UMH - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to UMH Properties Third Quarter 2024 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

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

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

Samuel Landy

per year, pleased growth. the diluted $X.XX diluted a was for from $X.XX share year, of consecutive is compared of the Sequentially, to FFO from normalized diluted per of increase. quarter a to quarter Year-to-date, quarter, in the X%. representing normalized to normalized XXXX X% of an approximately increase third increased representing representing $XX.X in year an quarter XX%. last second million $X.XX increase million FFO share to UMH this increased $XX.X share third FFO $X.XX last FFO report year-over-year as third per Normalized

strong earnings increased experience to share. homes, which continue income communities Our is demand per and sales revenue, ultimately, in for our occupancy, resulting

Our delivering best-in-class long-term business is results. plan

through We the land our results rental of sales will increasing to of and development infill our continue and operating the sites, vacant improve of vacant programs. X,XXX our our profitability

our in During This down of through common we acquisitions us at us potential execute invest term, to and will become approximately on our price $XXX to capital they fully and ATM million. of credit. at business the value-added net utilize allow pay raising this to line prices. quarter, we issued a right available plan the capital positions should the short our sold In X.X proceeds of million average shares $XX.XX, weighted

Turning to our third quarter operating results.

or points. the XX.X% result We improving and rentals. XXX of and experiencing occupancy communities. quality proud locations and by increased demand by to of units year-to-date. our XXX rapidly in home are and XXX This increased are units during our sales right Year-over-year, that Overall, for XX demand the the basis strong overall quarter units communities reputation investing the occupancy is

last expenses, storm-related year. ratio compared XX.X%. overall was XX.X% ratio our expense Year-to-date, quarter, experienced increased XX.X% as expense we our some the to During which to

are XX.X% rents Our third collection rate remained collected. strong, quarter our and

Our continue meet to same results property expectations.

are same-property and X%. up continue approximately to is grew Year-to-date, similar the X%, and and quarter our same million currently property increase set We in vacant our Third setup. are we X,XXX fill and occupancy further Annualized, in XX% X% and homes rental income or anticipate on sites sales of by have ready rental XXX homes. occupancy in up order NOI. by as approximately increased obtain homes NOI the is coming we or and delivered We equates a XXX $XX NOI through anticipate growth in community years recently income over stages our and coming this results million. to quarters related various $X.X up programs. We quarters that for rental as

$XX a the million rental increase revenue annual $XX X% homes anticipate increase our from and of we year, new a increases. in occupancy through Next rent million XXX

to continue rental invest XX,XXX homes We and now in own new homes.

occupancy stable the year. home rental rates Our XX% compared remained to at prior

XXX was XXX from converted to net During home was Year-to-date, homes homes. the quarter, inventory homes. homes increase increase inventory rental XXX homes of older homes. the new of The we to units the rental because of older because homes. converted we sale of portfolio revenue-producing from in our have net XXX rental The revenue-producing sale

the first year, we year and replenished increase fourth XXXX. quarter During the our further to of inventory, revenue sales occupancy, allow and us half into of income which the will in the

addition XX% anticipate XXXX. in investment the homes the annual of rental new homes funds new rental approximately yields on invested. XXX in We Our

to sales. on Moving

of of home Our year, XX%. homes sales of This XX XX sales, million, team approximately increase homes were million. to XX representing home of sold during which of $X.X XXX gross sales sales, home were revenue last home compares gross new revenue for an $X.X the new which with quarter,

XX% for sales basis increased XX% this year's same quarter. XXX quarter to the for points gross from last margin year Our

increased home financed last approximately $X.X XX% $X.X from in the gross We sales profit million of of quarter Our to third this these sales. XX% year. million year

sales growth $X to us in allow We the year-over-year should pipeline, have quarter. a which generate fourth million sales

to opening high-end locations in Several sites open, where will just of homes. substantially potential we can which to pipeline improve. generate good a about Our still expansions are results profitably sell sales just are have the or

year. are XXX approximately We sites to on track expansion develop this

plan approximately of these new without next sites to XXXX. develop year. expansion for XXX We XXX Additionally, These sites the we organically grow approximately approvals need anticipate to sites in acquisitions. develop us allow to

that be X,XXX vacant acres into be able to have X,XXX of may land developed We sites.

