Core Insights - UMH Properties, Inc. has published its 2024 Sustainability Report, emphasizing its commitment to sustainability and responsible management in the manufactured home community sector [1][2]. Company Overview - UMH Properties, Inc. is a public equity REIT established in 1968, owning and operating 141 manufactured home communities with approximately 26,500 developed homesites, including 10,400 rental homes and over 1,000 self-storage units [2]. Sustainability Commitment - The company’s sustainability approach focuses on providing safe, high-quality, and affordable housing, enhancing resource efficiency, and fostering vibrant neighborhoods [2]. - The latest Sustainability Report outlines the progress made in building a resilient and responsible future, highlighting transparency, accountability, and continuous improvement [2]. Operational Footprint - The manufactured home communities are located across several states, including New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida, and Georgia [2]. - Among the 141 communities, two are in Florida, containing 363 sites, operated through a joint venture with Nuveen Real Estate [2].

The Buy Thesis UMH Properties (NYSE:UMH) offers an enticing combination of value and growth. Specifically, it has a greater than 5 year runway of double-digit organic growth, yet it trades at a steep discount to net asset value [NAV]. This discount places it at 17.5X forward AFFO which is far cheaper than other REITs with similar growth profiles. This article will discuss: Fundamentals of manufactured housing (MH) sector UMH’s growth pipeline What the market is missing in UMH’s value AFFO/share trajectory ...

Financial Data and Key Metrics Changes - Normalized FFO for Q1 2025 was $0.23 per diluted share, up 5% from $0.22 per diluted share in the previous year [7][21] - Rental and related income increased by 8% to $54.6 million compared to $50.3 million a year ago [21] - Community NOI increased by 8% from $30 million in 2024 to $32.5 million in 2025 [22] Business Line Data and Key Metrics Changes - Same property occupancy increased by 113 units year-to-date and 227 units over the first quarter of last year [10] - Gross home sales for the quarter were $6.7 million, down approximately 9.5% from $7.4 million last year, primarily due to the liquidation of inventory at a sales center [11] - The rental home occupancy rate increased from 94% at year-end to 94.6% at the end of Q1 [14] Market Data and Key Metrics Changes - The company has 3,400 vacant sites and 2,400 acres of vacant land available for development, positioning it well for future growth [19][30] - Demand for affordable housing remains strong, with the company experiencing high occupancy levels and rental rates [29][30] Company Strategy and Development Direction - The company plans to continue increasing earnings through the occupancy of vacant sites, development of land, and acquisitions of existing communities [9][19] - The focus on duplex manufactured homes and solar shingle technology aims to provide affordable housing solutions [32][47] - The company is optimistic about future acquisitions, particularly in light of potential opportunities arising from less experienced buyers in the market [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving nearly 100% occupancy and continued progress in developing expansion land [30] - The company anticipates strong demand for rental homes and expects to add 800 new rental homes to its portfolio this year [14][28] - Management remains cautious about the impact of tariffs but believes it will have a minimal effect on operations [16][18] Other Important Information - The company has a strong balance sheet with a total market capitalization of approximately $2.5 billion, up 18% from the previous year [24] - The company has over $45 million invested in expansions that are not yet generating expected yields [13] Q&A Session Summary Question: What are the rent growth expectations for this year? - Management expects to achieve a 5% rent increase, with strong demand at properties [35][36] Question: Are home prices up due to tariffs? - Prices have increased slightly by 3% to 5%, but supply chain disruptions are a bigger concern [37][38] Question: What refinancing rates are expected? - Anticipated rates for refinancing are around 5.5% to 5.75% [39] Question: Is there upward pressure on real estate taxes? - There has been a small increase in real estate taxes, but management is working on potential appeals [42][43] Question: How are solar shingle homes being received? - Initial demand is strong, with several homes already occupied and more on the way [44][45] Question: What are the return expectations for the Mantua acquisition? - Expected returns are in the 6.5% to 7% range, with significant upside potential [79][80] Question: Will rental homes be included in GSE financing? - Currently, rental homes are not included, but income from the sites is considered [86][96]

