What UMH Properties (UMH) Said on Its Q3 Earnings Call

Key Points

• Operating results improved: Third-quarter normalized FFO rose 4% year over year to $22.1 million, or $0.26 per share, while rental income increased 8% and community NOI rose 10%. Occupancy and same-property performance also strengthened, and manufactured-home sales hit a quarterly record of $12.8 million.
• 2026 FFO guidance was narrowed to $0.99–$1.03 per share, with the midpoint unchanged at $1.01. Management cited available development land and sites, potential housing legislation and infrastructure projects near UMH communities as possible growth drivers.
• Financing remains a consideration: UMH ended the quarter with about $850 million in debt and expects leverage to rise modestly as it funds growth. Management said it is avoiding common-stock issuance at the current share price and may use credit facilities temporarily.

UMH Properties NYSE: UMH reported higher third-quarter normalized funds from operations, rental income and manufactured-home sales, while management highlighted expansion opportunities and anticipated regulatory changes that it believes could support future growth.

Normalized FFO for the quarter ended Sept. 30 totaled $22.1 million, or $0.26 per diluted share, up from $21.3 million, or $0.25 per share, in the prior-year period. The company said normalized FFO per diluted share also rose 4% from the second quarter.

Rental and related income increased 8% year over year to $62.4 million. Chief Financial Officer Kevin Miller attributed the gain primarily to 2025 acquisitions, higher same-property occupancy, additional rental homes and increased rental rates. Community operating expenses rose 5%, reflecting acquisitions as well as higher payroll, real estate taxes, insurance, and water and sewer costs. Community net operating income increased 10%.

Occupancy and Sales Growth

UMH said occupied rental homes increased 6% from approximately 10,100 at the end of the 2025 third quarter to 10,800 at the end of the latest quarter. Overall occupancy improved by 68 units to 88.4%. For the first nine months of 2026, occupancy increased by 336 units, while occupancy was 418 units higher than a year earlier.

Same-property income rose 8%, while same-property operating expenses increased 5%, producing a 10% increase in same-property NOI to $37.5 million from $34.2 million a year earlier. Same-property occupancy increased 30 basis points to 88.8%, aided by a 4.4% increase in site rents and 385 additional occupied units compared with the prior-year quarter.

Manufactured-home sales reached a quarterly record of $12.8 million, up 29% from a year ago, including sales at Honey Ridge, which is owned through a joint venture with Nuveen. Chief Operating Officer Brett Taft said October closings totaled about $3.5 million and the company had more than $7 million of pending sales. He said UMH expects a solid fourth quarter for home sales, though not necessarily another quarterly record.

Gross margin on home sales declined to 31% from approximately 37% in the prior-year quarter. Taft said the decline reflected modest manufacturer price increases and sales at newly opened expansion projects, where margins were in the 20% to 25% range during the early stages. UMH targets a 30% gross margin on new-home sales, he said.

Capital Structure and Financing

At quarter-end, UMH had approximately $850 million of debt, carrying a weighted average interest rate of 4.98%. Fixed-rate debt represented 87.5% of total debt. The company had $38.2 million in cash and cash equivalents, $160 million available under its unsecured revolving credit facility, and $181 million available through other lines of credit used for home-sale financing and inventory and rental-home purchases.

Miller said UMH is refinancing mortgages on five properties totaling about $74 million. The existing mortgages total roughly $31 million, which could result in about $42 million of net proceeds. He said maturing debt with rates in the high 4% range is being refinanced at rates in the low 6% range.

The company expects leverage to rise modestly in the short term as it funds rental homes, expansions and improvements. Miller said management does not view the current share price as favorable for common-equity issuance and expects to use its revolving credit facility temporarily. UMH is also evaluating additional banking capacity under its credit facility’s accordion feature and could consider other funding sources depending on market conditions.

During the quarter, UMH issued 245,000 shares of Series D preferred stock through its at-the-market program, generating $5.2 million of net proceeds. It did not issue common stock through its common-stock ATM program and has not done so since early September 2025.

Guidance and Growth Plans

UMH narrowed its 2026 normalized FFO guidance range to $0.99 to $1.03 per share, from $0.98 to $1.04 per share. The midpoint remained unchanged at $1.01 per share.

Management repeatedly pointed to the proposed 21st Century ROAD to Housing Act and Opportunity Zone incentives as potential catalysts for the manufactured-housing industry. President and Chief Executive Officer Samuel Landy said the legislation could enable two-story manufactured homes, broaden financing availability for lower-balance loans, and support higher home sales and occupancy. Those comments reflect management’s expectations regarding the potential effects of the legislation.

Landy also cited expected development and infrastructure activity near several UMH markets, including the Micron chip plant near Woodland Manor in Oswego County, New York; projects near Memphis communities; natural-gas pipeline activity in the Marcellus and Utica Shale regions; Hyundai’s Georgia plant; and U.S. Steel investments in southwestern Pennsylvania.

Chairman Eugene Landy said UMH has 3,100 vacant sites and 2,400 acres of vacant land available for infill and development. He said the company intends to maintain what management considers reasonable pricing for residents rather than pursue maximum rents, while seeking long-term growth in property values and earnings.

About UMH Properties (NYSE:UMH)

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