UMH - Earnings call transcript Q1 2024

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Operator

Good morning, everyone, and welcome to UMH Properties First Quarter 2024 Earnings Conference Call. [Operator Instructions] Also note, today's event is being recorded. It's 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

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

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

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

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

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

Samuel Landy

as was and quarter year-over-year much, share XXXX increase very XX%. an and the is community year, last Normalized first for UMH to improved of growing $X.XX FFO compared earnings. you representing operating continued $X.XX to of Craig. pleased report results per Thank

be Our units. This rent units. generated attributed combined Sequentially, last XX.X% XXX operating occupancy, an XXX year-over-year and basis XXX XX% an by increases, Overall, occupancy results. year can occupancy our rental XX.X% from growth community and income for annual year solid our in of increase earnings increase this to with in per increased improvement to share operating a net in increase increased income. in overall related community points XX%

from XX.X% this Our to last community year. improved expense ratio XX.X% year

compared grow XXXX. year's in are investments, by our to track increased $XX from million homes our annual rental in We occupancy rent stems to increases. This from and growth this new or XXXX more our on revenue or last XXX year, investment as more home rental

in operating high-quality continue UMH excel our to positioned our communities, raise year. us exceptional our and and strong housing position to Our The fundamentals of growth stock to earnings a results fourth strength dividend affordable for operating consecutive for platform, XXXX. XXXX common in

annualized or dividend We are an $X.XX representing the total in increase approximately $X.XX increase X%. quarter per results of dividend per proud to by of a This year, $X.XX.

of have aggregate we XXXX, $X.XX, an Since dividend increased XX% by Xx a amount increase. our representing

occupancy Our XX,XXX XXX over which as own of well. XX.X% to rental continues a units, to compared point increase. are We home basis portfolio rental perform XX.X% occupied year, now last representing

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

the the are condition next In ready the by tenant costs for broom generally most are covered turnover Our cases, in tenant. left homes deposits. clean security

moved renters' that our tenants is X years. approximately in year, Excluding tenure last average

generate carrying Backlog levels to costs, our our returned has earnings. expense from to to are to occupancy interest helped in impacting similar We and install reduce negatively XXX rent traditional have on revenue pre-COVID us gains This X overall without and homes track X and of to weeks. while manufacturers allowing XXXX.

increase is new X in increased only on year-over-year. invested as by in increases the in XXXX. yield respectively. and investment XX%, NOI investment communities XXX quarter growth funds. Same-property and our XXX This X income the XXXX communities earnings value refinancing XX% rental basis represents occupancy financially. communities annual fourth and units of $XX by X%, and approximately resulting a to million aesthetically from substantially This an substantially units accretive demonstrated points, improved NOI our and expenses or increase recent XX% Our the Same-property communities while in grew acquired of same-property XXX of homes same-property acquired annualized. This by improves our XX in

capital Our to $XXX site, approximately were including $XX.X value per for The or total approximately appraised million or $XX.X investment communities, reflecting site. million XXX%. Gross compared $X.X in in $XX,XXX is of of sales increase communities as increase an X%. $X.X per or representing last million improvement an home year, million these $XX,XXX million

homes in the All were inventory Belle Clayton to the Pennsylvania, to center the at center sales sold our price. Clayton leased invoice we at quarter, Vernon, the that were sales Homes in During Homes.

in cost to center, and million, the $X.X XXXX. of sales to manufactured gross profit of months ended March liquidated XX, sales for amounted the X was amounted Excluding this homes the percentage homes sales $X.X XX% million,

to exceptionally to XXXX. constraints Last the high many were first sales supply pushing year's of first quarter quarter sales XXXX due

sales a in and deals sales those for to our summer. projections our to expect with approximately the into date pipeline million line of sales quarter pipeline Our in and grow current currently close second We $X going XXXX. are have

a rate weighted quarter end, X%. notes the receivable At of interest million our balance of $XX.X was average at

first home XX% the sales. our quarter, During of financed approximately we

in sites. X have last XXX Pennsylvania, Tennessee Indiana. expansions and we are markets These Maryland, developed years, approximately in the good Over

