UMH - Earnings call transcript Q3 2020

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Operator

Good morning and welcome to UMH Properties Third Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. It is now my pleasure to introduce your host, Ms. Nelli Madden, Vice President of Investor Relations. you. Thank Ms. begin. may you Madden,

Nelli Madden

you very much, operator. Thank

with addition SEC Reform made yesterday, the the supplemental website forward-looking presentation. which of Litigation presentation at during historical deemed that on the based the not would available and uncertainties. unaudited everyone XX-Q the forward-looking with and information that along call, The information supplemental to filed umh.reit. we The XX-Q this we that company's quarter Act various expectations involve be are make are statements this in In Private meaning statements third to of our conference may facts, like have within our remind on current risks I an Securities are XXXX. filed statements we certain call

materially believes differ The could company detailed the and update Securities provide company Commission. Exchange to the reflected be achieved. and expectations XXXX in and reasonable filings forward-looking any The with results its obligation will in can release statements. quarter third on based statements expectations cause from its the risks disclaims Although that to earnings company are actual assumptions, no company's the the that assurance are any uncertainties forward-looking expectations

now Brett Officer; Vice and pleasure to Executive Vice and today. as that, to our the and earnings over UMH's be Officer; of Jim Chief Capital Landy, President filings. management SEC It I President and and and turn during today's Eugene Landy, Financial our metrics well Samuel Chew, and Anna call, Chief financial Landy. cautioning said is non-GAAP Operating us In President. in financial Chairman; Vice Vice Samuel Executive addition, Lykins, Daniel Reconciliations Markets; information to language included release, we discussing explanatory would these my Chief GAAP introduce our metrics. as President call Chief Having metrics Officer, non-GAAP President will are with of financial to President Taft, supplemental comparable like historical Officer; the Landy,

Samuel Landy

Nelli. much, very you Thank

our ended excellent We the despite XXXX. to quarter for to achieve pandemic. the UMH COVID-XX are report third results pleased XX, results September continues

collections $X our XX% XX% and third FFO and This have the $X.XX $X.XX with approximately Demand over communities. quarter community same of for remains to share. line was rental year in $XXX charges XXXX. of homes in was our prior sales performance. been of rental further same well quarter point period. as by million per the throughout improvement to excel in compared by quarter rent in increase is $X.XX point our FFO strong Normalized ends Currently obtaining used GSE pioneered X.XX%. over the related our We our Series our collected. diluted UMH improvement XX% evidenced our B Our remain of basis loan Financing in per share, positioned XXX basis this per as year. represents will to the to to communities result preferred in GSE XX%. Subsequent of or to year occupancy quarter an This business stock. third up redeem XXX This compared in growth demonstrated acceptance the last capital plan additional X% million success historical at

our series by FFO. positive our of per that the to is dividend $X.XX our that impact pleased quarter preferred current will prior now This operating are the performance. is have We fully B covered on redemption

additions. are starting our expansions we the revenue improve. our our past In home accordance positively to the continued pandemic, growth Throughout significant to years overall communities we improvements, impacting community with results business operating that and capital plan, few value-add the have now have acquired continued Our over and are performance. rental deliver

are and income than the is better ever before. XX%. up quarter Year-to-date, XX%. look operating total income communities Total is more efficiently up for Our

The XX% growth the to expense and XX.X% decreased the combination of from XX% NOI income growth of for Our and year. has resulted quarter expense ratio for operating XX.X%. in ratio overall reduction

quarter basis occupancy for property year. to quarter year-over-year. same to XX.X% revenue property XXX same increase program. of last rate sites. fourth be year-to-date, home crisis and growth. primary as home delivered quarter points homes have income the same Our improved growth occupied is is and from COVID-XX same third stable we This and owner rental growth as to producing the has revenue NOI that driver have growth XX.X% double-digit The generating XXX store row growth occupancy an translates Through our and of the sites in occupancy the This X.X% NOI XX.X% to of income respectively. This of rental a X.X% overall contributed proven stream the

so We units XXX have rental increased our this portfolio far by home year.

