UMH - Earnings call 4 2023 | UMH Properties, Inc.

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Operator

Good morning, and welcome to UMH Properties Fourth Quarter and Year-End 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

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

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

can be Although expectations statements in the based forward-looking achieved. believes that any reflected the its expectations no provide assurance the will on company company are reasonable assumptions,

Securities cause earnings The are expectations and in materially and that risks and to company uncertainties update release results forward-looking filings Exchange year-end to differ statements. fourth its from actual the disclaims any the and quarter XXXX Commission. obligation company's The detailed could with

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

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

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

Samuel Landy

we running we and time backlog, hoping much, in that were so the or Craig. out that could and rent, At were occupancy sales meet Thank you homes goals. manufacturers our shorten to very could sell of we XXXX, this our

and inventory homes or homes up suddenly had XXXX, be those had in in time X,XXX before we this they to At sold new could set rented.

rented we can sold rent obtaining carry has for Now homes we so homes. we just-in-time sale inventory homes. XXX And or those again report proud are or of approximately to normalized,

Our in is results operating filled are by from sales our behind negatively We X,XXX-unit improved rental to of in and revenues for X and homes a were long-term inventory home of impacted problems X,XXX or occupancy basis progress in of points. XXX our This half which those generate increase the us, growth XXXX year. increases. issues. With We units homes, over and executing back business new plan, resulted XXXX and first we complex rent made new building in considerable position results. rental XXX a apartment a net financial equivalent had the in

rental and a newly The increase results improved XX%. meaningful our by through is increased units same-property financing realized community same-property value, growth and XX% resulted X% occupied operating in These which are a being in refinancing sales Additionally, income sales and NOI efforts. growth. generating

additional XX%. sequential believe is results. of as third continue We quarter that improve an increase FFO growth. operating positioned the the is in quarter report per fourth $X.XX compared $X.XX the to XXXX to of another XXXX, in Normalized normalized of growth. share quarter fourth pleased FFO are FFO was representing our of This FFO well consecutive company of We we as for the to quarter growth,

to $X.XX in $X.XX normalized prior for year year. the as Additionally, compared the FFO was

future results. generates does putting into work past our fully we FFO the not and Our effort our current tremendous reflect are income,

income. vacant land, lots acres and generate X,XXX are inventory in XXX of our X,XXX efforts to vacant homes all of Our part future

take or investments accretive patient as returns. and these expansions more to communities, capital, value-add in requires Investing development produce X years greenfield

assets. significantly time acquisition these With horizon, outperformed the stabilized of right investments the

that we long-term so investment the balancing short-term shareholder share carefully while increasing value, is UMH can new per earnings generate accretion, in with earnings. projects

will $XX full to and have with Nuveen, partner, our years. that undeveloped lots in developed We million occupancy date for reach not invested approximately approximately X

have will be X for expansion occupied that million not We in years. invested lots fully XXX approximately vacant $XX

purchased on accretive We accretive next will has the last given any working years. become X in is are turnaround X that not that time, more properties or X the yet years UMH million $XXX At within producing invested returns.

are to strong, continue better but even we results. Our work achieve to results

year. homes recent an XXX were installing, new exceptional rental difference acquisitions. renting home rental the and job are homes, increased new home X,XXX team by selling this XXX new sales. home did these X,XXX and over with rental units, Our being sales homes homes and at of Net removals

successful increase of generated an of last occupancy over and units, programs net rental a XXX in XXX sales Our points year. basis increase

