UMH - Earnings call 2 2023 | UMH Properties, Inc.

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Operator

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

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

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

company its forward-looking to obligation disclaims statements. any The update

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

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

Samuel Landy

Craig. Thank very you much,

the of that the FFO $X.XX $X.XX quarter second normalized per report pleased are in increased share from in to XXXX. quarter share first to We sequentially per

increased shares in X.X new finance lots, raising future million quarter, the investments rental is our improvements invested come community expected rapidly homes, $XX.X these our through is share count capital common generate During expansion home sales. growth. issuances to by ATM being million additional in equity, the approximately this which FFO from online, Once capital and

capital rent. investments or past top-performing of made homes Our have a for UMH provider manufactured sale

XXX X,XXX the in During first year, months inventory the of homes of our rented. X were

Additionally, we XXX sold homes.

than XXXX, now was rent on higher X, XXXX. January is roll it X.X% X, August Our

now is Same-property last XX% occupancy XX.X% as compared year. to

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

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

XX% year ratio quarter the second XXXX. from expense same-property Our of last to decreased XX% for

the in revenue of result further occupancy growth should rapid The acceleration this inventory year. of our

percentage in increase with XXXX. double-digit our second quarter same-property and NOI NOI for the X our of increase of single-digit XXXX first are pleased We the high percentage in for months same-property

increases. In XXXX, have addition, total both experienced June months both NOI and XX, growth ended the percentage X for X double-digit

approximately from shares. earnings. accretive and new to capital and $XX The be should interest X additional reduce for our $XX.X plan weighted floor our Subsequent a which quarter million. reducing third quarter This to FFO approximately it end, in help generated per have earnings time typically represents beyond increase million that of interest rate we million paid expense to $X Further, of lines, each investing to share. requires the down equity average X.X%, million

million pleased We to quarter. Gross last second increased to increase sales to income our approximately million are the for X% interest compared $X.X and therefore FFO $XXX,XXX quarter compared with are year. share Included XX% last $X.XX year. for per very the the for as in sequential costs. was elevated higher $X net in Net income sales quarter as expenses $XXX,XXX inventory to from carrying

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

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

gross $XX.X million to million. increased XX% $XX.X by Year-to-date, from sales

have of financed sales. we Year-to-date, XX% home our approximately

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

our located generate XXX in profitable These the On at lots Maryland, deliver are portfolio. sales. markets are expansion expansions Tennessee track to X expansions good should Pennsylvania, located Indiana. on communities at in front, communities and These in are we and

newly We with through communities continue venture make owned filling progress the our to Nuveen. developed joint

resulted evaluating We may are allow the that work. communities to that message local developers have land execute to to purchase or them will buy in a that seek to acquisitions for Subsequent deals gotten communities into contract has and a $XX.X of numerous price purchase entitled out meet million. newly developed end, entered our we fair profit to criteria. their time. UMH growth in we for at This earn right that a X containing Maryland total the we sites continues quarter XXX

to earnings the expectations careful each the on weigh short-term value yield impact creation. and versus are evaluate We long-term and deal

generate more we or accretive, take allow strong to today. the but results reporting years are us to Our operating X typical long-term acquisitions that become

development vacant to are vacant or sites to Our lots projects. fill. the ability development have growth greenfield dependent through lots is acquisitions, required on of expansion Those

in dividend should continue of All result price. long-term value provide growth these shareholders initiatives growing and stock our for a and to

plan operating our years our and great to confidence execute. business us in gives Having ability of experience XX

maintaining invest grow initiatives. a continue into a national sheet continuing to sound growth by is company goal UMH Our our to to balance and in

market continues Despite UMH the real excel. the and a economic estate challenging headwinds to in environment,

high. starting interest all-time the an line expenses. bottom impact results Demand with is operating are housing Our affordable to at even for positively increased

grow position new a implement model to a in UMH and in proven level are markets. national business on We our

occupancy opportunities the vacant the growth of internal rents through our through increase sites, land. development of vacant and our have We in

business the implementation of and successful our well to earnings are per-share We proven plan. positioned grow through income

