Financial Data and Key Metrics Changes - Normalized FFO for Q4 2025 was $0.24 per share, unchanged from the prior year, while for the full year, it increased by 2% to $0.95 per share compared to $0.93 in 2024 [6][16] - Gross Normalized FFO increased by 7% for the quarter and 15% for the year [7] - Total revenue, including home sales, reached $261.8 million for the year, a 9% increase over the previous year [10] Business Line Data and Key Metrics Changes - Rental and related income grew to $226.7 million for the year, representing a 10% increase from $207 million in 2024 [9][17] - Same-property revenue growth was 8.2% for the year, with same-property NOI growth of 9% [10][18] - Home sales generated gross revenue of $36.4 million for the year, a 9% increase from $33.5 million in 2024 [12] Market Data and Key Metrics Changes - The company added 717 new rental homes, bringing total rental home inventory to approximately 11,000 units with a 93.8% occupancy rate [11] - The average occupancy in newly acquired communities was 78% at acquisition, providing immediate upside potential [13] Company Strategy and Development Direction - The company aims to continue growing through acquisitions, community development, and enhancing the profitability of its sales operations [28][30] - Investments in communities have improved living conditions and generated strong demand, resulting in waiting lists for rental homes [29] - The company is exploring the expansion of communities and other uses for its vacant land, which holds substantial value [30] Management's Comments on Operating Environment and Future Outlook - The affordable housing crisis is a national concern, and the company positions factory-built homes as a solution [6] - Management anticipates strong growth prospects for 2026, supported by positive industry fundamentals and high demand for affordable housing [31][32] - The company expects to achieve normalized FFO guidance of $0.97 to $1.05 per share for 2026, reflecting a 2%-10% increase [8][27] Other Important Information - The company ended the year with $72 million in cash and cash equivalents and $260 million available on its credit facility [19] - Total debt at year-end was approximately $761 million, with 99% being fixed rate [20][21] - The company repurchased 320,000 shares of common stock at an average price of $15.06 per share, reflecting confidence in its undervaluation [24] Q&A Session Summary Question: What is the strategy between rental and home sales? - Management emphasizes the importance of rentals for short-term housing needs, which helps convert renters into buyers [36] Question: What is the expected same-store NOI growth without weather-related expenses? - Management indicated that without elevated snow removal costs, same-store NOI growth would have approached 10% [42][43] Question: What are the dynamics affecting home prices and supply chain issues? - Management noted that prices for homes remain stable, with no significant delays in obtaining homes [44][45] Question: What is the outlook for rental homes and acquisition opportunities? - Management expects rental home growth to be weighted towards the spring and summer months, with ongoing competitive acquisition opportunities [56][59]

UMH Properties (NYSE:UMH) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Company ParticipantsAnna Chew - EVP and CFOBarry Oxford - Managing Director and Senior Equity ResearchBrett Taft - EVP and COOCraig Koster - EVP, General Counsel, and SecretaryEugene Landy - Founder and ChairmanJim Lykins - VP of Capital MarketsSamuel Landy - President and CEOConference Call ParticipantsGaurav Mehta - Managing Director and Senior Equity Research AnalystJohn Massocca - Senior Research AnalystRich Anderson - Equity ...

UMH Properties (NYSE:UMH) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Speaker8Good morning. Welcome to UMH Properties' fourth quarter and year-end 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, p ...