grow expansions, that us investments with generate believe made home accretive these profitable and sales, UMH in yet provide We internal and on plan or full to approximately the XXX earnings. We sites. sales they and valuable and allow communities. This opportunities. sites XXX are to have but obtain these through us lots should growth to should premier developing more more increased approvals occupancy expansions company not to positioned external well year we develop is

and we which throughout filling sales on our rental We vacant plan have sites, programs. X,XXX

strong Most opportunities. through reasonable prices. will is continue housing We execute which have that on and We for UMH our our Nuveen land homes. of expand us with build Estate. importantly, communities. our positioned business to strong can sell acquire sale communities to us and manufactured The joint to at these plan. we balance We can acres to sheet, venture We finance a vacant when through grow have are are long-term Real X,XXX will well can new of profitably growth they established communities allow fundamentals allow

natural our We inflation. XXX XXX estate. the add real homes adds X to has our tailwinds, increasing per quality housing of new rental sales and GDP and value high communities Manufactured home year, can over and

size Our us hard year. the grows to per increase more when opportunities This our the work compelling through lots XXX developing communities allows arise. acquisition or company and expansion by of building

Our hard work highest manufactured has one positioned country. portfolios communities the with the the in of quality home company of

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

Anna Chew

per in the was XX% the per in million FFO, year compared related items, increase. representing $XX.X ago, $X.XX XXXX Thank of rental Rental million was occupancy, you, share per $XX or Normalized which resulting primarily XX%. an income amortization $XX.X million or an and a and increase rental increase quarter to to was an for share rates. first compared of This and $X.XX increase for due same-property homes, the increase quarter million to a in addition of $XX.X excludes share nonrecurring XXXX, for Sam.

costs, increased rental operating Community quarter. taxes increase expenses to X% and expenses, This in home estate real due was snow removal. increase during mainly payroll the an

Our expenses, continue same-property for community quarter. increase despite the NOI by meet operating from million XXXX. million results in XXXX income the in And to community increased by expectations. XX% our quarter to $XX the increased $XX in Same-property for XX%

maturity at structure, our As at A million rate end Series debt, million mortgage debt XX% we turn Total years approximately on million end $XXX debt, X.XX% year. was quarter The last which X.X quarter at years interest X.XX% weighted X.X end at was average had was quarter our debt and quarter was million end. $XXX quarter we mortgage of our at year. loans in to payable, last fixed on quarter The compared bond. end was average community-level weighted and end, X.XX% to our debt at was $XXX rate $XX capital mortgage

quarter interest year. quarter at In X.XX% at interest points on basis current the interest XX X.X% total, average total quarter compared to increasing rates year. lower at average basis at points current weighted end was end quarter debt this the environment, last the end rate was on rate borrowings last In lower compared weighted the X.XX% our at our to XX at end as X.XX% short-term

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

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

our During received the generating net of invested million, DRIP. company sold ATM The X.X $X.X through million. we common $XX.X quarter, we million of stock including issued common program, the shares proceeds and through approximately dividends also

proceeds stock shares Subsequent common during we of XXX,XXX net XXX,XXX XXXX proceeds stock our shares D of program, $X to preferred quarter ATM approximately end, through $X.X Series through our the program, sold quarter preferred approximately and million. net generating of the issued we of first addition, In ATM generating issued of million. common

unsecured and and issued of also addition, net In quarter to debt our our Wells stock ended and home ATM borrowing million JPMorgan net approximately our Series capitalization preferred equivalents our million charge BMO with joint debt revolving Xx. purchase securities standpoint, borrowings. program, $XXX XX%, sales rental of the and of a $XXX capacity EBITDA preferred Subsequent This available is available we Chase, debt other was an potentially coverage had to of available X.Xx, syndicated we quarter proceeds $XX.X unsecured generating liquidity of shares feature. We've with accordion total of banks: market of million market X.Xx with less expanded available net adjusted end, for $XXX net of arrangers available cash securities and financing Markets, XX,XXX we in an facility on credit was to our total adjusted credit of and Capital joint to standpoint, on credit bookrunners. D capitalization as million and a Interest to $XXX,XXX. From ended the to the X.Xx. Fargo to the borrowings XX.X%, in with homes. quarter the inventory we fixed million revolving now $XXX million X facility additional pursuant debt credit lines facility, cash EBITDA $XXX and of from of in From to coverage net

