Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to the UMH Properties First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

It is now my pleasure to introduce your host, Mr. Craig Koster, Executive Vice President and General Counsel. Thank you. Mr. begin. may you Koster,

Craig Koster

much, very operator. you Thank

information the In the the supplemental company's we our supplemental with website at that yesterday, addition information are we on This quarter to SEC first have filed unaudited with XX-Q filed available along presentation, umh.reit. presentation. XX-Q, an

Act made Securities the historical based XXXX. We be facts, this of statements that deemed would Litigation meaning call, that conference forward-looking on risks expectations everyone remind uncertainties. this like within and of on and may Private the which Reform to statements statements make forward-looking certain during are current The various our not involve we are call

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

financial financial In to financial metrics. SEC our earnings non-GAAP today's information our discussing the supplemental be and non-GAAP and addition, of as historical these filings. comparable are call, during Reconciliations the well included in we will metrics GAAP explanatory language as metrics cautioning release, our

and and Executive Landy, Chief and Lykins, Taft, Chew, I Landy, Brett that, Samuel Anna Officer; Chief President Founder Eugene said would President Capital Having President Chairman; Vice of and Officer; today. President. and management like Executive Financial introduce President Markets; Vice Executive Jim us Daniel Landy, to Vice Vice Executive Officer; Operating Chief with

turn the Chief to my now Samuel Landy. President call and over is It pleasure Executive Officer, UMH's to

Samuel Landy

to like our Thank the shareholders company. dedication all would of very much, Craig. loyal for I their thank to you

have pleased dividend raised $X.XX January. in our share or are X.X% annual to We per

the look We by earnings the implementation our increases have plan. forward years, achieve of in increased X through XX%. past the future we the business as share to long-term Over increased dividend we additional per

Normalized of compared X.X%. as quarter FFO $X.XX an increase representing was $X.XX last for year, the to

As our of target we dividend operating our earn improve we profitability, well grow our of sales believe we excess XX%. payout will with vacant fill margin in ratio our inventory, and a

quarter, the this or by be basis During improved XX%. generated reflected units quarter the XX% sales which should increase occupancy in was occupancy increased Therefore, to is the million, occupancy $X.X same-property quarter gain by first points XXX in Gross a Most March. from our growth XXX second of in revenue record. to results.

coming renting Additionally, occupancy we should which peak in and and into profitability. growth result are sales our in further selling season,

a had demand manufacturer The year revenue homes. ordered year. most existed, in months to our combined ago, our for backlogs of efforts In inventory solve which we for to impacted chain lack homes, resulted in that depending over on with strong factory. consumer X problem, X,XXX to the that growth results XX One of homes limited rent supply COVID-related resulted were and last the of issues sell by

we us and month, reducing increased norm them The over X expense X earnings. inventory, have occupancy price we are ready and reduced housing and income to we improving costs. carry norm to interest return fill on to reduce homes expenses X,XXX next Each per see X higher months date. months. taken A We have less the in and further should is order carrying plan costs. floor from homes we that on a thereby at for track homes as can inventory manufactured means our should to above increased this the month XXX debt right approximately allow and normal increased of Carrying expense order is XXX homes load, and carrying inventory, the interest

During the with of in to in sold of XXXX homes quarter generated homes of quarters, slowest monthly an our first in implemented XX approximately converted rental and to increase XXX January our rent which April increases compared first typically inventory occupancy of increase $XXX,XXX X, rental conjunction in we the one new XXXX. is quarter, as homes. X, The charges

remains similar few next throughout portfolio, revenue the Demand should drive and over be to strong the and able we quarters. occupancy gains

Our our to the with expectations continue trend are and right direction. in same-property line in results

points. XXX by basis During the or units quarter, same-property occupancy increased XXX

rental the Our XX.X% rate year-end at occupancy increased to same from XX.X% first of home property end quarter. at the

monthly per same-property site NOI X.X%, income These first of with our year-over-year. increased or of X.X%, growth improved X.X% million increased growth resulted Our and operating of in metrics same-property X.X% X.X% the of rent quarter over expense same-property per $X.X home resulting year. last rent growth same-property monthly in

ratio expense quarter of the quarter first the from XXXX. Our XX.X% in decreased XX.X% in sequentially fourth to

similar The $X.X occupancy should sales first quarter That high single-digit revenue result increased growth compared as year. of in our this million experienced growth, in revenue assuming expense $X.X year. Gross growth the quarter year. to should XX% last NOI inventory result to growth accelerated the for in this million