Financial Data and Key Metrics Changes - Normalized FFO for Q1 2025 was $0.23 per diluted share, up 5% from $0.22 per diluted share in Q1 2024 [6][18] - Rental and related income increased by 8% to $54.6 million compared to $50.3 million a year ago [18] - Community NOI increased by 8% from $30 million in 2024 to $32.5 million in 2025 [19] Business Line Data and Key Metrics Changes - Same property occupancy increased by 113 units year-to-date and 227 units over the first quarter of last year [8] - Gross home sales for the quarter were $6.7 million, down approximately 9.5% from $7.4 million last year, primarily due to the liquidation of inventory at a sales center [9] - The rental home occupancy rate increased from 94% at year-end to 94.6% at the end of Q1 [12] Market Data and Key Metrics Changes - The company has over $45 million invested in expansions that are not yet generating expected yields [11] - The company anticipates the development of over 150 sites this year in markets with high occupancy levels and rental rates [10] - The total market capitalization increased by 18% to approximately $2.5 billion at quarter-end compared to $2.1 billion last year [21] Company Strategy and Development Direction - The company plans to continue increasing earnings and value through the occupancy of 3,400 vacant sites and the development of 2,400 acres of vacant land [7][16] - The company is focused on addressing the affordable housing crisis and believes its vacant sites and land are key to driving organic growth [28][30] - The company is exploring selling vacant land to single-family homebuilders or for other higher and better uses [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong demand for affordable housing and the potential for increased occupancy and sales [27][29] - The company is monitoring the impact of tariffs and geopolitical issues but currently sees minimal impact on operations [15] - Management believes the fundamentals of manufactured housing are strong and the company is well-positioned for growth [16][29] Other Important Information - The company has a strong balance sheet and is prepared to execute on compelling acquisitions as they become available [16][27] - The company has a proven track record of executing its business plan, with a total shareholder return of approximately 30% in 2024 [15] Q&A Session Summary Question: What are the rent growth expectations for this year? - Management confirmed they still expect to achieve a 5% rent increase throughout the year due to strong demand [34][35] Question: Are home prices up compared to pre-orders due to tariffs? - Prices have increased slightly by 3% to 5%, but supply chain disruptions are a bigger concern [36][37] Question: What refinancing rates are expected? - Anticipated rates for refinancing are around 5.5% to 5.75% [38] Question: Are there notable upward pressures on real estate taxes? - There has been a small increase in real estate taxes, and management is working on potential appeals [41][43] Question: How are solar shingle homes being received? - Initial demand for solar shingle homes is strong, with several already occupied [44][45] Question: What are the gross margins on new versus used home sales? - Sales are strong, particularly due to downsizing trends among older individuals [57][61] Question: Are there larger acquisition opportunities available? - Management indicated that there are opportunities due to many new entrants in the market who may not be well-informed [72] Question: How does GSE financing work for communities with rentals? - GSE financing currently includes income from the site but not the homes themselves, impacting LTV [94][96]

WELLINGTON ESTATES, Export, PA Acquired in 2017 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, in ...

Core Viewpoint - UMH Properties, Inc. reported a solid first quarter of 2025 with increased total income and improved financial metrics, reflecting the strength of its long-term business plan and operational resilience [2][7]. Financial Performance - Total Income for Q1 2025 was $61.2 million, up 6% from $57.7 million in Q1 2024 [2][4]. - Net Loss Attributable to Common Shareholders for Q1 2025 was $271,000 or $0.00 per diluted share, compared to a net loss of $6.3 million or $0.09 per diluted share in Q1 2024 [2][4]. - Funds from Operations (FFO) for Q1 2025 was $18.2 million or $0.22 per diluted share, a 10% increase from $14.0 million or $0.20 per diluted share in Q1 2024 [3][4]. - Normalized FFO for Q1 2025 was $18.8 million or $0.23 per diluted share, up 5% from $15.0 million or $0.22 per diluted share in Q1 2024 [3][4]. Operational Highlights - Same-property occupancy increased by 113 sites from year-end 2024, totaling 94.6% occupancy at the end of Q1 2025 [7]. - The company converted 109 new homes from inventory to revenue-generating rental homes, expanding its rental portfolio to approximately 10,400 homes [7]. - Gross sales revenue for home sales reached $6.7 million, with expectations for growth as the peak selling season approaches [7]. Acquisitions and Growth Strategy - The company acquired two fully occupied communities in New Jersey for approximately $24.6 million, enhancing its portfolio [8]. - Two additional communities in Maryland, containing 191 sites, are under contract for a total purchase price of $14.6 million, expected to close in Q2 2025 [7][8]. Dividend and Shareholder Returns - The annual dividend was increased for the fifth consecutive year to $0.90 per share, reflecting a total increase of $0.18 or 25% over the past five years [7][8]. - The company issued approximately 515,000 shares of common stock, generating gross proceeds of $9.4 million, and approximately 49,000 shares of Series D Preferred Stock, generating gross proceeds of $1.1 million [8]. Full Year Guidance - The company maintains its full-year 2025 guidance for normalized FFO in the range of $0.96-$1.04 per diluted share, with a midpoint expectation of $1.00 per diluted share [7][20].

