UMH Properties(US:UMH)2026-02-26 16:02Financial 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]