FREEHOLD, NJ - UMH Properties, Inc. (NYSE: NYSE:UMH) (TASE: UMH), a real estate investment trust specializing in manufactured home communities, announced an increase in home sales and occupancy rates for the third quarter of 2024. The REIT achieved an equity market capitalization exceeding $1.5 billion and converted 179 homes from inventory to revenue-generating status, bringing its total to approximately 10,300 rental homes with a 94.4% occupancy rate.
In the third quarter, UMH sold 100 homes, 32 of which were new, marking a gross home sales revenue of $8.7 million, a 10% increase from the previous year. The company's overall occupancy rose by 235 units year to date, with a 39-unit increase in the third quarter alone, resulting in a year-over-year increase of 271 units.
UMH's rental and related charges for September 2024 have seen an approximate 8% increase, contributing to an annualized monthly rent roll of $206 million. The company also issued and sold around 5.7 million shares of common stock at a weighted average price of $18.93 per share, generating $108.4 million in gross proceeds.
President and CEO Samuel A. Landy attributed the positive results to strong demand for sales and rental homes, as well as the company's ability to maintain high occupancy rates. The capital raised has been used to pay down the line of credit, aiming to reduce interest expenses, and invest in rental home programs, home sales financing, expansions, and capital improvements.
With the aftermath of Hurricane Helene causing widespread loss of homes, UMH anticipates a surge in demand for affordable housing. The company has prepared 284 homes for occupancy and expects another 240 to be delivered soon, which should support organic growth.
UMH's full third-quarter results will be released on November 6, 2024, after the New York Stock Exchange closes, and will be discussed by senior management on November 7, 2024.
The company, established in 1968, owns and operates 136 manufactured home communities with approximately 25,800 developed homesites across multiple states and has an interest in two communities in Florida through a joint venture with Nuveen Real Estate.
The financial information presented is preliminary and subject to change upon finalization of the quarter's results. This article is based on a press release statement from UMH Properties, Inc.
"In other recent news, UMH Properties reported a year-over-year increase in earnings per share for the second quarter of 2024, with normalized Funds from Operations (FFO) per share rising by 10%. This was complemented by a 4.9% increase in their quarterly common stock dividend. The company's residential properties demonstrated an 11% growth in same-property net operating income (SPNOI), and its occupancy rate stood at 87.4% at the end of the quarter.
UMH Properties also announced the advancement of T.C. Sheppard to the role of Senior Vice President of Sales and Consumer Finance, following a period of significant growth for the company. This strategic move aligns with UMH's ongoing efforts to strengthen its sales and finance operations.
In addition to these developments, the company's stock price target was raised to $22.50 from $18.50, reflecting confidence in the REIT's future performance. This adjustment was prompted by UMH's reported operational success and significant bottom-line growth.
Furthermore, UMH is exploring growth opportunities through undeveloped land in its portfolio. A potential joint venture in New Jersey could transform a parcel of land into high-end single-family homes, with UMH receiving 20% of the home sales revenue. These recent developments underscore UMH's strong operational execution and potential for growth."
InvestingPro Insights
UMH Properties' strong performance in the third quarter of 2024 aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at $1.5 billion, reflecting its growing equity value as mentioned in the article.
InvestingPro data shows that UMH's revenue growth for the last twelve months as of Q2 2024 was 10.98%, which is consistent with the reported 10% increase in gross home sales revenue. This growth trend appears to be continuing, as evidenced by the 8% increase in rental and related charges reported for September 2024.
An InvestingPro Tip highlights that UMH has maintained dividend payments for 35 consecutive years, underscoring the company's commitment to shareholder returns. This is particularly noteworthy given the company's recent equity issuance and focus on growth investments.
Another relevant InvestingPro Tip indicates that UMH's net income is expected to grow this year. This projection aligns with the company's reported increase in occupancy rates and home sales, which are likely to contribute positively to the bottom line.
The company's strong recent performance is further reflected in InvestingPro data showing a 51.57% price total return over the past year, and a 20.66% return over the last three months. These figures suggest that investors have been responding favorably to UMH's operational improvements and growth strategies.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for UMH Properties, providing a deeper understanding of the company's financial health and market position.
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