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UMH Properties(UMH) - 2025 Q2 - Quarterly Results
UMH PropertiesUMH Properties(US:UMH)2025-08-06 20:45

Financial Highlights 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 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 payable8 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) 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 expenses9 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 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 programs10 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 202410 - 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 202410 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 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 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 debt32 - 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 expenses37 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 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 amortization33 - Normalized FFO is calculated as FFO excluding amortization of financing costs and certain one-time charges34 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 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 debt13 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 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 payable14 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 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 Bonds18 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, 202718 Securities Portfolio Performance 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 loss22 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 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, 202424 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 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 site27 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 Estates27 Acquisitions Summary and Property Portfolio 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 20233031 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 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 health32 - 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 amortization33 - Normalized Funds from Operations (Normalized FFO): Calculated as FFO excluding amortization of financing costs and certain one-time charges34 - 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 - 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 Estates36 - 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 expenses37 - 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 REITs38