to sales Net XX% to last year. improved gross compared as XX% income last $XXX,XXX was $XXX,XXX year. from Our from margin sales

profitability net carrying the As expenses and in costs. normal return further. are we our to interest increase income inventory sales of Included should higher inventory elevated levels, division

sold homes we homes. XX which XX of new quarter, the were During total

new average home price average was Our used price $XXX,XXX, $XX,XXX. was home sales our sales and

approximately financing home sales. XX% our of are We

balance of in average $XX million We sheet rate a interest earns have our home that of X.X%. an us on loans total

total sites was in this market. opportunity zone million. through This Georgia our front, rental for the in community housing XXX for developed fund. strong $X.X demand acquisition We anticipate On we acquired newly acquired of one a purchase price community containing

Real fit Nuveen Estate. acquired with our We XXX and continue our containing opportunistic criteria. X,XXX to seek communities there containing Last that year, are sites an but we additional meet through our acquisitions accretive that growth X limited opportunities sites community JV criteria,

in an making We recent at at year. progress operating plan this our those locations business our are and implementing results acquisitions improvement anticipate

continued the make and communities that our also filling to We joint grow venture Nuveen future. to with progress venture hope in

to are Tennessee front, construction of lots. under Indiana. we located expansion expansions On are develop Maryland, These and X communities the Pennsylvania, in XXX

All our very based we be with is in all, to understand X but to invest in typically to willingness to on our quarterly our work results, projects success our want satisfied take X we are years that shareholders accretive. and on

for and Therefore, investment Our extremely business is opportunities. accretive. industry looking are immediately such and the be that will world scarcity entire there of a competitive investments

of X- you On have time competition higher horizon, the when X-year limited you a much success. invest time other money hand, a with chance in to projects and and

to occupied. utilized model of the that long-term largest XXX this grow country. into XX,XXX approximately business XX% own the containing one owners community are sites has communities home in UMH We

X containing our Florida We Nuveen communities through also venture XXX in with joint Real Estate. sites own

Additionally, as we homes we inventory. own XX,XXX X,XXX rental our rental homes will own fill and over

that to We X,XXX a vacant for land can developed have earnings grow vacant the This our of provide be and us foreseeable sites. long acres vacant with land X,XXX future. X,XXX organically runway into sites existing

and We communities, have are communities, the joining improve rates expansions, in energy-rich locations. proven self-storage finance ability our selling and gas to acquire our operate oil and lease homes communities develop profitably and facilities new

having positive proven earnings business through energy per of solar of while well possibility to to successful our UMH is residents grow income impact. further the implementation for environmental share the plan. exploring also positioned are a increase our affordability We and

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

Anna Chew

per increases $X.XX first for XXXX, FFO developments, million inflation rising XXXX, Thank or operating share being our in increase. million increase. grow through able a share compared million acquisitions share diluted from to resulting impacted XX% for to the Sam. and share $X.X you, share or and to first were the to our FFO, X% our excludes quarter $XX.X compared items, obtain a borrowings. of diluted per or per per $XX.X FFO, $XX.X XXXX, was FFO $X.XX quarter for normalized or and and Funds value-add by short-term interest results operations, investments million prior per per We company the period, the $X.XX which amortization $X.XX on despite year in nonrecurring Normalized largely share resulting rates diluted or for these was diluted of in

rates. operating increased recent acquisitions estate related a of X%. and rental Community year real the community increase increase XX% $XX.X due was increase representing an expenses was taxes in to payroll, income increase rental This to insurance. an primarily due during was increase the Rental an quarter as This in recent quarter. $XX.X as homes and our ago, mainly and of million well to million compared acquisitions, addition for the

increased X% million XXXX. Community quarter XXXX in $XX.X $XX.X in from to by the NOI million for

operating property while from year that It same-property expenses important operating which are in expenses quarter. X.X% were in right up XX.X% note results XX%, Our XX.X% direction. the up same is trending total community fourth were last and moderated the to