As we by throughout the results high first financial discussed the half our carrying our associated have of were year, year. costs impacted inventory the unusually during levels with the

to X,XXX at Moving being of units beginning XXX forward, our and we anticipate the compared between inventory as XXXX. XXX

inventory. to X X so believe similar, we to be occupancy just-in-time been better, reduced have to gains backlogs Manufactured weeks, not with will achieve able we if

success Our well-located of existing vacancies. with need plan. our demonstrate repair the business in same-property of value-added communities operating results acquire We generally

we live, As them the improve to desirable increases. communities make demand for and and sales rentals places

increased or by increase by NOI increases income were units These or same-property X% points by are increased NOI Same-property XXX quarter, by the rent occupancy income XX% XXX and in In increased million. basis increases. XX%. $XX.X for the and of increased by XX% year driven same-property and fourth same-property an

occupancy generated fully reflected throughout the occurred second and by predominantly financial effect Our gains the these occupancy third in annualized our results. the not on year, but is Therefore, of quarters. rate gains the revenue run

fronts for $X.X $XXX.X stronger occupancy us received $XXX.X the actual the year, in have on these position annualizes for million. revenue quarter higher. had an year made our XXXX, quarter, revenue and would million reported even meaning been our early was for homes revenue gains $XX.X year-end if Our we for fourth million $X.X The the million which results XXXX. to fourth the million same-property our and than revenue annualized higher Therefore, is

increase million Our and sales sales home XXX representing XXX home homes. $XXX,XXX profitably last year, of home per per continues sales operation used sale, $XX.X new Gross compared sold $XX.X to finance an averaging of XXX home were homes, $XX,XXX and averaging million were XX%. which were sales We to sell home as sale.

We to XX% as were able achieve gross XX% compared a to profit a year. last

carrying and our demand as all-time for of are We improvements with sales previous that further to $XX our affordable $XX.X decrease. proud broke goal million. the of exceeded housing inventory our continues, announce our We this year, record sales the sales million we $XX.X million division sales of anticipate our in costs in and

home We XX% units, own to are well. exceptionally continues portfolio XX,XXX rental perform Our rental occupied. now of which

only experience We approximately year, per XX% year. turnover our expenses $XXX and per continue to are unit per or less

no another revenue weeks, X anticipate levels to We costs, allowing expense to to to us carry XXX to of our adding us while have our next have occupancy help large year. homes year. next overall allowing generate reduce of Backlogs XXX carrying should inventory. amounts and X from to to normal gains returned longer interest and manufacturers This similar

high and and amount now. We Indiana Pennsylvania, sales. construction each good increased of profitable the costs manufacturing located in with us of behind should XXX inventory, the expansion backlogs carrying but many we increased the These markets home, increased in is Tennessee of that and expansions that completed Maryland, caused sites. inventory generate carried associated all cost are COVID

approvals on XXX XXX anticipate sites. we approximately year, developing or sites Next develop to and more plan

sellers space. the prices buyers XXXX front. The and was years. communities opportunity that few our acquisition year reasonable past a relatively spread transaction than rate in fund. between in may quiet developed anticipate a at the We community one newly MH on prolonged muted year a resulted interest environment the zone available acquired high We through in being result more Georgia in

We these opportunities are they on well positioned arise. to when execute

XXXX. We have closing in communities on in both and contract Maryland anticipate X under

and hope other We grow are to evaluating also acquisition our several pipeline. acquisition opportunities

developed portfolio situated a in XXX XX across home XX,XXX manufactured owns communities states. homesites UMH of

Additionally, containing is and we sites construction owns are in community XX% XXX Nuveen which X Real a Florida Pennsylvania. communities with X in that under partner Estate,

can $XXX grow acres due our fill, $X.X revenue. into in be home We amounts rental new of over land that will X,XXX that rent million X,XXX X,XXX We to X% to additional vacant sales. have to project million can developed That sites increases. our vacant revenue potentially plus an

plan homes net resulting we XXX new XXXX, every Also generate million. sold in $XX on approximately and of installing additional $XX revenue in and XXX additional should renting million revenue gross an Additionally, income. in in increase homes in million $X

approximately sales We in $XX million XXXX. rental XXXX, expect our be than higher should revenue that and

Our accomplishments possible. groundwork the in laid years to make and this previous XXXX

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

Anna Chew

Thank you, Sam.

