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UMH PROPERTIES, INC. (UMH)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 Total Income rose 6% to $61.2M; Rental & Related Income grew 8% to $54.6M, and Community NOI increased 8% to $31.5M .
  • Normalized FFO was $18.8M ($0.23/share), up 25% in dollars and 5% per share YoY; FFO was $18.2M ($0.22/share) .
  • Versus Wall Street consensus: Revenue $61.2M vs $62.23M estimate (miss); FFO/share $0.23 vs $0.239 estimate (miss); GAAP EPS $(0.00) vs $0.04 estimate (miss)*. Values retrieved from S&P Global.
  • Guidance maintained: FY2025 Normalized FFO per diluted share $0.96–$1.04 (midpoint $1.00); corrected release clarified Net Income per diluted share guidance $0.13–$0.21 and Depreciation $0.80 .
  • Strategic and potential stock catalysts: dividend raised to $0.225/share (+4.7%); strong April sales momentum ($4.4M) and ongoing Fannie Mae refinancing capacity at ~5.5–5.75% rates .

What Went Well and What Went Wrong

What Went Well

  • Same-property operating strength: “Our same-property occupancy increased by 113 sites...and 227 occupied sites year-over-year, driving an 8.4%, or $2.5 million, increase in NOI to $32.5 million” .
  • Capital access and balance sheet: Net debt/market cap 23.1%, interest coverage 4.1x; 99% fixed-rate debt with 4.39% weighted average rate .
  • Strategic innovations: Early adoption of factory-installed solar shingle homes and duplex units with favorable demand (7 of first 10 solar homes occupied; duplexes mostly occupied) .

What Went Wrong

  • Modest estimate misses: Q1 Revenue, FFO/share, and GAAP EPS were below consensus (see Estimates Context)*. Values retrieved from S&P Global.
  • Expense pressure from winter: Same-store community operating expenses up ~7.8% YoY, driven by snow removal (+$250k) and overtime/repairs .
  • Home sales headline decline YoY (-9.5%) due to prior-year liquidation; underlying sales ex-liquidation up ~3–4% .

Financial Results

Core Metrics vs Prior Year and Prior Quarter

MetricQ1 2024Q4 2024Q1 2025
Total Income ($USD Millions)$57.7 —$61.2
Rental & Related Income ($USD Millions)$50.3 $53.3 $54.6
Community NOI ($USD Millions)$29.2 $31.1 $31.5
FFO per diluted share ($)$0.20 —$0.22
Normalized FFO per diluted share ($)$0.22 $0.24 $0.23
Net Loss per diluted share ($)$(0.09) —$(0.00)

Notes: Q4 Total Income/GAAP EPS not disclosed in transcripts; emphasis placed on FFO/Normalized FFO and operating metrics.

Segment/Income Breakdown

MetricQ1 2024Q1 2025
Rental & Related Income ($USD Millions)$50.3 $54.6
Sales of Manufactured Homes ($USD Millions)$7.4 $6.7
Total Income ($USD Millions)$57.7 $61.2

KPIs

KPIQ1 2024Q1 2025
Occupancy (%)87.1% 87.9%
Occupied Sites (units)22,462 22,996
Total Rentals (units)10,025 10,442
Rental Occupancy (%)95.1% 94.6%
Monthly Rent per Site ($)$528 $554
Monthly Rent per Rental Home incl. Site ($)$951 $1,007
Same Prop NOI ($USD Millions)$30.0 $32.5

Versus Estimates (S&P Global)

MetricConsensus (Q1 2025)Actual (Q1 2025)
Revenue ($USD)$62.23M*$61.23M
FFO / Share (REIT) ($)$0.2388*$0.22
GAAP EPS ($)$0.04*$(0.00)
Primary EPS - # of Estimates5*—
Revenue - # of Estimates3*—

Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Normalized FFO / diluted share ($)FY 2025$0.96–$1.04 $0.96–$1.04 Maintained
FFO / diluted share ($)FY 2025 (reconcil.)$0.93–$1.01 $0.93–$1.01 Maintained
Net Income / diluted share ($)FY 2025 (reconcil.)$0.85–$0.93 (as initially stated) $0.13–$0.21 (corrected) Corrected
Depreciation ($)FY 2025 (reconcil.)$0.08 (as initially stated) $0.80 (corrected) Corrected
Quarterly Dividend ($/share)Starting Q2 2025$0.215 $0.225 Raised