and We share by have with made per progress a XXX with are major a the growth negotiating Jersey. UMH in our joint to results this to New for being continue on homebuilder our pleased Vineland, venture track deliver acres platform. year, generated we earnings is

growth for years. the platform delivering continue and to results next results deliver We to that proven have a these and business several a outstanding has a of plan organic pipeline opportunities

vacant X,XXX our years provide acres for Our X,XXX to and come. sites vacant opportunities internal growth

and in million positioned have with We strong the credit line. balance full sheet our with of availability a company $XX.X cash

which sheet expansion balance improvements access communities, of capital our our capital long-term and our per homes, enhance strong Our increase value gives to us earnings and new further of portfolio the ability the in the invest will share. to and

acquire are now when our accretive with new we quarter. Anna on for available. And prepared will communities Additionally, become opportunities results investment the to you greater provide detail

Anna Chew

operating FFO, diluted compared $X.XX nonrecurring share a for for increase diluted increase related of This representing income million amortization compared which diluted homes. cleanup. $X.XX was primarily was from increase. Rental in payroll and X% quarter share the an $X.XX in rental Sam. to X%. an the rental in third mainly to same-property X% $XX.X Normalized per This quarter. to representing Community and XXXX, to and per home to occupancy a $XX.X you, costs, the was a during quarter overall for was in year share increased quarter per expenses increase XX% for an items, storm million additional and share taxes, $X.XX Thank excludes $XX.X or a FFO rental increased increase estate of per resulting the and due quarter, ago, third increase expenses X% increase. diluted normalized the million second real $XX.X XXXX, rates million and increase Sequentially, or due

our the XXXX million in the year this increased community results million million by to increased for Year-to-date, quarter income $XX.X from X% XX% year. X% $XX.X in million expectations. by to has meet same-property increased XXXX. $XX NOI last Our $XX.X quarter for from and Same-property same-property NOI to by continue

our our approximately our year. last Approximately end, short-term of total, on average which quarter approximately at have at by average quarter at in million compared million million million fixed X.XX% was mortgage mature X.XX% years as current at rate and at rate our $XXX at at on XXXX. mortgages points million was points average quarter compared million was last XXXX, $XXX quarter year. was debt, we quarter X.XX% weighted basis Series debt, was to and Total total was these community-level $XX weighted quarter had end debt end X.XX% to XX current end. maturity years X.XX% turn interest X.XX% on year. The last The the In at our we in As weighted $XX interest end X.X% lower basis April rate The rate quarter to bonds. X.X the at year. In quarter community end mortgage on debt XX was weighted maturing. end $XXX end A end interest at last of X, average quarter borrowings to quarter the we lower at debt debt X structure, mortgage compared our end $XXX was capital loans payable XX.X% at

demonstrated value. increased have we in have our have In previous doubled through our some in value As cases, communities refinancing, they substantially.

communities, be impacted in excess a ratios end, stages preferred be We time maturing the of quarter had are of refinancing. At early the in UMH the will of interest rates anticipate million equity. of well $XXX total Proceeds proceeds refinancing and in coverage principal will perpetual balances. at by but these

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

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

XXX,XXX issued sold capital issued Series through in line quarter net quarter generating rental million. proceeds stock ATM approximately XXX,XXX shares we home of preferred financing and approximately through capital credit. Subsequent net and down common proceeds of third of $XX shares short-term was million. common notes to end, our invested preferred program, the The our of XXXX raise we our $X.X program, addition, ATM improvements, during program, of stock the of D In our to of pay generating

