UMH Properties(US:UMH)2025-08-07 15:00Financial Data and Key Metrics Changes - Normalized FFO for Q2 2025 was $0.23 per share, unchanged from Q2 2024, with overall normalized FFO increasing by 16% or $2.6 million for the quarter and 20% or $6.4 million for the year [5][20] - Earnings per share were impacted by the issuance of $101.4 million of new GSE debt at a 5.855% interest rate [6] - The company increased its quarterly common stock dividend by 4.7%, from $0.02 to $0.025 per share, marking five consecutive years of dividend increases totaling a 25% increase [5][6] Business Line Data and Key Metrics Changes - Total revenue increased from $60.3 million in Q2 2024 to $66.6 million in Q2 2025, representing a 10% increase [11] - Rental and related income rose by 9% year-over-year, while community NOI increased by 119% for the six months ended June 30, 2025 [12][21] - Sales of manufactured homes reached a record $10.5 million for the quarter, with a 196% increase year-over-year [13] Market Data and Key Metrics Changes - The company operates 144 communities with 12,300 home sites, including 10,600 rental homes [10] - The Marcellus and Utica Shale strategy has led to significant appreciation in land and community values, supported by local energy projects [10][11] - The company reported an industry-leading total return of 17% over two years and 76.7% over five years [11] Company Strategy and Development Direction - The company is focusing on increasing affordable housing supply and is optimistic about legislative changes that could enhance growth opportunities [29][30] - There is a commitment to Greenfield development and joint ventures to enhance cash flows and operational results [15] - The company plans to actively pursue acquisitions and has $150 million available for growth initiatives [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the low end of prior guidance, citing strong demand for homes and potential increases in sales due to favorable financing conditions [35][36] - The company anticipates continued growth in rental income and occupancy rates, with expectations for same property NOI to increase [76][77] - Management highlighted the importance of recent HUD initiatives aimed at improving financing for manufactured housing, which could significantly impact sales [79][80] Other Important Information - The company ended the quarter with $79.2 million in cash and $260 million available on its unsecured revolving credit facility [27] - The weighted average interest rate on total debt was 4.63%, with 99% of the debt being fixed rate [22][23] - The company is committed to not increasing investments in its REIT securities portfolio and has been selling certain positions [28] Q&A Session Summary Question: Is the company withdrawing its prior guidance? - Management indicated that the low end of the prior guidance should hold, emphasizing confidence in the manufactured housing market and potential for increased sales [35][36] Question: What are the drivers of confidence in guidance? - Management noted that confidence stems from expected increases in rental income and potential sales growth, with a focus on operational performance [36][39] Question: How are new home prices trending? - Prices of new homes have remained stable, with strong demand for rental homes and ongoing setup of new units [40][42] Question: What is the expected CapEx for community upgrades? - The capital budget for community upgrades is approximately $20 million, focusing on infrastructure improvements [46][49] Question: What is the outlook for same property operating expenses? - Same property operating expenses are expected to grow in the 5% to 7% range, with a decrease noted in the second quarter [75][76] Question: How is the sales pipeline trending? - The sales pipeline is currently over $5 million, indicating strong sales momentum and positive demand for new homes [85][86]