The following is a summary of the UMH Properties, Inc. (UMH) Q3 2024 Earnings Call Transcript:

Financial Performance:

• UMH Properties reported normalized FFO per diluted share of $0.24 for Q3 2024, a 9% increase year-over-year and a 4% increase sequentially from Q2 2024.

• Year-to-date normalized FFO reached $50.3 million, marking a 28% increase compared to the previous year.

• Rental and related income for the quarter was $51.9 million, an 8% increase year-over-year, primarily driven by increased rental rates and occupancy.

• Net proceeds of $107 million were raised through the sale of approximately 5.7 million shares, enhancing financial flexibility.

• Debt composition remains strong with a total of $615 million, of which 99.5% is at a fixed rate, indicating stable future interest obligations.

Business Progress:

• UMH continues to expand its portfolio, with occupancy increasing by 39 units to 87.4% during the quarter, and by 271 units year-over-year.

• Plans to develop approximately 300 sites in 2025, and negotiations for a joint venture on 131 acres in Vineland, New Jersey are underway.

• The company anticipates further growth with 800 new rental homes planned for next year and projects a $10 million increase in revenue.

• Expanded the borrowing capacity of the unsecured revolving credit facility from $180 million to $260 million, enhancing financial agility.

Opportunities:

• Expansion projects and acquisitions are expected to drive growth, with 3,300 vacant sites and 2,200 acres of vacant land presenting significant internal growth opportunities.

• UMH's positioning in the affordable housing market, coupled with potential favorable regulatory changes, supports sustained long-term growth.

Risks:

• Weather-related events incurred storm-related expenses, impacting the expense ratio for Q3 to 43.3%.

• Fluctuations in occupancy rates and the possible increase in interest rates could affect operational financial stability.

More details: UMH Properties Inc IR

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