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

on Indiana. one to self-storage a closed acquisition also XXX-unit located of Anderson, the facility in communities adjacent We of our

of to coverage and cash was X.Xx. charge adjusted was needs own securities the securities equivalents now and X.Xx X,XXX storage a to standpoint, less surrounding $XXX to adjacent with to to million self-storage our credit of communities facility. sheet. From in X.Xx. strong available unsecured and total debt the of All directly standpoint, market net units a XX.X%, proud and the net or quarter residents a debt our Interest on ended $XX.X serve XX.X%, credit net are to capitalization that very total X.Xx we we million proximity capitalization quarter balance adjusted coverage EBITDA market We indicate over less liquidity area. From fixed ended cash of debt revolving and with net EBITDA close debt our of metrics the in

purchase of unsecured opportunities home the grow as our execute business plan financing $XXX lines This for ability inventory sales is long-term million $XXX available we Fargo and joint the revolving to of runners. We arrangers Markets, available. In JPMorgan credit expanded million to other book and growth facility rental borrowings available company externally attractive positions on indicated become and of million with had with banks: of $XXX also joint in the homes. our from Wells potentially BML the This the Chase facility in X and our liquidity borrowing and credit XXXX, borrowings. available Capital as capacity

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

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

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

$X.XX We guidance, or XXXX are for which to the midpoint. full FFO diluted year in per $X.XX also at share updating the was: previously $X.XX normalized a our of range

for before We midpoint This X% per $X.XX XXXX tightening plan normalized questions. to at this annual share. FFO represents now concurrent to our year-end year We the over up guidance normalized year of issue it approximately Gene full open with growth are $X.XX. XXXX FFO over let to full $X.XX we fourth and me quarter it to turn diluted results. And range

Eugene Landy

UMH has with high-quality to a mission provide the affordable nation housing.

communities one built successfully the have of We portfolios housing country. best of in manufactured the

increasing and older a of with in. communities, operate a to housing ability quality markets We in have supply platform thereby affordable we improve turn the demonstrated around the

develop our Our increasing housing. of has expanded further also platform portable supply existing the new communities and communities,

we lot to amount tremendous solve done. a While still housing to have a help be is there done of the crisis, work

Our work company. in government communities the programs in further benefits the our put spotlight industry We a by and encourage manufactured anticipate housing. growth our have on our that should provided

in. politicians While agree divided, are affordable in our investment. of operate supply housing. UMH the to together of are need incredibly affordable because all income work social each XXX% considered increase we is the they rents sustainable that we is of a markets to

the [indiscernible] factory. been we with working to installed have on solar have program at a Additionally, shingles

have first which solar shingles We tenants' for decreasing cost growth. of electricity positioned the early will our of further costs, we later ordered reduce We housing. UMH be the are should a this delivered our and year. pilot homes, future program, well XX is anticipate in the stages

We acquisitions have years. over acquired and the X,XXX through acres X,XXX vacant of our vacant sites land

XXX We we reach filling Our expansions key of these new vacant sites. occupancy and per us XXX until to rental annually. homes rental anticipate full with homes the provide sites year XXX a rapidly development to

earnings become the earnings need as execute Our for are without attractive per said, to business prices. to opportunities. That at acquisition to the and external us ability grow and given capitalized on ready being well plan has they continue opportunities available we growth share

strong continue positioning as to incredibly the housing industry. to I balance am of UMH devoted internally of a well team sheet in grow our positioned externally. with are and employees We proud for manufactured leaders

upgrading supply We of the and have housing made older affordable tremendous and by developing progress increasing expansions new communities to communities.

of major would of developments opportunity The in we develop now Additionally, zone installation any made solar the that future. We questions. proud homes. manufactured have should These laws. our impact happy shingles on housing respect the to housing progress to industry's ability take approval with of all be duplex I'm the affordable and to [indiscernible] and the our more the are

Operator

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

Robert Stevenson

X Sam, or in environment versus a how acquisition quarter the ago? transaction the today overall is pipeline

Samuel Landy

the We, in a Maryland of pending nothing's sense, still deals in changed in deals. pending terms the are

the less on On to a buy I the communities of to will them. come lot hand, market, and reason there's other have believe competition more

am become new the available. So at in this exact moment, more that there's communities nothing to are I pipeline going but optimistic

Brett Taft

we upgrades And the of a closing. touch XXXX Maryland first looking just need real to a to quarter quick. properties, probably Those done deal. on they're making lot close on progress before that We're completing be can at the