or for third of resulting share XX% $X.XX the $X.XX amortization quarter excludes fourth $X.XX resulting the Normalized for or X.X% increase. in XXXX share FFO to quarter $XX.X diluted compared from share million increased items, increase. share fourth the in and Sequentially, FFO, for per quarter, in $X.XX was nonrecurring a $XX.X which normalized per per a per to XXXX, million diluted

acquisitions grow increase the our year We this company value-add being short-term rates on $X.XX XXXX. $XX.X investments obtain and through diluted share results were million developments, and to or in diluted normalized For compared FFO to by share to XXXX, inflation our or FFO, despite $X.XX $XX.X full interest the was borrowings. normalized million rising largely operating impacted for per per able our

of $XX.X XX%. million million a for the income Rental increase year compared ago, and related $XX.X an quarter representing to was

full rental to homes This increase the million XX%. of related acquisitions, in in and increase to rental of XXXX rates. was an year, $XXX.X primarily income recent increase in community rental million from For addition the increased an XXXX, and $XXX.X due

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

operating to in the million million for increased the in $XX.X from and in Despite by for in increased XX% community year NOI from XXXX XXXX million XXXX the to $XX.X by XXXX. in expenses, full community increase quarter million XX% $XXX.X $XX.X

income meet our quarter continue for quarter year. same-property of Our XX% X% results XX% for the and for the same-property expectations. and the by the NOI generating growth for increased Same-property XX% to year,

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

our Mae X.XX%. $XX communities We sites proceeds X is completed a addition a rate of pool addition The of credit of to facility for of the fixed approximately at totaling total interest-only Fannie X,XXX million.

acquired XXXX. were in communities and These XXXX

Our resulted reflecting pay an of increase is short-term in $XXX total including down approximately $XX,XXX investment per earnings. XXX%. community in capital for approximately or $XX,XXX these site. million in improvements, appraised value or this to million million site, $XX.X communities, or utilize $XX.X which is borrowings, We increased capital our The per

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

market debt, $X at results Our in of last generating stock, $XXX as of billion to of capitalization in market approximately X%. capitalization over our $X equity combined billion compared year-end an $X.X year, billion increase an preferred million total with a and

proceeds and million. The approximately During company shares the we our million, X.X of common common including through stock year, reinvested sold programs, million ATM through also DRIP. the $XXX.X $X received net generating of issued dividends

through we programs, In ATM Series sold D net approximately $XX.X of generating shares XXXX stock the during million. proceeds of million addition, X.X and our preferred preferred issued

program, we common Subsequent stock to issued generating $XX.X X.X million. proceeds our shares year-end, through approximately net of common million ATM of

through our program, our XXX,XXX stock $X.X generating net approximately In of ATM proceeds shares addition, D Series preferred issued million. of we

was securities year the fixed market total of to EBITDA market with to XX.X%, adjusted less a X.Xx. of adjusted coverage debt securities capitalization to net and credit total net EBITDA X.Xx was debt From charge of and X.Xx, net debt net Interest ended we less standpoint, of debt coverage X.Xx. to XX.X%, capitalization

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

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

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

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

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

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

Eugene Landy

by UMH we everything accomplished in begins our XXXX and goals XXXX for XXXX. higher on reflecting setting

sold We homes new gross are rented and occupancy, proud NOI. increase in a over basis a and of point increase generated that XX% same-property homes X,XXX manufactured XXX in homes or XXXX. we These installed XX% in increase a in same-property sales

The occupancy renting sales homes, and XXX UMH in rent our gains on increases, plan installing margins. XXXX. market position achieving and X% our outperform the our gross to and new growing to sales revenue XXX We

gains, us help and revenue generate active develop values. be acquisition increasing XXX to to expansion property and or occupancy intend also We additional the These asset attractive and thereby assuming will pricing more sites. earnings in to items market,

We with to mission nation provide affordable a have the housing. high-quality

this strides communities made home acquisition sites our expansion rehabilitation older executing mission have of the and communities, financing through development and the and in We sales. of of new