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

Anna Chew

a Normalized amortization excludes per you, the diluted share was quarter XXXX which resulting million to for per XXXX, FFO and share quarter, diluted for normalized the million per the in share from FFO, X% $X.XX for second items, compared nonrecurring $X.XX second Thank share first a decrease. $X.XX of $X.XX $XX Sequentially, per or Sam. $XX X% representing increase. or to quarter increased in

FFO XX%. to by as increase the representing a this our inflation FFO due revenue. Rental acquisitions normalized positioned obtain the in UMH to and of our we rental an being our operating occupancy through value-add throughout developments, increase grow rising for in the year company year interest borrowings. compared short-term able to investments were increase of rates to community increase related of despite was results the $XX.X income and million and $XX.X rental primarily rates. ago, increase well rest the recent largely We homes quarter and and was impacted is an grow to This million addition on acquisitions,

well X% mainly as due real insurance, Community during was waste the as our increase and This acquisitions estate expenses, recent to expenses. operating home payroll, quarter. removal taxes, rental sewer an increased increase in expenses

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

for while community right percentage quarter. the in that trending are Same-property operating the results total same-property to note income expenses X%, XX.X% only were direction. It same-property important generating growth expenses up of is increased NOI by double-digit operating were X%, Our X.X%. up same-property

of turn bonds. debt which we at mortgage As end, to approximately was capital total debt, million in $XXX was community-level A $XXX had million our of was $XXX our payable fixed we million million XX% Series structure, is X.XX% debt, loans quarter our $XXX rate. and

on average quarter weighted end to total last In our X.XX% rate debt X.XX% mortgage debt debt last interest maturity average weighted X.XX% compared and end quarter mortgage years average as The to year. to our at The X.XX% is weighted was interest was end end X.X The the on weighted rate at compared at interest last is short-term at quarter borrowings rate on our our on X.XX% years X.XX% compared year. X.X year. total, last quarter year. average

to pay borrowings, earnings in our explore increased share. down which result short-term continue raise to opportunities lower-cost capital We per will to

we average interest Subsequent weighted paid had plan floor rate end, down our to to quarter These of a lines lines X.X%. approximately million. $X

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

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

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

we proceeds net entered D per by term of sold is our their various sold million Series million $X.X offering weighted leases gross a secured into interest $XX Additionally, through $XX.XX proceeds ATM of end, loan generating loan after and X-year program, we FirstBank. of through we our our million X.XX%. term a issued of to and expenses and ATM at preferred May, with shares fixed of in million average preferred Series The and $XX.X after quarter with preferred stock our our XXX,XXX million. proceeds a of homes shares The $X.X expenses. In portfolio. preferred and stock XXX,XXX a approximately approximately has C gross proceeds of term communities program rental share, rate price $XX.X Subsequent throughout generating term offering loan issued net of

this a invest advantageous homes at credit prime. source leases. has to a we good short-term of a we are view rate million has line into variable capital new term also to in long-term secure by as line secured entered of capital to a rental tied This credit and Additionally, and our until able more rental rates. program new of We X-year $XX their

the pleased million to by on units. Subsequent We OceanFirst its a amendment XXXX. have the expanded to date Interest June with of This line prime credit of with end, extended rental company's maturity from is receivable. company secured to by XX, our revolving notes X, Bank to are the $XX eligible July The also is floor quarter million. X.XX%. another secured line at $XX line

XX.X%, ended of credit of standpoint, we EBITDA securities-to-total the of XX.X%, quarter our EBITDA X.Xx. less net debt-to-total market our debt-to-adjusted less-securities-to-adjusted our Xx, From with net debt capitalization our net of net debt a capitalization market

facility X.Xx. From million in with $XX.X an million fixed with to million cash the credit available accordion was charge pursuant interest and our Our quarter and a an coverage $XXX cash coverage X.Xx liquidity available $XX additional was our unsecured we and feature. potentially ended on standpoint, revolving equivalents