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

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

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

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

Eugene Landy

is start country for UMH to off a strong. to our affordable housing markets Demand in remain and incredibly across the strong XXXX.

communities rent for continue homes and fill sites with sale. Our to

business increasingly valuable housing as long-term vacant with Our These build company and only of favorably develop. to to vacant plan X,XXX lots the positioned to affordable sites continues vacant are X,XXX has and crisis land intensify. the acres acres

We acquired that have capital maintenance an improvements. we old job and incredible had communities rehabilitating done deferred deferred

progress developed expanding newly communities. substantial and our made also have acquiring communities We

the housing first-class supply serve. transformed affordable has have waiting homes. improvements Our plan communities This lists allowed increase business creating markets for into we our the to us of in quality communities, profitably depressed

and limited for land. crisis conventional point and XXX% builders Within place lots price our will homes our progress expansion make affordable the developing and and available should on. years, to nearly highlight an achieve our full the occupancy should there X deliver to housing the be continued tailwinds community UMH behind The next at inability housing be industry. UMH

substantial earnings expedite an the income new All lease to do That of improvement, more affordable and strength, the communities. must housing valuation. we to to stable A nation of must being this work a land will approval attractive combat translate said, crisis.

June elected our all of of proud made attend have of living. We Showcase and invite Washington the the are you June from progress benefits We to about D.C. in community educating manufactured the officials to housing Innovative and Housing X we X. the nation

will the partnering duplex modular allow to will our our some show to the We event which a legislators product on us more display This housing. to with lobby for Mall. multi-section and and produce [indiscernible] manufacturers of affordable be to single-section allows home National a us changes,

Operator

Instructions] comes Janney. Stevenson first [Operator question Our from today Rob from

Robert Stevenson

of in hiccups a previous Sam, they the have deals can you acquisition to there? a that today? been getting know bit Have you have fruition? talk on, quarters, talked closer there's little there that you guys been working couple cetera? that when I pipeline about Are et guys

Samuel Landy

have Brett I'm in here. the on going you Sam to acquisitions. fill

So go Brett. ahead,

Brett Taft

We X properties next some properties. into with tentative right Woods matters to think can't properties those I obviously sit can but much out now we There those are Maryland delayed Really and date closing resolve. referring on to we in seller put due the to X Yes, problems, later in the get wouldn't it are detail, but that Cinnamon here the the are you're diligence. closing to working resolve until a wouldn't we're want there, year. be too but it's our community.

really we're year, that or continue a deals, other to throughout and deals looking lot longer-term either acquisitions, value-add stabilized our value-add. the in some of acquisition found to accretive are that has criteria look, and find much that to as the at hopeful of then continue we we both And we'll remainder We're But short monitor market. term. checked acquisition strategy the the provide boxes. Haven't

Robert Stevenson

Okay. That's question I a helpful. units. And on the then, rental guess,

have the rental and seeing foot you velocity? and to and but guys and you are don't seeing guys Are more in ability there you What normalized quarters quarterly in much the the in the apartments greater the significant that COVID, of and months? units basis? we're in fourth, returned variability the on rental seasonality numbers substantially beyond second of Like Now supply these are seasonality see on days what the terms third a then environment as the first terms significantly see seeing a traffic in less summer as homebuilders that. absorption things and

Samuel Landy

Well, there may be seasonality.

asking the was, kind then up been get every the problem The to trying we homes. house more fill slows are At them bit. their there. we're homes of filling in. inventory could the them of moment, managers all to Our at as all their down We've limit in first, to set houses, homes, put to for quickly little them X X about years us optimistic as But which we are last this very a in the put ability inability once. getting

is rentals to target goal minimum in our So new is a to And year. fill on XXX Brett? this do to that everything regard of seasonality,

Brett Taft

our at we was all, did almost of Well, units. work of last had beginning that X,XXX Yes. we through first which of over all inventory the year,

are Now we in actually that have about communities. XXX our homes

So homes quarter. XXX in of were delivered those first the

ready XXX filled So homes of we're occupancy. getting those set total up and a this That We've already XXX homes be for homes. they'll new is year.