We fewer matched. have housing obsolescence from pulling The in mass a single-family resulting to starts, affordable the housing States affordable to existing housing at the migration be can't is going the best United homebuilders price only intensify, crisis point quality that back the of stock. and housing

for for rent are month. and homes unmatched as buy in Families $XX,XXX Our or to of in sell a rent community. either with prices new the competition home income any as can market. quality a as per $XX,XXX $X,XXX as household These afford by UMH-managed little a manufactured are that low

which policies UMH turnover with their to to rent relationships the X%, community with limiting results we able a a complete improvements, We good larger even communities We plan. may lower operates rent achieve necessary tenants. X%, high-quality These business in in treat our turnover-related our our results happy long-term be fairly and which though increases. with tenants, increases by generate tenants expenses.

the believe have in year on outperform UMH financial and company We positioned had operating fronts. to years. coming a solid the that we the

through and sales rental As should our grow rent improvements home and increase site income of profitability to the to continue our we operation. continue should in occupancy, increases

communities they new become new and We expansion communities. sites in develop intend to acquire available as

X,XXX Our has with be X,XXX vacant business plan positioned can sites. of into and sites developed the that land company additional vacant acres

Our vacant sites significant and have land potential. holdings

our sites vacant and values build these existing vacant can sites the fill more on realized. land, we As be

look our provide with well who goals the pleased are We and on our XXXX. Congratulations furthering in affordable to nation. our progress to accomplishing to statement mission to our and again date housing for forward all staff the quality so have mission executed

Operator

And comes Janney. Rob Instructions] from [Operator Stevenson our of first question

Robert Stevenson

getting days? seeing hit your in have these rental various going in you the guys uptick by fraud on bad The schemes. debt units? any like business Anything Are been a on apartment that harder

Samuel Landy

No. line above We and it keep in XX.X% eye on range. a it's receivables, and typically is, close our XX%, believe, it's in the with I where

Anna Chew

X%. again, dollar has value gone mean, the still around up. debt the roll it's at yes, I range. and our X% but gone that's has because up, are rent But write-offs Our bad around our the

Robert Stevenson

any that skin the if between $XX,XXX to would how much going rentals? units the and or and differ And somebody's they have $XX,XXX on the monthly in -- pad got house just sitting a the don't a a I inclined game be rental rents more on assume pay pad, if the that to they're rental. does and

Samuel Landy

was provide the house we the through discovery COVID appreciate great The provided. No. at that price them we people

rental rent we extent maintained occupancy such even collection. and to when COVID, jobs So that lost during XX% they an XX%

on go X-bath a the they into they lose do more. they a month as only great not everything Therefore, place their they're costs know lot, desirable, that X,XXX-square-foot pay they rent. Because $X,XXX per paying this, this power that's house in if for X-bedroom, about to

the So so rental investors income as and as rental XXXX, the the is from income we that just year, tests at homes $XXX began our great And from our in stream to right? per good just stream homes. bankers history, our doing and proved resident-owned we staring homes ourselves,

revenue Sam revenue, forms there's resident-owned of stable homes mode in as just on Well, that XXXX a we is after other that stable rents acquisition proved Zell inexpensive COVID, that there went which into then is why are rental a the said home the back than the we from in housing. more South, nothing in community. as where

But maintain XX% and because XX% nobody factory-built of know we rental with the we'll a collection. on rent front lot, home we more a because can compete those on occupancy did

Robert Stevenson

And impact about XX on there? talk likely basis helpful. have rates is incremental you financing today an point and of That's where home or to much Okay. change how you're XX can demand in sales

Samuel Landy

first, widens increase. rates interest so, as Well, affordability the gap

house a interest $XXX,XXX just that rise. reach on population as you significant a rates, even part house, rates in to becomes as feel increase further it's out So great. $XXX,XXX though interest the of a of And not

The increases size shipments interest the to year. back goes units home, that got a the history rise. product XX% all when our way got of needs rates in to XXX,XXX of the market XXXXs rates as And about the that interest in to manufactured

the then customer interest a that positive to based interest So retail the company rates us. for our rate the to money We we're on rates, what currently... own We charge the are source interest gauge provide and our we And loans. approves financing.