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

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

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

continue are company and We grow externally. internally the to well positioned to

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

Eugene Landy

future. and UMH the is into well positioned to succeed now

We have of provide developed housing nation XXX communities first-class We profitably manufactured the built a housing. affordable containing with communities portfolio XX,XXX own much-needed that homesites.

to by recessions. asset that and this investments right a stream made and built durable have during income improvements portfolio resilient asset the is We provide

communities vacant and sites, growth the of our development have of and both internal new We our opportunities external expansion communities. of for infill

in have future. a sales we should grow finance the and Additionally, company that profitable

We important solution. housing affordable an view the ourselves of piece as

has have We a again. time and that and work to proven product model time

and per income-producing. capital results a time, any given not become that into lag more important earnings. million an share metric. deploys important are metric, It's only the come that that important $XXX recognize This profitable. projects or in we time not online yet invested earnings take to UMH to in but is have At

in continues estate real increase Our value. to

equity this As our refinancing. estate real trapped increases to recapture able should through in be we value,

we triple are XX% leverage, in our may real gains business in on XX-year that not and aspiration equity if takes history years, XX value. a of could we executing produce plan. to reflected model business but financial potential time estate These its results. our reflects assume value, assets our today's over Investing results, have this Our in double

time, platform earnings best-in-class at and leader providing increased generating We price are results. same look that for industry a residents. forward a We affordable delivers stock housing to per our growing while, share with quality the an

Operator

Instructions] [Operator

And our here will Stevenson Janney. first from question Rob with come

Robert Stevenson

seasonality second should is about similar rates year? to But over and quarter, as about mean, half pricing we be have the Can is thinking and the how of business alternative you the of talk still in then trending? the you sale housing? home the trended winter is How that that some given third I back usually fairly quarter we financing holding, quarters.

Brett Taft

ability quarter. $X for million Yes. and the on we track to sale, margins the We're to that over sales gross second put results demand XX% very the are we confident believe We're We're sitting is to we've portfolio. which generate up quarters. that second with in expect, a our did done the the pipeline we similar generally continue strong in to be so appears across getting markup. here of And we homes first a

XX%, the in X%, our drive as home is to at continue Our these XX%. rate, most most competition of interest of really sales allowing us X.X% market to that financing financing internal is a sales we're where

Robert Stevenson

the these and a condition? characterized? to, cetera? And you've me better some these under-occupied better-quality, in? need to the couple typical management the assets Or you'll what et stabilized of helpful. are that then tell and assets recently some about improve are Maryland acquisitions homes move rental out they in you'd bought you bring the are condition that's How Okay, that can Are homes of

Brett Taft

Yes, of we've acquisitions a as little so This much previous done. of bit both. of some heavy as lift it's isn't the a

some XXX one your of is are infill. And multi-section and very that community, it's XXX typical is XX require value-add, sites the home will removal, and parallel -- street, community, home sites. to I'm homes capital neighboring those other the perpendicular So which improvements or then sorry. about rental a sites high-quality

long-term combination the to before. we've of portion opportunity us a both allow growth to seen of get So those the that and stabilized some it us allow of of generate

Robert Stevenson

And at are those quarter third this acquisitions point?

