Core Insights - UMH Properties, Inc. will participate in the U.S. Department of Housing and Urban Development's annual Innovative Housing Showcase for the fifth consecutive year, starting on September 6, 2025 [1][2] Company Overview - UMH Properties, Inc. is a public equity REIT established in 1968, owning and operating 144 manufactured home communities with approximately 26,800 developed homesites, including 10,600 rental homes and over 1,000 self-storage units [2] - The communities are located across multiple states, including New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida, and Georgia [2] Event Participation - At the Innovative Housing Showcase, UMH will present three advanced manufactured homes in collaboration with Ritz-Craft Homes, Champion Homes, and Cavco Industries, showcasing innovations in design, efficiency, and affordability [2] - One highlighted home features an integrated solar shingle roofing system and home energy storage solution developed in partnership with GAF Energy, aimed at reducing energy costs and promoting sustainability [2] - The event provides an opportunity for lawmakers, policymakers, and the public to experience modern housing solutions addressing the affordable housing crisis [2]

Group 1 - The conference call is for UMH Properties' Second Quarter 2025 Earnings, with key participants including the Executive VP, CFO, and CEO [1][2] - The company has filed an unaudited second quarter supplemental information presentation along with its 10-Q with the SEC, which is available on its website [3] - Forward-looking statements made during the call are based on current expectations and involve various risks and uncertainties, with no assurance that these expectations will be achieved [4]

Financial Data and Key Metrics Changes - Normalized FFO for Q2 2025 was $0.23 per share, unchanged from Q2 2024, with overall normalized FFO increasing by 16% or $2.6 million for the quarter and 20% or $6.4 million for the year [5][20] - Earnings per share were impacted by the issuance of $101.4 million of new GSE debt at a 5.855% interest rate [6] - The company increased its quarterly common stock dividend by 4.7%, from $0.02 to $0.025 per share, marking five consecutive years of dividend increases totaling a 25% increase [5][6] Business Line Data and Key Metrics Changes - Total revenue increased from $60.3 million in Q2 2024 to $66.6 million in Q2 2025, representing a 10% increase [11] - Rental and related income rose by 9% year-over-year, while community NOI increased by 119% for the six months ended June 30, 2025 [12][21] - Sales of manufactured homes reached a record $10.5 million for the quarter, with a 196% increase year-over-year [13] Market Data and Key Metrics Changes - The company operates 144 communities with 12,300 home sites, including 10,600 rental homes [10] - The Marcellus and Utica Shale strategy has led to significant appreciation in land and community values, supported by local energy projects [10][11] - The company reported an industry-leading total return of 17% over two years and 76.7% over five years [11] Company Strategy and Development Direction - The company is focusing on increasing affordable housing supply and is optimistic about legislative changes that could enhance growth opportunities [29][30] - There is a commitment to Greenfield development and joint ventures to enhance cash flows and operational results [15] - The company plans to actively pursue acquisitions and has $150 million available for growth initiatives [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the low end of prior guidance, citing strong demand for homes and potential increases in sales due to favorable financing conditions [35][36] - The company anticipates continued growth in rental income and occupancy rates, with expectations for same property NOI to increase [76][77] - Management highlighted the importance of recent HUD initiatives aimed at improving financing for manufactured housing, which could significantly impact sales [79][80] Other Important Information - The company ended the quarter with $79.2 million in cash and $260 million available on its unsecured revolving credit facility [27] - The weighted average interest rate on total debt was 4.63%, with 99% of the debt being fixed rate [22][23] - The company is committed to not increasing investments in its REIT securities portfolio and has been selling certain positions [28] Q&A Session Summary Question: Is the company withdrawing its prior guidance? - Management indicated that the low end of the prior guidance should hold, emphasizing confidence in the manufactured housing market and potential for increased sales [35][36] Question: What are the drivers of confidence in guidance? - Management noted that confidence stems from expected increases in rental income and potential sales growth, with a focus on operational performance [36][39] Question: How are new home prices trending? - Prices of new homes have remained stable, with strong demand for rental homes and ongoing setup of new units [40][42] Question: What is the expected CapEx for community upgrades? - The capital budget for community upgrades is approximately $20 million, focusing on infrastructure improvements [46][49] Question: What is the outlook for same property operating expenses? - Same property operating expenses are expected to grow in the 5% to 7% range, with a decrease noted in the second quarter [75][76] Question: How is the sales pipeline trending? - The sales pipeline is currently over $5 million, indicating strong sales momentum and positive demand for new homes [85][86]

Company Overview - UMH Properties Inc is a leading owner and operator of manufactured home communities, with a portfolio of 144 communities across 12 states, containing approximately 26,800 developed homesites[8] - The company has a growing rental portfolio of approximately 10,600 units, reflecting an increase of 500 homes in the last 12 months, and anticipates adding an additional 700-800 homes this year[8] - UMH has a $95.3 million loan portfolio with a weighted average interest rate of approximately 7.1%, generating approximately $13.9 million in principal and interest payments annually[10,65] Financial Performance - Same Property Occupancy increased by 80 basis points from 87.4% to 88.2%[16] - Rental and Related Income increased by 9%, Sales of Manufactured Homes increased by 19%, Community Net Operating Income ("NOI") increased by 11%, and Normalized Funds from Operations ("Normalized FFO") increased by 16%[18] - The company completed the addition of ten communities to its Fannie Mae credit facility through Wells Fargo Bank, N A, for total proceeds of approximately $101.4 million at a fixed rate of 5.855% with a 10-year term[18] Portfolio and Growth - The company's gross asset value is $2.1 billion, with a gross real estate book value of $1.8 billion and a total market capitalization of $2.4 billion[21] - UMH has approximately 2,300 vacant acres on which to build approximately 9,200 future lots[8] - The company issued and sold approximately 1.8 million shares of Common Stock through its At-the-Market Sale Program at a weighted average price of $17.60 per share, generating gross proceeds of $31.0 million and net proceeds of $30.3 million[18] Future Outlook - The company is well-positioned for growth with 3,100 existing vacant lots to fill[8] - UMH anticipates overall capital needs to fund rental home purchases, notes, expansions, and improvements of approximately $120 - $150 million for the year[109] - The company's 2025 guidance for Normalized FFO Per Share is in the range of $0.96 to $1.04[106]

Core Viewpoint - UMH Properties reported a revenue increase of 10.5% year-over-year for Q2 2025, with earnings per share (EPS) showing significant improvement compared to the previous year, although it fell short of consensus estimates [1]. Financial Performance - Revenue for the quarter was $66.64 million, exceeding the Zacks Consensus Estimate of $66.16 million by 0.74% [1]. - EPS for the quarter was $0.23, a notable increase from $0.01 in the same quarter last year, but below the consensus estimate of $0.25, resulting in an EPS surprise of -8% [1]. - Sales of Manufactured Homes reached $10.48 million, surpassing the two-analyst average estimate of $10.17 million, reflecting an 18.6% year-over-year increase [4]. - Rental and Related Income was reported at $56.17 million, slightly above the estimated $55.99 million, marking a 9.1% increase compared to the previous year [4]. - Diluted Net Income Per Share was $0.03, which was lower than the estimated $0.04 by three analysts [4]. Stock Performance - Over the past month, UMH shares have returned -2.4%, contrasting with a +0.5% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3].

