | 9,700 homes | 9,300 homes |
| Same Property Occupancy | 87.7% | 87.0% | 87.7% | 87.0% |
Operating Expenses and Net Income
Community operating expenses for the three months ended September 30, 2024, were $22.5 million, compared to $20.7 million in the same quarter of 2023. For the nine months, operating expenses increased from $60.8 million in 2023 to $65.2 million in 2024. The operating expense ratio was 43.3% for Q3 2024 and 42.4% for the nine months ended September 30, 2024.
Sales of Manufactured Homes
Sales of manufactured homes increased 10% for the three months ended September 30, 2024, totaling $8.7 million from 100 homes sold, compared to $7.9 million from 90 homes in Q3 2023. For the nine months, sales rose 6% to $24.9 million from 300 homes sold, up from $23.4 million from 264 homes in the previous year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Sales of Manufactured Homes | $8.7 million (100 homes) | $7.9 million (90 homes) | $24.9 million (300 homes) | $23.4 million (264 homes) |
Interest and Dividend Income
Interest income for the three months ended September 30, 2024, increased to $1.8 million, up from $1.3 million in 2023. The nine-month interest income rose to $4.9 million from $3.7 million. Dividend income decreased by 30% to $357,000 for Q3 2024 and by 38% to $1.1 million for the nine months.
Debt and Financing
As of September 30, 2024, UMH's total liabilities were $643.1 million, with total assets reported at $1.5 billion. The company’s net debt to total market capitalization was approximately 22%. Mortgages payable decreased to $488.3 million, with a weighted average interest rate of 4.21%.
| Debt Metrics | Amount | Interest Rate |
|---|---|---|
| Total Liabilities | $643.1 million | - |
| Total Assets | $1.5 billion | - |
| Mortgages Payable | $488.3 million | 4.21% |
| Net Debt to Market Cap | 22% | - |
Cash Flow and Liquidity
Net cash provided by operating activities was $54.3 million for the nine months ended September 30, 2024, compared to $91.1 million in 2023. As of September 30, 2024, the company had cash and cash equivalents of $66.7 million and marketable securities valued at $34.2 million.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash from Operating Activities | $54.3 million | $91.1 million |
| Cash and Cash Equivalents | $66.7 million | - |
| Marketable Securities | $34.2 million | - |
Investment Strategies
UMH continues to seek opportunities for growth through its joint venture with Nuveen Real Estate, focusing on acquiring manufactured housing communities that require capital improvements and are located in opportunity zones. The company has plans to enhance its portfolio by preparing sites for additional homes and improving existing properties.
How UMH Properties, Inc. (UMH) Makes Money
Revenue Streams
UMH Properties, Inc. generates revenue primarily from the following sources:
- Rental and related income from manufactured home communities
- Sales of manufactured homes
- Interest income from financing arrangements
- Management and other fees
- Dividend income and gains from marketable securities
Rental and Related Income
For the three months ended September 30, 2024, UMH reported rental and related income of $51.9 million, an increase of 8% from $48.1 million in the same period of 2023. For the nine months ended September 30, 2024, this income rose to $153.8 million, a 9% increase from $140.5 million in 2023. This growth is attributed to:
- Increased rental rates (approximately 5% to 6% annually)
- Improved occupancy rates, which rose to 87.7% from 87.0% year-over-year
- Expansion in the number of occupied rental homes, increasing from approximately 9,300 to 9,700
Sales of Manufactured Homes
Sales of manufactured homes also contributed significantly to UMH's revenue. For the three months ended September 30, 2024, sales totaled $8.7 million from 100 homes, compared to $7.9 million from 90 homes in 2023, reflecting a 10% increase. For the nine months ended September 30, 2024, sales increased to $24.9 million from $23.4 million, marking a 6% rise. The gross profit percentage from these sales improved to 38% for the three months ended September 30, 2024, up from 33% in 2023.
Interest Income
Interest income saw a substantial increase, totaling $1.8 million for the three months ended September 30, 2024, up 39% from $1.3 million in 2023. For the nine-month period, interest income increased by 33% to $4.9 million from $3.7 million. This rise was driven by an increase in the average balance of notes receivable from $68.9 million to $79.2 million year-over-year.
Marketable Securities
UMH also engages in trading marketable securities, which contributed to its financial results. The company recognized a loss on sales of marketable securities of $3.8 million for the nine months ended September 30, 2024, compared to a gain of $226,000 for the same period in 2023. The net unrealized losses in its REIT securities portfolio stood at $36.2 million as of September 30, 2024.
Operating Expenses and Net Operating Income (NOI)
Community operating expenses for the three months ended September 30, 2024, were $22.5 million, up 9% from $20.7 million in 2023. However, Community NOI increased by 7% to $29.4 million for the three months ended September 30, 2024, compared to $27.5 million the previous year. For the nine-month period, Community NOI rose 11% to $88.6 million from $79.7 million.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Rental and Related Income | $51.9 million | $48.1 million | $153.8 million | $140.5 million |
| Sales of Manufactured Homes | $8.7 million | $7.9 million | $24.9 million | $23.4 million |
| Interest Income | $1.8 million | $1.3 million | $4.9 million | $3.7 million |
| Community Operating Expenses | $22.5 million | $20.7 million | $65.2 million | $60.8 million |
| Community NOI | $29.4 million | $27.5 million | $88.6 million | $79.7 million |
| Net Unrealized Losses in REIT Securities | $36.2 million | N/A | $36.2 million | N/A |
Dividends and Preferred Stock
Dividends paid on common stock for the nine months ended September 30, 2024, totaled $45.3 million, while dividends paid on the Series D Preferred Stock amounted to $14.2 million. The weighted average price of common stock sold through At-The-Market offerings was $17.55, generating gross proceeds of $166 million during the nine months ended September 30, 2024.
Future Outlook
UMH intends to continue expanding its real estate investments, with a focus on acquiring communities that yield returns exceeding its cost of funds. The company is also actively seeking opportunities in qualified opportunity zones and through joint ventures to enhance its portfolio and revenue streams.
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Resources:
- UMH Properties, Inc. (UMH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of UMH Properties, Inc. (UMH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View UMH Properties, Inc. (UMH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.