Financial Performance - UMH Properties reported quarterly funds from operations (FFO) of $0.23 per share, matching the Zacks Consensus Estimate and showing an increase from $0.22 per share a year ago [1] - The company posted revenues of $61.23 million for the quarter ended March 2025, which was 2.26% below the Zacks Consensus Estimate, but an increase from $57.68 million year-over-year [2] - The current consensus FFO estimate for the upcoming quarter is $0.25, with projected revenues of $65.37 million, and for the current fiscal year, the estimate is $1 on revenues of $262.5 million [7] Market Performance - UMH shares have declined approximately 6.4% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] - The Zacks Rank for UMH is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Outlook - The REIT and Equity Trust - Residential industry, to which UMH belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in estimate revisions, which could impact UMH's stock performance [5]

Exhibit 99 | Table of Contents | | | --- | --- | | | Page | | Financial Highlights | 3 | | Consolidated Balance Sheets | 4 | | Consolidated Statements of Income (Loss) | 5 | | Consolidated Statements of Cash Flows | 6 | | Reconciliation of Net Income (Loss) to Adjusted EBITDA excluding Non-Recurring Other Expense and Net Loss Attributable to Common | | | Shareholders to FFO and Normalized FFO | 7 | | Market Capitalization, Debt and Coverage Ratios | 8 | | Debt Analysis | 9 | | Debt Maturity | 10 | | Securit ...

FREEHOLD, NJ, May 01, 2025 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE:UMH) (TASE:UMH) reported Total Income for the quarter ended March 31, 2025 of $61.2 million as compared to $57.7 million for the quarter ended March 31, 2024, representing an increase of 6%. Net Loss Attributable to Common Shareholders amounted to $271,000 or $0.00 per diluted share for the quarter ended March 31, 2025 as compared to a Net Loss of $6.3 million or $0.09 per diluted share for the quarter ended March 31, 2024. Funds from ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Contains UMH Properties' unaudited consolidated financial statements and management's discussion for the quarter ended March 31, 2025 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents UMH Properties' unaudited consolidated financial statements for Q1 2025, including balance sheets, income statements, equity, cash flows, and explanatory notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Provides a snapshot of assets, liabilities, and shareholders' equity for UMH Properties at March 31, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in thousands) | Item | March 31, 2025 | December 31, 2024 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | **Assets:** | | | | | | Net Investment Property and Equipment | $1,257,256 | $1,228,899 | $28,357 | 2.31% | | Cash and Cash Equivalents | $35,199 | $99,720 | $(64,521) | -64.70% | | Inventory of Manufactured Homes | $41,008 | $34,982 | $6,026 | 17.23% | | Land Development Costs | $45,815 | $33,868 | $11,947 | 35.28% | | TOTAL ASSETS | $1,549,306 | $1,563,728 | $(14,422) | -0.92% | | **Liabilities:** | | | | | | Mortgages Payable, net | $476,372 | $485,540 | $(9,168) | -1.89% | | Total Liabilities | $635,111 | $647,819 | $(12,708) | -1.96% | | **Shareholders' Equity:** | | | | | | Total Shareholders' Equity | $914,195 | $915,909 | $(1,714) | -0.19% | [Consolidated Statements of Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) Details UMH Properties' revenues, expenses, and net income (loss) for the three months ended March 31, 2025, and 2024 Consolidated Statements of Income (Loss) (in thousands, except per share amounts) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | % Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | :------- | | Rental and Related Income | $54,574 | $50,329 | $4,245 | 8.43% | | Sales of Manufactured Homes | $6,651 | $7,351 | $(700) | -9.52% | | Total Income | $61,225 | $57,680 | $3,545 | 6.15% | | Total Expenses | $51,651 | $48,408 | $3,243 | 6.70% | | Net Income (Loss) | $4,810 | $(1,625) | $6,435 | -396.00% | | Net Loss Attributable to Common Shareholders | $(271) | $(6,264) | $5,993 | -95.67% | | Net Loss Attributable to Common Shareholders Per Share – Basic and Diluted | $(0.00) | $(0.09) | $0.09 | -100.00% | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Outlines changes in UMH Properties' shareholders' equity, including common and preferred stock, for the three months ended March 31, 2025 Shareholders' Equity Changes (in thousands) | Item | Balance Dec 31, 2024 | Balance Mar 31, 2025 | Change | | :------------------------------------------ | :------------------- | :------------------- | :----- | | Common Stock (Amount) | $8,191 | $8,283 | $92 | | Preferred Stock (Series D) | $320,572 | $321,804 | $1,232 | | Additional Paid-In Capital | $610,630 | $607,640 | $(2,990) | | Total UMH Properties, Inc. Shareholders' Equity | $914,029 | $912,363 | $(1,666) | | Total Shareholders' Equity | $915,909 | $914,195 | $(1,714) | - Common Stock Issued: * DRIP: **152,000 shares** * Restricted Stock Awards: **224,000 shares** * Stock Options: **25,000 shares** * At-The-Market Offerings: **515,000 shares**[14](index=14&type=chunk) - Preferred Stock Issued: * At-The-Market Offerings: **$1,232,000**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes UMH Properties' cash flows from operating, investing, and financing activities for the three months ended March 31, 2025, and 2024 Consolidated Statements of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net Cash Provided by Operating Activities | $12,779 | $19,048 | $(6,269) | | Net Cash Used in Investing Activities | $(56,411) | $(25,424) | $(30,987) | | Net Cash Used in Financing Activities | $(18,693) | $(8,849) | $(9,844) | | Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(62,325) | $(15,225) | $(47,100) | | Cash, Cash Equivalents and Restricted Cash at End of Period | $46,486 | $49,212 | $(2,726) | [Notes To Consolidated Financial Statements](index=10&type=section&id=Notes%20To%20Consolidated%20Financial%20Statements) Provides critical context to financial statements, detailing UMH Properties' REIT organization, business, accounting policies, and significant financial items [NOTE 1 – ORGANIZATION AND ACCOUNTING POLICIES](index=10&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20ACCOUNTING%20POLICIES) Details UMH Properties' structure as a REIT, its core business of operating manufactured home communities, and key accounting principles - UMH Properties, Inc. operates as a REIT, primarily deriving income from real estate rental operations of **141 manufactured home communities** (approx. **26,500 homesites**, **10,400 Company-owned rental homes**) across **12 states**[20](index=20&type=chunk) - The Company's wholly-owned taxable subsidiary, UMH Sales and Finance, Inc. (S&F), sells manufactured homes to fill vacancies and enhance community value[20](index=20&type=chunk) - The Company holds a **77% controlling interest** in its qualified opportunity zone fund, created in 2022 to acquire, develop, and redevelop manufactured housing communities in Qualified Opportunity Zones[20](index=20&type=chunk) - A joint venture with Nuveen Real Estate is developing a new **113-site manufactured home community** in Honey Brook, Pennsylvania, expected to open end of Q2 2025[20](index=20&type=chunk) - Management views the business as a single segment, focusing on increasing occupancy in communities through leasing homesites and homes, with home sales integrated to support this goal[21](index=21&type=chunk) [NOTE 2 – NET INCOME (LOSS) PER SHARE](index=14&type=section&id=NOTE%202%20%E2%80%93%20NET%20INCOME%20(LOSS)%20PER%20SHARE) Explains the calculation of net income (loss) per share, including the treatment of anti-dilutive common stock equivalents - For the three months ended March 31, 2025 and 2024, **944,000** and **406,000 common stock equivalents**, respectively, were excluded from diluted net loss per share calculation as they were anti-dilutive[44](index=44&type=chunk) [NOTE 3 – INVESTMENT PROPERTY AND EQUIPMENT](index=14&type=section&id=NOTE%203%20%E2%80%93%20INVESTMENT%20PROPERTY%20AND%20EQUIPMENT) Details UMH Properties' investment property and equipment, including recent acquisitions and their purchase price allocation - On March 24, 2025, the Company acquired two age-restricted communities, Cedar Grove and Maplewood Village, in Mantua, New Jersey, for approximately **$24.6 million**. These communities contain **266 newly developed homesites**, **100% occupied**[45](index=45&type=chunk) Purchase Price Allocation for Acquisitions (in thousands) | Assets Acquired | At Acquisition Date | | :---------------- | :------------------ | | Land | $1,448 | | Depreciable Property | $23,919 | | Total Assets Acquired | $25,367 | [NOTE 4 – MARKETABLE SECURITIES](index=15&type=section&id=NOTE%204%20%E2%80%93%20MARKETABLE%20SECURITIES) Provides information on UMH Properties' marketable securities portfolio, including fair value and unrealized gains or losses - As of March 31, 2025, marketable securities, primarily common and preferred stock of other REITs, had a fair value of **$30.3 million**, representing **1.5% of undepreciated assets**[47](index=47&type=chunk) - The Company recorded a **$1.6 million decrease** in the fair value of marketable securities for the three months ended March 31, 2025, and had total net unrealized losses of **$40.1 million** in its REIT securities portfolio[48](index=48&type=chunk) [NOTE 5- INVESTMENT IN JOINT VENTURE](index=15&type=section&id=NOTE%205-%20INVESTMENT%20IN%20JOINT%20VENTURE) Describes UMH Properties' joint ventures, including partnerships for acquiring and developing manufactured housing communities - In December 2021, the Company established a joint venture with Nuveen Real Estate to acquire and develop manufactured housing/RV communities, with Nuveen funding **60%** and the Company **40%** of equity capital[49](index=49&type=chunk) - The initial joint venture acquired Sebring Square (**$22.2 million**, **219 homesites**) and Rum Runner (**$15.1 million**, **144 homesites**) in Florida[55](index=55&type=chunk) - In November 2023, a new joint venture entity was formed with Nuveen for the development of a new **113-site manufactured housing community** in Honey Brook, Pennsylvania, expected to open by the end of Q2 2025[57](index=57&type=chunk) [NOTE 6 - OPPORTUNITY ZONE FUND](index=18&type=section&id=NOTE%206%20-%20OPPORTUNITY%20ZONE%20FUND) Details UMH Properties' investment in its qualified opportunity zone fund for acquiring and redeveloping manufactured housing