分组1 - UMH Properties reported quarterly funds from operations (FFO) of $0.23 per share, missing the Zacks Consensus Estimate of $0.25 per share, representing an FFO surprise of -8.00% [1] - The company posted revenues of $66.64 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.74%, compared to year-ago revenues of $60.33 million [2] - UMH has not surpassed consensus FFO estimates in the last four quarters, although it has topped consensus revenue estimates twice during the same period [2] 分组2 - The stock has underperformed, losing about 11.9% since the beginning of the year, while the S&P 500 gained 7.1% [3] - The current consensus FFO estimate for the coming quarter is $0.26 on revenues of $67.22 million, and for the current fiscal year, it is $1.00 on revenues of $262.77 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Residential is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for the sector [8]

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) The company reported strong financial performance with significant increases in net income, FFO, and total assets, alongside operational growth in communities and sites Operating Information (Six Months Ended June 30) | Metric | June 30, 2025 | June 30, 2024 | Change | | :-------------------------- | :-------------- | :-------------- | :----- | | Number of Communities (count) | 142 | 136 | +6 | | Total Sites (count) | 26,821 | 25,787 | +1,034 | | Rental and Related Income | $110.74 million | $101.82 million | +8.76% | | Community Operating Expenses | $46.08 million | $42.69 million | +7.93% | | Community NOI | $64.66 million | $59.13 million | +9.36% | | Expense Ratio (%) | 41.6% | 41.9% | -0.3% | | Sales of Manufactured Homes | $17.13 million | $16.19 million | +5.83% | | Number of Homes Sold (count) | 173 | 200 | -13.5% | | Number of Rentals Added, net (count) | 237 | 167 | +41.92% | Income Statement Highlights (Six Months Ended June 30) | Metric | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Net Income | $12.42 | $3.56 | +249.13% | | Net Income (Loss) Attributable to Common Shareholders | $2.26 | $(5.74) | N/A (from loss to profit) | | Adjusted EBITDA excluding Non-Recurring Other Expense | $60.75 | $55.01 | +10.42% | | FFO Attributable to Common Shareholders | $36.88 | $30.23 | +21.98% | | Normalized FFO Attributable to Common Shareholders | $38.27 | $31.82 | +20.25% | Per Share Data (Six Months Ended June 30) | Metric | June 30, 2025 (USD) | June 30, 2024 (USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Net Income (Loss) Attributable to Shareholders per Share (Basic and Diluted) | $0.03 | $(0.08) | N/A (from loss to profit) | | FFO per Share (Basic and Diluted) | $0.44 | $0.43 | +2.33% | | Normalized FFO per Share (Basic and Diluted) | $0.46 | $0.45 | +2.22% | | Dividends per Common Share | $0.44 | $0.42 | +4.76% | Balance Sheet Highlights (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in billions USD) | December 31, 2024 (in billions USD) | Change | | :-------------------------------------- | :-------------- | :---------------- | :----- | | Total Assets | $1.62 | $1.56 | +3.85% | | Total Liabilities | $0.69 | $0.65 | +6.55% | | Total Market Capitalization | $2.40 | $2.48 | -3.14% | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The company's balance sheet shows an increase in total assets, primarily driven by investment property and land development, alongside a rise in total liabilities due to higher mortgages payable - As of June 30, 2025, UMH Properties, Inc. reported an increase in **total assets**, primarily driven by growth in **investment property and equipment**, and **land development costs**; **total liabilities** also increased, mainly due to higher **mortgages payable**[8](index=8&type=chunk) Balance Sheet Overview (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 (in billions USD) | December 31, 2024 (in billions USD) | Change | | :----------------------------------- | :------------------------ | :------------------ | :----- | | **ASSETS** | | | | | Net Investment Property and Equipment | $1.27 | $1.23 | +3.36% | | Cash and Cash Equivalents | $0.08 | $0.10 | -20.54% | | Inventory of Manufactured Homes | $0.04 | $0.03 | +10.60% | | Land Development Costs | $0.06 | $0.03 | +83.24% | | TOTAL ASSETS | $1.62 | $1.56 | +3.85% | | **LIABILITIES** | | | | | Mortgages Payable, net | $0.53 | $0.49 | +9.19% | | Total Liabilities | $0.69 | $0.65 | +6.55% | | **SHAREHOLDERS' EQUITY** | | | | | Total UMH Properties, Inc. Shareholders' Equity | $0.93 | $0.91 | +1.96% | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1.62 | $1.56 | +3.85% | [Consolidated Statements of Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) The company achieved substantial growth in total income and a significant increase in net income, moving from a loss to a profit attributable to common shareholders, despite rising operational and depreciation expenses - For the six months ended June 30, 2025, UMH Properties, Inc. experienced significant growth in **total income**, primarily driven by **rental and related income**; **net income** saw a substantial increase, moving from a **loss to a profit attributable to common shareholders**, despite rising **operating and depreciation expenses**[9](index=9&type=chunk) Income Statement (Six Months Ended June 30) | Item | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Rental and Related Income | $110.74 | $101.82 | +8.76% | | Sales of Manufactured Homes | $17.13 | $16.19 | +5.83% | | TOTAL INCOME | $127.87 | $118.01 | +8.35% | | Community Operating Expenses | $46.08 | $42.69 | +7.93% | | Cost of Sales of Manufactured Homes | $11.47 | $11.02 | +4.10% | | Selling Expenses | $3.46 | $3.39 | +2.12% | | General and Administrative Expenses | $12.26 | $10.87 | +12.70% | | Depreciation Expense | $32.40 | $29.74 | +8.94% | | TOTAL EXPENSES | $105.66 | $97.72 | +8.14% | | Interest Income | $4.32 | $3.07 | +40.92% | | Loss on Sales of Marketable Securities, net | $0.00 | $(3.78) | N/A (no loss) | | Increase (Decrease) in Fair Value of Marketable Securities | $(1.74) | $(2.03) | +14.57% (less negative) | | Interest Expense | $(13.30) | $(14.85) | -10.39% (less expense) | | NET INCOME | $12.42 | $3.56 | +249.13% | | NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $2.26 | $(5.74) | N/A (from loss to profit) | | NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS PER SHARE – Basic and Diluted (USD) | $0.03 | $(0.08) | N/A (from loss to profit) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow slightly decreased, while investing activities saw a significant increase in cash usage, offset by a substantial rise in cash provided by financing activities - For the six months ended June 30, 2025, **net cash provided by operating activities** slightly decreased; however, **net cash used in investing activities** significantly increased due to higher **purchases of manufactured home communities** and **investment property**; **net cash provided by financing activities** saw a substantial increase, driven by **proceeds from mortgages** and **common equity programs**[10](index=10&type=chunk) Cash Flow Activities (Six Months Ended June 30) | Item | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Net Cash Provided by Operating Activities | $37.20 | $37.61 | -1.09% | | Net Cash Used in Investing Activities | $(100.65) | $(58.76) | +71.29% (more cash used) | | Net Cash Provided by Financing Activities | $42.13 | $7.60 | +454.42% | | NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $(21.33) | $(13.55) | +57.34% (larger decrease) | | CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $87.48 | $50.88 | +71.94% | - Key Investing Activities: **Purchase of Manufactured Home Communities**: **$(25.37 million)** in 2025 vs. $0 in 2024; **Purchase of Investment Property and Equipment**: **$(50.49 million)** in 2025 vs. **$(41.05 million)** in 2024; **Additions to Land Development Costs**: **$(25.31 million)** in 2025 vs. **$(18.25 million)** in 2024[10](index=10&type=chunk) - Key Financing Activities: **Proceeds from