UMH PROPERTIES, INC. Q1 FY2025 earnings call

• Passing of Director: Devastated by the passing of Director KC Conway. - Financial Results: Normalized FFO $0.23 per diluted share in Q1 2025, up 5% from last year. Increased common stock dividend by $0.04 to $0.90 per share, with 5 consecutive years of dividend increases. - Acquisitions: Closed on two communities in Mantua, NJ for $24.6 million (266 sites, 100% owner occupied). Current pipeline includes two communities in Maryland (191 sites, ~76% occupied) to close in Q2. - Rental Home Program: Strong demand, waiting lists, occupancy rate 94.6% at end of Q1, converted 109 new homes to rentals in Q1, expect 800 new rentals this year. - Expansions: Progress on expansion sites, over $45 million invested in expansions not yet yielding expected return. - Tariffs: Early indications minimal impact, over 650 homes on order, 500 delivered, don't anticipate large price increases on balance.

Rental and Related Revenue: Increased by 8% to $54.6 million. Community operating expenses rose 9%, but community NOI increased by 8% to $32.5 million. Sales: Gross home sales for the quarter were $6.7 million, down 9.5% year-over-year. Excluding liquidated inventory, sales were $6.4 million (88 homes), cost of sales $4.2 million, gross sales profit $2.3 million, net profit from sales ~$618,000. Sold 71 homes: 26 new ($151,000 avg) and 45 used ($60,000 avg). Vacant Land and Expansions: Anticipate developing over 150 sites this year. Rental home occupancy rate increased from 94% at year-end to 94.6% at end of Q1. Converted 109 new homes to rental in Q1, expect to add 800 new rental homes this year.

Full Year 2025: Normalized FFO expected in the range of $0.96 to $1.04 per diluted share, representing a 7.5% growth at the midpoint compared to 2024's $0.93 per share.

• Tariffs: Potential impact on home prices and supply chain disruptions, though early indications minimal. - Interest Rates: Volatile interest rate environment, but weighted average interest rate on debt improved. - Regulatory Changes: Impact of potential changes in housing policies and GSE financing rules.

Q: Rent growth expectations?

A: Samuel Landy and Brett Taft state they are still expecting 5% rent growth as planned, seeing strong demand and no issues achieving 5% increases year-to-date.

Q: Tariffs and home prices?

A: Brett Taft says prices up 3%-5% for manufacturers, but bigger concern is supply chain disruptions; still expect accretive returns even with slight price increases.

Q: Refinancing mortgage rates?

A: Anna Chew says rates based on 10-year treasury, stabilized, expected around 5.5% to 5.75%, closing in next few weeks.

Q: Solar shingle homes and duplexes in portfolio?

A: Brett Taft mentions first 20 solar shingle homes delivered to Ohio, 7 occupied, 10 more coming; five duplexes in Pennsylvania, mostly occupied, working on more duplex orders.

Q: Sales performance and refinancing?

A: Samuel Landy and Anna Chew discuss sales improving, properties doubling in value, and use of common, preferred equity, and debt for financing needs.

Q: Acquisition of 100% occupied properties?

A: Samuel Landy and Brett Taft explain the Mantua acquisition, 100% occupied, 5% in-place cap rate, potential for rent increases and home sales brokering to drive returns.

Q: GSE financing and rental homes?

A: Anna Chew says rental homes not financed now, but income from site included; hopeful to change GSE thinking as in previous years.

Q: Refinancing tranches and rental home additions?

A: Anna Chew says refinancing may be in tranches; Brett Taft expects rental home additions to ramp up in Q2 and Q3, aiming for 800 new rentals this year.