our those to then next and orders. XXX confident We're in placing begin fill ability our

well. quarters and in orders and we rentals do certainly So second some for demand There's we the very are sales, to And fourth us seasonality. another in the that as We're XXX but think experience confident that. first for bring do XXX. strongest you're right would I strong third our quarters can and

Robert Stevenson

then between access how the the sources source one mean meaningful is other and are and your for And debt last mortgage best rate capital to debt today. borrowing of where differentials I Okay. you that me. have line today? Anna,

Anna Chew

best the the source think is I still GSEs.

in when end will As other higher coming million we have good mortgage And afterwards, do or last under in The coming And communities coming a a to that course, approximately were due additional were don't GSE know, able any getting higher have do at $XXX to but places our hopefully you anything $XXX rates do XXXX. about anticipate year, of are most close maybe portfolio We we currently the million decrease XXXX. this due now stabilize that of hoping these financing. not little GSE since in on able us quoting went loan year rates. the of we have at were we that XXXX. rates is right or we And $XXX in bit on lot a thing million GSE that due problems financing, X%.

Robert Stevenson

is of... 'XX, million $XXX in When that

Anna Chew

the from, year. through the I March year. the way it the mean, to throughout of I February All the throughout year. or goes end All guess, all

Operator

Wedbush. from comes question Richard Anderson next Our from

Richard Anderson

My first UMH experience.

So question of stay. on a length

You years. kind of be you can I'm to would you of you Do longer risk mentioned rather you your feel Would see today? change mark lesser What's situation? and sort market? that. rents of rather on you it? how about of curious X to be shorter, any stay strategy Or it make more it so a length view

Samuel Landy

and it turnover rental we beneficial occupancy in costs. turnover XX% that appreciate We homes, stability No. actually approximately is of that have growing, only that's reduces and the very

additional to each community, resident Additionally, the sales the friends invites houses, rental. generating and and to satisfied additional family

number that like we a So number. low be to

occupied that the $XX,XXX amounts with resident apiece and doing increases rentals on per out homes reduces rent the started is very cost, you is business and cost it's house, though homes now better these X,XXX turnover, renting think for were per buying point plan. we same a Replacement ago, Even your beneficial. XX I'd keeping better years I and year. it do $XX,XXX get

Richard Anderson

Okay. And would XXX bit a that I normally target sales wrong. you in of year XXX rentals than it's said volume, relatively the Correct do? and I me this speaking, more if way think is you of sales. got little And a right, if that

Samuel Landy

probably our number. home XXX new sales is the So

Brett Taft

last year. The sales is and slightly numbers, XXX home new it's above

think about a year we I did last and XXX range. in similar

Anna Chew

XXX.

Samuel Landy

as sales. very great X of with are Conowingo, in $XXX,XXX. manufactured XX about Maryland. new XX% are sell place home think And Six we the those in Woods a That's much expansion. are of where last as markup. locations approximately opened just And dealing the optimistic for a months those Cinnamon home such locations you're we But as within markets will

sales additional year million remain And in strong. potentially we those from sales profits $X So locations. this see

pay boomers who baby cash. can the have You

and higher growing grosses see we nets. sales, higher So

Richard Anderson

Okay.

In growth, You type good you yourself same-store go terms there another your very in see of number. through XX% lift the producing that is the quarter. occupancy double-digit a this How maybe might we got the a occupancy year. a sustainable of growth Do as little NOI the of mind? math Or change lot same-store is here? some movement NOI in bit it

Samuel Landy

left not ratio vacant we're only communities from occupied, expense the XX% they're No. XXX% where is until What then happens that's really that And lots there's to And going get to down. are XX% going today. efficient. X,XXX

we'll fill So years, lots. X X X,XXX to those vacant

rent So new and that generating these years, X those our increased income. income the increases project XXX we of out meaning rental plus units expansion sales approved, But increased lots revenue, to increase we the have the lots. X operating that keep run in of lots possibility getting possible we meanwhile, expansion double-digit until X% generating are

and Going all in XXXX, that a we had maybe the lots company, did $XX $X expansion profitable, time were smaller to way when XX we we communities, sell back only homes, million. good to made much were sales and million

we're So do a job today, more hope show great in we and can and expansions building selling we what sales profits. to earning great one homes locations, day

