UMH Properties(US:UMH)2025-11-03 21:15Company Operations - As of September 30, 2025, the company operated 145 manufactured home communities with approximately 27,000 developed homesites, following the acquisition of a community in Albany, Georgia for $2.6 million[132]. - The company added 433 rental homes during the first nine months of 2025, bringing the total number of rental homes to approximately 10,800, which represents 40.8% of total sites[140]. - The company acquired a total of 587 sites for $41.825 million during 2025, with an average occupancy of 78% across the acquired communities[141]. - The Company owned and operated 144 communities as of September 30, 2025, with 69 of those communities being unencumbered[179]. Financial Performance - For the three and nine months ended September 30, 2025, rental and related income increased by 11% and 10% respectively compared to the prior year periods, with Community Net Operating Income (NOI) also increasing by 11% and 10%[137]. - Same property NOI increased by 12% and 10% for the three and nine months ended September 30, 2025, driven by a 110 basis point increase in occupancy to 88.5% and a rental rate increase of 5.2%[137]. - FFO attributable to common shareholders for Q3 2025 was $19.743 million, up from $17.662 million in Q3 2024, representing an increase of 12%[149]. - Rental and related income increased 11% from $51.9 million in Q3 2024 to $57.8 million in Q3 2025, driven by acquisitions and increased rental rates[152]. - Community NOI rose 11% from $29.4 million in Q3 2024 to $32.8 million in Q3 2025, attributed to higher occupancy and rental rates[154]. - Operating activities generated $60.643 million in cash for the nine months ended September 30, 2025, compared to $54.331 million in 2024, marking an increase of 12%[151]. - The Company generated net cash from operating activities of $60.6 million for the nine months ended September 30, 2025, compared to $54.3 million for the same period in 2024, representing an increase of approximately 4.3%[177]. Investment and Financing - The company intends to continue increasing real estate investments and expansions, focusing on acquiring communities expected to yield returns exceeding the cost of funds[137]. - The Company has $260 million available on its credit facility, with a potential total availability of up to $500 million due to an accordion feature[177]. - The Company issued and sold 2.6 million shares of Common Stock through the September 2024 Common ATM Program, generating net proceeds of $44.2 million after offering expenses[173]. - The Company raised $7.1 million from the issuance of common stock in the DRIP during the nine months ended September 30, 2025, which included dividend reinvestments of $2.6 million[175]. - The Company issued approximately $80.2 million of its 5.85% Series B Bonds due 2030, with net proceeds of approximately $75.1 million after transaction costs[176]. Economic Environment - The macro-economic environment continues to favor home rentals, with 30-year fixed mortgage rates remaining above 6%, making rental homes in manufactured home communities an attractive option[140]. Expenses and Liabilities - General and administrative expenses rose 8% from $15.3 million in the first nine months of 2024 to $16.5 million in 2025, primarily due to payroll and professional fees[158]. - Interest expense increased 22% from $6.5 million in Q3 2024 to $7.9 million in Q3 2025, mainly due to the issuance of new bonds and refinancing at higher rates[164]. - As of September 30, 2025, the Company had total assets of $1.6 billion and total liabilities of $703.1 million, resulting in a net debt to total market capitalization ratio of approximately 28%[180]. Cash and Investments - As of September 30, 2025, the Company had $34.1 million in cash and cash equivalents and $31.7 million in marketable securities[177]. - The Company paid dividends totaling $55.8 million on common stock and $15.4 million on Series D Preferred Stock for the nine months ended September 30, 2025[175]. Occupancy Rates - Occupancy in rental homes was strong at 94.1% as of September 30, 2025, with occupied rental homes representing approximately 43.4% of total occupied sites[140]. - The occupancy rate of rental homes increased to 94.1% as of September 30, 2025, up from 94.0% at December 31, 2024[165].