Brett Taft

it's say likely to There it's involved say is exactly. more hard assumption fourth I a quarter. loan so the would

Robert Stevenson

And Okay, last one then me. that's helpful. for

expenses, about, is operating Anna but more. it there talked So same-store revenue growing

year-to-date, up So they're X.X%.

you expecting Is expenses What level of X.X%? we that back in the similar of where the of first that expenses expense something 'XX? in more increasing, aware the half had of will this of should amount that's sort year you hit? less a Anything to growth there? half there be are Is decreasing that or

Anna Chew

Sorry. This is Anna.

increase maybe it be I think range that inflation. will a the but smidgen, it in of will

take. think I be it would So range, or would around X% the give

Samuel Landy

we're ratio decline ratio. a sales occupancy expense to and fixed good additional mention predominantly XX% be costs. And the homes Sam up should occupancy, reducing this now I about to is additional think is of that have rental the here, the income should accretive, point to and the the in because And because expense home be highly communities

developments expansion the in have new and between rent income expansions both earning we've that over project sell So that into earn sites and in, Sebring so the not and homes that are significant that that do million as room we and $XXX invested to as expansion sites the homes. the assets sums they we but have the income, we currently the

operating increase all that that means we to ability of income. the substantial have So

Anna Chew

reduction XXXX, do ratio in you as XX%. it the see you because at same-property the XX.X%, year and see of numbers And was for was time, last June this the months X that at XX, expense

it So a in expense nice decrease ratio. the was

Robert Stevenson

rental What's home rental the of the absorbing units in terms in now? guys vacant rented portfolio at [ ] are the pace vacancy you of running currently and right sort that monthly

Samuel Landy

in June to that date, XXXX tell I are answer added XXX you, rental X wanted of we We'll to occupied. XXX but which from second homes, just amazingly,

pretty you that. now, apartment built and answer can equivalent the that achievement. we Brett, a So is look XXX-unit complex, which of filled a as And incredible at we

Brett Taft

Yes, absolutely.

during homes converted the some realize XXX units. new do months So for rental homes that in X but of inventory to I the includes year, is first sold XXX, that supp quarter. number that rental we the from the also the were

inventory new was homes. that XXX actually was So converted

homes we another XXX Additionally, filled July. in

is first it's obviously So the homes mentioned quarter, XXX slow and seasonal, per which earlier. as are we averaging month includes and that you the winter over

track we're of goal to meet a XXX homes on So month. filling that

historically to has where much Our inventory which to closer been. is is XXX it down now, homes

script correct? her at in our mentioned Anna well, of plan we portion down I to as almost Sam believe Additionally, floor X paid the point, and as this

Anna Chew

it mean, of we're pretty much to today, we down then $X X. to paid million, as I had only Correct. and down

Robert Stevenson

are And then in catch-up through go to is you're the production what that. one aggressive that guys new substantially have, going Or thus for the these you I as spend from order guess How in orders the mean, on? been builders an reduce here? I delivered that you other hasn't question you putting do you days? far like to allowed to in that have

Samuel Landy

Exactly. in shouldn't have have exceptions in homes probably But number communities below most XX of X more you Things in might never homes so homes, than terms where inventory. in again are have sales probably rentals we're that now. and faster back and are approaching XXX to homes we the normal And inventory. is There's right much inventory. proper will X,XXX

Brett Taft

just bit to add And a that. little Correct. to

XXX So $XXX,XXX that it's we we basically in revenue. inventory fill Every now. homes, in XXX homes month another have right

add anywhere our to $XXX,XXX increases roll You growing our rent from top a month. is rent on monthly that, of $XXX,XXX

some the filled to sales communities the have all with rentals. that of only been but have very ordering we As strong homes at question,

to the X-week factories the some range. range in So XX we've other X- that to question, homes backlogs year. new ordered the with less X-week than to part this in And the are X- of

having the inventory, are which will levels such stop So in future. from get just-in-time much us things easier inventory to high

Eugene Landy

Eugene Chairman. Landy,

we'll get we'll manufacturers, the of have policy to new XXXX, the year. benefit a and XXX XXX, we're the homes orders giving them we loyal type for back our in of past. on is hopeful do be For our that very And

