UMH Properties, Inc. Reports Strong Q3 2024 Growth Milestones

UMH Properties, Inc. Highlights Impressive Q3 2024 Performance

UMH Properties, Inc. (NYSE: UMH), a leading real estate investment trust (REIT) focused on manufactured home communities, has shared valuable insights into its third quarter 2024 operating achievements.

Strong Financial Growth and Occupancy Rates

As of the quarter's end, UMH Properties achieved an outstanding equity market capitalization exceeding $1.5 billion. This financial milestone underscores the company’s solid position in the market.

During this quarter, UMH successfully converted 179 homes from inventory into revenue-generating properties. Currently, the company owns roughly 10,300 rental homes, with an impressive occupancy rate standing at 94.4%. Such figures reflect a robust demand for affordable housing, particularly in the wake of increased market activity.

Home Sales and Revenue Generations

The progress in home sales was notable, with UMH selling 100 homes in this quarter, of which 32 were newly constructed units. The gross revenue generated from home sales increased to $8.7 million, marking a significant 10% rise compared to the same quarter of the previous year.

In addition, year-to-date occupancy across all properties has improved, rising by 235 units to reach 87%. The company noted an overall gain in occupancy of 39 units during the latest quarter and a remarkable year-over-year increase of 271 units. These trends illustrate UMH's effective strategy in enhancing its property appeal.

Rent Roll and Capital Generation

Thanks to various rental increases and enhanced occupancy, the rental and related revenue charges for September 2024 rose approximately 8%, leading to an annualized monthly rent roll of $206 million. This growth allows UMH to further invest in its properties and expand its market presence.

Additionally, during the quarter, the company engaged in an At-the-Market Sale program, issuing around 5.7 million shares of Common Stock at an average price of $18.93 per share, resulting in gross proceeds totaling $108.4 million. This influx of capital positively impacts UMH's operations, providing the necessary funds for various strategic initiatives.

CEO's Insights on Future Growth

Samuel A. Landy, the President and CEO of UMH Properties, reflected on these developments, expressing confidence in the company’s growth trajectory. He highlighted strong demand for both sales and rental homes, confirming the company has 284 homes ready for new occupants while an additional 240 homes are set to be delivered shortly. This substantial inventory positions UMH favorably for organic growth in its sales and rental endeavors.

In the wake of Hurricane Helene's significant impact, Landy emphasized the anticipated increase in demand for affordable housing solutions, which UMH is prepared to meet.

Strategic Financial Management

Highlighting the strategic use of capital raised, Landy noted that the $108 million raised through their common ATM has been instrumental in paying down the company’s line of credit, thus reducing interest expenses. The capital is also being allocated towards the rental home program, financing for home sales, expansions, and improvements, ensuring these investments yield favorable returns.

With a solid balance sheet, UMH Properties is well-positioned to continue investing in community developments and seize new opportunities as they arise.

The Path Ahead for UMH Properties

It’s essential to note that the mentioned financial information reflects preliminary estimates and may evolve as more data becomes available. The company plans to release full third-quarter results shortly, providing deeper insights into its performance and market conditions.

As UMH Properties prepares for a detailed discussion regarding its results and future outlook, stakeholders are eager to see how the continuing trends will shape the company’s landscape in the coming quarters. This proactive approach and unwavering commitment to growth and development offer a promising horizon for UMH.

Frequently Asked Questions

What are the key achievements of UMH Properties in Q3 2024?

UMH Properties reported a capital market value of over $1.5 billion, increased home sales revenue, and strong occupancy rates reaching 94.4%.

How many homes does UMH own, and what is the occupancy rate?

UMH owns approximately 10,300 rental homes, achieving an occupancy rate of 94.4% as of the end of Q3 2024.

What is the current growth strategy for UMH Properties?

UMH is focusing on enhancing its rental home program, financing home sales, and seeking acquisitions to foster continued growth.

How has Hurricane Helene impacted UMH Properties?

The aftermath of Hurricane Helene has increased demand for affordable housing, which UMH is poised to meet with its available inventory.

When will UMH Properties release its full Q3 results?

UMH is scheduled to release its complete third-quarter financial results on November 6, 2024, after market close.

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