Financial Data and Key Metrics Changes - Net sales increased by 2% year-over-year to $657 million, while net income attributable to Champion Homes decreased by 12% year-over-year to $54 million, or earnings of $0.97 per diluted share [18][21] - The average selling price (ASP) per U.S. home sold increased by 5% to $99,300, driven by changes in product mix and increased prices on new homes sold through company-owned retail sales centers [19][21] - Consolidated gross profit decreased by 5% to $172 million, with a gross margin of 26.2%, down 190 basis points compared to the prior year [20][21] Business Line Data and Key Metrics Changes - Sales to the independent retail channel decreased year-over-year, while captive retail sales increased year-over-year, representing 38% of consolidated sales in Q3 versus 35% last year [12][21] - Community channel sales were down year-over-year, but positive feedback was received regarding new products showcased at the Louisville Home Show [13][19] - Sales through the builder developer channel grew in the third quarter compared to the same period last year [14] Market Data and Key Metrics Changes - Manufacturing backlogs decreased sequentially by 15% to $266 million, with average backlog lead time ending the quarter at 7 weeks [10][11] - Canadian revenue during the quarter was $26 million, representing a 3% increase in the number of homes sold versus the prior year, while the average home selling price in Canada decreased by 2% to $120,000 [19][20] Company Strategy and Development Direction - The company aims to increase awareness and demand for its products, with a focus on building trust with consumers and product innovation [6][7] - Legislative efforts are being monitored closely, with a strong bipartisan focus on solving the housing crisis, which is seen as a foundation for future growth [8][9] - The company is committed to expanding its product offerings to attract a broader segment of new buyers and address affordability issues in the housing market [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the fourth quarter, expecting revenue to be up low single digits versus the prior year, with gross margin anticipated to be in the 25%-26% range [24][25] - The company is focused on executing its strategic initiatives while managing SG&A prudently, despite challenges in the macroeconomic environment [24][25] - Management highlighted the importance of engaging with consumers and adapting to market conditions as part of their strategy moving forward [40][84] Other Important Information - The company announced a $50 million share repurchase during the quarter and refreshed its $150 million share repurchase authority, reflecting confidence in its cash generation capabilities [22][23] - The sale of Triad's parent company, ECN Capital, is progressing well, with expected proceeds of approximately CAD 189 million to Champion [16] Q&A Session Summary Question: Can you provide more color on the geographic environment and weather-related impacts? - Management noted that there were no unusual geographic trends and that weather-related delays impacted production days, but they are working to make up for lost time [28][29] Question: Was the increase in ASPs at captive retail due to mix or pricing? - Management confirmed that both pricing and mix contributed to the higher ASPs year-over-year [30][31] Question: What is the outlook for the community channel? - Management indicated that they are working closely with community channel partners and are optimistic about new product feedback as they approach the spring selling season [41][43] Question: Can you elaborate on the margin expectations for the next quarter? - Management highlighted that gross margin variability is expected, with a focus on product mix and channel dynamics impacting margins [46][48] Question: What are the expectations for backlog and revenue guidance? - Management expects a continuation of the order flow seen in Q3, with a positive outlook for backlog and revenue in Q4 [67][68]

Industry Overview - Manufactured housing is experiencing strong structural tailwinds due to rising demand, limited supply, and predictable revenue streams, making it an attractive investment opportunity [2][3] - The affordability crisis is a significant issue, with many Americans priced out of conventional single-family homes, leading to an urgent search for affordable housing [4][5] Company Analysis Sun Communities Inc. (SUI) - Sun Communities is a leading real estate investment trust (REIT) that owns and operates manufactured housing communities, benefiting from residents who own their homes but rent the land, resulting in stable occupancy and cash flow [8][9] - The company's national footprint allows it to acquire smaller properties, enhancing operational efficiency and net operating income, particularly in high-growth Sun Belt markets [9] - SUI offers steady income with long-term growth potential, with a consensus price target of $136.69 and a dividend yield of 3.3%, which has increased by an average of 4.6% over the last three years [10] Champion Homes (SKY) - Champion Homes is one of the largest manufacturers of factory-built homes in the U.S., positioned to benefit from rising demand for affordable housing options [12] - The company can achieve operating leverage as shipments increase, translating into higher margins and earnings, supported by government initiatives for affordable housing [12][13] - Despite being perceived as expensive at 24x earnings, it remains competitive within the construction sector, especially if affordability pressures drive demand for manufactured housing [14] UMH Properties Inc. (UMH) - UMH Properties operates primarily in the Midwest and Northeast, regions facing persistent housing shortages due to zoning restrictions and limited new construction [15] - The company focuses on organic growth by filling vacant sites within existing communities, which enhances occupancy and rental revenue without significant acquisition costs [16] - UMH offers a higher dividend yield of 5.67% and has a consensus price target of $18, indicating strong upside potential, although it is smaller and more leveraged than its competitors [17][18]