Richard Anderson

to can And one blanks a this explain do a rentals homes whatever narrow in difference why XX% it for you some much Last -- ignorance the occupancy I the to it's first well my in was might quarter, to conference and you understand can but XX% model, that. on fill why logically me. owned Again, here. spread? maybe me guys. maybe are little or greater to that will for what for Okay. try But occupancy be for you the with such than call rental but XX% lower

Samuel Landy

are that lots. that the are understand, to occupancy vacant number, vacancies in thing the earning community important The exist revenue. not community the Lots

it's the are that homes are or of home, of that community a home occupied consists community XX,XXX that all percent units, those So resident-owned XX-point-something in homes occupied, Whether rental occupancy occupied So right? are right? plus our a the are resident homes occupied. rental

the sewer. driveway. physically They They exist. on XX% lots house. is the have vacancy road. the addition is water They're But they and that They And have need all of exist.

a lot, $XX,XXX with homes create vacant. communities And we foot per we as going $XX,XXX during years, dwelling buying And $XXX,XXX, rental lot added X,XXX to $X,XXX intentionally because then will per acquired about many were we on for to lots XXXX, vacancy, they the that that X-bedroom, that square X-bath for square rent so site month. so for little today back about unit X,XXX foot, as

we're product per building So cost but adding buying where quality, we're roughly lists, efficient that good house, house then occupancy. to factory-built from an when we're it we this incredibly rental and for basically ranges $XX,XXX apartment have have them, these build renting them waiting you're costs $XXX,XXX. and about less, any because our as as horizontal is $XX,XXX then you that's that out. lot apartment, energy-efficient And And we strong

closed And the so down problems factories we we the and ran homes. couldn't into COVID get when

So that was problem. the

that, so we were couldn't -- at And set had year, next filled they behind rented them. normal. problems because followed came you us. the of now factory half to XXX rentals then the didn't the to tell but up, we the to now And we that the are increase, to once, and Everything the come get That of are second year, behind half that all were and next all the X% them the we And our able them, year added from from we able we're homes the rent year, we those year. back year, factory. us in is the all of first that

getting We vacant in from home the it X the setting renting lots out. X,XXX to by and fill factory, months, up to it have X

So vacancy X filled over the be that next should XX% years.

Richard Anderson

Okay.

slightly I didn't asking question. was it a take probably it I but phrase good color right, different That think I'll offline. was I regardless.

quarter. great And that. for thanks So

Operator

from Jeff Management. from comes question Walkenhorst Copeland next Capital Our

Jeffrey Walkenhorst

bottom continue? UMH covered the how again, the the growth, same-store was to I I lot and several think we this which question that that today, in into stand per and Sam, challenges, was sustainable. certainly long And to unparalleled went you flattish that going was that company out. ground So very through. about saw question universe pace there. That some I think really, can through is helpful. UMH, follow-up NOI share last FFO of think should make the of that worked suggested REIT a the the does should is, how And So ask share translate double-digit My which you per from growth? be performance years, And I line you FFO

even So now a share view in FFO of years? at XX% environment, the UMH we can point today, funding show cost normalized share adjusted per next Is your higher where continue year-over-year several to drove that growth. FFO it are growth the you per very healthy over

Samuel Landy

to the the right? Absolutely. has It's important to of to leverage these expansion. come do homes to how and rental think works, equity So somewhere money new buy from

equity So are to use XX% XX% we trying and debt.

it in bring that from new about you be But ATM to $XX,XXX new right? figure common $XX,XXX going that So rental $XX,XXX math the and income, that, to you XX% debt. $XX,XXX home So that as out when in each ratio. as the year creates do expense It's rent. buys is in money well going comes gross per

So XX% of that is income.

so about leverage, leverage, earning XX%. And XX%, about X%. With we're we're earning without

over could So per share. be new equity this $X earning

leverage more we couldn't about accretive accretive, get got equity will well it's houses that work that and view for brakes hit So may us. people's that more distort it from is will it be how the factory the time the and when and

Eugene Landy

growing. is producing If housing. may X needs add, million homes. population nation We're of enough The The not growing. I housing the shortage is

the means XXX new fact, is industry XXX,XXX should units increase. of needs the the My communities production to estimate apiece that XXX will XXX,XXX XXX,XXX nation its double units. units. from units In That shortage for