Robert Stevenson

Are a That's just the at right. Self-storage, units would Brett. there in that make helpful, other real sense your unique of that own to to peripheral a All was quarter? number opportunity point? storage synergies this communities

Samuel Landy

bit bit same them. managing a of staff self-storage little use of our Right. maintenance we more. self-storage We the built same Quite Almost community with when the joining a vacant to manages do communities community land. the want communities. We acquired self-storage. continue of our the all our it manager, to same manager the directly We've and adjoins existing came on

than So more we're because costs. have need And efficient They a self our don't storage. the seller the the we residents self-storage. labor want operator

continue will we joining it's and fit. And vacant communities. all just a land our the to so we time, And self-storage additional look at natural our build

Robert Stevenson

inflation you is of guys today upward today? on paying how terms of part units? Okay. much manufacturers And in then the what are the rental cost new there for And pressure cost

Brett Taft

Yes.

goes a a to the unit, I double-wide's single-wide generally where little most buying We we're We'll up upgrading mean, obviously. our bit. fully up it months. we in prices communities the little $XX,XXX next for But are We're the over bit much. still higher few at set homes. rental than see range, haven't that, a being $XX,XXX see We're in. obviously, damage high-quality the seen too that components going

our on per expensive that side. out overall pointing of and costs we some that just bit cost are I'm expense think little see unit the competitors, that's but a we lower our lower and -- turnover So than rentals more why

Robert Stevenson

Okay. versus than mean, per per difference, home like here home the talk a makes on I sales into wholesale Brett, when I pricing terms single-wide, seems third play I that? $XXX,XXX bit versus it about Anything quarter. in a the on people the coming versus buy those guess, that what little for obviously, guess home? but gap in else new it you you homes XX a that, cost double-wide retail huge $XXX,XXX of or at optionality they gap other would Can increasing

Samuel Landy

probably available top next at better new just from right of a sales out in those ever coming locations. than expansions and Village, to great ran this been expansions locations year, We have positioned phases increase built, they're which We're building. lots last at we performer we've was lots Holiday So we've moment. at we're getting opened

good everything to So increase looks sales. really

order Many of and XX% could are -- on absolute your we're Woods, going XX older. to where an take They're be homes. our markup it And be sales custom Cinema and buyers working XXX%. of minimum

all could of $XXX,XXX more to the these $XX,XXX by XXX profits lots are and -- sales expensive themselves, result And the to per building just location-based in we the new these So home, house. make. year, it per XXX more

Brett Taft

homes $XX,XXX. We add be would one that markets some were of and and for even That home it rental that. that new for sale a in Just points range, thing, the buying rental sell up to that $XXX,XXX amount. in out is $XX,XXX setting it wouldn't Sam home excess that frequently, if we're those to $XX,XXX,

Robert Stevenson

If with half the 'XX, JV 'XX is How last that expect [indiscernible] news? And comes you homebuilder New sort of half you is me. for the deal? and then of second Sam, timing should would one about first there fruition, type when we progress. making to additional Jersey that the Okay. that talked

Samuel Landy

to Yes, the and be approvals then time year to year would get would all it another one the homebuilder the minimum take for it. build

any So But you're a that are sell of piece. for the we're that's from minimum. before longer a, money a number And take than exciting It to this that. about years homes $X significant getting is, going million what's today. into minimum, that's talking a from because X you're could -- potentially

of XXX homes, $XXX get and So potentially we XX% potentially potentially million that.

subdivided But Pennsylvania in we're working on that, addition Carlisle, in to lots. XX

X-story it's than it's [indiscernible], built. but code, a on superior call expensive Carlisle, then home put And X,XXX in maximize be to get house. our they going a built to you we're and XX it what code factory a local use will land vacant a those and we're standard building to acres going the there'll Pennsylvania, out. year, more bigger, to Hut so how basically it. from income We about And to going retail hopefully, wall work a system, next of those of on to And we're continue