Core Insights - The article discusses the anticipated rotation between asset classes, highlighting sectors poised for outperformance in 2026, particularly focusing on manufactured housing, discounted preferreds, and triple net REITs. Group 1: Manufactured Housing - Manufactured housing (MH) is expected to outperform due to its price advantage over site-built housing, making it a viable solution for many consumers facing high housing costs [3][4]. - Flagship Communities (MHCUF) demonstrates strong fundamentals with a same-store NOI growth of 10%, yet trades at a low valuation of 14.5X AFFO, which is significantly below the typical 20X AFFO for such growth rates [5][8]. - The sector can sustain organic rent growth of 5%-8% annually for the next decade, contributing to robust NOI growth of 8%-12% across the industry [4][5]. Group 2: Discounted Preferreds - Preferred stocks, particularly those of Gladstone Land (LAND), are currently mispriced, with the market treating them similarly to common stocks despite their different payout profiles [11][12]. - LAND's preferreds are seen as highly opportunistic due to their stability and the underlying asset class of farmland, which has a strong asset value protection [13][22]. - The preferreds have a total liquidation preference of $392 million, with sufficient asset coverage to protect against declines in farmland value [26][24]. Group 3: Triple Net REITs - Triple net REITs, such as Broadstone Net Lease (BNL), are positioned for recovery as the market has undervalued them based on past low growth rates, ignoring potential future growth [32][45]. - The average triple net REIT is currently trading at an AFFO yield of 8.1%, which is considered undervalued for a growing stream of cash flows [45][46]. - BNL is highlighted as a strong investment opportunity due to its combination of value and durable growth, trading at 11.51X AFFO with an 8.7% AFFO yield [46][49].

The second quarter saw a sequential decrease in revenue from the fiscal first quarter down $12 million, while our backlog grew $23 million, resulting in a total backlog of $427 million at the end of the quarter. The average backlog lead time remained steady at 11 weeks, aligning with the end of the first fiscal quarter. I'm pleased to announce that the acquisition of Regional Homes has continued and surpassed our expectations. We have achieved the upper limit of our synergy targets this quarter which marks ...

Core Insights - Flagship Communities Real Estate Investment Trust (REIT) celebrated its 5th anniversary of being listed on the Toronto Stock Exchange and its 30th anniversary in the manufactured housing industry [1] - The REIT has grown from a single community of 152 lots in 1995 to owning 87 communities with over 16,000 lots across eight contiguous U.S. states [2] - Flagship Communities REIT is the only pure-play manufactured housing investment in the Canadian capital markets, providing affordable home-ownership opportunities through its land-lease model [2] Company Overview - Founded in 1995, Flagship Communities REIT started with one community and has significantly expanded its portfolio [2] - The REIT focuses on delivering exceptional, family-oriented residential living experiences while ensuring sustainable long-term value for unitholders [2]

Financial Data and Key Metrics Changes - Home sales decreased by $1.4 million, or 4.8%, during Q3 2025 compared to the same period last year, primarily due to declines in sales to mobile home park customers and independent dealers [5] - Net revenue per unit increased approximately 8% to $68,500 from $63,500 year over year [5] - Net income decreased by $7.2 million, or 45.3%, to $8.6 million compared to $15.8 million in Q3 2024, with a net income margin of 21.4%, down from 35.7% [12] - For the nine months ended September 2025, net income declined $13 million, or 28.7%, to $33.6 million from $47.1 million [12] Business Line Data and Key Metrics Changes - Product sales remained relatively flat year-to-date, declining slightly by $1.2 million, or 1.3% [6] - Consumer MHP and dealer loan interest income increased to $10.9 million, up 5.4% during Q3 compared to the prior year [6] - Other revenue decreased by $3 million, or 79%, for Q3 2025 compared to Q3 2024, primarily due to a significant land sale in the prior year [8] Market Data and Key Metrics Changes - The Texas Manufactured Housing Association reported a seasonally adjusted drop of 3.8% in August and a raw total decline of 6.1% from September 2024 [15] - Despite macroeconomic headwinds, the company held a successful annual show in September, leading to higher production rates expected for Q4 2025 [15] Company Strategy and Development Direction - The company is focusing on reducing working capital, particularly raw material and finished goods inventory, to free up $10-$20 million for reinvestment [17] - The acquisition of Americassim is aimed at enhancing retail distribution and integrating remote management technology to improve sales growth [19][20] - The company plans to increase its retail sales significantly, targeting a 50-100% increase in 2026 compared to 2025 [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the slowing industry and the impact of tariffs and labor costs on profitability [15][29] - The company remains optimistic about the Texas market, anticipating strong demand due to upcoming housing needs related to data centers [18] - Management noted that the consumer loan portfolio remains strong, with 99% of mobile home notes performing as agreed [16] Other Important Information - The company ended Q3 2025 with $13.6 million in cash and a new revolving credit facility of $50 million [13] - The book value per share increased to $21.85, reflecting a strong balance sheet despite lower sales [13] Q&A Session Summary Question: Can you discuss the Americassim asset purchase and its revenue model? - The acquisition focuses on the HomeX product, which allows for remote management of retail locations, potentially increasing sales [30][31] Question: What are the expectations for production out of Texas manufacturing facilities? - The company expects to average six to seven homes per day in Texas and two to three in Georgia, indicating a profitable outlook for Q4 [34] Question: Will there be additional price increases to offset raw material costs? - The company has implemented price increases of approximately 3-4% and is monitoring the market for further adjustments [36] Question: How is the consumer loan portfolio performing? - The portfolio remains strong, with low percentages of loans in trouble, although there are concerns about potential impacts from immigration enforcement [40][42] Question: What is the expected impact of the Americassim acquisition on retail sales? - The acquisition is expected to increase retail sales by 50-60% in 2026 compared to 2025, with significant improvements anticipated from integrating new systems [58][60]