$X.X to the quarter year-over-year manufactured Sales homes homes first homes There in of from total XXXX. of XX in million in XX% of for the in new quarter quarter the as $X.X XXXX. XX XXXX XXXX compared XXXX. first were sold to first to XX price of The as sales by last of to average We a compared increase. XX% year. million for $XX,XXX increased XXXX, XX The $XXX,XXX a profit to XX% from sales in during XXXX gross approximately in increased in compared quarter XX% resulting XXXX X% was the percentage company's home new home

our last at borrowings as interest quarter of end at we our had year. average bonds. on and X.XX% which XX% As interest $XXX with is The community-level we X.XX% $XXX weighted to rate $XXX payable weighted average our Series loans rate compared to mortgage turn million fixed on end structure, in million X.XX% approximately quarter at The of X.XX% end, was debt, debt, debt is mortgage debt compared was rate. capital out short-term to was total last year. million A X.XX% our million $XX quarter

weighted which raise exploring earnings our end X.X down are would increased end average short-term capital debt was at result We years per to at mortgage quarter opportunities The in and on borrowings, years last quarter X.X pay share. our to maturity year. lower-cost

equity. had $XXX At perpetual quarter end, of in preferred a UMH total million

end. of Our total preferred equity market capitalization our in at a an market quarter million $XXX of $XXX and debt stock, in results with $X.X approximately million billion capitalization combined

share, X.X of gross million During of we through the weighted per common generating and sold stock proceeds shares of $XX.X million and ATM price $XX.XX at average program a issued our net quarter, approximately shares to issued of ATM common proceeds through offering $XX.X $XX.X Subsequent stock of proceeds gross million. generating expenses. our quarter end, program, common and we of million after XXX,XXX common sold

preferred D we program net and and generating at issued stock our a preferred our gross per Series average D of expenses an Series $XX.X sold $XX.XX of program, through price quarter million. weighted sold million Subsequent proceeds shares stock Additionally, offering share, additional preferred of and to ATM after throughout XXX,XXX gross of preferred of million. issued proceeds $X XXX,XXX ATM proceeds $XX.X of shares generating we end, our

and X, XX, to into this and XXXX. November we Bank our Markets the On with On of credit entered facility with million February we a date Capital to amended $XXX X, restated BMO agreement which maturity credit second facility million. increased JPMorgan XXXX, November Chase increased $XXX XXXX,

As agreement of new This $XXX the liquidity plan. quarter million, facility flexibility, and X.XX%. financial end, the interest outstanding business under us to this execute and was enhances to continue our our amount allowing rate was

in of long-term of On that we as March view capital rental a and secured capital source X, rental is secure credit rates. to advantageous invest into line good short-term homes revolving a million We more able Services rental Financial are to this with we program leases. until Triad at home by our entered $XX

to net pleased charge capitalization debt fixed of XX.X%; are net and net securities have EBITDA standpoint, X.Xx; our was adjusted our coverage credit to We our X.Xx. secured our From X.Xx; market to was interest EBITDA units. total debt by was rental debt to XX%; coverage another total net line less our was to our market capitalization X.Xx; adjusted was securities was debt a our

pursuant feature. available equivalents and with a credit to $XXX liquidity available an $XX standpoint, million additional on million facility, From cash we in cash million with accordion and ended an our $XX.X quarter the potentially

had on credit inventory lines financing the for of of also $XX.X sales other We the purchase rental home million and homes. and our of available

This unencumbered. assets. Additionally, X.X% we securities our of represents undepreciated had million $XX.X approximately portfolio in our REIT portfolio

in and We certain are fact, securities not week increasing committed in investments sold this have, to portfolio positions. our

by During a of secured mortgages total $XX the XX off paid communities quarter, X million. for we

unsecured value on communities have mortgages we high currently the utilized to until XX rates stabilize. rates, Given line being and interest in interest a opted place our of not million. with these credit that communities, unencumbered clear pool are of free approximately the including We asset communities the $XXX

interest place communities is have ability the we in best debt it these believe We the long-term company. the to of on when

continue growth well positioned initiatives. to We our are

it turn for questions. before Gene me let up it now And we to over open

Eugene Landy

capital provide nation Our in quality income an UMH was rated so access An goal XXX% is UMH's is UMH housing. can MSCI. long-term that in patient with to much-needed providing investment affordable investment affordable the social by housing.