Operator

Wolfe Keegan from question will Our come Research. with Carl next

Keegan Carl

versus accretion. carefully dilution long-term weighing you near-term Sam, mentioned

curious Just many last forward headwinds? here? the kind quarters should from financing you think due your about growth external And several on have guys of how going to how passed opportunities we

Samuel Landy

opportunities all pass We the remainder on of... of question of all time in terms substantial was of opportunities and the time. the The

Brett Taft

dilution? really, with short-term and weigh Future growth, do how that we

Samuel Landy

next So business more look if our time, will they're we you doing at takes the years, acquisitions those But did it because accretive plan become is the X fantastically. last year.

lots; XXX is -- increased Michigan, a me lots; front the in document months, XX lots. XX January Carolina, XX a We that Indiana, lots; Pennsylvania, in XX place, I Ohio shows lots; since South occupancy which have new of past Alabama, XX have we've, me XX X, Western lots;

again, So But these very acquisitions well. do nothing's immediate.

so And dollars out are to how put in How will long Every take prior around? reduce to we turn many to increase owner? we acquisition good to to going have it going balance the years. How expenses we much I from are are will How much it out? there, us X occupancy? be going we believe,

of horizon, trying make kind should you're X If can acquire. you years, in of time limits to do you it them you what that have good. if it But to any X

more Jersey, sell it. stop X,XXX New manufactured fighting us, and -- And we in is X-acre will to we near have as to places as believe of probably acres also fought vacant residential Greenwich approved manufactured housing opportunities just get looking lands battles Township, of home acquisition Vineland, over Pennsylvania X,XXX to zone shortage lots expansion at that's approved to today, get Allentown. do that best we of but the those bet But the significant housing, communities. and because joining our such and it recognize come vacant land And some

the anything. to earning assets them for X,XXX have vacant make we working that income not some that of acres we're earning So because productive to currently make not us are on

to have things yet in we rental million vacancy I money. that invested homes, other earning And and have expansions think fill. not that are We we vacant intend XX% $XXX

grow, So trying doesn't at we to is runway. have balance all with of That enough leave Occupancy those and XX%. acquisitions. that to internal things we're us issue down

get for built acquisitions lots find vacancies to more have with more and the future. We

Eugene Landy

Gene Landy, Chairman.

its is units. And units, entire just mission per industry industry communities crisis housing build new That's helping affordable that and one community. and for be provide crisis. housing that of be XXX,XXX The is units would the production the statement Our manufactured year, solved. -- the XXX,XXX a of XXX is to must double that beginning can to XXX solve

power and and get investment we company hope And be doing in some some to an the help to so the our homes. We from is we're these shortage. UMH to to our housing to affordable important get are socially able hope to social help contributor grow legislative conscious. everything solving investors build who and a additional

Keegan Carl

growth, good there's the then as to the in obviously I see outpacing same-store of NOI platform business is more mean, guess, far a revenue the I we about and in of And your efficiencies guess you think seasonality guess as it's of homes decline. top I growth And the this attributed just your I versus how ramp-up in obviously, which margin and much expense how or that operational year? adding balance expansion. for to is should the some occupancy kind line? solving onto less

Brett Taft

Yes.

thought no get fill be to we slow happy into always we and and We're double-digit this growth down anytime see order with homes revenue think rest should high sustainable. new in continue indicated next to we minor fill should and vacant as those, quarter. growth as that XXX occupancy be that that growth, in improvements had that, NOI stack quarter we throughout reason continue growth And we believe we that compare year's I We've NOI the the you that year, earlier soon. overall and year. And growth that growth. continue very the our this to rentals, is we that year that to our single-digit of where occupancy begin for should on this quarter numbers, able as this believe very last of as to we to

Samuel Landy

fill resident's X,XXX now grass instead, resident's to them to X,XXX and have have they're have X,XXX inventory, the earning lots as they homes those revenue. we we and that's we cutting homes the When in cut heating the the heat, And grass.