Mortgages, net**: **$101.39 million** in 2025 vs. $0 in 2024; **Proceeds from At-The-Market Common Equity Program, net**: **$39.57 million** in 2025 vs. **$56.48 million** in 2024; **Principal Payments of Mortgages and Loans**: **$(55.19 million)** in 2025 vs. **$(5.92 million)** in 2024[10](index=10&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA excluding Non-Recurring Other Expense and Net Income (Loss) Attributable to Common Shareholders to FFO and Normalized FFO](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20excluding%20Non-Recurring%20Other%20Expense%20and%20Net%20Income%20(Loss)%20Attributable%20to%20Common%20Shareholders%20to%20FFO%20and%20Normalized%20FFO) This section reconciles GAAP net income to Adjusted EBITDA, FFO, and Normalized FFO, providing non-GAAP insights into the company's operational and financial performance [Reconciliation of Net Income to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) For the six months ended June 30, 2025, Adjusted EBITDA excluding Non-Recurring Other Expense increased by 10.42% year-over-year, reflecting improved operational performance after adjusting for non-cash items and non-recurring expenses - Non-GAAP financial measures like **FFO**, **Normalized FFO**, **Community NOI**, **Same Property Community NOI**, and **Adjusted EBITDA** are utilized by investors and analysts as supplemental performance measures, providing insights into real estate asset values, rental operations, and ability to incur and service debt[32](index=32&type=chunk) - **Adjusted EBITDA excluding Non-Recurring Other Expense** is calculated as **net income (loss)** plus **interest expense**, **franchise taxes**, **depreciation**, the **change in the fair value of marketable securities**, and **gain (loss) on sales of marketable securities**, adjusted for **non-recurring other expenses**[37](index=37&type=chunk) Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Item | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Net Income | $12.42 | $3.56 | +249.13% | | Interest Expense | $13.30 | $14.85 | -10.39% | | Depreciation Expense | $32.40 | $29.74 | +8.94% | | (Increase) Decrease in Fair Value of Marketable Securities | $1.74 | $2.03 | -14.57% | | Loss on Sales of Marketable Securities, net | $0.00 | $3.78 | N/A (no loss) | | Adjusted EBITDA | $60.59 | $54.58 | +11.02% | | Non-Recurring Other Expense | $0.15 | $0.43 | -65.13% | | Adjusted EBITDA excluding Non-Recurring Other Expense | $60.75 | $55.01 | +10.42% | [Reconciliation of Net Income (Loss) Attributable to Common Shareholders to FFO and Normalized FFO](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20Attributable%20to%20Common%20Shareholders%20to%20FFO%20and%20Normalized%20FFO) FFO attributable to common shareholders increased by 21.98% and Normalized FFO increased by 20.25% for the six months ended June 30, 2025, demonstrating strong growth in core operating performance for shareholders - **FFO**, as defined by Nareit, adjusts **GAAP net income (loss)** applicable to common shareholders by excluding certain **gains/losses from sales of depreciated real estate assets**, **impairment charges**, **changes in fair value of marketable securities**, and **gains/losses on sale of marketable securities**, while adding back **real estate asset depreciation and amortization**[33](index=33&type=chunk) - **Normalized FFO** is calculated as **FFO** excluding **amortization of financing costs** and certain **one-time charges**[34](index=34&type=chunk) FFO and Normalized FFO Reconciliation (Six Months Ended June 30) | Item | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Net Income (Loss) Attributable to Common Shareholders | $2.26 | $(5.74) | N/A (from loss to profit) | | Depreciation Expense | $32.40 | $29.74 | +8.94% | | (Increase) Decrease in Fair Value of Market Securities | $1.74 | $2.03 | -14.57% | | Loss on Sales of Marketable Securities, net | $0.00 | $3.78 | N/A (no loss) | | Funds from Operations Attributable to Common Shareholders ("FFO") | $36.88 | $30.23 | +21.98% | | Amortization of Financing Costs | $1.25 | $1.16 | +7.14% | | Non-Recurring Other Expense | $0.15 | $0.43 | -65.13% | | Normalized Funds from Operations Attributable to Common Shareholders ("Normalized FFO") | $38.27 | $31.82 | +20.25% | [Market Capitalization, Debt and Coverage Ratios](index=8&type=section&id=Market%20Capitalization,%20Debt%20and%20Coverage%20Ratios) The company's market capitalization, debt levels, and coverage ratios indicate a stronger financial position with improved ability to service debt - As of June 30, 2025, UMH Properties, Inc. reported a **total market capitalization of $2.40 billion**; the company's **debt and coverage ratios improved** year-over-year, with **Net Debt / Total Market Capitalization** decreasing and **Interest Coverage** increasing, indicating a stronger financial position and improved ability to service debt[13](index=13&type=chunk) Market Capitalization (Six Months Ended June 30) | Item | June 30, 2025 (count) | June 30, 2024 (count) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Shares Outstanding | 84,741 | 72,750 | +16.48% | | Market Price Per Share (USD) | $16.79 | $15.99 | +5.00% | | Equity Market Capitalization (in billions USD) | $1.42 | $1.16 | +22.31% | | Total Debt (in billions USD) | $0.66 | $0.67 | -1.45% | | Preferred (in billions USD) | $0.32 | $0.30 | +8.80% | | Total Market Capitalization (in billions USD) | $2.40 | $2.13 | +12.96% | Debt and Coverage Ratios (Six Months Ended June 30) | Ratio | June 30, 2025 (%) | June 30, 2024 (%) | Change | | :------------------------------------------------------ | :-------------- | :-------------- | :----- | | Net Debt / Total Market Capitalization | 24.1% | 29.6% | -5.5% pts | | Net Debt Plus Preferred / Total Market Capitalization | 37.5% | 43.5% | -6.0% pts | | Interest Coverage (x) | 3.8x | 3.2x | +0.6x | | Fixed Charge Coverage (x) | 2.3x | 2.1x | +0.2x | | Net Debt / Adjusted EBITDA excluding Non-Recurring Other Expense (x) | 4.8x | 5.7x | -0.9x | [Debt Analysis](index=9&type=section&id=Debt%20Analysis) The company's debt analysis reveals a slight decrease in total debt, a high proportion of fixed-rate debt, and a minor increase in the weighted average interest rate for mortgages payable - As of June 30, 2025, UMH Properties, Inc.'s **total debt, net of unamortized debt issuance costs, was $659.16 million**, a slight decrease from the prior year; the company maintained a **high proportion of fixed-rate debt (99.3%)** and saw a slight increase in its weighted average interest rate for mortgages payable[14](index=14&type=chunk) Debt Outstanding (Six Months Ended June 30) | Item | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | Mortgages, Net of Unamortized Debt Issuance Costs | $530.19 | $491.03 | +7.97% | | Loans, Net of Unamortized Debt Issuance Costs | $27.64 | $77.37 | -64.28% | | Bonds, Net of Unamortized Debt Issuance Costs | $101.33 | $100.48 | +0.84% | | Total Debt, Net of Unamortized Debt Issuance Costs | $659.16 | $668.88 | -1.45% | Debt Composition and Rates (Six Months Ended June 30) | Item | June 30, 2025 (%) | June 30, 2024 (%) | Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | | % Fixed Debt | 99.3% | 91.9% | +7.4% pts | | % Floating Debt | 0.7% | 8.1% | -7.4% pts | | Weighted Average Interest Rate - Mortgages Payable | 4.52% | 4.17% | +0.35% pts | | Weighted Average Interest Rate - Loans Payable | 6.44% | 6.81% | -0.37% pts | | Weighted Average Interest Rate - Bonds Payable | 4.72% | 4.72% | 0.00% pts | | Total Average Weighted Average Interest Rate | 4.63% | 4.56% | +0.07% pts | | Weighted Average Maturity (Years) Mortgages Payable (years) | 5.4 | 4.8 | +0.6 years | [Debt Maturity](index=10&type=section&id=Debt%20Maturity) The company's debt maturity schedule indicates a long-term structure, with a significant portion maturing beyond 2029 and a notable near-term maturity in 2027 - As of June 30, 2025, UMH Properties, Inc. has a **total debt before unamortized debt issuance costs of $666.72 million**; a significant portion of the