a of potential security have second-party and the UMH for and framework future. from sustainable certifying debt in the authority, the social impact instrument positive recognized also We a ESG Sustainalytics for other opinion certifying improving

value-add we results, currently basis UMH as believes UMH it The is the new allow and have our communities, in economic with represented occupancy the limiting of of income strong during well result in higher raising same of environment. business are and occupancy a carrying through sales and with and competitors higher impacting most for dealings good garnered are year. past rates our the yet the negatively our operating quarter. tenant fundamentals and XXX positioned our turnover, everyone, our growth lower markets satisfied policy points inventory property [indiscernible] to together a remainder We throughout the strong growth base while aggressively prices fundamentals strong residents. home team that well our not and are rents in our This rent and sales that our remains but years. experience challenging fair faith increases in as invested result of including will importantly, grow believe XX developments because capital accretive the are The substantially stream. The XX% instilled earnings the residents. a created of durable us expansions over will should

line price attractive societal of UMH living growth. in provide. plan by focus because to time. particularly a is further that believe investors represent to Over will the highest quality UMH time, season. Short-term move look to our provided pace be appreciation. depiction positive our allows industry rewarding our our peak as anticipate demand as the to value to stock become on accurate our expectations into info capital of over we and earnings grow an created fully the growing apparent by well improvement Our this the earnings our with shareholders we valuation We providing for and We earnings patient should business ability benefits ESG our company. don't can forward Long-term and as dividend

Our for policy new pay shareholders to distribution to is raised and capital expansion and acquisitions.

Operator

Research. our first Wolfe be Carl will [Operator Instructions] question And from Keegan from

Keegan Carl

Maybe rebounded in to your sales kick things off, quarter. nicely the home

as kind So reasonable what the cadence I'm just viewing of rest internally we of think year of about and the should curious a rate? you're the run how

Brett Taft

Yes.

home in all, say the I'd with with of first $XXX,XXX. sales quarter. We're during first XX% that very increase average we're pleased the new So pleased price the being sale

being price home $XX,XXX. sale average Our

Our very are for properties to continuing sales. strong report demand

right locations up We're right about is set the $X in now have million. and of set pending sales We our up. about inventory just pipeline

our to did April I'd of ago. that sales April a results that, outpace year also add

on track to sales throughout the we're year. grow So to continue

have and results quarter the second year. Our the sales typically third strongest during are results we

we So I set good breaking a quarters, And sales to got million sales in think gross we the wouldn't X a improvement record during that we've anticipate do of but ago. very be XX% anticipate $XX up. years those chance we it

Keegan Carl

One helpful. forSam. Super

potential high So in the release, about NOI you growth. for press mentioned same-store single-digit

to Just growth growth? same-store happen it for expense what because quarter outpaced take revenue it's kind yet another where curious, of would that actually the

Samuel Landy

units XXX, related. we're facing so XXX at had added COVID X we XXX rental XXX, that Had we been but are year, last we're it added short. those this problems Well, moment, still

be to which the month the COVID, homes. had helped could -- that interest we a revenue X of to per carry amount manufacturers order we FFO. would $XXX,XXX expense. And the line what front greatly have and these provide so is to for up beyond Our would the couldn't would normally get we thing when months, get then homes, homes when second substantial of we due And the

probably negatively quarter. million us, is interest or like for million $X $X or that impacting something the so expense, that And again,

So but we quarter have $X.X for would made million that there's about this COVID.

$XXX imagined rents out to We through homes, heard $XXX And of And we're at expect can We're incredibly back the per with we just we benefit per where hearing for minimal homes sales. would up true as inventory in the And go be that about communities get will demand that is never fully high. at weeks, Marion, them ever at month. strong Ohio, higher sell renting location just-in-time go than sales in carry rent now manufactured and is everywhere. homes before. future, are decrease rented, the in per we a started heard X and Same today as dramatically order interest about the it's X we And those I $XXX over homes prices new turn to month. weeks we X to expense. them them. set and housing inventory month

And when you to have you on heat that, of have them, you're maintain them. to homes, carrying top

of So was additional high a COVID. And it part necessity quickly the is manufactured provide that And how and nature inventory. houses greatness again, of industry of the again creates of lot without the carrying excess we carrying costs housing could inventory. a of

we So to additionally. decrease expenses expect those

future our increase before reduce We we them, us reduce thoughts costs homes have through in And have captives. cost that means see profits. to other will could the sell our sales we we insurance on how we what which

very see we bright future a very, up. coming So

Brett Taft

add, what I add is little to a just was to going sorry, saying. Sam Just to bit

to compared was year that about and units, XXX filled we quarter, XX% first the ago. during a So

year, revenue good we for growth in ultimately that up driving put growth expense accomplish all high same really that and able to a to us position are which we NOI. single-digit does outpacing outpace last what were of So end property very

the of the mentioned in and the roll first roll. occupancy script we the January As rent above $XXX,XXX April, gains and the in press quarter at rent rent in release implemented April's being in resulted the beginning increases

million, Looking up $X.X at was income results, was which our same-property X.X%.