dramatically. reduces expense growth pretty that your So

Keegan Carl

ending the right? of this seasonality, I is peak moving just Like season on range. kind obviously, Yes. in guess

between we it expect that is NOI that where how internally? you're fair assume this the is So gap can quarter half close at? some that thinking the of it will back from contraction to kind that, Is -- year? of margin through Is about

Samuel Landy

rental talk Not waiting for the rental units have revenue, not all. like rent the Number home becomes the homes, them there's question, at vacant, increase you're I managers, growth when can all, list And to and say more than get rental going a you managers just when X%? the over all not in asked you rental normal yes, everywhere the at on home but almost those of all means increase one, just X%. to the we which X%

operating again, most supplemental the then consider the that at that's see And your of our communities. because and important ratio, you percentage high you'll ratio, can And I profitability. in expense occupancy extremely look

it So this bottom those to at that occupancy all of have should communities, the communities high XX% you that And them percentage then as the revenue, go make XX% occupancy. difficult. revenue X% of one has the moment line. And of to that from are communities they're XXX%, almost

that occupancy, them. occupancy, XX% fill in We fact, purchased have them of them Some and them are filling knowing we'd but. we, XX% way

communities, XX% that But hit those like as is money. up, And will so it every more, become not point a profitable. unit is earning break-even fills investment then XX% and it additional profit. occupied or new And it currently will

is didn't started about until green and exact homes line, January them fill We what -- along So just X. that really to now the have we're January shoots. in same seeing approximately good X. for extremely the We position you're an

XX months from So you're until revenue of to not later. going have them

accretive going So more X past in it been be that is the XX months even of has to revenue months. than

Brett Taft

getting was point that's quarters. stacking my I about And what earlier with at

fourth As boost seasonally we reduce But third to rental the number our inventory. the pointed fill quarters, we the units second well. fourth bit first, which rent and during to helping to are growth out, roll quarter is expect to that and you'll achieved which as slower, continue you that get have quarter, as little a we

Keegan Carl

Got it.

Just mentioned you one waiting more here. know the list. I

last kind for of versus get year top-of-funnel levels to demand feel a at. demand are curious today Just is time where true your this where better just

Brett Taft

was in move-ins that of year, Yes, the we and roof. into Last demand through no occupancy, and increase shortage year, revenue. place. homes demand able to Demand This there have but homes. didn't was and we're They're still very turn is capture the ready we for have strong, them demand.

So rental but we're has stronger, specifically think sales been don't demand very obviously, with I on personally the pleased well. front, our as

Samuel Landy

good has a incredible field. the home all to improve at our point refine That's the an team UMH out time. We mention. the in marketing and and office

vacancies, review videos. We and we'd We marketing drone might which the than we applications our slower have have then it improves. communities where adjust and be what like immediately

is increase working incredible increase an the that. sales, fantastic time there's office doing doing the So increase everybody the job profit all to team here occupancy, a and out in field in and

Operator

Instructions] [Operator

Craig from B. Riley. come Kucera will here question next with Our

Craig Kucera

year, I reasonable ahead year Is a of deploying this still X,XXX of in that year-to-date target? I rentals think had and that the goal, about running you believe, at earlier a XXX. you're

Brett Taft

rental accomplish sales units. mentioned can that. includes earlier older Yes. We believe that as we of that, some also that And I

the another did occupied for from XXX. homes we've So converted XXX July, we inventory units. rental X in months, into new new first And

we're we're So close goal in to very accomplishing that still our and season. peak

think I accomplish be close next we'll and again. And guarantee to very in -- be year positioned that well we to to orders of want we'll I try X,XXX. certainly I think but we'll confident to that X,XXX, more make some get the get don't to

Craig Kucera

maybe year-to-date. haven't trend that in active XX% slipped know been you I continuing? homes you just had quarter, environment Is dropped buying or it I And it. maybe as But think mentioned even last Got that and pricing more. the