communities - In July 2022, the Company invested **$8.0 million** in the UMH OZ Fund, LLC, created to acquire, develop, and redevelop manufactured housing communities in Qualified Opportunity Zones[60](index=60&type=chunk) - The OZ Fund acquired Garden View Estates (**$5.2 million**) in South Carolina and Mighty Oak (**$3.7 million**) in Georgia[60](index=60&type=chunk) - As of March 31, 2025, the Company's investment in the OZ Fund represented **77% of total capital contributed** and is consolidated in the financial statements[60](index=60&type=chunk) [NOTE 7 - DEBT](index=19&type=section&id=NOTE%207%20-%20DEBT) Outlines UMH Properties' debt structure, including loans payable, mortgages, and available credit facilities Loans Payable Summary (in thousands) | Loan Type | March 31, 2025 Amount | March 31, 2025 Rate | December 31, 2024 Amount | December 31, 2024 Rate | | :-------------------------------- | :-------------------- | :------------------ | :----------------------- | :----------------------- | | Floorplan inventory financing | $6,025 | 7.88% | $5,479 | 8.27% | | FirstBank rental home loan | $23,858 | 6.15% | $24,033 | 6.15% | | Total Loans Payable | $29,883 | 6.50% | $29,512 | 6.54% | | Loans Payable, net of unamortized debt issuance costs | $28,814 | 6.74% | $28,279 | 6.83% | - The Company has an unsecured revolving credit facility of **$260 million** with BMO, JPMorgan Chase, and Wells Fargo, maturing November 7, 2026[63](index=63&type=chunk) - Series A Bonds: **$102.7 million** of **4.72% Series A Bonds** due 2027, issued in Israel, principal and interest linked to U.S. Dollar[65](index=65&type=chunk) Mortgages Payable Summary (in thousands) | Item | March 31, 2025 Amount | March 31, 2025 Weighted Average Rate | December 31, 2024 Amount | December 31, 2024 Weighted Average Rate | | :------------------------------------------ | :-------------------- | :----------------------------------- | :----------------------- | :----------------------------------- | | Fixed rate mortgages | $479,879 | 4.18% | $489,271 | 4.18% | | Mortgages Payable, net of unamortized debt issuance costs | $476,372 | 4.21% | $485,540 | 4.21% | - On February 28, 2025, the Company paid off one mortgage totaling **$6.4 million**. Subsequent to quarter end, **$39.3 million** in mortgages were paid down, and **$40 million** was drawn on the unsecured line of credit[69](index=69&type=chunk)[106](index=106&type=chunk) [NOTE 8 - SHAREHOLDERS' EQUITY](index=21&type=section&id=NOTE%208%20-%20SHAREHOLDERS'%20EQUITY) Details changes in UMH Properties' shareholders' equity, including dividend increases and stock offerings - On April 1, 2025, the Company announced a **4.7% increase** in its quarterly common stock dividend, raising it to **$0.225 per share** from **$0.215 per share**, marking the fifth consecutive increase in five years (**25% cumulative increase**)[71](index=71&type=chunk)[107](index=107&type=chunk) - During Q1 2025, **515,000 shares of Common Stock** were sold under the September 2024 Common ATM Program, generating **$9.2 million net proceeds**. As of March 31, 2025, **$80.4 million** remained eligible for sale[74](index=74&type=chunk)[76](index=76&type=chunk) - During Q1 2025, **49,000 shares of Series D Preferred Stock** were sold under the 2023 Preferred ATM Program, generating **$982,000 net proceeds**. A new 2025 Preferred ATM Program for up to **$100 million** was implemented on March 5, 2025[79](index=79&type=chunk)[80](index=80&type=chunk) - Authorized capital stock increased to **205,413,800 shares**, including **183,713,800 Common Stock**, **18,700,000 Series D Preferred Stock**, and **3,000,000 Excess Stock**[82](index=82&type=chunk) [NOTE 9 – STOCK BASED COMPENSATION](index=23&type=section&id=NOTE%209%20%E2%80%93%20STOCK%20BASED%20COMPENSATION) Provides information on UMH Properties' stock-based compensation plans, including costs recognized and outstanding awards - Total stock compensation costs recognized for Q1 2025 were **$3.1 million** (**$1.3 million capitalized**), compared to **$1.8 million** (**$491,000 capitalized**) for Q1 2024[83](index=83&type=chunk) - Awards in Q1 2025 included: * **26,000 restricted stock shares** to employees (grant date fair value **$473,000**) * **7,479 common stock shares** to directors (**$136,000**) * **179,944 restricted stock shares** to employees (**$3.3 million**), subject to performance and time-based vesting * Options to purchase **541,500 common stock shares** to employees (**$1.9 million**)[84](index=84&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - As of March 31, 2025, **5.9 million options** were outstanding with an aggregate intrinsic value of **$19.3 million**. Shareholders will vote on increasing available shares for future awards by **2,250,000**[90](index=90&type=chunk) [NOTE 10 - FAIR VALUE MEASUREMENTS](index=25&type=section&id=NOTE%2010%20-%20FAIR%20VALUE%20MEASUREMENTS) Presents fair value measurements for UMH Properties' marketable securities and fixed rate mortgages payable Fair Value Measurements of Marketable Securities (in thousands) | Item | March 31, 2025 Total | Level 1 (Quoted Prices) | December 31, 2024 Total | Level 1 (Quoted Prices) | | :------------------------------ | :------------------- | :---------------------- | :---------------------- | :---------------------- | | Marketable