UMH Properties : 2024 Annual Report.
UMH
UMH PROPERTIES, INC.
2024 ANNUAL REPORT
Our Vision
UMH Properties, Inc. has a 56-year history of providing quality affordable housing using manufactured homes in communities. UMH owns, or has an interest in, and operates a portfolio of manufactured home communities consisting of 139 communities with 26,300 developed homesites situated in twelve states. Additionally, we have 10,300 rental homes that we own within these communities. Included in the 139 communities are two communities in Florida, containing 363 sites that UMH owns and operates through its joint venture with Nuveen Real Estate. In addition, UMH owns approximately 2,400 acres of land for the development of new sites.
Manufactured home communities satisfy a fundamental need of quality affordable housing. As home prices continue to rise and available home inventory continues to shrink, the supply of affordable housing becomes an ever-increasing concern. We are committed to being a part of the solution to America's affordable housing crisis.
UMH has long believed that we have an obligation to create sustainable and environmentally friendly communities that have a positive societal impact. Throughout our history, we have and continue to develop and invest in environmentally friendly initiatives that will conserve energy and natural resources. We build, upgrade and manage well-maintained communities that our residents are proud to call home. We believe in enriching the lives of the people impacted by our Company which include our employees, our residents and our neighbors.
On Our Cover:
CRANBERRY VILLAGE ESTATES, Cranberry Township, PA
Acquired in 1986
2024
Year in Review
4.9%
INCREASE IN
COMMON STOCK DIVIDEND
8%
INCREASE IN
SALES VOLUME
10.3%
INCREASE IN
SAME PROPERTY NOI
565
NEW RENTAL
UNITS ADDED
Total
Shareholder
Return
30%
ONE-YEAR
51%
FIVE-YEAR
234%
TEN-YEAR
Manufactured Home Community
Operator of the Year
WELLINGTON ESTATES, Export, PA
Acquired in 2017
DEAR FELLOW SHAREHOLDERS
UMH is proud to report another strong year of operating and financial results. Our portfolio of manufactured housing communities is amongst the best in the nation. We are the 7th largest owner of communities with 139 communities containing 26,300 developed homesites. Additionally, we own 10,300 rental homes that we own within these communities. We built this portfolio by investing in value-add communities and making improvements to the infrastructure, completing deferred maintenance and bringing in new homes for sale and for rent. Our business plan has been to identify and acquire value-add manufactured home communities in good locations where there is a demand for affordable housing. Once we acquire these communities, we immediately commence a capital improvement strategy, which upgrades the quality of the infrastructure and adds essential amenities. Then, we utilize our professional management to infill the community with homes for sale or rent. As occupancy rises, so does our income and the value of our community. This business plan has resulted in the rapid increase in value of our acquisitions. In some cases, appraised values show that many of these communities have doubled in value over a 10-year period.
COMMUNITY NET OPERATING INCOME ($ in millions)
$150
$125
$119.7
Increase
$108.4
79%
$100
$91.0
$94.8
$80.2
$75
$66.9
$50
$25
$0
2019
2020
2021
2022
2023
2024
Our high-quality communities have strong demand for both sales and rentals which has resulted in the increased profitability of our sales division, a double
digit increase in both community NOI and same property NOI and an increase in Normalized FFO per diluted share. Normalized FFO per diluted share in 2024 was $0.93 per diluted share, representing an increase of 8% over 2023. Additionally, normalized FFO increased to $69.5 million, representing an increase of 27% over 2023. Our gross sales increased by 8% and our income from sales increased by 53%. Same property NOI increased by 10%, or $11.5 million. We have a business plan that is proven to deliver outstanding results for our shareholders while providing a much-needed product for our residents. We believe that we are well positioned to deliver similar results for years to come as we continue to fill our 3,300 vacant sites, develop our vacant land and invest in compelling acquisition opportunities as they become available.
TOTAL REVENUE ($ in millions)
Interest/Dividend Income
Sales of Manufactured Homes
Rental Revenue
$300
$250
Increase
$249.1
$228.2
59%
$200
$194.6
$202.7
$172.2
$156.7
$150
$100
$50
0
2019
2020
2021
2022
2023
2024
We are proud that 100% of our income is considered "social" by Sustainalytics, MSCI and HUD. We are careful to treat our residents and associates fairly, recognizing that all contractual relations require good faith and fair dealing. We are responsible operators that take pride in the community lifestyle we provide for our residents. We are proud to invest in communities and improve the quality of life for our residents while growing the supply of affordable housing in each market that we serve.
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2024 ANNUAL REPORT
The low-cost producer of a quality product always wins. UMH is the low-cost producer of 1,000 sq. ft. to 2,400 sq. ft. three-bedroom, two-bath housing on a 5,000 sq. ft. lot with a shed. Most of our lots have their own driveway and curbside garbage pickup. We provide a housing product most people must see to believe. A household with an annual income of $40,000 can rent a home from UMH for approximately $1,000 per month and will only need one month's rent and one month's security deposit to move in. Approximately 10,300 households are very pleased to rent homes from UMH. We maintain waiting lists for our rental homes, as evidenced by our 94% rental home occupancy, 98% rent collection, and below 30% annual rental home turnover with repair and maintenance costs of just $400 per unit, per year.