approximately We than quarter to performance are the At way occupancy year XX.X% XXXX are own are a housing. to rental that of on rental home result ever new was our rental to track in best homes. our add COVID, we communities convinced this quality more housing as rental end, homes affordable provide rate now XXX through units XXX manufactured

derived of our line into We homes our by line prime of secured points. equity opportunities by where the to XX value-add continue plus with rental us at in them. seek a reasonable allows Bank home to homes into income strong rental and rate entered we acquisition program. credit tap implement rental have basis First the markets we a our that This in can Recently

representing spite are cost demand the three year. throughout same for and sales quarter continue Our of at of for continue to COVID-XX Gross million, were to $X.X the XX% see the X% up pandemic over the portfolio. over $XX year goal sales increasing Gross the which quarters is In sales capital now of an for XXXX. our period first last for is we used rental program increase million, to the our increase home purpose. that reduce

the for generated and XXX,XXX approximately sales income for $XXX,XXX Our of approximately year. the quarter

locations. our available volume, sites this volume, generate continue improve have track we XXX XXX our expect We To sales obtain next the at We which months. are this XXXX, best approximately we many ensure working of sites further meaningful generate grow the expect remain development approvals we developing of year; on FFO. sites to on the additional on develop to to about of in to that should we sites. approved sales will As to we complete income lots these XXX XX

site. the occupancy communities two on closed with we an price are value sites a quarter XXX $X.X per of the total XX%. of of communities containing $XX,XXX for acquisition million These add or place rate in purchase During

to already next expect turnaround work in months, and homes. in, few management complete efficiencies. communities our are that we we rental the communities initial to begin markets creating operate located the These both infill Over with

criteria. $XX,XXX these our improve operating been price site. that to add $XX three our have to growth fit in million, have refinance The discussed we our communities, approximately communities ultimately FFO. calls, and sales stack, or communities of purchase new acquisition Previous communities We occupied. XXX profitability, our pipeline, to per total for we've able four are improve expand capital sites community which results, and states is plans our acquire on contain letters executed intent These of XX% improve

achieved we many progress difficult these substantial economic and goals extremely the of toward made circumstances, During others. have achieving

on refinance to positive per our add of in our This have is prior FFO stack dividend impact expected to of $X.XX and our the preferred redemption covered $X.XX annually. the of will series B change earnings. capital have share We

and We in growth foundation to XXXX deliver have beyond. laid the excellent FFO

results on detail will provide for with our and you Anna for greater Now, the year. the quarter

Anna Chew

XXXX sale the the Thank to non-recurring per million, other Normalized gains or of items per share securities Sam. for year you, FFO, third excludes $X $X.XX on the diluted $X.X or of diluted quarter million, realized was period. which share for prior $X.XX compared and

million B outstanding annually approximately we As quarter X% This the X.X of we recent savings million cumulative XXXX will million XXX or rental to attributable $XX.X GSE in about with increase the an expense increases, $XX success XX%. quarter rent XXXX. program share ago, compared our XX. the issued Rental for totaling to basis related had are million, our redeemable representing income and reduction increases points, ratio. These year $XX.X NOI home Community a on $X.XX XX% to forward. previously our and of was stock for acquisitions, from financing million October $XX.X all in million operating increased announced, by per shares of an our $XX.X generate going together of preferred Series redeemed

XXXX Our the quarter to XX.X% from XX.X% third current of for the ratio quarter. operating expense improved for

