In This Article:
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Normalized FFO Per Share: Increased to $0.22 in Q1 2024 from $0.20 in Q1 2023, a 10% rise.
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Occupancy Rate: Rose by 220 basis points to 87.1%.
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Rental and Related Income: Grew by 11% to $50.3 million.
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Community Net Operating Income: Increased by 16%.
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Community Expense Ratio: Improved to 41.9% from 44.3%.
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Dividend: Increased by $0.01 per quarter, totaling an annualized $0.86.
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Rental Home Portfolio: Over 10,000 units with 95.1% occupancy.
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Same-Property NOI: Grew by 16% or $16 million annualized.
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Gross Home Sales: Amounted to $7.4 million, a 1% increase.
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Total Market Capitalization: Rose to approximately $2.1 billion, up 12% from last year.
Release Date: May 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Normalized FFO per share increased by 10% year-over-year, from $0.22 in Q1 2023 to $0.24 in Q1 2024.
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Overall occupancy increased by 220 basis points year-over-year, from 84.9% to 87.1%, representing an increase of 598 units sequentially.
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Rental and related income grew by 11% year-over-year, and community net operating income increased by 16%.
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UMH Properties Inc successfully raised its common stock dividend for the fourth consecutive year, increasing it by $0.01 per quarter or $0.04 per year.
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The company's investment in new rental homes yielded approximately 10% on invested funds, which is accretive to earnings and substantially improves community aesthetics and financials.
Negative Points
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Community operating expenses increased by 5% during the quarter, primarily due to increases in payroll costs, rental home expenses, real estate taxes, and snow removal.
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The weighted average interest rate on mortgage debt increased from 3.91% at the end of last year to 4.17% this quarter.
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Some expansions and investments in new sites are not yet fully accretive to earnings, presenting a delayed return on investment.
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Despite overall strong performance, certain geographic areas like Western New York and Michigan are not as strong as others, showing uneven growth across different markets.
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The company faces challenges in managing land home sales, which are not part of their core business, leading to the closure of one sales center.
Q & A Highlights
Q: Can you talk a little bit about the acquisition pipeline today? A: Brett Taft, EVP and COO, mentioned that UMH is in due diligence for two properties in Maryland, with some issues being resolved with the seller. He did not provide a tentative closing date but suggested it might happen later in the year. UMH continues to look for both stabilized and value-add deals that meet their acquisition criteria.