UMH Properties Inc (UMH) Q3 2024 Earnings Call Highlights: Strong FFO Growth and Strategic ...

In This Article:

  • Normalized FFO per Diluted Share: Increased to 24 in Q3 2024 from 22 in Q3 2023, a 9% increase.

  • Year-to-Date Normalized FFO: Increased from $39.2 million last year to $50.3 million this year, a 28% increase.

  • Revenue from Rental and Related Income: $51.9 million in Q3 2024, up from $48.1 million in Q3 2023, an 8% increase.

  • Overall Occupancy: Increased by 39 units to 87.4% during the quarter.

  • Same Property NOI: Increased by 7% in Q3 2024 compared to Q3 2023.

  • Gross Home Sales Revenue: Approximately $8.7 million in Q3 2024, up from $7.9 million in Q3 2023, a 10% increase.

  • Gross Sales Margin: Increased by 500 basis points to 38% in Q3 2024.

  • Net Debt to Total Market Capitalization: 22.2% at quarter end.

  • Cash and Cash Equivalents: $66.7 million at quarter end.

  • Interest Coverage Ratio: 3.3 times.

  • Fixed Charge Coverage Ratio: 2.1 times.

  • Weighted Average Interest Rate on Total Debt: 4.36% at quarter end.

  • 2024 Guidance for Normalized FFO: Tightened to a range of 92 to 94 per diluted share.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • UMH Properties Inc (NYSE:UMH) reported a third consecutive quarter of year-over-year normalized FFO growth, with a 9% increase in normalized FFO per diluted share compared to last year.

  • The company experienced strong demand for home sales and rentals, resulting in increased occupancy and revenue.

  • UMH Properties Inc (NYSE:UMH) successfully raised $107 million through the sale of 5.7 million shares, which was used to pay down debt and invest in growth opportunities.

  • The company anticipates further occupancy growth with over 200 homes on order and 300 homes ready for occupancy.

  • UMH Properties Inc (NYSE:UMH) has a strong balance sheet with $66.7 million in cash and full availability of its credit line, positioning it well for future growth and acquisitions.

Negative Points

  • The company experienced storm-related expenses, which increased the overall expense ratio to 43.3% for the quarter.

  • Community operating expenses increased by 9% due to higher payroll costs, real estate taxes, and storm cleanup expenses.

  • UMH Properties Inc (NYSE:UMH) faced flat occupancy sequentially at 87.7%, which may indicate challenges in achieving optimal occupancy levels.

  • The acquisition pipeline remains uncertain, with no new deals currently in the pipeline, although management is optimistic about future opportunities.

  • The company is facing upward cost pressures on new rental units, with prices for single-wide units ranging from $70,000 to $75,000.

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