$XXX the For X.X% end, our quarter XX.X% last from year. average by expense rent decreased ratio to over site XX.X%. our the same period increased portfolio At to monthly nine months,

for income NOI home the $X.X improved new the of were and XXXX. Sales XX, last for the million home X.X% X.X% homes expenses XX% of by were from average sales XXXX $X.X current X.X% Our increased for months quarter, period XX over Same gross three in increased rent the in increased September while We growth The XXXX to homes, third sold monthly percentage ended last same which the manufactured for XXX same year. XX% property million profit sales. property to increased of same home of in total the XX resulting from over to quarter. used quarter period year, by XX.X%. $XXX the XX%

were which XXXX, nine new September was we sales. percentage and home the for XXX home XX, ended months, respectively. months The profit XX% XX% XXX used of and nine the For of sold sales XXX total a XXXX homes, were gross and

our structure, X.XX% community million level $XXX of payable, we rate. debt we end, million debt to years in compared $XXX end, quarter our X.X which year $XXX capital maturity As weighted debt, of preferred XX% quarter in stock, was our X.XX% $XX on was a weighted the ago. approximately not Series interest our quarter million and had the at end at which average At prior mortgage of is rate had The fixed XX. B end, was with to with turn a The million to of loans equity debt years quarter in that total total including million mortgage October on mortgage at X.X year. UMH average debt preferred redeemed on perpetual compared $XX

X% quarter was $XXX equity the net our million period. a debt of in capitalization and Our million total market year preferred over From representing at capitalization prior in XX%. total billion an $X.X stock capitalization to depth results a combined of approximately of with increase standpoint, credit market an market our end, $XXX

net to was market debt capitalization securities total Our XX%. less

adjusted accordion ended standpoint, in was the cash less and adjusted feature million additional our interest $XX on $XX quarter and cash purchase home equivalents, to potentially for with our credit coverage X.Xx. financing pursuant net X.Xx Our debt coverage of million on net inventory. an X.Xx, available From $XX and was of a liquidity an lines debt our available the EBITDA million X.Xx, we the $XX credit was facility to revolving million was and EBITDA our securities charge available with our of sales fixed to unsecured

had our portfolio REIT limit our approximately also securities our undepreciated million assets. to our no XX% X% portfolio of We of We undepreciated unencumbered represents $XX than portfolio. assets. in This more

raised nine we $XX.X stock exception end, these our during million during of through million not and investments the company its REIT in are the the Through out position. we continues quarter additional of ATM increasing to Subsequent raised $X.X reinvesting to months. $XX With dividends, the net preferred The liquidity we programs, proceeds and programs. committed common million to portfolio. our quarter enhance securities an

redemption mentioned, line million by conjunction with our expandable in in line and with a $XX we it Gene Bank to to by And and with end, an up income Sam unsecured the on me preferred the open before turn $XX secured facility let First $XX as subsequent stock derived is homes to entered million our B down Additionally, feature, accordion now it This margin credit we drew rental million October, Series credit $XX for on questions. of million we quarter our them. line. into over

Eugene Landy

XXX performance believe communities. with of in the years favorable continue pleased the We performance incredibly been our of portfolio have the will ahead. We

to homes continued well and of rental has do low improvement, UMH pandemic communities the installed the rates. expanded and our communities homes, completed housing capital of needs and profitably has acquired interest burden sold serve the despite historically at staff homes, finance Our communities. communities

nation the productive now shortage affordable domestic is population result beyond. facing accomplishments, issue a positioned both the could valued, to family and stock is As from suburbs. much redeemed preferred with shares XXXX with and experiencing has single investment, critical cities become provides housing for XXXX. a UMH's housing. The pandemic caused well nation. concerns an cost where UMH capital includes lower environmental, of and our be fix as The these demand In of a it capital to that an the in preferred social a migration governance are affordable for housing. is increased XXXX needed age highly UMH affordable UMH

have GSE financing in have levels capital changes operating occupancy They market pathways important potential one valuable. operating increased at eligible a rates. favorable Housing is more and because of metrics. Our The for property fundamentals. for results. increasing improved should favorable provides Encumbered increased become improved values become the stock the UMH's The for housing factor. are economics pathway of economic now low

inflation also the across begin landscape. may In blow addition, the to winds of

have values history. reflect ahead important The and years year needed prudence our We XX much housing visions. built a over long-term of company can the

will be We take happy questions. your to now

Operator

with first will Davidson. Instructions] And [Operator Oxford We come go Please will ahead. now Barry session. begin D.A. the our from question-and-answer question

