UMH PROPERTIES, INC. 2023 YEAR END OPERATIONS UPDATE
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Insights
The reported increase in home sales revenue by 22.9% for UMH Properties, Inc. is a significant indicator of the company's growth trajectory within the manufactured home community market. This sector is often seen as a bellwether for broader economic trends, as it is sensitive to changes in consumer confidence and disposable income. The substantial rise in sales suggests an uptick in demand, potentially driven by factors such as affordability in comparison to traditional housing, demographic shifts, or economic conditions favoring lower-cost housing options.
UMH's strategy of acquiring communities with vacancies and improving them appears to be paying dividends, as evidenced by the occupancy rate increase to 94.0% and the overall occupancy increase by 705 units. This operational efficiency not only contributes to the company's revenue growth but also enhances shareholder value by improving asset utilization. The annualized monthly rent roll of approximately $196 million suggests a robust income stream, which is crucial for a REIT's performance, given that they are required to distribute at least 90% of taxable income to shareholders in the form of dividends.
UMH's equity market capitalization surpassing $1 billion is a milestone that reflects investor confidence and the company's market valuation. This level of market cap can potentially increase the stock's liquidity and may result in its inclusion in broader market indices, which could further enhance its visibility among institutional investors. However, it is important to note that the financial information provided is preliminary and may differ from the actual results, which introduces a degree of uncertainty that investors should consider.
The reported 12.0% increase in rental and related charges for January 2024 could signal to investors a strong revenue outlook for the year ahead, which could positively influence the stock's performance. The forward-looking statements regarding the continuation of momentum into 2024 need to be weighed against market risks such as interest rate hikes, which could affect financing costs for REITs and potential economic downturns, which could impact consumer spending on housing.
UMH's operational results, such as the installation and renting of 1,040 new homes in a year, demonstrate the company's effective growth strategy and operational capabilities within the REIT sector. The focus on cost-effective and energy-efficient homes aligns with increasing consumer demand for affordable and sustainable living options. This strategic positioning may provide UMH with a competitive edge in attracting tenants and maintaining high occupancy rates, which is crucial for sustained revenue streams in the REIT industry.
The increase in same-property occupancy by 632 units to 88.5% is also a key performance metric for REITs, as it reflects organic growth and effective property management. This metric, coupled with the increase in home sales and rental charges, suggests that UMH is successfully capitalizing on its market niche. However, potential investors should also consider the broader market conditions, including supply and demand dynamics in the regions where UMH operates, as these can significantly impact the company's performance.
FREEHOLD, NJ, Jan. 04, 2024 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE:UMH) (TASE:UMH), a real estate investment trust (REIT) specializing in the ownership and operation of manufactured home communities, is providing investors with an update on our year end 2023 operating results:
- As of year end, UMH achieved an equity market capitalization of over
$1 billion . - During the year, UMH rented 1,040 new homes, 130 of which were rented during the fourth quarter. UMH now owns approximately 10,000 rental homes with an occupancy rate of
94.0% . - During the year, UMH sold 164 new homes, 41 of which were sold during the fourth quarter. Home sales revenue increased to
$31.1 million during the year ended 2023 from$25.3 million during the year ended 2022, resulting in a22.9% increase in home sales revenue. - Overall occupancy increased by 705 units for the year to
86.7% . Same-property occupancy increased by 632 units to88.5% . - Our occupancy gains and rent increases achieved throughout 2023 have increased our January 2024 rental and related charges by approximately
12.0% , resulting in our annualized monthly rent roll generating approximately$196 million .
Samuel A. Landy, President and CEO of UMH Properties, Inc., stated “Installing and renting 1,040 new homes during the year is the equivalent of building and occupying a 1,040-unit apartment complex within one year. It’s an incredible accomplishment made possible by our success in acquiring manufactured home communities with vacancies, making capital and operational improvements, and adding cost-effective and energy-efficient manufactured homes. We look forward to building on the momentum we created in 2023.”
It should be noted that the financial information set forth above reflects our preliminary estimates with respect to such information, based on information currently available to management, and may vary from our actual financial results as of and for the year and quarter ended December 31, 2023. UMH’s Fourth Quarter and Full Year 2023 results will be released on Wednesday, February 28, 2024, after the close of trading on the New York Stock Exchange and will be available on the Company’s website at www.umh.reit, in the Financials section. Senior management will discuss the results, current market conditions and future outlook on Thursday, February 29, 2024, at 10:00 a.m. Eastern Time.
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate.
Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company’s annual report on Form 10-K and described from time to time in the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Contact: Nelli Madden
732-577-4062
FAQ
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