Another would growth, million. in to NOI with X.X% growth. That same which X% it to $XXX,XXX growth bring that. would brings $X.X the income to the very X% us expense be close We're

the we to meet that in So we're think well quarters. very positioned coming

Keegan Carl

Got it.

guess the I JV? One, specifically the brought gotten expecting how on renewal I here. going And bean haven't impact topic with X-part you if Florida, year, that your are for know it the Just yet? in does your insurance you your of question further up. Sam guys development a on appetite new for what's what that state two, of

Anna Chew

we renewal I approximately got insurance, notice, increase. Well, it and X% was just our believe a

very given XX%. of that some competitors that hearing of from our we're increases happy number So with over been we've

very with we're So that. happy

going Regarding areas. continue infill on. -- Florida, Florida again, what with Florida. happy communities in to at looking happy we in and will Florida, just We're We're acquisitions but not with is do Florida. additional in in are and have X additional other with developed our We in happy community other we the be

Keegan Carl

from Got a on then the the it. like just update and the fund zone And us last pipeline X looks of you give here an on me, what out? can more bit opportunity for

Brett Taft

that fund, zone closed. opportunity the For fund

that owned, opportunity acquiring It's just we that zone So new term the more a X have. that right will in be raising any fund. And fund nothing or are now for properties in currently the properties. the X the near communities

Eugene Landy

to -- is have what very to the add we're with doing I Yes. unusual. UMH

financing. X United trying years, units. providing we housing know to a units. that if make same to problem building brought a we It build the takes filled, years from cost affordable housing do over X, faces the time deal completed, in point. and the money. cost us build the we money is great housing period at to project great But million from X,XXX of States housing. The and proper do experience this, deal and will know get the do we of solve $XXX workforce to projections to our And are it X, It's problem. housing X,XXX We a

up put it whether in investors tied you satisfied The difficulty million $XX that the while $XX $XX and or up work million getting or is in $XX of inventory to is, up $XXX million, capital in in company, in land having million land tied million it's improvements. grow and tied

numbers having you're All really your of a like slowly make superlative actually these look growing result. you're when

with we got that ESG, the And capital up a to securities, doing solution that we have to us companies any come you solution. social, letters have And labeled qualify. is to XX%. affordable. used leading we're say, is ways we X attract long-term -- it We we were So let oriented. ESG where that XXX% whether I gotten give we've authenticate claim have we're only us our

the the seeking to therefore, should trillion with all our the very houses than other coming Our funds, hard year rather with story have spending funds telling we people. theory, meet affordability in us world tests should we and last ESG we in $XX working meeting

source But confident get bonds great cost of have stock, our preferred we capital. social want may We low patient capital. common that lower we long-term label capital, want a there's are not or our cost but capital. want We very our and we

long-term after investors and spent of look people capital long-term at look is and The gain. encourage invest take there the after XX to years, second of type on to who at of there and is investment. capital it investment to are no view a money that effort, returns on is the attracted housing the they're build and investment opportunities part the time And to opportunities gains, we that investment capital

way then gains law, taxes. that We a found if taxes was and a your the in to if build then wants looked opportunity the that you why to requires housing, simply zone us invest particularly is we if housing, say, this you you what made an its they books build solution. the gains wants But affordable pay put government another this, some transaction And not capital it's years is money in to what now, little simple of we of came gains some up XX rather well, will you at had said, taxes It it is society X years and is the not gains. that keeps we XX the away only difficulties if of capital this And X. with complex. deferral and invest you capital a for they years Congress pay had score for in just situation, that from people with

So after and that against the we're a -- we're very getting terrific we've of we're come working of proposal, out bipartisan potential we and because both support, that year everybody, it. find very we everyone it -- proposed the out proposing enthused have It's hears that getting this, law -- about too everybody Democrats Republicans. been in and first a it anyone about talking we who's hopeful we're by all, a and [indiscernible] industry, of who manufacturer government, the don't everybody

they manufactured needed I we an And to community, think owners into get can existing the which we set we've built X,XXX the proven million these have again, go did that? this we we [indiscernible] and from it's could for approvals was XXX -- built And home put owners housing. -- if buy to an amendment that existing the build sites. has talking we're $XXX $XXX And or opportunities subsidiary, study law are up what a to additional get approvals as another million and -- said, and home the themselves. [indiscernible] that

and we're this. optimistic we but accomplish think there because the tuned that gone to going stay we're we've right route, not very we're So yet