Securities - Preferred stock | $565 | $565 | $509 | $509 | | Marketable Securities - Common stock | $29,763 | $29,763 | $31,374 | $31,374 | | Total | $30,328 | $30,328 | $31,883 | $31,883 | - As of March 31, 2025, the estimated fair value of fixed rate mortgages payable was **$473.7 million**, compared to a carrying value of **$479.9 million**[92](index=92&type=chunk) [NOTE 11 – CONTINGENCIES, COMMITMENTS AND OTHER MATTERS](index=26&type=section&id=NOTE%2011%20%E2%80%93%20CONTINGENCIES,%20COMMITMENTS%20AND%20OTHER%20MATTERS) Details UMH Properties' contingent liabilities, commitments, and other significant matters, including repurchase obligations and pending acquisitions - The Company has repurchase obligations with 21st Mortgage for defaulted manufactured home loans, totaling approximately **$2.1 million** for its own communities and **$496,000** for acquired communities as of March 31, 2025. This program was terminated on June 22, 2023, but obligations for outstanding loans remain[94](index=94&type=chunk) - The Company acquired approximately **$87.7 million** in loans under the Triad Financial Services Chattel Loan Origination, Sale and Servicing Agreement (COP Program) as of March 31, 2025[96](index=96&type=chunk) - A pending agreement to purchase two manufactured home communities in Maryland for approximately **$14.6 million** is expected to close in Q2 2025[99](index=99&type=chunk) - The Company entered a preliminary agreement with a national homebuilder for a potential joint venture to develop **131 acres** in southern New Jersey for luxury single-family residential homes, contingent on governmental approvals and definitive documentation[100](index=100&type=chunk) [NOTE 12 - SUPPLEMENTAL CASH FLOW INFORMATION](index=28&type=section&id=NOTE%2012%20-%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) Provides additional details on UMH Properties' cash flow activities, including cash paid for interest and capitalized costs Supplemental Cash Flow Information (in thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Cash paid for interest | $6,600 | $7,800 | | Interest cost capitalized to land development | $1,300 | $1,100 | | Stock compensation capitalized to land development | $1,300 | $491 | | Dividend Reinvestments | $836 | $712 | [NOTE 13– SUBSEQUENT EVENTS](index=28&type=section&id=NOTE%2013%E2%80%93%20SUBSEQUENT%20EVENTS) Reports significant events occurring after the balance sheet date, including stock sales, debt payments, and dividend increases - Since April 1, 2025, the Company issued and sold an additional **1.2 million shares of Common Stock** under the September 2024 Common ATM Program, generating **$21.5 million net proceeds**[105](index=105&type=chunk) - On April 1, 2025, the Company paid down nine mortgages totaling **$39.3 million** and drew **$40 million** on its unsecured line of credit[106](index=106&type=chunk) - On April 1, 2025, the Company announced a **4.7% increase** in its quarterly common stock dividend to **$0.225 per share**[107](index=107&type=chunk) [NOTE 14 – PROFORMA FINANCIAL INFORMATION (UNAUDITED)](index=28&type=section&id=NOTE%2014%20%E2%80%93%20PROFORMA%20FINANCIAL%20INFORMATION%20(UNAUDITED)) Presents unaudited pro forma condensed financial information for UMH Properties, including income and loss figures Unaudited Pro Forma Condensed Financial Information (in thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Rental and Related Income | $54,963 | $50,795 | | Community Operating Expenses | $23,040 | $21,110 | | Net Loss Attributable to Common Shareholders | $(3,873) | $(10,586) | | Net Loss Attributable to Common Shareholders per Share – Basic and Diluted | $(0.05) | $(0.15) | [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) Management's discussion and analysis of UMH Properties' financial condition and results of operations for Q1 2025, covering business overview, acquisitions, policies, and liquidity [Overview](index=29&type=section&id=Overview) Provides an overview of UMH Properties' business as a REIT, its operational focus, and key performance highlights for Q1 2025 - UMH Properties, Inc. operates as a self-administered, self-managed REIT, owning and operating **141 manufactured home communities** with approximately **26,500 homesites** and **10,400 Company-owned rental homes** across **12 states**[111](index=111&type=chunk)[112](index=112&type=chunk) - The Company's business model focuses on leasing manufactured homesites and homes, with home sales integrated to increase occupancy. It also engages in joint ventures (Nuveen Real Estate) and a qualified opportunity zone fund for development and acquisitions[111](index=111&type=chunk)[116](index=116&type=chunk) - For Q1 2025, rental and related income increased **8%**, and Community Net Operating Income (NOI) increased **8%**. Same property NOI increased **8%** due to a **70 basis point increase in occupancy** (to **87.9%**) and **4.3% rental rate increases**[118](index=118&type=chunk) - The macro-economic environment, characterized by high mortgage rates and low housing inventory, favors home rentals. The Company added **72 rental homes** in Q1 2025, bringing the total to approximately **10,400**, with rental home occupancy at **94.6%**[119](index=119&type=chunk) [Acquisitions](index=31&type=section&id=Acquisitions) Details