Operator

next Our Alliance from question Global comes of Mehta Partners. Gaurav

Gaurav Mehta

to on rental wanted ask I homes. your

said this home added the XXX you You you're year, homes I used add next you rental XXX, said think year. looking to And sales. excluding

year, number So the next compare to to number number? for XXXX what's that comparable for XXX XXX that

Samuel Landy

are not we So obsolescence so delivered, but we'll XXX we older as set up remove XXX order go those There's not But add homes ordered there's homes. don't yet. homes, factor an ordered homes we homes that when XXX Brett. But XXXX. for go for believe of ahead, XXXX, are that many and go we forward XXX ahead, homes

Brett Taft

Yes, sure.

new converted from we inventory revenue-producing rental homes have XXX to all, So homes. first of

So year. added portfolio of home that homes have of that's this which includes out The to rentals. some that we number sold older XXX, to the homes is referring you're net portfolio XXX rental our new

those for in We various about just about but in XXX of XXX stages communities about of are ready our occupancy. homes setup, are have that

of not that to do those year, are . but we'll So all saying fill have homes ready this we XXX potential that. a

XXX-plus to will months get XXX got that of I inventory homes communities. again, going we able our on into of into Assuming are another be we're that to XXX, actual the X next should revenue-producing year, think range at year, to the then occurs, XXX first homes we've for sites. that delivered be that converted from And order the

that reason next So given we see the good gives going the can't no quarter. and done homes that of inventory a strong And in throughout which year, portfolio, why amount install XXX we up previous into demand we've us order, set first years. is

Gaurav Mehta

to wanted on comments That's self storage. Okay. your ask helpful. I you also around

the talked for sale that units clarify, are you they to units about, UMH Or are Just anybody? those to residents open storage only?

Samuel Landy

The Almost New process. exception units our all of are the Vineland, for condition residents. Jersey, was approximately is them are That of open that XX the approval exclusively anybody. in to

Operator

from Rich Anderson comes question of next Wedbush. The

Richard Anderson

costs. I storm the think there was Did you for mentioned that quantify number quarter?

Brett Taft

bit. was by communities for was Indiana, It touch and wasn't I that rooms in quarter on $XXX,XXX. quarter impacted, in and our for little up high It needed to Pennsylvania. want start other up didn't, storms -- it Ohio the tree can impacted We And I about about to that removal, out some the tree was but just in Florida. number . The removal that R&M [indiscernible] was the wind few the Midwest to a hurricanes a that pointing issues. and cleanup, $XXX,XXX. some a limited be was largely fixed the

basis up. those properties numbers damages the of expenses but over and damage, about an limited to but our product add year, in storms, So start well. the the a we there. looks points very looking shingle Florida you're to We're not have. Then nothing were last at of do substantial, performed it pivoting $X,XXX, $XXX,XXX of to when increase a lot XXX like our major, down We proud home had $X,XXX just

Richard Anderson

Okay.

quarter? the would same-store were if NOI some you been costs, remove to is -- would number magic have here would you Or over so -- the think have still growth that territory those double-digit you sprung into NOI growth. you And for double-digit

next a if wondering down there's and line? the I'm return that quarter to So

Brett Taft

was will in, have And we're But think double-digit to which for still single-digit, we the faster, in a increased down that our would expenses quarter said, it quarter, add number. still from onetime that back range. were be revenue other more point This coming very very overall the want we going back -- million. we online. in range. to have those there. come operating And I would impacted There we to grow that not as in gotten have being same-property we're if just were XX.X%. close It still us X% for Yes. some months, just been us million alone one range will would our was at we $XX little Those annualizes bit to rental have $X again, probably total happy we as think NOI expenses. this get the a that out far charges XX.X% low going And I'm double-digit think that of the concerned. We high I that, year, given X.X% we're think NOI into homes X that is blip can growth. and forward. And can to NOI gotten It with numbers X growth

Richard Anderson

the enough. the XXs you XXs, muscling from -- sort XXX% Fair Or do level? low to high carry Anything And in driving occupancy a number optimal to had towards through? wondering, read quarter? growth that sequential at we've grow? flat level, that are you just Noticed XX.X%. just is you sort of this you occupancy Or mind? availability -- occupancy of talked optimal sequentially the what's in is have so at there same-store I'm the in past, to flat occupancy