debt, **50.2%**, matures "Thereafter" (beyond 2029), indicating a long-term debt structure; the largest single maturity in the near term is **$140.21 million** in 2027, which includes Series A Bonds[18](index=18&type=chunk) Debt Maturity Schedule (As of June 30, 2025) | Year Ended | Mortgages (in millions USD) | Loans (in millions USD) | Bonds (in millions USD) | Total (in millions USD) | % of Total (%) | | :--------- | :-------- | :---- | :---- | :---- | :--------- | | 2025 | $64.34 | $4.90 | $0.00 | $69.24 | 10.4% | | 2026 | $35.36 | $0.00 | $0.00 | $35.36 | 5.3% | | 2027 | $37.54 | $0.00 | $102.67 | $140.21 | 21.0% | | 2028 | $24.29 | $23.68 | $0.00 | $47.97 | 7.2% | | 2029 | $39.30 | $0.00 | $0.00 | $39.30 | 5.9% | | Thereafter | $334.64 | $0.00 | $0.00 | $334.64 | 50.2% | | Total Debt Before Unamortized Debt Issuance Costs | $535.47 | $28.59 | $102.67 | $666.72 | 100.0% | - The **$102.67 million Series A Bonds** are due February 28, 2027[18](index=18&type=chunk) [Securities Portfolio Performance](index=11&type=section&id=Securities%20Portfolio%20Performance) The company's securities portfolio maintained a stable value and generated dividend income, with no net realized gains or losses on sales for the period - For the six months ended June 30, 2025, UMH Properties, Inc.'s **securities available for sale stood at $30.16 million**, generating **$0.75 million** in dividend income; there were **no net realized gains or losses** on the sale of securities during this period, a change from the prior year which saw a net realized loss[22](index=22&type=chunk) Securities Portfolio Performance (Year Ended) | Year Ended | Securities Available for Sale (in millions USD) | Dividend Income (in millions USD) | Net Realized Gain (Loss) on Sale of Securities (in millions USD) | Net Realized Gain (Loss) on Sale of Securities & Dividend Income (in millions USD) | | :--------- | :---------------------------- | :-------------- | :--------------------------------------------- | :------------------------------------------------------------- | | 2024 | $31.88 | $1.45 | $(3.78) | $(2.33) | | 2025* | $30.16 | $0.75 | $0.00 | $0.75 | *For the six months ended June 30, 2025. [Property Summary and Snapshot](index=12&type=section&id=Property%20Summary%20and%20Snapshot) The company's property portfolio expanded to 139 communities with increased total sites and occupied sites, demonstrating improved overall occupancy and higher monthly rents - As of June 30, 2025, UMH Properties, Inc. owned **139 communities** with **26,159 total sites**, achieving an overall occupancy of **88.2%**; the company saw growth in total sites, occupied sites, and monthly rent per site and per home rental compared to June 30, 2024[24](index=24&type=chunk) UMH Communities Overview (June 30) | Metric | June 30, 2025 (count) | June 30, 2024 (count) | % Change | | :-------------------------------------- | :-------------- | :-------------- | :------- | | UMH Communities | 139 | 136 | +2.2% | | Total Sites | 26,159 | 25,787 | +1.4% | | Occupied Sites | 23,072 | 22,526 | +2.4% | | Occupancy % (%) | 88.2% | 87.4% | +80 bps | | Total Rentals | 10,570 | 10,136 | +4.3% | | Occupied Rentals | 9,974 | 9,630 | +3.6% | | Rental Occupancy % (%) | 94.4% | 95.0% | -60 bps | | Monthly Rent Per Site (USD) | $558.00 | $531.00 | +5.1% | | Monthly Rent Per Home Rental Including Site (USD) | $1,016.00 | $960.00 | +5.8% | State-wise Property Breakdown (As of June 30, 2025) | State | Number of Communities (count) | Total Sites (count) | Occupancy Percentage (%) | Monthly Rent Per Site (USD) | Monthly Rent Per Home Rental (USD) | | :------------ | :-------------------- | :---------- | :------------------- | :-------------------- | :--------------------------- | | Alabama | 2 | 299 | 51.2% | $230.00 | $1,122.00 | | Georgia | 1 | 118 | 31.4% | $450.00 | $1,199.00 | | Indiana | 14 | 4,078 | 88.0% | $518.00 | $1,009.00 | | Maryland | 1 | 76 | 88.2% | $657.00 | N/A | | Michigan | 4 | 1,089 | 85.0% | $524.00 | $1,071.00 | | New Jersey | 7 | 1,530 | 96.4% | $717.00 | $1,333.00 | | New York | 8 | 1,367 | 87.0% | $655.00 | $1,179.00 | | Ohio | 38 | 7,290 | 89.0% | $514.00 | $967.00 | | Pennsylvania | 53 | 7,970 | 88.2% | $583.00 | $1,009.00 | | South Carolina | 2 | 322 | 70.8% | $284.00 | $1,136.00 | | Tennessee | 9 | 2,020 | 93.5% | $577.00 | $1,052.00 | [Same Property Statistics](index=13&type=section&id=Same%20Property%20Statistics) The company's stabilized 'Same Property' portfolio demonstrated strong operational growth, with increased Community NOI, rental income, and monthly rent per site - For the six months ended June 30, 2025, UMH Properties, Inc.'s "Same Property" portfolio, consisting of **communities owned since January 1, 2024** (excluding specific new developments), demonstrated strong operational growth; **Same Property Community NOI** increased by **9.1%**, driven by an **8.0%** rise in rental and related income and a **4.3%** increase in monthly rent per site[27](index=27&type=chunk) Same Property Community NOI (Six Months Ended June 30) | Metric | June 30, 2025 (in millions USD) | June 30, 2024 (in millions USD) | Change | % Change | | :-------------------------- | :-------------- | :-------------- | :----- | :------- | | Rental and Related Income | $108.72 | $100.68 | $8.04 | 8.0% | | Community Operating Expenses | $42.22 | $39.75 | $2.47 | 6.2% | | Same Property Community NOI | $66.50 | $60.93 | $5.57 | 9.1% | Same Property Operational Statistics (June 30) | Metric | June 30, 2025 (count) | June 30, 2024 (count) | Change | % Change | | :-------------------------------------- | :-------------- | :-------------- | :----- | :------- | | Total Sites | 25,617 | 25,575 | +42 | 0.2% | | Occupied Sites | 22,594 | 22,343 | +251 sites | 1.1% | | Occupancy % (%) | 88.2% | 87.4% | +80 bps | N/A | | Total Rentals | 10,411 | 9,990 | +421 | 4.2% | | Occupied Rentals | 9,820 | 9,495 | +325 | 3.4% | | Rental Occupancy (%) | 94.3% | 95.0% | -70 bps | N/A | | Monthly Rent Per Site (USD) | $557.00 | $534.00 | +$23 | 4.3% | | Monthly Rent Per Home Rental Including Site (USD) | $1,014.00 | $958.00 | +$56 | 5.8% | - Definition of Same Property: Includes all **UMH communities owned as of January 1, 2024**, excluding Memphis Blues, Duck River Estates, and River Bluff Estates[27](index=27&type=chunk) [Acquisitions Summary and Property Portfolio](index=14&type=section&id=Acquisitions%20Summary%20and%20Property%20Portfolio) The company continued its growth strategy by acquiring four communities with 457 sites in 2025, expanding its property portfolio at an average occupancy of 91% - UMH Properties, Inc. has continued its growth strategy through acquisitions, adding **4 communities** with **457 sites** in 2025 to date, at a total purchase price of **$39.23 million** and an average occupancy of **91%**; this follows previous acquisitions in 2021, 2022, and 2023[30](index=30&type=chunk)[31](index=31&type=chunk) Acquisitions Summary by Year | Year of Acquisition | Number of Communities (count) | Sites (count) | Occupancy % at Acquisition (%) | Purchase Price (in millions USD) | Price Per Site (in thousands USD) | Total Acres (count) | | :------------------ | :-------------------- | :---- | :------------------------- | :------------- | :------------- | :---------- | | 2021 | 3 | 543 | 59% | $18.30 | $34 | 113 | | 2022 | 7 | 1,480 | 65% | $86.22 | $58 | 461 | | 2023 | 1 | 118 | 0% | $3.65 | $31 | 26 | | 2025 | 4 | 457 | 91% | $39.23 | $86 | 121 | 2025 Acquisitions Details | Community | Date of Acquisition | State | Number of Sites (count) | Purchase Price (in millions USD) | Number of Acres (count) | Occupancy (%) | | :-------------- | :------------------ | :---- | :-------------- | :------------- | :-------------- | :-------- | | Cedar Grove | March 24, 2025 | NJ | 186 | $17.00 | 25 | 100% | | Maplewood | March 24, 2025 | NJ | 80 | $7.60 | 13 | 100% | | Conowingo Court | July 2, 2025 | MD | 142 | $9.86 | 55 | 70% | | Maybelle Manor | July 2, 2025 | MD | 49 | $4.77 | 28 | 100% | | Total 2025 to Date | | | 457 | $39.23 | 121 | 