The we've recessions. vacant But cards the and became the you up been year. have apartments X,XXX get housing shortage real. of share. became been lived their doing the when for very, shortage We vacant, that seen should provide we though houses the is one has and the least don't in housing immigrant from the other I estate that's at nation groups We've woke times requests units X,XXX, And X,XXX is and kind a very the The through units think all a I've really of growing X,XXX industry, year. we've today. population. a leaders real providing in We units. for

is the not problem provide the to shortages, problem the is nation housing. the abundance in nation for an So housing the of and

providing in Now We In the construction, quality make is a nice any money. That's of an the don't that new early profitable? lowest don't are see, demand. The in you And of decades. and at rents greenfield we be stages rehabilitating price. this we is, a sufficient long the compound of proven as industry we've are construction, our the at far we're housing which question years going as to can everything X% that place the best And make parks, would compounding? where early grow we over have housing estimates we term, for the going, increased certainly have In eye to is XX that money. rate where stages doubles.

our the or So earnings when earnings reported earnings at today reported we share using you look report will share the tomorrow. you're or per

X will will housing money. at bring, we be look tomorrow's do you a deal what and make crisis things, earnings If alleviate to of the great able

Jeffrey Walkenhorst

follow-ups. locations? good. for Two you I sounds pretty balanced The that you have communities. said your the Okay. waiting the lists across lists think waiting That demand, geographies, Are different

Samuel Landy

is It's completely say we not as Western not would continue uniform. New do there. locations, but not is occupancy strong. as to Michigan grow as other York I strong

Brett Taft

lists. all very to been Michigan waiting Pennsylvania, Eastern New with doing strong has strong. is strong, very is okay, strong, Ohio. Ohio very York, is specifically Tennessee Eastern very Indiana close

I is vacancy occupancy. of homes markets every to ability new rental elsewhere. it's our those geographically through lists. homes But of those others, just portfolio. of think a corner are The not fill Most our home turnover as year. XXX rental going have to XX% other in typical And ones They per testament them we're our waiting lot and might a reporting do be to our the as long

Jeffrey Walkenhorst

Okay.

So side continued the that or sounds roadblocks you good, the drive demand no on that concerns ability see front? There's to occupancy gains.

Brett Taft

XXX well. rent to with this maintain markets very continue confident do our homes ranges to ability occupancy to our XX% We're and install XX% No. year. The and

the We NOI continue us and same rent revenue ratios property of as which achieve are increases. result hit a these our our to double-digit And occupancy, to increases. is allowing expense X% increased decreasing,

optimistic we're this also So normally as In historically. XX%. are are that, it our the quarter, strong will they continue, add monitor first our we to I'd but in as almost every was closely portfolio. collections that XX.X%, community

So is doing standpoint. the about from well operationally every just company

Jeffrey Walkenhorst

REITs over one in And or in effectively rental that rental receiving interesting portfolio? UMH units your single-family Okay. XX,XXX fact, the when, are It's comment final versus valuation you I the think, have, insight. single-family homes now

Samuel Landy

Agreed, and manufactured XX very efficient On in home we thank and you, homes rental have operate to it's homes. acres, XXX community. a

simpler scattered counties. So throughout than you much homes manage many it's own many when homes towns and our to rental

Operator

next Massocca Securities. question from John Riley comes our from B. And

John Massocca

kind to know on center would sales the and mentioned kind you and XX-Q. Homes? the of within be [indiscernible] color that additional helpful. you I one Clayton more on the kind just need call I of any on color facility why rented that closed of Just

Samuel Landy

are part hand well home that's was our whether so mobilize good on to to to where individual the day-to-day highway excavation. is top the is many construction, separate you things the selling sales homes place. it's of It sales but country, that septic Land a go a whole permitting, at have in particular lots, home in have community. location in center homeowner's our once not of one of different the a We're what involves hold home you That locations land to lot business, contractors specialty all setup.