Financial Data and Key Metrics Changes - The company reported core FFO per share of $2.28, exceeding the high end of guidance, driven by strong same property performance in North America and the UK [5] - North American same property NOI increased by 5.4%, with manufactured housing delivering 10.1% NOI growth and maintaining a solid 98% occupancy [5][6] - Annual RV rental rates for 2026 are being set with an estimated average annual increase of approximately 4% [7] - Total debt stood at $4.3 billion with a weighted average interest rate of 3.4% and a weighted average maturity of 7.4 years [10] - The company raised its core FFO per share expectations for 2025 to a range of $6.59 to $6.67, reflecting continued operational strength [11] Business Line Data and Key Metrics Changes - Manufactured housing same property NOI is now expected to grow by 7.8% at the midpoint, reflecting continued outperformance [11] - RV same property NOI guidance has been raised to a 1% decline at the midpoint, supported by stable third quarter results [12] - In the UK, same property NOI grew by 5.4%, supported by 4.8% revenue growth and 4% expense growth [7][12] Market Data and Key Metrics Changes - Home sale volumes in the UK are lighter compared to recent record volumes, but the company maintains elevated market share [8] - The UK team is strategically shifting the earnings mix toward recurring real property income while driving operational excellence [8] Company Strategy and Development Direction - The new CEO emphasized three key areas of focus: understanding the MH&RV business, supporting the team in delivering on strategy, and assessing opportunities for disciplined long-term growth [4] - The company is committed to operational excellence and resident satisfaction as core values [18] - The strategy includes disciplined capital allocation and a focus on enhancing long-term shareholder value through buybacks and acquisitions [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and the demand for affordable housing, noting a 98% occupancy rate [18] - The company is focused on retention and operational execution as key drivers for long-term growth, particularly in the RV space [35] - Management acknowledged macro challenges but highlighted strong execution and performance in the UK market [42] Other Important Information - The company completed the disposition of nine delayed consent properties for total proceeds of approximately $118 million [9] - The company has been active in acquiring ground leases, with 28 ground leases purchased year to date for approximately $324 million [10] Q&A Session Summary Question: Initial observations and potential improvements - The new CEO highlighted the strength of the team and the quality of communities, focusing on supporting the team to finish strong in 2025 [15][16] Question: Strategy regarding the UK market - The CEO expressed encouragement about the UK team's performance and their focus on growing recurring revenue [20][22] Question: Transaction market and pricing - The company remains disciplined in capital deployment, seeing an increase in transactional activity but focusing on high-quality assets [25][26] Question: Transient RV performance and Canadian customers - Management noted that Canadian customers represent a small percentage of the business and discussed strategies to improve retention and fill gaps [28][29] Question: Annual RV increase strategy - The company is prioritizing retention and operational execution, leading to a tempered 4% RV annual increase for 2026 [34][35] Question: UK home sales environment - Home sales in the UK are lighter than last year, but the overall performance remains strong with a focus on recurring income [41][42] Question: Use of cash and capital allocation - The company plans to maintain a disciplined approach to capital allocation, balancing growth and shareholder value [66]