91% | [Definitions](index=15&type=section&id=Definitions) This section defines key non-GAAP financial measures, including FFO, Normalized FFO, Community NOI, Same Property Community NOI, and Adjusted EBITDA, along with their limitations - This section provides definitions for key non-GAAP financial measures used by UMH Properties, Inc. and the real estate industry, including **FFO**, **Normalized FFO**, **Community NOI**, **Same Property Community NOI**, and **Adjusted EBITDA excluding Non-Recurring Other Expense**; these measures are presented as supplemental to **U.S. GAAP net income** to offer additional insights into the company's operational performance and financial health[32](index=32&type=chunk) - **Funds from Operations (FFO):** Equal to **net income (loss)** applicable to common shareholders, excluding certain **gains/losses from sales of previously depreciated real estate assets**, **impairment charges**, **changes in fair value of marketable securities**, and **gains/losses on sale of marketable securities**, plus **real estate asset depreciation and amortization**[33](index=33&type=chunk) - **Normalized Funds from Operations (Normalized FFO):** Calculated as **FFO** excluding **amortization of financing costs** and certain **one-time charges**[34](index=34&type=chunk) - **Community Net Operating Income (Community NOI):** Calculated as **rental and related income** less **community operating expenses** (e.g., real estate taxes, repairs, salaries, utilities, insurance)[36](index=36&type=chunk) - **Same Property Community Net Operating Income (Same Property Community NOI):** Calculated as **Community NOI** for all **properties owned as of January 1, 2024**, excluding Memphis Blues, Duck River Estates, and River Bluff Estates[36](index=36&type=chunk) - **Adjusted EBITDA excluding Non-Recurring Other Expense:** Calculated as **net income (loss)** plus **interest expense**, **franchise taxes**, **depreciation**, the **change in fair value of marketable securities**, and **gain (loss) on sales of marketable securities**, adjusted for **non-recurring other expenses**[37](index=37&type=chunk) - **Non-GAAP Limitations:** These non-GAAP measures do not represent cash generated from operating activities in accordance with **U.S. GAAP** and should not be considered substitutes for **net income** or **cash flows** as measures of results of operations or liquidity; they may not be comparable to similarly titled measures of other **REITs**[38](index=38&type=chunk)

Core Insights - UMH Properties, Inc. reported a total income of $66.6 million for Q2 2025, a 10% increase from $60.3 million in Q2 2024 [1][4] - Net income attributable to common shareholders rose to $2.5 million or $0.03 per diluted share in Q2 2025, compared to $527,000 or $0.01 per diluted share in Q2 2024 [1][2] - Normalized Funds from Operations (Normalized FFO) increased by 16% to $19.5 million or $0.23 per diluted share, consistent with the previous year on a per share basis [1][4] Financial Performance - Total income for the six months ended June 30, 2025, was $127.9 million, up from $118.0 million in 2024 [2] - Total expenses for the same period increased to $105.7 million from $97.7 million [2] - Net income attributable to common shareholders for the six months was $2.3 million, a recovery from a loss of $5.7 million in 2024 [2] Operational Highlights - Rental and related income increased by 9% year-over-year, with community net operating income rising by 11% for Q2 2025 [4][5] - Same property rental and related income increased by 8%, and same property net operating income increased by 10% [5][7] - Occupancy rates improved by 80 basis points, from 87.4% to 88.2% [7] Sales and Acquisitions - Sales of manufactured homes reached approximately $10.5 million, a 19% increase from $8.8 million in the previous year, marking a quarterly sales record [6][7] - The company acquired two communities in Maryland for $14.6 million, contributing to a total of four communities acquired year-to-date for $39.2 million [8][7] Capital Management - The company raised its quarterly common stock dividend by $0.01, representing a 4.7% increase to $0.225 per share [7] - Issued approximately 1.8 million shares of common stock through an At-the-Market Sale Program, generating gross proceeds of $31.0 million [7] - Amended a $35 million revolving line of credit with OceanFirst Bank, extending the maturity date to June 1, 2027 [7]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents UMH Properties, Inc.'s unaudited consolidated financial statements, including Balance Sheets, Income, Equity, Cash Flows, and detailed notes on organization and policies [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (Unaudited) (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :--------------------------------------- | :--------------------------------------- | | **ASSETS** | | | | Net Investment Property and Equipment | $1,270,250 | $1,228,899 | | Cash and Cash Equivalents | $79,235 | $99,720 | | Marketable Securities at Fair Value | $30,159 | $31,883 | | Inventory of Manufactured Homes | $38,688 | $34,982 | | Land Development Costs | $62,057 | $33,868 | | Total Assets | $1,624,022 | $1,563,728 | | **LIABILITIES** | | | | Mortgages Payable, net | $530,193 | $485,540 | | Loans Payable, net | $27,639 | $28,279 | | Series A Bonds, net | $101,327 | $100,903 | | Total Liabilities | $690,264 | $647,819 | | **SHAREHOLDERS' EQUITY** | | | | Total Shareholders' Equity | $933,758 | $915,909 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,624,022 | $1,563,728 | - **Total Assets increased by $60.3 million (3.85%)** from December 31, 2024, to June 30, 2025, primarily driven by an increase in Net Investment Property and Equipment and Land Development Costs[8](index=8&type=chunk) - **Total Liabilities increased by $42.4 million (6.54%)** over the six-month period, mainly due to an increase in Mortgages Payable[10](index=10&type=chunk) [Consolidated Statements of Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) | Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Rental and Related Income | $56,165 | $51,494 | $110,739 | $101,823 | | Sales of Manufactured Homes | $10,478 | $8,834 | $17,129 | $16,185 | | Total Income | $66,643 | $60,328 | $127,868 | $118,008 | | Total Expenses | $54,013 | $49,307 | $105,664 | $97,715 | | Net Income | $7,605 | $5,181 | $12,415 | $3,556 | | Net Income (Loss) Attributable to Common Shareholders | $2,532 | $527 | $2,261 | $(5,737) | | Net Income (Loss) Attributable to Common Shareholders Per Share – Basic and Diluted | $0.03 | $0.01 | $0.03 | $(0.08) | - **Net Income Attributable to Common Shareholders significantly increased** for both the three-month period (from **$0.527 million** to **$2.532 million**) and six-month period (from a loss of **$5.737 million** to income of **$2.261 million**) ended June 30, 2025, compared to the prior year[13](index=13&type=chunk) - **Total Income grew by 10.5%** for the three months and 8.4% for the six months ended June 30, 2025, primarily driven by increases in Rental and Related Income and Sales of Manufactured Homes[13](index=13&type=chunk) [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) | Metric (in thousands) | Balance December 31, 2024 | Balance June 30, 2025 | | :------------------------------------------------ | :------------------------ | :-------------------- | | Common Stock (Amount) | $8,191 | $8,474 | | Preferred Stock Series D | $320,572 | $321,804 | | Additional Paid-In Capital | $610,630 | $627,068 | | Total Shareholders' Equity | $915,909 | $933,758 | - **Total Shareholders' Equity increased by $17.8 million** from December 31, 2024, to June 30, 2025, primarily due to increases in Additional Paid-In Capital and Preferred Stock[16](index=16&type=chunk) - Common Stock issued through At-The-Market Offerings, net, contributed **$9.2 million** and **$30.2 million** to Additional Paid-In Capital for the periods ending March 31, 2025, and June 30, 2025, respectively[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $37,195 | $37,605 | | Net Cash Used in Investing Activities | $(100,648) | $(58,758) | | Net Cash Provided by Financing Activities | $42,125 | $7,598 | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(21,328) | $(13,555) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $87,483 | $50,882 | - **Net cash used in investing activities significantly increased to $(100.6) million** for the six months ended June 30, 2025, from **$(58.8) million** in the prior year, driven by higher purchases of manufactured home communities and investment property and equipment[19](index=19&type=chunk) - **Net cash provided by financing activities saw a substantial increase to $42.1 million** for the six months ended June 30, 2025, compared to **$7.6 million** in the prior year, primarily due to proceeds from mortgages and equity programs[19](index=19&type=chunk) [Notes To Consolidated Financial Statements](index=12&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) [NOTE 1 – ORGANIZATION AND ACCOUNTING POLICIES](index=12&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20ACCOUNTING%20POLICIES) UMH Properties, Inc. operates as a REIT, owning and managing manufactured home communities, with 142 communities and 26,600 homesites - As of June 30, 2025, UMH Properties, Inc. operated **142 manufactured home communities**, comprising approximately **26,600 developed homesites** and **10,600 Company-owned rental homes** across 12 states[21](index=21&type=chunk) - Subsequent to quarter end, the Company acquired **two additional communities in Maryland**, increasing its total to **144 communities** with approximately **26,800 developed homesites**[21](index=21&type=chunk) - The Company maintains a **77% controlling interest** in its qualified opportunity zone fund, established in 2022 to acquire and develop manufactured housing communities in economically distressed areas[22](index=22&type=chunk) [NOTE 2 – NET INCOME (LOSS) PER SHARE](index=16&type=section&id=NOTE%202%20%E2%80%93%20NET%20INCOME%20(LOSS)%20PER%20SHARE) This note details basic and diluted net income (loss) per share calculations, including common stock equivalents from employee stock options | Metric | 3 Months Ended June 30, 2025 | 6 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income (Loss) Attributable to Common Shareholders Per Share – Basic and Diluted | $0.03 | $0.03 | $0.01 | $(0.08) | | Weighted Average Common Shares Outstanding (Basic) | 83,974 | 83,233 | 71,418 | 70,291 | | Weighted Average Common Shares Outstanding (Diluted) | 84,779 | 84,051 | 71,884 | 70,700 | - Common stock equivalents from employee stock options included in diluted EPS calculations were **805,000 shares** for the three months and **818,000 shares** for the six months ended June 30, 2025[44](index=44&type=chunk) - For the six months ended June 30, 2024, **409,000 common stock equivalents** were excluded from diluted EPS calculation as they were anti-dilutive due to a net loss[44](index=44&type=chunk) [NOTE 3 – INVESTMENT PROPERTY AND EQUIPMENT](index=17&type=section&id=NOTE%203%20%E2%80%93%20INVESTMENT%20PROPERTY%20AND%20EQUIPMENT) The Company expanded its investment property portfolio through acquisitions, adding 266 homesites in New Jersey and 191 in Maryland - On March 24, 2025, the Company acquired Cedar Grove and Maplewood Village in Mantua, New Jersey, for approximately **$24.6 million**, adding **266 newly developed and 100% occupied homesites**[46](index=46&type=chunk)[47](index=47&type=chunk) - Subsequent to quarter end, on July 2, 2025, the Company acquired Conowingo Court and Maybelle Manor in Conowingo, Maryland, for approximately **$14.6 million**, adding **191 homesites with 79% occupancy**[48](index=48&type=chunk) [NOTE 4 – MARKETABLE SECURITIES](index=17&type=section&id=NOTE%204%20%E2%80%93%20MARKETABLE%20SECURITIES) The Company's marketable securities portfolio, primarily REIT stocks, had a fair value of $30.2 million with net unrealized losses - As of June 30, 2025, marketable securities had a fair value of **$30.2 million**, representing **1.4% of undepreciated assets**[49](index=49&type=chunk) - The Company recorded total net unrealized losses of **$40.3 million** in its REIT securities portfolio as of June 30, 2025[50](index=50&type=chunk) - A decrease of **$1.7 million** in the fair value of marketable securities was recorded for the six months ended June 30, 2025[50](index=50&type=chunk) [NOTE 5 – INVESTMENT IN JOINT VENTURES](index=18&type=section&id=NOTE%205%20%E2%80%93%20INVESTMENT%20IN%20JOINT%20VENTURES) UMH Properties, Inc. maintains a 40% interest in joint ventures with Nuveen Real Estate, acquiring and developing communities - The initial joint venture with Nuveen Real Estate, established in December 2021, involves **60% funding by Nuveen and 40% by UMH**, with UMH serving as managing member and receiving property management and asset management fees[52](index=52&type=chunk) - This joint venture acquired Sebring Square (**$22.2 million**) and Rum Runner (**$15.1 million**) in Florida, totaling **363 developed homesites**[58](index=58&type=chunk) - A new joint venture entity formed in November 2023, focused on development, opened the Honey Ridge community in Pennsylvania in June 2025, featuring **113 manufactured home sites**[61](index=61&type=chunk) [NOTE 6 – OPPORTUNITY ZONE FUND](index=20&type=section&id=NOTE%206%20%E2%80%93%20OPPORTUNITY%20ZONE%20FUND) UMH Properties, Inc. invested $8.0 million in the UMH OZ Fund, LLC, holding a 77% interest to acquire and develop communities - UMH invested **$8.0 million** in the UMH OZ Fund, LLC in July 2022, holding a **77% controlling interest**[63](index=63&type=chunk) - The OZ Fund acquired Garden View Estates in Orangeburg, South Carolina, for approximately **$5.2 million** in August 2022[63](index=63&type=chunk) - In January 2023, the OZ Fund acquired Mighty Oak in Albany, Georgia, for approximately **$3.7 million**[63](index=63&type=chunk) [NOTE 7 – DEBT](index=21&type=section&id=NOTE%207%20%E2%80%93%20DEBT) The Company's debt includes loans payable, Series A Bonds, and mortgages payable, with mortgages increasing and new Series B Bonds | Debt Type (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Loans Payable, net | $27,639 | $28,279 | | Series A Bonds, net | $101,327 | $100,903 | | Mortgages Payable, net | $530,193 | $485,540 | | Weighted Average Loan Maturity (Mortgages) | 5.4 years | 4.4 years | - Mortgages Payable, net, increased by **$44.7 million (9.2%)** during the six months ended June 30, 2025, primarily due to a new **$101.4 million Fannie Mae credit facility**, partially offset by **$49.5 million in mortgage payoffs**[72](index=72&type=chunk)[73](index=73&type=chunk) - Subsequent to quarter end, on July 22, 2025, the Company issued **$80.2 million of 5.85% Series B Bonds due 2030**, with estimated net proceeds of **$75.2 million**[71](index=71&type=chunk)[117](index=117&type=chunk) [NOTE 8 – SHAREHOLDERS' EQUITY](index=23&type=section&id=NOTE%208%20%E2%80%93%20SHAREHOLDERS'%20EQUITY) The Company increased its common stock dividend, raised equity through ATM programs and DRIP, and increased authorized shares - On April 1, 2025, the Company increased its quarterly common stock dividend by **$0.01 to $0.225 per share**, representing a **4.7% increase** and an **annual rate of $0.90 per share**[75](index=75&type=chunk) - For the six months ended June 30, 2025, the Company issued **2.3 million shares of Common Stock** under its September 2024 Common ATM Program, generating **$39.6 million in net proceeds**[80](index=80&type=chunk) - The Company issued **49,000 shares of Series D Preferred Stock** under the 2023 Preferred ATM Program, generating **$982,000 in net proceeds** for the six months ended June 30, 2025[85](index=85&type=chunk) - Authorized shares were increased by **25,000,000 for Common Stock** and **5,000,000 for Series D Preferred Stock** on March 5, 2025[89](index=89&type=chunk) [NOTE 9 – STOCK BASED COMPENSATION](index=26&type=section&id=NOTE%209%20%E2%80%93%20STOCK%20BASED%20COMPENSATION) The Company recognized $6.5 million in stock-based compensation costs, including restricted stock and stock option grants - Total stock-based compensation costs recognized were **$3.4 million** for the three months and **$6.5 million** for the six months ended June 30, 2025, with **$1.5 million and $2.9 million capitalized**, respectively[90](index=90&type=chunk) - The Company awarded **26,000 shares of restricted stock** (**$473,000 fair value**) and **179,944 shares of restricted stock** (**$3.3 million fair value**) to employees in January 2025[91](index=91&type=chunk)[92](index=92&type=chunk) - Stock options to purchase **541,500 shares** (**$1.9 million fair value**) and **325,000 shares** (**$1.1 million fair value**) were granted to employees in March and June 2025, respectively[93](index=93&type=chunk)[95](index=95&type=chunk) - Shareholders approved an amendment to the 2023 Plan, increasing shares available for future awards by **2,250,000**, with **1.8 million shares remaining available** as of June 30, 2025[99](index=99&type=chunk) [NOTE 10 – FAIR VALUE MEASUREMENTS](index=27&type=section&id=NOTE%2010%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) The Company measures financial assets and liabilities at fair value, with marketable securities at $30.2 million and mortgages at $530.3 million | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Marketable Securities - Preferred stock | $541 | $509 | | Marketable Securities - Common stock | $29,618 | $31,374 | | Total Marketable Securities (Level 1) | $30,159 | $31,883 | - As of June 30, 2025, the estimated fair value of fixed rate mortgages payable was **$530.3 million**, while their carrying value was **$535.5 million**[102](index=102&type=chunk) [NOTE 11 – CONTINGENCIES, COMMITMENTS AND OTHER MATTERS](index=28&type=section&id=NOTE%2011%20%E2%80%93%20CONTINGENCIES,%20COMMITMENTS%20AND%20OTHER%20MATTERS) The Company faces ordinary litigation, has repurchase obligations for defaulted loans, and commitments for joint ventures - The Company has repurchase obligations for defaulted manufactured home loans under agreements with 21st Mortgage, with total loan balances of approximately **$2.1 million** and **$479,000** as of June 30, 2025[105](index=105&type=chunk) - The Company acquired approximately **$91.7 million in loans** under the Chattel Loan Origination, Sale and Servicing Agreement (COP Program) with Triad Financial Services as of June 30, 2025[107](index=107&type=chunk) - A preliminary agreement exists with a national homebuilder for a potential joint venture to develop **131 acres** in southern New Jersey for luxury single-family homes, with due diligence extended to September 9, 2025[110](index=110&type=chunk) [NOTE 12 – SUPPLEMENTAL CASH FLOW INFORMATION](index=30&type=section&id=NOTE%2012%20%E2%80%93%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) Supplemental cash flow information details cash paid for interest, capitalized costs, and dividend reinvestments | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Cash paid for interest | $14,100 | $15,800 | | Interest cost capitalized to land development | $2,500 | $2,400 | | Stock compensation capitalized to land development | $2,900 | $1,200 | | Dividend Reinvestments | $1,700 | $1,500 | [NOTE 13 – SUBSEQUENT EVENTS](index=30&type=section&id=NOTE%2013%20%E2%80%93%20SUBSEQUENT%20EVENTS) Subsequent to June 30, 2025, the Company raised capital, acquired communities, and issued $80.2 million in Series B Bonds - Since July 1, 2025, the Company sold an additional **160,000 shares of Common Stock** under the September 2024 Common ATM Program, generating **$2.7 million in net proceeds**[114](index=114&type=chunk) - On July 2, 2025, the Company acquired two communities, Conowingo Court and Maybelle Manor in Maryland, for approximately **$14.6 million**, adding **191 homesites**[115](index=115&type=chunk) - On July 22, 2025, the Company issued **$80.2 million of 5.85% Series B Bonds due 2030** in Israel, with estimated net proceeds of **$75.2 million**[117](index=117&type=chunk) [NOTE 14 – PROFORMA FINANCIAL INFORMATION (UNAUDITED)](index=31&type=section&id=NOTE%2014%20%E2%80%93%20PROFORMA%20FINANCIAL%20INFORMATION%20(UNAUDITED)) Unaudited pro forma financial information reflects acquisitions through July 2025, showing pro forma Net Income of $1.573 million | Pro Forma Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 6 Months Ended June 30, 2025 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | | Rental and Related Income | $56,449 | $111,711 | | Community Operating Expenses | $23,249 | $46,476 | | Net Income (Loss) Attributable to Common Shareholders | $2,242 | $1,573 | | Net Income (Loss) Attributable to Common Shareholders Per Share – Basic and Diluted | $0.03 | $0.02 | - The pro forma financial information includes the effect of additional revenue and expenses from properties acquired through July 2025, assuming acquisitions occurred as of the first day of the applicable period[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section reviews UMH Properties, Inc.'s financial performance, covering revenue growth, operating metrics, capital, liquidity, and investments [Overview](index=32&type=section&id=Overview) UMH Properties, Inc. operates as a REIT, acquiring and improving manufactured home communities to increase occupancy and NOI - As of June 30, 2025, the Company operated **142 manufactured home communities**, expanding to **144 communities with 26,800 developed homesites** post-quarter end[127](index=127&type=chunk) - **Rental and related income increased 9%** for both the three and six months ended June 30, 2025, compared to the prior year periods[133](index=133&type=chunk) - **Same property NOI increased 10% and 9%** for the three and six months ended June 30, 2025, respectively, driven by an **80 basis point increase in occupancy to 88.2%** and a **4.2% rental rate increase**[133](index=133&type=chunk) - The Company added **237 rental homes** during the first six months of 2025, bringing the total to approximately **10,600 rental homes**, with an **occupancy rate of 94.4%** as of June 30, 2025[136](index=136&type=chunk) [Acquisitions](index=34&type=section&id=Acquisitions) The Company completed acquisitions in New Jersey and Maryland, adding 457 sites for a total of $39.225 million | Community | Date of Acquisition | State | Number of Sites | Purchase Price (in thousands) | Occupancy at Acquisition | | :---------------- | :------------------ | :---- | :-------------- | :---------------------------- | :----------------------- | | Cedar Grove | March 24, 2025 | NJ | 186 | $17,000 | 100% | | Maplewood Village | March 24, 2025 | NJ | 80 | $7,600 | 100% | | Conowingo Court | July 2, 2025 | MD | 142 | $9,855 | 70% | | Maybelle Manor | July 2, 2025 | MD | 49 | $4,770 | 100% | | **Total 2025 to Date** | | | **457** | **$39,225** | **91%** | [Significant Accounting Policies and Estimates](index=35&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) The Company's financial statements adhere to U.S. GAAP, with no material changes to accounting policies from 2024 - Management believes there have been **no material changes to the significant accounting policies and estimates** disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[140](index=140&type=chunk) [Supplemental Measures](index=35&type=section&id=Supplemental%20Measures) The Company uses non-U.S. GAAP measures like Community NOI and FFO to provide insights into operating performance | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Community NOI | $33,118 | $29,899 | $64,663 | $59,131 | | FFO Attributable to Common Shareholders | $18,703 | $16,182 | $36,875 | $30,228 | | Normalized FFO Attributable to Common Shareholders | $19,452 | $16,807 | $38,272 | $31,824 | - Net Cash Provided by Operating Activities was **$37.2 million** for the six months ended June 30, 2025, a slight decrease from **$37.6 million** in the prior year[148](index=148&type=chunk) - Net Cash Used in Investing Activities increased to **$(100.6) million** for the six months ended