since to built And do well but Royal. And could expansion we have the there. money extremely we They'll it. that haven't on top do believe sales made at we same that, center at it. of Clayton time, we wanted Port that we it, at opened acquire Homes an I

have that Royal earning vacant we we've XXX and So Port they put to in us a the FFO which $XX community we will is approximately anything, currently us get on return grow better lots that could filling share. homes point investments per for built, the is that's it million we investment, not that expansion faster in to that in, in It's lots a the that good faster. mention have result

sale sales, money did, for of that sales more than to faster. Clayton it will center don't the money our purpose. that fill So there and lose want on will make we is community We

John Massocca

examples center is kind that of do could transaction one-off? a Or of portfolio within other today a there the that that you with? Are similar

Samuel Landy

a That's one-off.

vacant other sales of uses. different was was be -- a land vacant that this a for Clayton used there, center vacant land parcel center. it's being to land This separate have but not We can land, conducive there sales

that We of conducive find being vacant trying we in process to single-family to monetize. land to are homes way a the have other

John Massocca

on that based have I are I brackets maybe know bespoke, of of last Okay. very higher for either parcels of aren't or kind any maybe some -- just those or housing that mean, any manufactured just reason? comment, the of I manufactured for a better land than there appropriate it's some guess value use around housing

Samuel Landy

So we've spoken about it calls. on prior the

being in Golf constructed Woods the We Fairview XXX Vineland, is Course close our today. to that's Manor, Tiger New acres Mike Jersey, Trout, adjoining have approximately which very

will a guess XXX enter We we a lots with is predict those will my into the the they house. we'll So of be price able XX% what around suspect lots. have and be guess could we'll joint XXX,XXX is proper exactly of growth would to venture we believe approved, but sell over for be the that somewhere is the certainly can't $X that predict that us deal And my how many can't homes for. landowner we homebuilder. million. And But receive as

How it it Mike years approved? it. happen. do and get homebuilder take what Trout will get way a acres Golf Tiger near a So know Course, want right no XXX Woods, built? we believe But will to will they we ever own many Will to

John Massocca

consumers, on seeing I a different impact but other cetera. et of it the levels of et on bigger economic types whether other mean, income of this any cetera. in also think seeing move-outs you're terms period, of industries evidence in that I And maybe an residents, then uptick around lot or you Okay. in residents, narrative a REITs, of your of of bifurcation picture, delinquencies, are kind be maybe

Samuel Landy

very broad, important asking a you're question. So very

Cinnamon income So one that And who blue-collar earns top house. that, manufactured and is to because our But XX,XXX in is works bread homes and exact opposite, XX% we're communities the going of that only for rental through that of in a and who service first, house be can on manufactured $XX,XXX unit phenomenally provides Woods well. $XXX,XXX butter, rentals maybe our year the is retail homes home, the $XX,XXX, worker apiece. per sense,

is our these both they of manufactured at very XX the home live boomers blue-collar yet They're right choose The well. people much money now. are doing to have $XXX,XXX. in these their pretty want, who can off They're sell are home, existing The could groups they And So can older. have well housing doing downsizing. and paying extremely worker other They baby community choices, retire their anywhere mortgage. people and right?

both sales see as to extremes, earner the and the we $XXX,XXX people rental $XX,XXX pay occupancy. ready continue who per wage our are and going home So to

John Massocca

like basis, maybe guess, of any to scale either or move-outs a trailing debt on I that? And or the XX-month look, anything bad change

Samuel Landy

No. Business is strong.

Brett Taft

is it XX%, year. year, happy Again, below was our historical rental home XX% actually which move-out we're a about about. rate Last very

will I in living and over on and properties. coming rent tenants collections in XX.X%, were that where and generally number pay quarter like line time, they is are, in think the grow which our our first the weeks. try They the with our

Anna Chew

only X% the be it to On COVID, less, mean and continues Even write-offs, much I been always the pretty through of company. it's that was X%. about through or it history

Operator

closing concluding for we'll that, gentlemen, over today's and remarks. the I'd to ladies like back be turn Samuel to with conference session. question-and-answer And Landy

Samuel Landy

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

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

Operator

gentlemen, The XXX-XXXX. you Ladies teleconference dial X is We access conference presentation. or and attending X-(XXX)-XXX-XXXX has conference today's The concluded. for XXXXXXX. approximately replay, be toll-free U.S. internationally this the code thank now in available (XXX) access please hour. To will replay

UMH Properties (UMH) 3 May 242024 Q1 Earnings call transcript