Barry Oxford

look for do businesses and the this economic to sale we portfolio next over given the then a favoring that's the you we your two look at at months, more Sam, environment, rentals? how do how see when look six and rental at those tracking you nine

Samuel Landy

the to For one rent work about more and sell. issue the for always down six additional the homes, who be those staying profitable and tied only problem done nationally on years at being loans out which less. But time, who's financing three homes to to we'll we or for resale same available more want for customer every the business to doesn't retail There's could I securitize think the at place solves financing the of the sales. of months, more available rental yes, generate a next nine the make eight while finance make customer

be always eight with will rentals sales. about one think I to So

Barry Oxford

and Sam, Great to or it's on And acquisitions active these deals. that actually find I you've these know win thanks. been hard the fairly acquisition side,

just over next a look pipeline, had activity months, very, to in out flurry of or over you six kind you again, maybe As the nine do we see strong the continued horizon a here. of

Samuel Landy

is and and No, extremely you cost philosophy detail. more your we you how approvals Brett can is this. to to going to communities. capital country, new pretty existing We for our the build people is sites know XX% improvements. all XX,XXX about to a forecast. over much deferred communities a of occupied XX% lack It's about it reasons, declined know hard. communities expand are find various buying piece, maintenance, acquisitions give other basically, at do But can the get But communities We hard that have have expansion occupancy

sites And And you very XX,XXX so brand for an basically, community. quickly acquiring very about so Brett all the at just upgrading XXX a now you a a of that which them site, units. new will this add as pipeline. communities you're and rental Looks buying becomes adding from do created community low add to only basically we a community price, the can the and continue river rental to new tell are XX,XXX renovate over by And it units, XXX relatively the low more our we at communities, like bones acquisition can site, profitable. this tributaries additional we've income coming prices, make and

Brett Taft

Yes.

have Letter expect sign of right contract We Two we under four now. of deals today. Intent the do those, to

Carolina. find they're with to favorable these in the we're I housing should the have But in they're XX% markets, are comparable happy in big think These states, strong sites, market. they're good rental XXX very and demographic occupied. to populations demand. Those which have in three two Alabama are in markets hear communities, rental and the only going new and very again, will two are on that strong that be everybody value-add contracts South

will business well can two implement site, a $XX,XXX significant So we create our we reasonable work at and are $X think them getting million, very or those there, plan go per business value. plan, our we're in generate where price,

fact many can't XX% ability there's also some old to add two center, sites northeast, properties so at additional it's get XXX I sales occupied, in in component our there is into specifics, other is that strong an value-added plan And too along, a property. develop it But The state market. sale value in the the reopen, which we a but another not we it's very it's quite far deal. the as typical to the new sites aren't have

in those So million in with represent the very four deals happy where we stands XX growing to total. future. the it pipeline We're And forward look currently. near

Barry Oxford

Anna, Is question, that Are we look, be you for XXXX might Or number? Thanks last guys reason? revenues. comfortable been look of And at color. good? G&A X% moving have with G&A, running this in that Great. when that for you

Anna Chew

now believe but reasonable X.X%. in a good we've X.X% or because of But right that a about it we X.X%, been amount total as income still our was it number, that to XXXX, growing was been just not we fast G&A is has growing about income our And total total faster. Well, grow, if our income. as G&A also at compared is

Operator

question from Our Please will come next go Stevenson ahead. with Rob Janney.