Brett Taft

we're New home X.X%. currently sales, at

Robert Stevenson

now for more Okay. had larger your talk me. Can little than that potential 'XX owned months? you've XX for bit That's upside some helpful. bunch of And vacancy one that then acquisitions last a them you about of a from

I in both think sub-XX% of Fohl they ago. a Michigan were that specifically, And sort Ohio, acquisitions larger million-ish occupied $XX were and Hidden Creek Village in year

the it, upside over months. how has to much much already come left next, run a Just call XX trying to there how been on and is the get rate of revenue sense realized

Brett Taft

specifically. to those address communities Sure. Happy Yes.

in XXX XX with of Michigan, sites. year, which Last in has homes, an rented Erie, XX resulted we Hidden units. It So was sites. increase XXX Creek in new purchased overall occupied occupancy

of still go, demand is very have to strong. proven plenty we runway that So and we've

we on inventory floor plan impact So this just-in-time a anticipate the had overall in to similar limit operations. occupancy with expenses year, here that interest on increase

And Fohl the we're with numbers. location, Village and very has been a strong very pleased

because very implemented we been those year the I very homes, X We so demand about to program sold homes last new and home sales would have and continue we are strong way haven't all believe strong. typically rental sell our to profitable sales. have

So demand. we're at closely looking

remains putting some in to an sales in, homes expect we'll while year. rental go I occupancy that Assuming in strong, there probably XX route, increase this continue traffic but wouldn't units of

The and other replacements, be from in. sorry, XXXX, rental or initial I'm completing might we're improvements. get water acquisition we're our to starting line sewer That homes

pool a that has quite So upside. of of bit assets still

Robert Stevenson

the helpful. a though. follow-up and That's deal have if about, Okay. have I rental buy thinking sell to mean, are How to upside from the that, a rental unit versus you guys on yourself the home you the just opportunity with that and not unit?

the trade-off? does rentals and typical the a a pencil what look between selling collecting you just having versus rent pad site like when does the for in mean, that cash that home collecting How guys returns perpetuity out to guys I you you on you to to higher outlay think but about time the a period? rental when unit, that over look then

Samuel Landy

XX it are And year there home, long that's bought Homes other and increasing business. the the out any Clayton and it unlevered. Warren earning from rent as years. homes goes We are X%. And the home, out as finance to It after these to up own year, starts the occur. Rental last business. rent rents homes obtain as X%, Buffett increases finance we so going really the then about

homes think Memphis a from community. because and a land sell as but entity. the all-rental the on investors going communities, an We mortgage banks, building Blues we we're both we're obtain And resident-owned to and homes like government-sponsored home

pay manufactured we to And lowest best we so build housing. should homes prove to entitled interest apartments, with affordable the way the we're the And be going that communities on horizontal banks. to rental rates what are

sell the But lot homes. we comparing resident. rent because, they're staying can only to receive make or other rental, If the a I benefits rent. house hand, it even knows them But a want on sale then, years it the increase they the resident X benefits on to own the a more, don't to a argument,

$XXX, if for the receiving the $X,XXX. the a receive home they're X% rent they $X,XXX X% the on if $XXX is So on month, a they renting increase versus lot were

be period, So the them. house. over in builds appreciating. benefits in a could to XX-year a home equity person X- the resident-owned The It house

On year. a we us benefits rental we're are, the to wherever going other whereas home hand, rent per only X% the mark home, the resident us. XX% market on owns when increase to to the turnover allows That rent rental home the receive the probably

more than So the the believe we profitable receive lot. and renting house a the better rent homes rentals, increases on and selling I rental are

XX% to in nice $XX bottom the $XX on still we'll it's million. And hitting additional sales, each But million profit approximately gross have line.