In 2025, we will reap the benefits of the prior year's 5% rent increase (approximately $10 million in new revenue), the planned addition of 800 rental units (approximately $10 million in new revenue) and increased home sales at the community expansions and new communities we built with our joint venture partner, Nuveen Real Estate. Our communities increase in value because of improved operating performance and improved economics and demographics of the surrounding areas.
Eugene Landy, our Chairman and Founder, leads us through economic cycles and black swan events while keeping us focused on the power of compounding interest and its ability to create wealth for all of us. Under his leadership, we continue to grow the company, grow earnings, and provide the Nation with much needed quality affordable housing.
UMH TEAM ACCEPTING THE AWARD "COMMUNITY OPERATOR OF THE YEAR" AT THE MHI 2024 CONGRESS & EXPO
The UMH team is proud to go to work each day knowing that our shareholders and residents depend on us to make them proud and provide them with financial security and quality housing. We strive to increase earnings per share and market value per share for our shareholders. We are proud to have increased the dividend for a fourth consecutive year as the best form of good corporate governance is returning capital to our shareholders. We believe that our success on the operational front should translate to growing FFO and future dividend increases.
Many thanks to our investment banks, regional banks, analysts, officers, directors, employees, national and state associations, and to all of our supporters who we have made and joined and stayed with us over our 56-year history. All we accomplish is because we do it together and we thank each of you for being a part of our mission to profitably provide quality housing in factory-built homes for sale or rent.
Very truly yours,
SAMUEL A. LANDY
President and Chief Executive Officer
March 2025
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2024 ANNUAL REPORT
LETTER FROM
THE CHAIRMAN
UMH provides needed quality affordable housing. Our executive team, board of directors, vice presidents, regional managers, community managers and maintenance staff have created a first-class portfolio of manufactured home communities that our investors should be proud to own. The quality of our communities is apparent when touring our assets.
Drone videos of our communities are available at www.umh.reit and truly show the high quality of UMH's communities and the standard of living provided through manufactured housing. We take great pride in executing our business plan while working to provide quality affordable housing. Our mission is now more important than ever before. The United States has a massive shortage of affordable housing estimated to be in the millions of units. The combination of higher interest rates and low inventory has decreased housing affordability. Most new homes being built are not at an affordable price point.
Other than manufactured housing, there are limited options available at a price point under $500,000. We work every day to expand the supply of affordable housing through manufactured housing. We are acquiring and improving and expanding existing communities, developing new communities through our joint ventures, and financing home sales at reasonable rates through our third party lending program. All these verticals are social in nature and increase the supply and attainability of manufactured housing while generating exceptional operating results.
Manufactured housing today is not the manufactured housing of the past. Manufactured housing is the product of now and the future. Manufactured homes are built in factories, shielded from weather related elements, using a controlled environment for efficiency and quality, with components assembled and inspected before being transported to the final site. The HUD code, the only federal building code, supersedes local building codes. This creates great efficiencies and allows manufacturers to create a superior product which can be produced in any market. Conventional homes typically cost more than $300,000 and manufactured homes can be built for half that price or less. Our asset class is the only asset class that can provide quality affordable housing without utilizing government subsidies.
The path to maximizing shareholder value is by creating and owning needed housing and treating our residents equitably. We need satisfied residents as well as satisfied investors. Investors should be proud to own UMH because we serve an important social mission by providing affordable housing and doing it in an environmentally friendly manner. Our success has led to increased property values and earnings. We take pride in improving the communities and the quality of life that is provided by living in a UMH community.
Community living creates great efficiencies for us and for our customers. We can provide amenities that other types of housing cannot provide. Many of our communities have clubhouses, basketball and pickleball courts, pools, fitness centers and more. We have made a great deal of progress, but our industry is only beginning to be discovered.
The future is bright. UMH has been a leader in the industry. We have worked with our manufacturers and MHI on innovations to advance our product. These advancements include installing GAF solar shingles on our homes at the factory and helping obtain HUD approval of the duplex manufactured home. These developments should help reduce the overall cost of housing for both the developer and the consumer. We are advocating opportunity zone legislation to provide added long-term capital as well as encouraging favorable zoning for manufactured housing.
We have a culture of caring for our communities, residents and all our shareholders. We are proud of all that we have accomplished over the past 56 years and expect to accomplish much more over the coming years.
Very truly yours,
EUGENE W. LANDY
Chairman of the Board
March 2025
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2024 ANNUAL REPORT
SAMUEL A. LANDY'S
RV/MH HALL OF FAME INDUCTION
On August 19, 2024, Samuel A. Landy was inducted into RV/MH Hall of Fame in recognition of his personal lifetime efforts to source governmental recognition for the manufactured housing industry.
SAMUEL A. LANDY, President and CEO of UMH Properties, Inc.
SAMUEL A. LANDY, President and CEO of UMH Properties, Inc.
LAURIE LANDY, Founder and President of Special Strides
UMH TEAM AND PARTNERS
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2024 ANNUAL REPORT
HUDSON ESTATES, Peninsula, OH
Acquired in 2014
PROPERTY PORTFOLIO AND YEAR IN REVIEW
OUR ACCOMPLISHMENTS
During 2024, UMH made substantial progress on multiple fronts - generating solid operating results, achieving strong growth and improving our financial position. We have:
UMH TEAM
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2024 ANNUAL REPORT
Disclaimer
UMH Properties Inc. published this content on March 19, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 19, 2025 at 21:38:56.263.