Samuel Landy

region-by-region we you the our show In occupancy. presentations,

area with XX.XX%. drilling occupancy. Western XX.XX% area. York, the have New they'll Western likelihood likelihood Marcellus Utica York we allow a is don't Shale Eastern increases pretty Ohio, New that know to that Shale the And in and XX.XX%, getting is York, and when but in drilling of that New I occupancy XXX% Marcellus So Utica strong.

the So XX.XX%; Michigan, Georgia, bring that it's XX.XX%; XX.X%; XX.XX%; PA, XX.XX%; and new occupancy; Jersey, Maryland, And could XX.X%. New down. number Western the XX. XX.XX%; grow. Tennessee, XX.XX%; Indiana, communities XX%. Carolina, then Alabama, South XX.XX% Pennsylvania, Eastern to

South Alabama, to need So Georgia, we fill time Carolina.

pretty XXX our lots, exception build existing to expansion a XXX likelihood have portfolio occupied will We Carolina, but Georgia, close XXX% the with to the of in South to be is year. Alabama, the

Brett Taft

in commenting straight I if occupancy was year-over-year, sequential and here. occupancy. growth occurred line the on sites. up But everything guess is just you Not XXX look

a ups where always of going That our year. actually little being flows, And with it's right we it team locations, turnover third and occupancy last rentals. do than experienced rate I'm in later strong was to those bit have to at the some very in inventory the always we time there's and rental said, stronger experiencing be is, and rentals demand our our on homes, this again, Our which fill comfortable coming the inventory quarter. is

So we occupancy do expect continued growth forward. going

Richard Anderson

that that have color. replace a you And through on -- obsolete? it? at vacancy sale percentage question of you the what re-rental? homes what day there to carry me. that that XX,XXX would for home you'll can Great in a Of rental say when comes percentage a the Last is portfolio today, look is And either or will when a

Samuel Landy

believe I there's So vacant XX,XXX sites.

Unknown Executive

the [indiscernible] stores. looking same at

Samuel Landy

Okay.

in XX,XXX [indiscernible] only rental. started we We homes total of XXXX. So rental buying

then XXX XXX a only next going XXX and XXX So -- and next, started year, homes to then year. bought that the we the

to and renting So be XXXX, it have But make would homes very get been buys if But are credit people by basically none could years be if qualify to on our great equity earning those tied then the obsolete. maybe they and be sell Vice their and our a for can lot and Lending, Safe comes to the Consumer rent homes. came received house, so who they year all profitable profit. way a potentially, could Bureau, and for financing, plus back, potentially increase both in only Protection $XX,XXX the very per It those that and as will can selling of virtually and beneficial occur. be. homes us old, the Truth homebuyers the President's they us, exists them become older that XX-year-old the those house. And person to rent $XX,XXX still of still a it things so Finance build get we sell behind you beneficial Vice XX-year-old increase, for XX first-time Act because that changed But we President, to that the to homes hands $XX,XXX around Dodd-Frank things a $XX,XXX, them in found home lot could a to the and -- very not for value tax house their they possibility

Operator

comes Lucid The Craig of Kucera next Markets. from question Capital

Craig Kucera

just we say, on XXXX, pool? Or added if out just XXX, that it, pool net have much in it should trying how a which maybe sell another don't a rental too the to to I expect the I'm to so to in and much if past? deploying home deployments. trying don't rental growth you sale, starting you've I out you XXX somewhat think we're of let's rental programmatic have follow-up you're I have of understand done think in can the of figure the you're

Samuel Landy

Warren business. became rental We it to selling at business. for Clayton business look Clayton and the and -- don't desire it billionaire are look the the finance have We homes Warren Jim rental Buffett any Homes really finance a the as finance sell at to the bought We homes. Buffett

tax But profit a to that So be, grant them. a and XX-year-old credit rental occur, selling down why can those time, XX-year-old a significant homebuyers payment. If to do or homes at same sell program say we're we per unit, government pays the government this if sell rental first-time payment, can make that, $XX,XXX homes good people's looking down I had things we becomes those for at want a we and at idea. it also comes for

potential yet, So that's there exists. not but the

Craig Kucera

quarter equity that? issuance and may you line do to the because I down we A the remain anticipate are the but pay that somehow they is Or remain to cost Okay. of I still credit, big you should cost an you payable highest color pay it loans that prohibitive that appreciate from down have? there. debt the think perspective,