So growing sales million beneficial. million to from will $XX be $XX

sell I rented more benefits homes. to it beneficial be we even if think but would continue we the the resident, it homes, because

Operator

The of next comes Jeff Copeland question from Management. Capital Walkenhorst

Jeffrey Walkenhorst

was progress have fourth sort -- per is big growth of growth that on that, expected business any seen the which among strong your XXXX. And underlying has for of significant great has of -- and property that a very of double-digit higher opportunities recently, on leverage fundamentals FFO NOI might that funding if are also share the because operating REIT the wondering, quarter, be in So you're you related in. growth compelling. been best the growth, investing report do been the the in challenge cost part I'm same-store very, in I've the to

on large of returns that share and, sources 'XX. impact in I growth wondering spreads, how expect the again, if the uses can us that that might you uses So capital for through walk was you the your and per expected

Samuel Landy

we per but report, remarkable, really the at didn't first today, results strictly to problems because pay our the share hit issuing and about such look needing if extent carrying equity. of through more it on back on cost the annual to similar down it's a are of of the year, it's level. So level half a that the inventory the of XXXX you spoke hit how inventory how share it But per

But you homes And these rental make X%. purpose that to the forward, of generate as project is more equity money.

Sales Additional lots generate generate additional additional income. income.

having had too inventory in early you not in and lag 'XX by much inventory in So a 'XX. XXXX caused

But that's so all I XXXX back of behind us, look why report. annual that's that at

capital Our was this because stock the price. cost year despite make of going high, it of it's to and money. high low accretive being But

Eugene Landy

If It add, would the for apartments I the And could rent to buy and much industry. than United government-sponsored it's entities are a houses for wonderful States. housing less to otherwise. people thing enables they the unique

where we it was recently under $XX million, other think money. companies in market paying X% X% for And I are a borrowed,

our returns of that term, in long XX% source we the rates, hats government-sponsored will the off and the feel the entities interest value we the of get And our are that growth to properties term GSEs. from our on can be at of So low equity. long

Anna Chew

that to is GSEs want still said to a because are a us company. also Having strong that, I The we're mention it lending act. balancing

be balancing so always XX% And capital, have or to have that whatever. whether debt we therefore, act, it XX%

conservative Right always now, company. been we've a

is XX%, XX% to of approximately right Our debt total as net this market cap moment.

homes, them. approximately of we XX% any for loans year, because will approximately for for company. capital a we the are the -- we We to capital need sales $XXX finance additional new million do strong sources our in million rental every So since our on need programs, expansion $XXX for of

million we in capital. will need always $XXX again, and So between million $XXX additional

Samuel Landy

talked wanted just out, the I about point year. properties refinanced this to we we

that compounded million, year a properties is per $XX $XXX in to so million And which in value return. doubled XX X.X% over years

about throw properties about talking XX% X%, you're returns. those off so unlevered Additionally,

through we earning common ATM has on, capital to you're XX% be so in the the raised invested accretive. that is properties So it

Brett Taft

We're to look NOI And to same-property X about were else pleased and double-digit XXXX, had we XXXX just quarters the what NOI returns to we year, where had from going comment add we very back same-property and we consecutive this everybody same-property increases the a in also not the and on occupancy XXXX, row increases. continue think quite in obtained, Sam's double-digit year able we high initial digit, achieve that said to digits. track achieving rent last demand, we're maybe and similar forward, in returns the with increase. And we single inventory a double NOI our obtained at we the increase to but going certainly locations that

getting quarter anticipate our shown goes of the growth. that that line, by, normalized to X down through quarters bottom more Every we sequential of as FFO

Jeffrey Walkenhorst

So summarize as the leverage, to To continue basis. I that just would pointed in per to through really per on that's And a summarize, visible 'XX to growth FFO -- year, be helpful. share over move operating think should you share out, you we expect 'XX. see

Samuel Landy

Yes, exactly.

the in it saw You fourth quarter.

first lines March even the and for should quarter that so to be us better, And up our Board meeting discuss increases. dividend

Jeffrey Walkenhorst

question. Okay. also next my That was

be grow and the to you they your dividend Is objective Sun ELS, consistent do with on regular a grower. annual that consistent dividend peers, the have know a I So been basis? where

