UMH Properties, Inc UMH Stock Price, Quote & News
That number remains pretty solid over the past few years. Actually though, the housing shortage is so great that it’s hard to find an area that doesn’t need affordable housing. But we still want to be where the action is, where the new factories are going, we believe, both in affordable housing and workforce housing, and we want to build our parks where the population is growing faster. So there’s an incredible team here working all the time to increase sales, increase occupancy, increase profit and everybody out in the field and in the office is doing a fantastic job doing that. UMH has an incredible team at the home office and out in the field.
The Company is listed on the New York Stock Exchange under the symbol UMH and included in the MSCI REIT Index (RMZ). Manufactured home communities provide recession resistant qualities, reliable income streams and the potential for long-term value appreciation. Well, let me clarify that because I want to answer that exactly like you asked it. On resident-owned homes or existing people and rentals, we do not want to raise the rent more than 5%.
UMH PROPERTIES, INC. ANNOUNCES PROMOTION OF STEPHANIE MCQUAY TO DIRECTOR OF DIVERSITY, EQUITY AND INCLUSION
This reduction in inventory has resulted in a decrease in our floor plan loan balance, resulting in a decrease in our floor plan interest expense. Once these investments come online, this capital is expected to generate future FFO growth. We continue to explore opportunities to raise lower-cost capital to pay down our short-term borrowings, which will result in increased earnings per share. Subsequent to quarter end, we paid down our floor plan lines to approximately $4 million.
After getting necessary permits from local governments, it builds up necessary infrastructure so that manufactured home owners can move in and start living in. Since the company doesn’t actually build units, it collects rent on its land lots and its margins tend to be pretty healthy. UMH Properties saw a decrease in short interest in July. As of July 31st, there was short interest totaling 1,020,000 shares, a decrease of 22.1% from the July 15th total of 1,310,000 shares. Based on an average daily trading volume, of 442,300 shares, the days-to-cover ratio is presently 2.3 days.
- Now on the rental home turnover, that can go to market and the same with vacant lots.
- So if you look at the acquisitions we did the last 3 years, because our business plan is it takes time, those will become more accretive next year.
- We look forward to generating increased earnings per share and a growing stock price while, at the same time, providing quality affordable housing for our residents.
- The company was founded by Eugene W. Landy in 1968 and is headquartered in Freehold, NJ.
UMH Properties’ stock was trading at $16.10 at the beginning of the year. Since then, UMH stock has decreased by 8.4% and is now trading at $14.75. 60-plus percent of our residents stay more than 2 years and 40% of our residents stay more than 3 years.
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But we do believe more acquisition opportunities will come to us, but also recognize we have over 2,000 vacant lands — 2,000 acres of vacant land that’s joining our communities. And looking at that today, in some places we fought expansion battles to get those approved as manufactured housing such as Vineland, New Jersey, and Greenwich Township, Pennsylvania near Allentown. And probably because of the significant shortage of housing, the best bet is to stop fighting to get manufactured home lots approved and just zone it 1-acre residential and sell it. Things are back to normal in terms of most communities probably shouldn’t have more than 5 homes in inventory. There’s exceptions where sales and rentals are much faster so you might have 10 homes in inventory. But never again will we have 1,000 homes in inventory.
It engages in the ownership and operation of manufactured home communities in seven states throughout the northeast. These states include New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. Manufactured home communities provide long-term appreciation, recession resistant best oil stock qualities, and stable income streams. It designs accommodate detached, single-family manufactured homes which are produced off-site by manufacturers and installed on sites within the communities. The company was founded by Eugene W. Landy in 1968 and is headquartered in Freehold, NJ.
Our past capital investments have made UMH a top-performing provider of manufactured homes for sale or rent. During the first 6 months of the year, 534 of our 1,100 homes in inventory were rented. Our August 1, 2023, rent roll is now 7.5% higher than it was on January 1, 2023. UMH Properties is a decent REIT play with an above average dividend yield and potential for future growth in a niche area of the residential market.
Over the years, UMH’s margins have been pretty stable with gross margins being around 50% and operating margins being around 15%. So knowing that this will work anywhere we want to go anywhere, we’re well aware of how difficult it is to buy land and get approvals. And also, we like the turnaround properties but we have to keep our eye on how many can we do without negatively impacting FFO because it does take 3 years. What COVID proved to us is that the rental manufactured home in a community is the best form of rental housing for people earning from $40,000 to $80,000. And they could be earning more than that, but we’re probably the only thing available that meets the requirement of 30% of your income covering your housing costs for a household income $40,000 to, say, $60,000. And then you have the communities that at this moment are difficult.
UMH Properties, Inc. (UMH)
Community NOI increased by 16% for the quarter from $23.3 million in 2022 to $27 million in 2023. Our same-property results are trending in the right direction. It is important to note that while total community operating expenses were up 6%, same-property operating expenses were only up 4.2%.
Our internal financing is really allowing us to continue to drive these sales as we’re financing most of our home sales at a 7.5% interest rate, where most of the competition in that market is 9%, 10%, 11%. We continue to make progress filling our newly developed communities owned through the joint venture with Nuveen. We have gotten the message out to local developers that we will buy entitled land or newly developed communities that allow them to earn a fair profit for their work. This has resulted in numerous deals that we are evaluating and may execute at the right time.
- Those vacant lots are required through acquisitions, development of expansion sites or greenfield development projects.
- And that’s why we have waiting lists, in that way we can fill communities.
- After getting necessary permits from local governments, it builds up necessary infrastructure so that manufactured home owners can move in and start living in.
- This increase was primarily due to recent community acquisitions, the addition of rental homes and an increase in rental rates.
- The company buys large empty land and cuts them into lots to prepare them to accommodate manufactured or mobile homes.
- Once these investments come online, this capital is expected to generate future FFO growth.
We have built a first-class portfolio of manufactured housing communities that profitably provide the nation with much-needed affordable housing. We own 135 communities containing 25,700 developed homesites. We have built this portfolio asset by asset and made the right investments and improvements to provide a durable income stream that is resilient during recessions. We have both internal and external growth opportunities for the infill of our vacant sites, expansion of our communities and development of new communities.
Short Interest
4 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for UMH Properties in the last year. There are currently 1 hold rating and 3 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should “moderate buy” UMH shares.
UMH’s management seems to be good at what they are doing considering their successes in the last 50 years. This stock has the potential to be a great play if it can continue hiking dividends after that long pause and if the company’s strategically targeted growth continues. The company has multiple tools in its tool box for future growth such as acquisition of new properties, developing existing land, fixing up or upgrading properties to improve their value and hiking its rents. While the stock isn’t exceptionally cheap, it’s not dangerously expensive either. Now on the rental home turnover, that can go to market and the same with vacant lots. So that’s why on the rental homes, we have the full 7% increase in rental revenue because there we increased the rents to market.
MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. Click the link below to see which companies made the list. So we’re going to something at Clayton Homes next week. They’re working on constant improvements to factory efficiency. And because of inflation, it’s hard to say they’ll reduce the cost, but they’re doing everything in their power to control the cost of the houses. So we feel very confident we will remain the best value per square foot that there is in housing.
We are pleased to report that normalized FFO increased sequentially from $0.20 per share in the first quarter to $0.21 per share in the second quarter of 2023. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements.
In May, we entered into a $25 million term loan with FirstBank. The term loan has a 5-year term with a fixed interest rate of 6.15%. The term loan is secured by rental homes https://bigbostrade.com/ and their leases in various communities throughout our portfolio. UMH is well positioned to grow FFO throughout the rest of the year as we increase occupancy and revenue.