UMH Properties' community acquisitions during Q1 2025, including purchase prices and site information Communities Acquired During Q1 2025 | Community | Date of Acquisition | State | Number of Sites | Purchase Price (in thousands) | Number of Acres | Occupancy at Acquisition | | :-------------- | :------------------ | :---- | :-------------- | :---------------------------- | :-------------- | :----------------------- | | Cedar Grove | March 24, 2025 | NJ | 186 | $17,000 | 25 | 100% | | Maplewood Village | March 24, 2025 | NJ | 80 | $7,600 | 13 | 100% | | Total | | | 266 | $24,600 | 38 | 100% | [Significant Accounting Policies and Estimates](index=31&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) Confirms no material changes to UMH Properties' significant accounting policies and estimates from the prior annual report - 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[123](index=123&type=chunk) [Supplemental Measures](index=32&type=section&id=Supplemental%20Measures) Presents UMH Properties' non-GAAP financial measures, including Community NOI, FFO, and Normalized FFO, for performance assessment - The Company uses non-U.S. GAAP financial measures: Community Net Operating Income (Community NOI), Funds from Operations Attributable to Common Shareholders (FFO), and Normalized Funds from Operations Attributable to Common Shareholders (Normalized FFO) to assess operating performance[125](index=125&type=chunk) Community NOI (in thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Rental and Related Income | $54,574 | $50,329 | | Less: Community Operating Expenses | $(23,029) | $(21,097) | | Community NOI | $31,545 | $29,232 | FFO and Normalized FFO Attributable to Common Shareholders (in thousands) | Item | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Loss Attributable to Common Shareholders | $(271) | $(6,264) | | Depreciation Expense | $16,663 | $14,741 | | Depreciation Expense from Unconsolidated Joint Venture | $217 | $197 | | Loss on Sales of Investment Property and Equipment | $1 | $3 | | Decrease in Fair Value of Marketable Securities | $1,562 | $5,369 | | **FFO Attributable to Common Shareholders** | **$18,172** | **$14,046** | | Adjustments: | | | | Amortization of Financing Costs | $599 | $556 | | Non-Recurring Other Expense | $49 | $415 | | **Normalized FFO Attributable to Common Shareholders** | **$18,820** | **$15,017** | [Changes In Results Of Operations](index=34&type=section&id=Changes%20In%20Results%20Of%20Operations) Analyzes changes in UMH Properties' revenues, expenses, and other income/expense items for the three months ended March 31, 2025 - Rental and related income increased **8% to $54.6 million** in Q1 2025 (from **$50.3 million** in Q1 2024), driven by higher rental rates (**5-6% annually**) and a **70 basis point increase in same property occupancy to 87.9%**. Occupied rental homes increased **4% to 9,900**[131](index=131&type=chunk) - Community operating expenses increased **9% to $23.0 million** in Q1 2025 (from **$21.1 million** in Q1 2024), primarily due to increases in payroll, real estate taxes, snow removal, and water/sewer costs[132](index=132&type=chunk) - Community NOI increased **8% to $31.5 million** in Q1 2025 (from **$29.2 million** in Q1 2024). The operating expense ratio was **42.2%** in Q1 2025, up from **41.9%** in Q1 2024[133](index=133&type=chunk) - Sales of manufactured homes decreased **10% to $6.7 million** (**71 homes**) in Q1 2025 (from **$7.4 million**, **95 homes** in Q1 2024). Gross profit percentage improved to **35%** from **24%**[134](index=134&type=chunk) - General and administrative expenses increased **12% to $6.0 million** in Q1 2025 (from **$5.4 million** in Q1 2024), mainly due to higher payroll and professional fees. As a percentage of gross revenue, it was **9.4%** in Q1 2025 vs **9.0%** in Q1 2024[137](index=137&type=chunk) - Depreciation expense increased **13% to $16.7 million** in Q1 2025 (from **$14.7 million** in Q1 2024) due to increased rental homes and expansions[138](index=138&type=chunk) - Interest income increased **44% to $2.3 million** in Q1 2025 (from **$1.6 million** in Q1 2024), driven by an increase in average notes receivable balance (**$90.4 million** vs **$74.1 million**) and interest on excess cash[139](index=139&type=chunk) - Decrease in fair value of marketable securities was **$1.6 million** in Q1 2025, significantly lower than **$5.4 million** in Q1 2024[140](index=140&type=chunk) - Interest expense decreased **21% to $5.9 million** in Q1 2025 (from **$7.5 million** in Q1 2024) due to a decrease in the average balance of mortgages and loans (**$509.5 million** vs **$580.6 million**) and a lower weighted average interest rate (**4.4%** vs **4.6%**)[141](index=141&type=chunk) [Changes in Financial Condition](index=36&type=section&id=Changes%20in%20Financial%20Condition) Discusses changes in UMH Properties' balance sheet items, including investment property, marketable securities, and debt - Total investment property increased **3% or $43.8 million** in Q1 2025, driven by the addition of **109 rental homes (net)** and the acquisition of two communities for **$24.6 million**. Occupancy rate on rental homes increased **60 basis points to 94.6%**[143](index=143&type=chunk) - Marketable securities decreased **5% or $1.6 million** due