Samuel Landy

competition. you're running back Well, at whether whatever shouldn't track or doing, you're look the you

on it the those of in income, growth. nothing discuss our are eventually to land mention. course land, next and and becoming time hope income. very previous to Manor it and we're mentioned is that Tiger that further which of some increase a kind increase to all do increase our our in working considering and golf it with to tend I be has Trout to values, in FFO are where calls, believe dividend I've have Mike sell building projections future on that valuable, since agreement for but Fairview to but So the does them, potentially increases. Good seriously with to do property Woods to we our considering could increase positive, And able will have

Jeffrey Walkenhorst

potential growth initiatives. of a your Okay. fund That's capital source to

Samuel Landy

things those that time, the But once. things All all Yes. those over -- happen is answer don't yes. at take --

Jeffrey Walkenhorst

states, to the talking question? basis you're last XX about same-store couple in of the continued the go back Looking was hundred Okay. fundamental up Sam, I points. can where, gains occupancy occupancy across a portfolio, year,

think, you I states XX to units seeing occupancy demand down it the occupancy rental comes on Are are it's year-over-year, or trends. the well points the in purchases as the was rental any differences up when apartments, most rentals? across basis different the seeing to And flat whereas whether

Samuel Landy

is year, and of year front. during on sales the I question incredibly rent strong we'll XXXX. rental Demand incredible X% we homes. an the number No. receive increase have Last our no added the

And you that add there just-in-time the with many can homes so challenge is inventory.

extent basis, coming same they the savings able the But that results homes achieve on able even are than the number just-in-time in, if significant But to not interest to, going be but of even will you're better to you're you're today. costs. a have on to

Operator

question a next Joel Goodman, private The investor. is from

Unknown Attendee

Joel investors, Colorado, in housing. I to investor. your want your efforts and is thank also my This want your one to as UMH affordable an on on mission you provide behalf of to individual commend for Goodman I

to efforts My coverage. stock, interest your I'd if question the are like attract to some analysts in and analyst an firms UMH. from sharp to do has cover there know recent firms very have from take to There with small been who big analysts

Samuel Landy

obtain to issues of firm major And is guidance. provide absolutely. have out there one coverage the from the to Yes, we

coverage. so to that we're hope provide so giving And shortly, providing and will the a guidance major firms lot pick thought up guidance of to

Operator

Riley. question next B. of comes The Massocca from John

John Massocca

historically the bucket. flat. answers, things the coming this at move new properties kind but you some talked a know are over of kind going look as you occupancy of year, about into at in same-store little So prior I relatively some change And XX%, your sitting of bit it kind to in of if same-store

in Just maybe same-store uplift as in But some It's any in considered were big of you properties what some maybe Is a pretty the there. do of in that a same-store for portfolio? ceiling there more kind color growth. been opportunity steady-state kind of for driver of XXXX? occupancy of NOI the see occupancy the

Samuel Landy

If and you the they each you every how grows of occupancy at year. take annual it's each much reports, find our community, them, community show the end each of at out if And you you'll at occupancy compare substantial.

allows same-store area. XX% we so they vacant same-store to whole we XX% out we is what occupied, of add acquire XX% that what in that us But XX% continue happens occupancy there sites, world that's growth. the moved get XX% which into of But X,XXX occupied, run communities that homes is bucket, to consider occupied, that ideal rental area goes per because year. If

year if is forward $XX moment, the X% at and year. rents The this a yes, for X years? So answer look a that's can raise million years, you X we

For X million. that's years, $XX

add and the X,XXX consider, is X,XXX yes Can answer X,XXX new revenue. And single capital million we need another homes. to sites or then already today, those building exist, we rental you in a that's because investment is vacant the only $XX what acquisition? doing got lots have homes you the without an And because lot

approximately investment, So $XX,XXX X,XXX and year. new going an times per house, be grossing per homes with $XX to million we're additional that

to occupied, that to are with it ratio, be to that communities closer these going expense line. XX% closer XX% more the be of they're And so to going making to money bottom

vacant to Now approval, land we'll to to with of continue so continue for acquisitions And have can way. that so the we communities take valuable do we seek to we that vacancies, that. expand continue we from and future continue grow