Operator

And the from next Stevenson Janney. is question Rob from

Rob Stevenson

homes year guys that you're you going the that be sort year, expect taking now? this trend of delivery at all from are XX% the With to do to same-store how throughout you occupancy the on

Samuel Landy

believe units those we vacant than XXX per we And of that nonrevenue-producing going will that the us X,XXX the by in of with thousand Brett not we units. lots, will X,XXX to those the in so inventory. next revenue part make lots we're just we X% the and X,XXX month But so is reason existing sites approximately to are fill by vacancy homes rental that which occupied that fill XXX producing sites that that's correct the of But company are important, the numbers. I many. my have that believe homes is vacant more leaves intend

Page communities new pages -- you And are once you in these at occupancy. something like each one efficient a now is the so revenue over coming occupancy percentage And in if with XX% in And the over ratio. in on the XX, you're it look of have XX% most that states our shows only fact, XX% occupancy, state. expense

group units again, we're So income month. profit, to of And XX% filling FFO. be approximately should XX% these last and adding per XXX houses

And so then X,XXX step vacant lots. down our next is we're when to just

are and added this with of that needed home from there's years that we We nobody Those have XX and ever Dothan capital and there approved deferred demographics improvements our do upgrading acquisitions, built, to just we expansions say to love and have rental get to turnaround Dothan. to were continue great more Dothan continue great the and we , like maintenance properties we tell love Alabama perfect. They're we these things skill and people communities to [indiscernible] us, do. sure and make

grow filling a is So business keep sales inventory today, increasing based not vacant that X,XXX challenge our to future, that's on lots home one is in units do continue challenge. too. the -- on and is we and every work challenge. how to this how the The day, we that of But hard harder

Brett Taft

Absolutely.

so the homes the at and are delivered X,XXX sites. And

to is There's month or XXX be home which for able a we'll So why we always more occupancy, believe ready they're going some removal forward. value-add fill basically acquisitions. inherent in

in property could XX%. that brings be XXX, XXX. increase If but won't occupancy, same a it occupancy be we to So by it X,XXX-unit about increase occupancy

Samuel Landy

Correct.

Rob Stevenson

And tenants rate environment? you are increases on through great. rental given then of renewals That's today what the market passing type to

Samuel Landy

I we to increase substantial residents, Ohio, Marion, go And $XXX, to Existing talked probably we market. that's where about but rents going you're only on turnover, X%, that [indiscernible] a from increase

Brett Taft

It XX%. that being it I'd maybe about know anticipate a be touch range, last the year was can average in higher. certainly I X%.

Anna Chew

I'm sorry, just adding And if -- bit. you think a about I'm it little

only think our the even existing you quarter rents average even rental X%. though was X% are it, on tenants, we homes for to the If about increasing over

Eugene Landy

This Chairman. Landy, is Gene the

understand they payments house that XX% to tenants a There the a XX%. or expenses, of they're we products. up a we They And getting our know We what don't market good are. what to deal. for the people cost, have Some want buy be is We realize want tenants, $XXX industry. go best believe know to the in our the costs. don't why the they And $XXX creating apartment more. increase a the they have product rent month what may know shop, we're

are we're we still best the a the we'll we keeping that the the investment land. rent in housing lot have home pricing of that if maintain the every have sell land, make even money. the we land case, and home, we And in because we if we that So years, buy big our over

now build in the So we want the to housing time, that future. make buy the at and money very be the can able and they give we're to best in to company can. large a we same But building residents interested continue possibly

a recognized going that we with were up. little we expenses squeezed So

the and attract XX%, down. of XX%, at competitive tenants which who rents having because departments to to long-term improved our them against the bought is increased at position, XX% it decided We provided goes we stay keep our companies, X% basically to Some and cost ability also tenants XX%,

we're X% smaller X%, number. or have seeing the -- the you number could what lose rents. exactly we know don't on turnover. So We you is, but that a raised It's don't the think

years] stays Our is that only, the United X even expect person years. than owner given you would the States the average house owner a X.X much say, average in an turnover lower and year, apartment

So fraction of kind with with our stay great average turnover And occupancies, much know they cost And of are have and a better UMH. time frankly, turnover. we to is higher they're because those have conscious that. the they a they deal tenants