June 30, 2025, from **$(58.8) million** in the prior year, reflecting increased investment in properties[148](index=148&type=chunk) [Changes In Results Of Operations](index=38&type=section&id=Changes%20In%20Results%20Of%20Operations) The Company saw significant growth in rental income, driven by acquisitions, rate increases, and occupancy - **Rental and related income increased 9%** for both the three and six months ended June 30, 2025, due to acquisitions, **5-6% annual rental rate increases**, and an **80 basis point increase in same property occupancy to 88.2%**[149](index=149&type=chunk) - Community operating expenses increased **7% for the three months and 8% for the six months** ended June 30, 2025, primarily due to acquisitions, payroll, real estate taxes, snow removal, and water/sewer costs[150](index=150&type=chunk) - Sales of manufactured homes increased **19% for the three months and 6% for the six months** ended June 30, 2025, with average sales prices rising to **$103,000 and $99,000**, respectively[152](index=152&type=chunk)[153](index=153&type=chunk) - Interest income increased **37% for the three months and 41% for the six months** ended June 30, 2025, driven by an increase in the average balance of notes receivable to **$92.3 million**[158](index=158&type=chunk) [Changes in Financial Condition](index=40&type=section&id=Changes%20in%20Financial%20Condition) Total investment property increased by $71.1 million, driven by new homes and acquisitions, with surging land costs - Total investment property increased by **$71.1 million (4%)** during the six months ended June 30, 2025, driven by the addition of **237 rental homes** and the acquisition of two communities for **$24.6 million**[163](index=163&type=chunk) - Occupied rental homes increased by **259** from December 31, 2024, to June 30, 2025, with the rental home occupancy rate rising to **94.4%**[163](index=163&type=chunk) - Land development costs increased by **$28.2 million (83%)** during the six months ended June 30, 2025, due to an increase in expansion projects[164](index=164&type=chunk) - Mortgages payable, net, increased by **$44.7 million (9%)** during the six months ended June 30, 2025, primarily from a new **$101.4 million mortgage**, offset by payoffs and principal payments[165](index=165&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The Company maintains strong liquidity and capital resources, funding operations, acquisitions, and growth through debt and equity - For the six months ended June 30, 2025, the Company generated **$39.6 million** in net proceeds from its Common Stock ATM Program and **$982,000** from its Preferred Stock ATM Program[169](index=169&type=chunk)[171](index=171&type=chunk) - Net cash provided by operating activities was **$37.2 million** for the six months ended June 30, 2025[174](index=174&type=chunk) - As of June 30, 2025, the Company had **$79.2 million** in cash and cash equivalents, **$30.2 million** in marketable securities, and **$260 million** available on its unsecured credit facility[174](index=174&type=chunk) - The Company's net debt to total market capitalization was approximately **31%**, and net debt less securities to total market capitalization was approximately **29%** as of June 30, 2025[176](index=176&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company reported that it does not have any off-balance sheet arrangements - The Company **does not have any off-balance sheet arrangements**[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company reported no material changes to its market risk disclosures since the prior year-end - There have been **no material changes to information required regarding quantitative and qualitative disclosures about market risk** from the end of the preceding year to the date of this Quarterly Report on Form 10-Q[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The Company's **disclosure controls and procedures were evaluated and deemed effective** as of June 30, 2025[185](index=185&type=chunk) - **No material changes in the Company's internal control over financial reporting occurred** during the quarterly period ended June 30, 2025[186](index=186&type=chunk) [PART II - OTHER INFORMATION](index=45&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The Company reported no legal proceedings - The Company reported **no legal proceedings**[189](index=189&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The Company reported no material changes to risk factors disclosed in its Annual Report on Form 10-K for 2024 - There have been **no material changes to the risk factors** from the end of the preceding year to the date of this Quarterly Report on Form 10-Q[190](index=190&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company reported no unregistered sales of equity securities or use of proceeds - The Company reported **no unregistered sales of equity securities and use of proceeds**[191](index=191&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities - The Company reported **no defaults upon senior securities**[192](index=192&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The Company reported no mine safety disclosures - The Company reported **no mine safety disclosures**[193](index=193&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) This section reports no undisclosed Form 8-K information or changes to director nominee procedures - **No information required to be disclosed in a Form 8-K was not reported**[196](index=196&type=chunk) - **No material changes to the procedures by which security holders may recommend nominees** to the Board of Directors[196](index=196&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Series B Bonds Deed, credit facility amendment, and certifications - Exhibits include the **Deed of Trust for the 5.85% Series B Bonds due 2030**, an amendment to the Master Credit Facility Agreement, and certifications from the President and CEO and Chief Financial Officer[196](index=196&type=chunk) - The filing also includes **Inline XBRL documents** for the Consolidated Balance Sheets, Statements of Income (Loss), Statements of Shareholders' Equity, Statements of Cash Flows, and Notes to Consolidated Financial Statements[196](index=196&type=chunk)[197](index=197&type=chunk) [SIGNATURES](index=47&type=section&id=SIGNATURES) The report was signed on August 6, 2025, by the President and CEO and EVP and CFO, certifying submission - The report was signed on **August 6, 2025**, by **Samuel A. Landy, President and Chief Executive Officer**, and **Anna T. Chew, Executive Vice President and Chief Financial Officer**[200](index=200&type=chunk)

Core Viewpoint - UMH Properties, Inc. has successfully completed the sale of approximately $80.2 million of its 5.85% Series B Bonds due 2030 to investors in Israel, with proceeds intended for working capital and general corporate purposes [1] Group 1: Bond Details - The 2030 Bonds will pay interest at a rate of 5.85% per year, with interest payments scheduled semi-annually on June 30 and December 31, starting December 31, 2025 [2] - The principal amount of the 2030 Bonds is due on June 30, 2030, and the principal and interest are linked to the U.S. Dollar [2] - The 2030 Bonds are general unsecured obligations and rank equally with the Company's existing and future unsecured indebtedness, governed by a deed of trust that includes customary covenants and events of default [3] Group 2: Regulatory Information - The 2030 Bonds have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States or to U.S. Persons without registration or an applicable exemption [4] - The offering of the 2030 Bonds was conducted solely for investors outside the United States in accordance with Regulation S under the Securities Act [4] Group 3: Company Overview - UMH Properties, Inc. is a public equity REIT established in 1968, owning and operating 143 manufactured home communities with approximately 26,700 developed homesites, including around 10,600 rental homes and over 1,000 self-storage units across multiple states [6]