Samuel Landy

here. Sam is This

They at say to because house. And They're panels of power they'll something hard a factory constant working cost, to the but the putting reduce They're on the going inflation, to net of have improvements houses. everything to it's next on control we're they're energy their So cost Clayton efficiency. homes. Homes the on zero working doing solar week. in

housing. foot remain confident very feel we per in square will value is the So best that we there

Craig Kucera

mentioned but as of believe, maybe or markets gone, had contiguous is move you're times for potentially go several to the you've Kentucky platform. you as of guys to a some Sam, in more And portfolio, become far North I further place commentary natural the evaluating west your west? know Or you national that Great. I are opening kind you maybe in looking Memphis, Carolina?

Samuel Landy

than housing to community available meets be the could of What the that is proved they only for home $XX,XXX XX% thing that, income the best that your more a to the rental $XX,XXX. rental people of of manufactured us your in covering putting earning probably form $XX,XXX. And $XX,XXX housing earning from build COVID but is a And requirement we're work older apartments, quality for brand-new anywhere and you of community renting look is better or household price. at to, will a the them in housing anywhere out better apartments homes if a to income say, model because tries someone that at costs

And to many rental years. it we're it. because without knowing outside of turnaround negatively can anywhere trying like does is this confident to sell have land homes let developers these the approved how get aware get it do we that eye how they take to FFO will to difficult properties units approvals, us We're to go the highly build fill know land, also, it approvals. our or X all impacting So sell well as we anywhere, fully and it we're to get we we work they want the it add but buy us could we after because on keep can and

we becoming watch fill things. confident And we could. of add, thought these homes we're and those I all ability faster proving So more than more to we should

case, year talking you're in that's year. units we if ourselves successful. Well, around projects, means building if them per as expecting in do homes a to about projects to communities X attractive can consider good, XX consider you which us other there's more that community, per rental the states. And month XXX you where more make we turn more do sales will So a quicker,

Eugene Landy

to going the in southeastern the been designs, we're a and of we our United Florida. picked have greatest United part the history working. of Very States' have geographical As to now having and Memphis Nashville migration the strategy proud into And we States. that's good

very areas So we to action housing. areas. Actually housing factories parks that been our our overperform where an affordable that growing is pick great be are workforce it's we in plans other to the is build believe, going, housing, affordable in the And doesn't to the and we've we the But where new hard have date, want both want area faster. so need successful carefully. to we where will and the areas expansion shortage that population and though, find picking still is, housing we

Craig Kucera

is rents, had bit I you your And retention -- say great. raise could how quite X%. Most sense renewal you're Can a how believe, tenant them managers what of raising trending? give of more. they Okay, mentioned of a you

Samuel Landy

why that's let want value. incredible X%. resident-owned it. that or can existing way not we raise lists, me On in rentals, because that creating And word-of-mouth you that to that believe want and customer that fill homes like more I clarify communities. people than loyalty have asked and has Well, answer We to we the exactly waiting do that rent we

on So up when than most. water in loan, want increase that a forward we than from X%. new the someone net fact, the go out X% things lease don't to garbage, won't a more get sewer, saying we but And taxes, home buys rent more us, long-term the or those, CPI, they matching come

that much we're residents. so income X% up just a existing our went operating to our with increase So proud

go vacant the and on to home the same lots. that Now rental turnover, can with market

in X% the we full to market. to increase. So because X% limit that's there the existing, have really try revenue that we why on rents to the on increased the rental rental But we homes, increase

Brett Taft

our years. years XX% Yes. X than of more stay rental percent and XX-plus over of turn And few our units stay XX% residents the residents than of about That past X pretty more annually. years. remains over our number solid

Operator

like This closing the I'd session. Samuel concludes now Landy question-and-answer back to remarks. over conference for our turn to

Samuel Landy

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

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

Operator

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

UMH Properties (UMH) 9 Aug 232023 Q2 Earnings call transcript