Rob Stevenson

there is is much $XX then looking in new a the between you mean, or basis sort sales homes? can since you're guys Okay. on on terms That's a of X expected months year-over-year year guys, what you for a about helpful. how to of $XXX,XXX] inflation this your be ago, seeing price difference talk And I the there on is striking And price to to that homes quarter cost versus forward? ago. like-for-like on X pricing what the more you

Samuel Landy

is our online imagine expansions would and prices coming in in markets. of are I multi-section due selling great increase homes to more

cost their In terms increases. believe to were getting Number during manufacturers, of us solutions homes we on up, and are we a we the houses the reduce dropping up But those two, we limited that but by did inflation again, place want and requirements we want home from number between the with coming a prices a to that. of hard out the number the that do we and and specific can, with what for putting stuck to and homes of think COVID price models one, very the go manufacturers going we have to bid manufacturers rock us.

Brett Taft

substantially, obviously, and not them prices least X X further, or down, see down home little like when ago, And XX%. are potentially to XX%, bit have we at come would months but to decrease prices from a

Rob Stevenson

communities? on third-party are financing then home your available town for And new in only guys sales rate what financing interesting. providing home residents? sales today? in you increasing numbers there new of for game you Are Or the is That's today financing

Samuel Landy

but as We always rates other... they other compare financing, outside our allow to financing available,

Brett Taft

Yes.

at are what? rates X.X% home on new today about were used our sales sales, home So

Anna Chew

X.XX%. [Ph]

Brett Taft

we're pass rates, what to trying conventional the to So they're through even actually of in sound do mortgages, affordability line though relatively those is tenants. is like with high which our some

the industry looking down, X% get up easily cases, to range Our in XX% competitive good higher. in pretty credit, you're lower X.XX%, probably a you credit some and little in XX% X%, the for can bit companies finance

Rob Stevenson

for And seeing bad staying Okay. trend me. Is are last the of terms of What sort debt it in one then in and of it flat? getting size the better? portfolio? delinquency you guys today or of terms Is

Anna Chew

revenue rental It's changes. pretty write-offs usually our the are about approximately much it's staying same. X% and staying flat. We our total it -- Quarter-over-quarter, of

on Sometimes, X%, little a average, X%, it's over about a X%. under sometimes it's but little it's

Samuel Landy

manufactured to works. how and about It's important think communities home receivable

So that of a you on house and there's rent, lot. lot could generally have sitting nonpayment

be turns to to eviction, it's So rent, be pay going we're to pay unpaid that's a that and on earn obsolete junked, home we're that sales an either that's to they and going if the can't and then that's a rent. going and profit the going out off brand-new going put completely higher home a person where to rent, a collect

So that's what resulting in happens a in of the rent case lot eviction. unpaid

situation. you you're making a that write-off, if money even had So bad from

have and real you not event home turn going on write that rent, behind, have to they be take of more rental there's they when That's going security. due X for us the be off you more also not notes pay an that there. and and couldn't of them, the receivable time, there's a terms your can't housing you had then people pay. tenant do month sell receivable to a to you the X-month But did homes so somebody rent, take in have a market then you're first to upside. the you're And in your and of loss If the And evict it today, gave to most over. house going really back able finance to you time, back than that

because we minimum. So the that possible rental receivable through as act as to keep we is homes. on a court real only And process, the quick

Brett Taft

first our XX.X%. collection And rate quarter was

was first in April the will Our coming the rate line over collection about weeks. with and XX%, grow quarter that

it is all collection normally a from as standpoint, is. So

Operator

question And B. Kucera the Riley from FBR. next from is Craig

Craig Kucera

interest credit. rental of showing line financing in holds seeing Triad the at Are those you of on banks terms? Congrats kind other

Anna Chew

for we market area on look it us. increase Yes, other banking we at to It facilities untapped we an our to and is can to continue put those And banks, on. try additional is we an financing rentals are. where because untapped continue

Craig Kucera

you can loan? it. tell $XX And and Got us homes million supporting how leases are rental many that

Brett Taft

the that's credit... of line So

Anna Chew

-- line we have right That it's there credit now, available. and of is -- fully that is the

that We yet. credit have not anything of line put on

Craig Kucera

it. Got

you pull and you certain can number have you So debt? add the down to you Or need if a that basically does access homes it? homes where when it work just and sort then of of allocate

Anna Chew

to to No, A credit will put need the time will with the from in in. do our times when access the rental go the lot we Last it put homes. homes line for that we line we of floor directly what plan for you

Craig Kucera

Okay. of chain That's you've handling helpful. sort color with been appreciate how on the the supply post-COVID. during inventory. I issues Obviously, time a all tough and

closer million $XX million? think it, call the $XX level what currently I normalized to pre-pandemic, it maybe carrying million Is you're about in $XX was to inventory.

