UMH Properties, Inc. Reports Strong Q3 2024 Performance Amid Growing Demand for Affordable Housing

Photo byUMH Properties

Freehold, NJ, Oct. 03, 2024 — UMH Properties, Inc. (NYSE: UMH, TASE: UMH), a real estate investment trust (REIT) specializing in manufactured home communities, has provided an update on its third quarter 2024 operational performance. The company’s Q3 highlights reflect a robust increase in both home sales and rental occupancy, driven by growing demand for affordable housing.

Key Operational Highlights:

• Equity Market Capitalization: UMH reached over $1.5 billion by the end of Q3.
• New Homes Converted: UMH converted 179 new homes from inventory into revenue-generating properties, raising the total number of rental homes to approximately 10,300 with an occupancy rate of 94.4%.
• Home Sales: The company sold 100 homes, 32 of which were new. Gross home sales revenue increased to $8.7 million, a 10% rise from $7.9 million in Q3 2023.
• Occupancy Gains: Overall occupancy increased by 39 units during the third quarter, with a year-to-date rise of 235 units, bringing year-over-year gains to 271 units. The overall occupancy rate is now at 87%.
• Rental and Related Charges: Rent increases and occupancy gains in 2023 and 2024 boosted UMH’s annualized rent roll to $206 million, marking an 8% increase in September 2024.
• Capital Raised: UMH issued 5.7 million shares through its At-the-Market Sale program, raising $108.4 million. The proceeds were partially used to pay down the company’s line of credit, which is expected to reduce interest expenses.

UMH President and CEO, Samuel A. Landy, emphasized the company's strong performance in the face of increasing demand for affordable housing, particularly after the devastation caused by Hurricane Helene. “Our communities are experiencing strong demand for sales and rental homes, as shown by our increased occupancy rates and a 10% increase in manufactured home sales,” Landy said. He also noted that UMH has 284 homes ready for occupancy or in the process of being set up, with another 240 homes expected soon, positioning the company for continued growth.

Landy highlighted the strategic use of the $108 million raised through the At-the-Market program, which was used to pay down debt and reinvest in expanding the rental home program and other capital improvements. The capital infusion will support UMH's continued growth and its ability to pursue new acquisitions when opportunities arise.

Outlook:

UMH remains well-positioned to meet the rising demand for affordable housing across its 136 communities in 11 states. The company anticipates further growth as it continues to expand its portfolio, improve occupancy rates, and capitalize on accretive investment opportunities.

Upcoming Financials:

UMH is set to release its full Q3 2024 financial results on November 6, 2024, with a discussion on the results and market conditions scheduled for November 7, 2024, at 10:00 a.m. Eastern Time.