So new there growth. for in increases from million rents rentals. years some you today, $XX growth from the be But future million $XX and involved will and have costs actions rent X future increased on will

Eugene Landy

nation The The new filling housing. build are up. must parks manufactured

occupancy if more homes nation, filling have you're XX%, XXX,XXX in will some point, Our to sell to communities. and at the up, going parks go you're we to that point. are to XX% going build at XXX,XXX And

The statement, for that's our decade. it each that's do must that at do parks something have we part build next as the because year And of XXX we mission and must And spaces, we XXX to long-term the and which build And the get statement. those to patient it money, communities. that's of housing not part approvals there. shortage it's demand to is our takes easy but so and there, is of mission

is UMH we're doing And in to with what our Nuveen, long-term a plan. and And we call going greenfield with joint that's that venture development. continue

Samuel Landy

use, you numbers the those industry. And that's for

Eugene Landy

industry. The

Brett Taft

UMH. For

Eugene Landy

the and We million community replacement that do year. probably of rental development, cost a greenfield on board expansions and up $XXX sites is the in homes year, X,XXX And of and a homes cost. a both everything, homes X,XXX vacant -- filling

Brett Taft

analyze overall right to rentals, this right at make we made year, just the of at we analyze will in communities both ordering that, and the looking in last through always homes same-property our the communities sites, we're gains And to year. for pool our progress our add sales price. occupancy all almost And vacant be sure

that Vice confident home achieve was rental our we we're President X,XXX quite other our with number. homes but very feel bit, working in Rentals And can that very and as new a amount of Vice I XXX of Presidents, confident we a similar mean, in last year.

Anna Chew

almost, at a our they the was -- occupancy at said, And acquisitions. will -- time It had Brett big include XXXX, that factor was factor And as XX%. same-property sites purchase pool of X,XXX with of XXXX vacancy or then. acquisitions were the in

to and doing room and what are grow, it. will we we room we So need, have that's to grow,

John Massocca

Okay.

understanding level. So XXXX there then closer for same-store opportunity the occupancy that, another growth? have I occupancy year closer mean, goes points set next -- is to XX-and-change goes [indiscernible] the either Just occupancy of percent -- right? to probably in XXX the basis is individual? that Or

Samuel Landy

And same-store point community, XX% that is our look is And constantly, see by growing. occupancy occupancy number. could the report. from the annual expense about it at to worry now don't fact My is looking Worry we each you year's not and whether XX%. increasing and that at ratio that about at each about dropped has giant that or

Brett Taft

XX.X% Overall, yes. Same-property, was it to XX.X%.

Samuel Landy

ratio the communities filling higher lower filling in that individual Okay. we're the community. sites individual at expense because each fact goes, And the that the And that declining indicates means we're that's occupancy communities communities. the the goes

John Massocca

that's a as 'XX. kind into something Or And maybe in of anomaly? XQ year-over-year of seasonal Is expense in that on flat same-store operating is that was kind 'XX? sustainable or out look vein, maybe you that an basis community basically same

Samuel Landy

community to homes. Well, XXX%, what vacant goes have grass XX% the is as rental is and occupied happens the we to cut don't on

an of You are expenses Most your need additional don't fixed. manager.

ratio. vacant so reduces expense those And filling Go ahead. lots the

Brett Taft

right on Yes, the absolutely ratio. expense

in do does. it year. that. materials expect slightly but next what be to the to flat depending X.X% amount range, the exactly expenses happy I that than cost increase, very X% X% X% that We the think higher labor the increase and in it's As exact not on per range, dollar percentage I of We could were possible it's year. would be this an with and expect

John Massocca

No. Continue.

Brett Taft

approximately regardless, NOI X% the high income single low I but, expenses was year. aiming to you for same-property we're next that in going X% Yes, growth, double-digit -- to range, growth NOI which X% with say, with that get to digit, does

Operator

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

Samuel Landy

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

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

Operator

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

UMH Properties (UMH) 29 Feb 242023 Q4 Earnings call transcript