Samuel Landy

I'd inventory Well, today, million we'll say, of you get today, problem how as reason $XX once but going being have slow, a future, big problem that's where larger, manufacturer. we're of we problem, inspectors into to you high from is to the solve to and the overworked, the the in companies because you be with overworked. plans Part we that local being But know the that run didn't getting were homes being setup solve crews there. utility

to up quicker, So even loss had occupied have than we we've been today able set homes more may did. we these

a phenomenal did I job. we think

we down to and we're have at and get it many do homes those it's some -- every but keep that XXX But we in amazing to filled. problems chain, did exist and year, how solving day, we're this XXX. inventory still I X,XXX still going pertaining supply think the to unit next maybe delays we

Craig Kucera

Got it.

you'd at this next to level it a year? late So normalized get to be work probably through year most you able least think or or of early that by

Samuel Landy

Yes, correct.

Craig Kucera

Okay. Great.

you a quality are home given were in any the to much year change credit purchasing of buy coming a people homes? tougher than ago, environment seeing Just we

Samuel Landy

moment, is ever. that And amazing is So higher of more higher and But of rents, applications in results prices, office, ever, my that in always still communities, approved ability view, I today than get wages, as from homes report than it blue-collar better denied. people our jobs lots the that living inventory way people are point the we the communities to to terms of quickly. doing right, applications has application sales get moving in called have and change who worker this better higher on at

so on so And employment far, front. good the

out, need. we our Scott, Smucker's, manufacturers more the near you lots near of you high in that people the far, our that to footprint. Elkhart, so Our becomes And have things of stable out, diversifying have rentals prices. We're and But a people business -- always near about were we're also the the high doing communities disruptions. And we're we're Indiana, maybe regional provide more goods so own, and great believe is if more one rates our income industry RV gas to spread worry interest are good. where even geographic the we spread our stream are lot

as it's stable eventually, stream. from all, you stayed we company, the And entitled your to a increase we're per sources, believe very on income much so stream that even if because share. we're FFO down great to of income didn't, we think even coming bigger per same, such yield if grow the But first that is as we stock diverse share the going going even more FFO more the

Craig Kucera

acquisition I quarter the should expect And And are X? Great. any guys mentioned any? working but closings Okay. next that limited opportunities, know we you or were in commentary over you there on your

Brett Taft

can Not deals together next over the quickly. quarter. I come mean,

of on just this looking At quarter lot So We're third we at find able been [indiscernible] opportunities. I yet. haven't really touch to pencils. can't a the point,

also last We X million of which closed value-add was that properties, of sites year, acquisitions. most on X,XXX for $XX

making So in deals. homes, the we're those up, future on whole working and earnings looking when getting accretive on move those bringing properties, improving forward and new numbers determining picture them to at to

Operator

Jay The Instructions] is Wedbush [Operator from Securities. McCanless next question from

Jay McCanless

compare you now rates how a The can ago? only what financing you and please where to I maybe were repeat where those is, are quarter. rates about said year had they question Great channel

Brett Taft

our X% our maybe rise. are actually were financing Comparing A today. right range we credit most ago, part, XX% XX% competitors, scores with in with to in for that rates A We to they're are down. about that So sales year the was rates X.XX% rate probably, for ago, now, move our ago, they probably line where a on reasonable quality financing to as X.X% just up started used that year to home on chattel sales. new year home X.XX%. and over had

Operator

over And Samuel closing concludes like to remarks. this gentlemen, to ladies Landy conference question-and-answer for session. I any the and turn back our would

Samuel Landy

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

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

Operator

(XXX) hour. you, conference the replay today's or disconnect and The lines. U.S. toll-free please And To access conference Thank your international is attending teleconference has X will be you The please for approximately now code this XXX-XXXX. presentation. replay, Thank in X-XXX-XXX-XXXX available concluded. dial XXX-XXXX. access

UMH Properties (UMH) 10 May 232023 Q1 Earnings call transcript