Anna Chew

between on basis, term annual our loans to another and loan And $XXX an of couple million only payable the on million. the need But we years. think I not of million. have for only $XXX that's that's homes, rental due we $XX-something is

to are therefore, anticipating that quarter, So this my ATM I able, as we come our year apologize business next plan all acquisitions as for set order about. well voice. our we are may with execute any in issuance

Craig Kucera

That's all quite understood clearly. I you right.

I Fannie was reduction had -- add about think me. any last Do is forward? need last one the there bonus know G&A we the in a There special Just related cash to recognized G&A. more how you nice should But for to -- need you people? going quarter. financing more Mae

Samuel Landy

depends In people, the that all on terms happens of on front. acquisition more what

properties adding rental will developed, nothing If our in It's G&A acquisition, will with be balanced be that large increase by to but we be the acquisition. there'll administrative, any significant. from our find increase As in the be income units, are enough minor. a new we

Eugene Landy

the will building we doing to right want X problem housing. for geared which company, opposition been we're building year is you But this Gene really to give been the staffed know them doing needs the very housing. parks, are the the us more speak, parks, Landy, much get whatever the and successfully because as We is as acres. over Wel more -- -- have we're on we're could we're lots the we And X expand and working way opportunity that we now. changes. But about opportunities million housing. homes. That a XXX,XXX, and do need there's for We've We've years, And law we're X,XXX we've to we doing XXX,XXX been it's it. it. dollar zoning. manufactured we Chairman. it. than opportunities the manufactured we be -- doing million towns nation up rezoning we're amendments, for can expand to do the We for in homes the staffed should successful in million renovating because means ability And additional a and in to The that manufactured homes it talking Zoning big exist on build nation and are partially and to hopefully, we units building and do much only mansions the on communities. additional $X anxious company doing no needs conventional

valuable, we are be lots the going housing. to our but to affordable also very want build So

tell to The best you to company like much trying people I'm what our is are asset. guess I'd I So bigger. that see the

and and unit. pioneer people that's tremendous lot. the have its duplex have duplex is were unit whole unit, envision us, foot tremendous simply building an working on new the units you creates We infancy. But Duplex We that affordable we and really and the to communities have land. units square opportunity and working for in we're ideas. single-wide go find X,XXX on one And a housing taking on for in cutting half

had been but You get We duplex we've frankly, market. to were in in it engineer We've successful getting And never business. got we it. understand the the approve rezoned. have to to the concept

So look and a to please that in to at fixed at increase you're company growth for substantially administration administrative needs. looking based fill don't on size a the expenses company, expenses wants our

Operator

B. next Our of from question comes Riley John Securities. Massocca

John Massocca

on touching So growth more. external maybe a little bit

out little a opportunities bid-ask maybe has on they you X the just might there's that X color that communities more if was there of specific wondering of any now operators to spread likely were market that and the kind narrowed. between sell seemed optimistic more can sellers of give there You I ago? to in what's that buyers than or months kind are driving any be

Samuel Landy

of has our a The capital But price other stock cost of as publicly of us equity held risen, in REITs manufactured over down. gone cost capital. significant housing our has advantage terms had

on And So access side, we the to markets. that advantage then private is the dwindling. have

We access to access preferred, common. have to

available. debt of plenty have We

than most communities people in this better to at moment. So position we're acquire a

pay yield could come to come more the spread than a what per if the because know basis we're we don't will sale, I sale. for in So in past lot pay favor. for able communities on our But is

Eugene Landy

acquisitions look next return And compounding. we the going return year. going get We Other get at to at over years. look we're XX, look duration the at they're based people to on XX and