Rob Stevenson

Good get at occupancy year-over-year of to really some store get having down occupancy morning, that point become juicing XX%, that's big forward the those start been results. comps it's much gains Sam, XX%. slow gains the you've At to or going tougher what challenging, more guys. the gains been you once same

Samuel Landy

is Well, low. I that XX-year of new like a at the believe something supply affordable housing

to So adding mid there's from the to units. lot XX% in by XXs with occupancy a into mind, increase reasons of we'll continue that believe our rental the

condos, costs the negative see competitors change building housing, much I see costs affordable there. more of and money. townhouses, communities, new I of the difficulties building So don't really our apartments, a

product and occupancy there. growth and really only revenue fantastic I a have price fantastic see We a at

Rob Stevenson

Okay.

how already you're is, quarter. think the what third demand other In in existing much another it added? is unit XXX beyond I So rental your a there tapping you communities? question, I related rental guess to within so guys words, question units was

you minus, you if a or XXX XXX the bit quarter. a XXX chunk added been add was million of or good and the so, And plus units demand up that's or you that quarter, them rental units would didn't more able XXX did, why to last rental lease units you essentially, in

Samuel Landy

up. developer, a it set number house a factory; One the how how takes timing just to And issues. like There's from the it it long get is, two building is, of successful that, long takes to to to homes faster some be we It's adding per realistic a usually expect month. housing much four development, not we consider go at to have although than communities.

we expect to So, in fill communities managers per four about month. units

a And speaking to to on very so expect with us give their acquisitions first to vacancies, who's bit XXX additional following to lag we Rentals, to vacant have it, personnel of add of on top we the a look XXX who But sites and that same-store knows Vice do, But you These quickly. physical fill a of to units. demand have to and reputation the a proving how a we want turn little again, the time asset, year getting because, that. it's accelerate new at President basis, marketing we what opportunity around do. it the half and us improving to to for

Rob Stevenson

and improvements, been doing or math have quarters than sort reflecting wides XX,XXX $XX,XXX. like is stuff that last over seems the that for of lastly, down to that or me, homes so. sold is homes that guys higher guys you I'm the you or double similar Okay. doing you either last And inflation expensive for Is selling reflecting cost around $XX,XXX X.X what right, just to few quarter million homes homes? were XXX The boils you add-ons that on more then reflecting, the in cetera, if et that? sold and year my Or

Samuel Landy

December will going before So the me complete Brett lots exact approximately… help XX, it's to how with numbers. But we're many

Brett Taft

lots. XXX

Samuel Landy

next complete... to And year, we expect

Brett Taft

XXXX, the lots. spring through XXX So of it's

Samuel Landy

used are XXX,XXX. to sales, multi-section which over to lots of for be primarily Okay. And from can all going range new those XXX,XXX

markup the in have the on average home should, you they're So per price same higher general XX%. future And a sale.

been good. we curve learning new as So And and right communities that there's going the people the homes. for teaching in the improve the sell all that's should to also houses And demand direction. multi-section the has acquire add

lot continue profits. prices, a reason of sales we're there's So higher going higher higher to increase believe total at to and revenue to

Anna Chew

the both that's year. The homes year XX,XXX XX,XXX. new new was on the the year And total it for the XX, last this margin price the overall for and about average last XX,XXX, versus year-to-date. homes, about was on about was on used, then But on XX,XXX

Rob Stevenson

versus footage for the ones having the stuff ones Okay. you're et that or buying more the bigger rentals, How square cetera? much are nicer

Samuel Landy

new be It could Rentals XX are foot single homes multi-section, but XX. XX. are homes square by generally XXX be ours XX section, XX used sales XX or homes homes most And XX. generally be even by but XX could can XX of the by are XX, the are

Operator

from will next Our with [Alan question Siding ahead. Please come go Home] [ph].

Unidentified Analyst

those You've homes, homes all Are buying from? up picking I’m wondering almost on new as that coming Where home homes in you're those previous many got are all just were people you or is inventory when the new parks, they newer foreclosing quarters? coming the where as used from. used

Brett Taft

Yes.

a lot places. of So different

used nothing are some going and home We nothing significant are there used lot but sales. rental those have Certainly outside XXXX foreclosures of rentals the norm. to a home be of

rentals going And older combination of the be expect foreclosures. But nothing it it's a some would norm. about yes, to to it's be. and those again, it's outside So of we where

Unidentified Analyst

percentage what rental a about is, selling see I home?