Earnings Call Themes & Trends

TopicQ-2 (Q3 2024)Q-1 (Q4 2024)Current (Q1 2025)Trend
Same-store growth/expensesStorm-related costs; same-property NOI +7% Same-property NOI +10% FY; 5–7% 2025 expense expectation Expenses elevated due to winter; snow removal +$250k; NOI +8% Stable growth with weather-driven expense volatility
Rent increasesAnnual 5% increases planned Continued 5% increases Notices sent; 5% achievable Consistent execution
Sales momentum$8.7M gross sales; margin +500bps Record year; expansions to drive sales Q1 $6.7M; April $4.4M pipeline strong; ex-liquidation +3–4% Improving into peak season
Supply chain/tariffsNo major issues; lead times improving Lead times 4–8 weeks; inventory replenished Tariff impact minimal so far; 3–5% price increases potential; focus on supply continuity Manageable
Financing/refiPreparing 2025 refis; long-term GSE access Expect refi proceeds > balances; rates <6% Fannie Mae refi ~5.5–5.75%; subsequent $101.4M addition at 5.855% (May) Favorable refi supports growth
Innovation (solar/duplex)Solar shingle pilot planned Solar shingle install cost structure; third-party ownership model 20 solar homes delivered; 7 occupied; duplexes mostly occupied Early adoption gaining traction
AcquisitionsPipeline growing; value-add focus 4 communities under contract; blended cap ~5.5% Closed 2 NJ communities (266 sites, 100% occ.); 2 MD under contract (191 sites) De-risked, upside via vacancy decontrol
Regulatory/GSEHUD/duplex approval progress Outlook for financing law revisions GSE not financing homes currently; site rent included; HUD Sec. engagement Advocacy ongoing

Management Commentary

  • “Our same-property occupancy increased by 113 sites...and 227 occupied sites year-over-year, driving an 8.4%, or $2.5 million, increase in NOI to $32.5 million” (Samuel A. Landy) .
  • “Total debt was 99% fixed rate...weighted average interest rate of 4.39%...interest coverage 4.1x and fixed charge coverage 2.4x” (Anna Chew) .
  • “We are still assessing the impact of tariffs...prices up 3% to 5%...our bigger concern is supply chain disruptions; we’re earning over 10% on our rental investments” (Brett Taft) .
  • “On the acquisition front, we closed...Mantua, NJ...$24.6 million...100% owner-occupied...in-place cap ~5%, targeting 6.5–7% over five years via vacancy decontrol and sales profits” (Samuel/Brett) .

Q&A Highlights

  • Rent growth: Management affirmed 5% rent increases; notices already sent .
  • Tariffs/supply chain: Expect minimal impact; manufacturers’ prices +3–5%; focus on avoiding disruptions .
  • Refinancing rates: Expect 10-year GSE loans around 5.5–5.75%; later completed $101.4M addition at 5.855% (interest-only, 10-year term) .
  • Expense drivers: Snow removal +$250k pushed same-store expense growth to ~7.8% .
  • Sales momentum: April closed ~$4.4M, pipeline ~$4.4M vs typical $3–3.5M .
  • GSE treatment of rentals: Homes excluded but site rent included in collateral; LTV dynamics discussed .

Estimates Context

  • Q1 2025 actuals vs consensus: Revenue $61.23M vs $62.23M (miss); FFO/share $0.23 vs $0.239 (miss); GAAP EPS $(0.00) vs $0.04 (miss)*. Values retrieved from S&P Global.
  • Forward estimates indicate continued FFO/share around ~$0.25 in H2 2025, with revenue rising into Q2 2026*, supporting the maintained full-year Normalized FFO guidance . Values retrieved from S&P Global.

Key Takeaways for Investors

  • Underlying fundamentals solid: 8% Rental & Related Income growth and 8% NOI growth, with same-property occupancy and rent increases driving durable cash flows .
  • Expense pressure was transitory and weather-driven; watch for normalization in Q2/Q3 as snow removal costs abate .
  • Guidance intact and dividend increased—signals confidence; refi execution and interest-only GSE structure at sub-6% rates enhances capital deployment capacity .
  • Near-term trading lens: modest estimate misses offset by strong April sales and a robust pipeline; monitor sequential progression of sales and rental conversions in Q2/Q3 .
  • Medium-term thesis: Vacancy decontrol opportunities in NJ acquisitions, continued site infill (~800 rentals planned for 2025), and innovation (solar/duplex) support NOI and FFO per share growth .
  • Watch tariffs/supply chain: price increases manageable; supply continuity is key to hitting deployment targets .
  • Balance sheet resilient: 99% fixed-rate debt, interest coverage 4.1x, net debt/market cap 23.1%—capacity to fund expansions, rentals, and targeted M&A without stressing leverage .