[indiscernible] what from just valuable what we existing are and year who we the to -- that has we've at our we and it make down. done acquisitions going worked, have will looking they're our profitable think to foresight X now, other And think portfolio, a where look with or them if So future. at you plan that some work we're going people to years in business turning get

John Massocca

I significantly is They've I more with how in pretty you your are I mean, the mean, mind, leverage levels? Okay. over come mean that last quarters. obviously couple thinking that of about of of to current kind you Or feel a this from all cost you else investments? to forward? spring equal more perspective, do of like being level a do going leaving capital kind like at kind coiled you'd of down stay

Samuel Landy

preferred go combination -- now. minimal, we stay right no object common, what a they But debt No, rates is, go have interest the the And rates of do. attractive. capital. use up, attractive most let's XX% see minimal I debt, the down, XX% mean, same, If is if the of with becomes interest

So we options million $XXX to us, year. next refinanced have properties of available all that the the get including in

Anna Chew

Correct. $XXX million.

Samuel Landy

twice available. those value, we take as they've doubled properties of out million think much refinanced could get we is their so currently and properties $XXX money of next as year,

Eugene Landy

very sources. to borrowed that is greenfield it's affordable top lower of the that to years long and we the than have. on and government-sponsored This X appreciation the if our more government-sponsored be that of financing the investments housing, the of to and going finance cost on other and it's better to our a the top we've finance money think one don't banks continue our past. have interested expansions we if to investment. other is we add the thing. and countries And banks X over And the have a potential line. have, plan area because entities is can of utilize in acquisitions be we And you There in access term an businesses to housing entities from that, But I from past should gains government see REITs we our the best and other the we capital. And to great compared has been believe one developments,

So using capital to grow forms. we the plan company various

John Massocca

a just one me. little bit. Last Switching for gears

of think [indiscernible] future future On and of really existing have talked a higher there and to growth? it use of more better given a to communities that's in potential being you or a about zoning Or you housing development kind that may you of on your a the manufactured tied where kind going additive to asset be little land -- is on self-storage units. the of develop the for kind of for just reasons? kind -- -- you less bit a basis be I portfolio growth kind Is community some to tied community of mean kind class communities. them scenario do of would

Samuel Landy

be accessory want being we rent. self-storage on A, see through strictly sale and quality affordable for the necessary to XXX% We as focused housing use. homes a

Our residents need self-storage.

And per to homes. for manufactured But in case acre the communities. us experience we're case, is their land communities likely they the communities it's get I'd There's the homes lot, approvals joining self-storage that. If the prefer So not housing, but a us our some, build owning not let expensive benefits in vacant very to more some happen. Vineland X Carlyle of X-acre it's where XX joining it's likely and of living lot.

a of final the in our be to we're use through will beneficial. So we'll which and But reduces and do. going use home, is cost [indiscernible] getting done systems a superior our on take called just housing as part and wall what the it's of designation, factory-built product affordable our defined us [indiscernible] and house to communities that X-acre focus social taxable subsidiary. minimal But what doing with giant subdivided is REIT doing, we'll we XX the then entities a retail sustainalytics that's the a capital lots keep which It's our government-sponsored from provide great to find what just out a lot.

Operator

from Wedbush. of is Rich question next Anderson Our

Richard Anderson

a Just same-store methodology. follow-up on quick

community So let's you've excluded units community site the same-store level, let's been calculated at some your new reasons -- for start process. you sites initially same-store Or before year is I pool. expansion weigh say a various until it calculation the pool expansion expanded seeing get on cash the passed? exclude Are such could optics -- same-store units has via those do down included expansion has growth in know full in But same-store paying? getting in a component the of you the pool your a or the that

Anna Chew

included was are They included. if community the itself

So same-store it in is numbers. our included

Richard Anderson

growth? role sort play [indiscernible]? it in does very of a And Okay. is your Or rounding material it

Anna Chew

that It material. been hasn't Right.

why that's So it we in there. just leave

Operator

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

Samuel Landy

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

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

Operator

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

UMH Properties (UMH) 7 Nov 242024 Q3 Earnings call transcript