Anna Chew

total units. about a guess of of be it about had We XXX homes used would sales I XXX,

if and rental units, our you have we rental XXX of most those homes. think of XXXX homes So beings,

So it's really that is on sold annual a an amount minimal being basis.

Unidentified Analyst

that homes, repossessed percentage XX% you or like the or… is what was But X% of sold

Anna Chew

the X%. It's under I would number would have but don't I number. it a think exact minimal be

Samuel Landy

and with today up very things repos. few and number the good very of there's percentage down with economy That goes

Unidentified Analyst

sense. makes That Yes.

Okay.

sold of renting in home. portion were So that sold to it's wonder the just sold. people, home the homes were that it's rental the just the being what getting people rental are homes I getting

Samuel Landy

all, right? Almost

Anna Chew

mean, people to they our I sale have some home, part, rents There rent. most it. like that the always they and or like others buy would may be the also we For for homes

wants stay person which XXX,XXX, and the three can a priced lower double for them a and may to they our sell if therefore, over rental. go years want for So homes whites, we

Operator

Keegan ahead. Our Carl Berenberg. with go from Please next question will come

Keegan Carl

know first, looking done guidance, formal increases haven't give this can your par of next year? issued they on rental far you've kind into you some but maybe I So color you with like going are what so us year, what on

Samuel Landy

So it's X% on for any a delay, at no was communities with over XX% get COVID occupancy, there if year, they rent increases a rent there three when have This began, less, they increase won't months. were approximately all.

So revenue was revenue that increases, although from actually strong. decreased or growth rent very increased

Anna Chew

occupancy, the too, And of that was because up. occupancy went because

that up delay made for our in So increases. rent the

Keegan Carl

down Okay. you states, have maybe newer you some pipelines years the think color like and there's how expanded on mentioned give about, particular That's in know states then several you what more several road, new you're guys look do at? I you're where us helpful. some could looking And into opportunity state at currently

Samuel Landy

population we opportunities how we ask, as do could decline. And a do the homes, do. how well but higher of we assumed for. is, like the as communities, south, always looking to that's we in maintained other probably in was And in we city. downturn And The duplicate what always we're would center us there's what in XX better that is thing best the COVID vacancies would the found more And we what Nashville appears people apartments. to the But in percentage… fact, rental the predominantly Nashville. And generate did it a neglected we in will of the just was recognize, do places. in outside with that But, what made pre-COVID,

Brett Taft

home …X.X% occupancy… rental

Samuel Landy

rental home occupancy and XX% collection. XX.X% rent

So it doesn't that. any better get than really

that this knew to with no So grow in business. there's mind, we not reason

so, fortunately, deals them. them. doing actively we there are and sure we that And do. looking will can of more And searching already started we've And we we are new markets. continue And found

Keegan Carl

for about going now we final preferred just think especially And me. utilized you one the have should one mix ATM. How funding cool. Okay, that your forward,

Samuel Landy

here redeemed the the in thing important X.XX%. using at X% million most the we've So that debt is new preferred XX

of us benefits benefits per So rate share. that forever the at $X.XX and us it

So more We'll preferred sheet, there's opportunities that preferred color future is you be potentially going keep mortgage using on the Anna they redeeming continue through and incredible to do further as will balance ATM issue the to same thing. come the to exact to but a do, and common give debt. strong

Anna Chew

we at have XXX And Well, XXXX LD now XXX XXXX. six six at Series C quarters, XXXX. redeemable our in million January percent of three due about three which and or comes of of July July is that redeemable that's and about in million right and eight is

about communities and income, generate we approximately So due maybe and million be of value which believe XXX occupancy will next mortgages. the that mortgages have coming in over increased few years, will of and we increased million those because the $XXX the we've created because of