to a net decrease in fair value[144](index=144&type=chunk) - Land development costs increased **35% or $11.9 million** due to increased expansion projects, with **158 expansion sites** anticipated for 2025[144](index=144&type=chunk) - Mortgages payable, net, decreased **2% or $9.2 million** due to principal payments, including a **$6.4 million payoff**[145](index=145&type=chunk) - Loans payable, net, remained relatively stable during Q1 2025[145](index=145&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Outlines UMH Properties' liquidity demands and capital resources, including cash, credit facilities, and market capitalization - The Company's liquidity demands include shareholder distributions, acquisitions, capital improvements, debt service, and purchases of manufactured homes. These are funded by real estate income, sales, refinancing, bank borrowings, lines of credit, DRIP, and capital markets access (ATM Programs)[146](index=146&type=chunk) - As of March 31, 2025, the Company had **$35.2 million** in cash and cash equivalents, **$30.3 million** in marketable securities, and **$260 million** available on its unsecured credit facility[153](index=153&type=chunk) - The Company has **$137 million** available on revolving lines of credit for home sales/inventory purchases and **$55 million** on a line of credit secured by rental homes[153](index=153&type=chunk) - Net debt to total market capitalization was approximately **23%** as of March 31, 2025. The Company has **55 unencumbered communities** and unencumbered joint venture properties that can be used to raise additional funds[154](index=154&type=chunk)[155](index=155&type=chunk) [Off-Balance Sheet Arrangements](index=38&type=section&id=Off-Balance%20Sheet%20Arrangements) Confirms that UMH Properties does not have any off-balance sheet arrangements - The Company does not have any off-balance sheet arrangements[156](index=156&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=38&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) Warns that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements based on current expectations and forecasts, which are subject to various risks and uncertainties that could cause actual results to differ materially[157](index=157&type=chunk)[158](index=158&type=chunk) - Key risk factors include changes in real estate and economic conditions, increased competition, ability to acquire/develop properties, changes in interest rates, inflation, debt obligations, and regulatory changes[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the quantitative and qualitative disclosures about market risk since the end of the preceding fiscal year - There have been no material changes to the Company's market risk disclosures from the end of the preceding year to the date of this Quarterly Report on Form 10-Q[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of March 31, 2025, and states that there were no material changes in internal control over financial reporting during the quarter - The Company's President and CEO and Executive Vice President and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[162](index=162&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[163](index=163&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Contains other required information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report - None[165](index=165&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section indicates that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to information required regarding risk factors from the end of the preceding year to the date of this Quarterly Report on Form 10-Q[166](index=166&type=chunk) - Readers should refer to Part I, Item 1A – "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for a comprehensive discussion of potential risks[166](index=166&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds to disclose - None[167](index=167&type=chunk) [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section indicates that there were no defaults upon senior securities - None[168](index=168&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that there are no mine safety disclosures to report - None[169](index=169&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section confirms that there is no information required to be disclosed in a Form 8-K but not reported, nor any material changes to procedures for security holders to recommend Board nominees - No information required to be disclosed in a Report on Form 8-K, but not reported[170](index=170&type=chunk) - No material changes to the procedures by which security holders may recommend nominees to the Board of Directors[170](index=170&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO, and various Inline XBRL documents for financial statements - Exhibits include certifications from the President and CEO (Samuel A. Landy) and Chief Financial Officer (Anna T. Chew) pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350[173](index=173&type=chunk) - The report includes financial statements formatted in iXBRL (Inline eXtensible Business Reporting Language), such as Consolidated Balance Sheets, Statements of Income (Loss), Statements of Shareholders' Equity, Statements of Cash Flows, and Notes to Consolidated Financial Statements[173](index=173&type=chunk)