But million that now another I'm loans million. And a X.X%. in our homes, quarter, have on stock. our it's XX we these have is a in X.X%. First equity further. been to able homes past, the preferred to been Also, the there. since expandable even right we to it's homes we $XXX credit, Bank sorry, working line get about we'll Bank, a and had and the So with GSEs we've into to the succeeded to without able have tap purchased million are rental try using we First rates rental with rental new be plus program, And is going XX prime interest which is expandable probably of which about to those already

homes capital. another is avenue the and that able that have So be of finance we additional we'll the savings rental will to there

Samuel Landy

own. when to rates And homes. rental people and when that meet our units, had of just accepted acceptance the low to This party we and our but implemented XXXX, recognized are to yet giant had chattel, bankers to given investors. with get day, it to units mortgage. Fannie they we accepted units upgrade we I rental a we owned continue new in last has they who was that milestone clearly strictly work because in loan residents think increased the been homes at communities and has -- the by the first by done. the get noticed being Mae what investors, as in by accept with we not what that's homes, community the to of brand acceptance which needs tell went on of value the We finance every the to people our And people us now acceptance create this And the rental home homes yet. recognized rental The communities rental not is have program the them, to really a we've to X.XX% value GSE worked

You rental have provide the to affordable grow. have recognized It sales nobody's to has way meets rates. you manufactured value It's our our to to do engineers, quality affordable have housing home and home we're ability staff this and rates, president's, the grow social the business rates, manufactured and But, of and it vice continue the of housing. lowest professional producer the cost rental need, UMH apartment you communities. homes staff,

Operator

Riley B. question Please [Operator will Kucera go ahead. FBR. come with from Instructions] next Our Craig

Craig Kucera

sales. out start to talking want your I about

remains anticipate in pickup any this you over the do pace issues quarter, next Given demand if the several here quarters inventory high? this

Samuel Landy

is way problem, to believe manufacturers doable. that's we're a produce a have And I find wait, they more houses. that It pushing the to

the that setup companies, getting There's have with need factories issues setup have you with materials. You more crews. issues

some slow Brett I homes. to So our more growth. go that, out may we've anything to there replace But out know we And sell specific. down issues be we'd there's new continued like with to And delays there, faster. can extent an are there

Brett Taft

Yes.

factories, at up ramped sudden to to a of six about months. all the backlogs five So

amount certainly it to that point, an kept always could So of we've good And is a knowing Sam's happen. issue. this inventory

in cases, So we right have in that now do delivered our are inventory inventory. stock. ordering placing we be in and are going March April, we're to proactively now so But orders some

have we So won't backlogs that these issue. this if continue,

Craig Kucera

low put homes, cost? do up you have sale? on Got meaningful it. And to when you're Or selling CapEx homes those any before you is it used them complete for pretty

Anna Chew

home, therefore, rental minimal so mean, there's we costs, costs I very when Pretty our maintain involved low we always sell.

Craig Kucera

to I circle it. policy. want dividend got Okay, the to

strength about a reduction, think NOI, ratio With your the Can you've cost the capital several quarter up view quarter XXXX? a the you been the dividend operations, in next board and of here few things same-store talk if your the fourth in $X.XX in payout about you've how since XXXX. beyond? mid I double-digit at maybe going got coming would a forward And years. significantly over drops

Eugene Landy

This is Landy, Chairman. the Eugene

the not considering to We increase as much convention And we are of whether always FFO. can tied dividend. we're

all. not reports, as look communities quarterly at leveraged rising the very we're to -- reports over You not can by value a of other realized we at is high these capital. and the And financing access have or at and our values rapidly be we're our mortgage so communities capital

we how talking And up some And you going significant. year. going well $X of each your increasing is company a million. ahead so, and is and $X.XX the dividend XX a shares, or company and want if think the value, the much company about XX the is year That's not investment you're million you $X.XX, in realize million talk by committees million, how to value $X doing about the

value to don't the as will can approach dividend. too that will the we we refinancing additional preferred the of that but we and per go $X.XX are and sure get occurring as $X.XX, be the that you to efficiencies $X that the approach we companies and reflect seriously want dividend have the X% caused pick the as events our full and be the occupied. go really, But to increasing the additional events, we to occupancy FFO, fully as growing for competitors we be consider on the to you potential consider course, unconventional, real we share of values because So company of up over the increasing increased

are first, we But going couple yes, we'll consider So that have of a and good then take let's that. step. quarters to

Samuel Landy

year, is, quarter, you up with increase. But the dividend ratio of at the wind increase during $X.XX the if XXXX, an a my math $X.XX you might dividend, payout $X.XX end per at

day. work be. out, by But that play that's we we'll if So where day things could

Craig Kucera

half going Brett, first mentioned northeast fourth are it. on possibly in to Are two first to -- those slip quarter, the likely properties the close acquisitions. year? to Got wanted in you other here of I quarter in back circle the next the

Brett Taft

much that I want don't in wise I more diligence, not So that close it's first under to they touch so much. yet, We're XXXX. likely they say unencumbered. would too the timing quarter are But on contract of et cetera,

that So likely. does quarter help us but more first is

Craig Kucera

you the these northeast? ones the a And rate cap buying south the pricing in the between XX% versus can in assets occupied differential XX% it. Got from talk perspective about

Brett Taft

Sure.

communities actually properties range, in cap what our high market. rate. the other X.X% see which in X.X% are trading good think So I of the quality price, Northeast are areas is we pretty Properties, a X, markets at given that in

them The be with play, reasonable, south, get very pleased that a a we earn we're rental home rate a put because per at where at the with. there. our cap can is would cap and on return to occupancy, I giving a really we we them. are at mean, in site rate projection XX% not a tough cost in it's comfortable I it's deals buying So the we're we're that improvements think make very there $XX,XXX you

home you've those, growth three they see before that do significant the wouldn't to forward. only you're I to a going will go we're previous NOI acquisitions. in will backwards other our go going two rate But some to it after on -- significant the improvements, go going we're cap put be or those in years, or to there, capital be significant removal, you're it properties So going seen because

Samuel Landy

owned, percentage And on taken return a at XX we've say properties look years. the we've what's

Brett Taft

Yes.

XX% six and than you what even five, That's XXX%, it's at. years. some less years year on look in depending And So XX cases. between that's

return up, a So stabilize get we're we there able in certainly clean reduce solid properties and to these ultimately generate total expenses our occupancy increase after and them

Craig Kucera

they're years, three of three your inside five still let's it's like two been much it stabilization get would XX say that of normal, period And you think closer or years? does do and or sort this stabilized and the pretty target extend to or period? four of stabilized year which do become kind XX Or does XX% for you've traditionally, buying occupied, feel you on get because of maybe

Brett Taft

demand three in XXXX market. market. probably It's it's years. for mean, of had the went instance, rental I year this based on say our what I'd a see homes. acquisitions We've properties rental we one strong forward XXX

three demand XX So a of XX to homes year, assuming per year process. strong it's

on where thing this can for is little our For on in we we've we're But, the could bit. done the drag whatever certainly it demographics, we on it markets based reason lags and place based good looking execute in behind portfolio. sure a think what Northeastern

two year plan the So, three to turnaround. the is

Operator

ahead. session. remarks. I concludes Landy go would Samuel the conference question-and-answer This to over back closing for turn like Please to any our

Samuel Landy

Thank you, call operator. participants our I company. the continued to for interest this thank would in their support on like and

and Gene you any up reporting fourth Brett I in our you. always, are back to and Thank As results. for follow to with and We look year-end questions. forward March available quarter XXXX

Operator

Thank toll be XXXXXXXX. The The this approximately Thank hour. is in one and will please free conference dial or line. disconnect replay, you available your for X-XXX-XXX-XXXX number at today's attending access ID now replay teleconference concluded. conference X-XXX-XXX-XXXX. To you has presentation. The international please U.S.

UMH Properties (UMH) 5 Nov 202020 Q3 Earnings call transcript