Funds from Operations Attributable to Common Shareholders (“FFO”) was $66.3 million or $0.88 per diluted share for the year ended December 31, 2024 as compared to $51.1 million or $0.80 per diluted share for the year ended December 31, 2023. FFO was $18.4 million or $0.23 per diluted share for the quarter ended December 31, 2024 as compared to $14.6 million or $0.22 per diluted share for the quarter ended December 31, 2023. Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), was $69.5 million or $0.93 per diluted share for the year ended December 31, 2024, as compared to $54.5 million or $0.86 per diluted share for the year ended December 31, 2023. Normalized FFO was $19.2 million or $0.24 per diluted share for the quarter ended December 31, 2024, as compared to $15.4 million or $0.23 per diluted share for the quarter ended December 31, 2023.
A summary of significant financial information for the three months and year ended December 31, 2024 and 2023 is as follows (in thousands except per share amounts):
| For the Three Months Ended | ||||||
| December 31, | ||||||
| 2024 | 2023 | |||||
| Total Income | $ | 61,873 | $ | 56,984 | ||
| Total Expenses | $ | 51,466 | $ | 46,756 | ||
| Net Income Attributable to Common Shareholders | $ | 28 | $ | 6,832 | ||
| Net Income Attributable to Common Shareholders per Diluted Common Share | $ | 0.00 | $ | 0.10 | ||
| FFO (1) | $ | 18,369 | $ | 14,595 | ||
| FFO (1) per Diluted Common Share | $ | 0.23 | $ | 0.22 | ||
| Normalized FFO (1) | $ | 19,203 | $ | 15,364 | ||
| Normalized FFO (1) per Diluted Common Share | $ | 0.24 | $ | 0.23 | ||
| Basic Weighted Average Shares Outstanding | 80,112 | 66,881 | ||||
| Diluted Weighted Average Shares Outstanding | 81,235 | 67,196 | ||||
| For the Year Ended | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Total Income | $ | 240,552 | $ | 220,925 | ||||
| Total Expenses | $ | 198,092 | $ | 184,803 | ||||
| Net Income (Loss) Attributable to Common Shareholders | $ | 2,472 | $ | (8,714 | ) | |||
| Net Income (Loss) Attributable to Common Shareholders per Diluted Common Share | $ | (0.03 | ) | $ | (0.15 | ) | ||
| FFO (1) | $ | 66,259 | $ | 51,069 | ||||
| FFO (1) per Diluted Common Share | $ | 0.88 | $ | 0.80 | ||||
| Normalized FFO (1) | $ | 69,489 | $ | 54,533 | ||||
| Normalized FFO (1) per Diluted Common Share | $ | 0.93 | $ | 0.86 | ||||
| Basic Weighted Average Shares Outstanding | 74,114 | 63,068 | ||||||
| Diluted Weighted Average Shares Outstanding | 74,912 | 63,681 | ||||||
A summary of significant balance sheet information as of December 31, 2024 and 2023 is as follows (in thousands):
| December 31, 2024 | December 31, 2023 | ||||
| Gross Real Estate Investments | $ | 1,669,114 | $ | 1,539,041 | |
| Marketable Securities at Fair Value | $ | 31,883 | $ | 34,506 | |
| Total Assets | $ | 1,563,728 | $ | 1,427,577 | |
| Mortgages Payable, net | $ | 485,540 | $ | 496,483 | |
| Loans Payable, net | $ | 28,279 | $ | 93,479 | |
| Bonds Payable, net | $ | 100,903 | $ | 100,055 | |
| Total Shareholders’ Equity | $ | 915,909 | $ | 706,794 | |
Samuel A. Landy, President and CEO, commented on the 2024 results.
“During 2024, UMH made substantial progress on multiple fronts – generating solid operating results, achieving strong growth and improving our financial position. We have:
- Increased Rental and Related Income by 9%;
- Increased Community Net Operating Income (“NOI”) by 10%;
- Increased Normalized Funds from Operations (“Normalized FFO”) by 27%;
- Increased Normalized FFO per diluted share by 8% from $0.86 per diluted share in 2023 to $0.93 per diluted share in 2024:
- Increased Same Property NOI by 10%;
- Increased Same Property Occupancy by 70 basis points from 87.1% to 87.8%;
- Improved our Same Property expense ratio from 40.5% at yearend 2023 to 39.7% at yearend 2024;
- Increased Sales of Manufactured Homes by 8%;
- Amended our unsecured credit facility to expand available borrowings by $80 million from $180 million to $260 million syndicated with BMO Capital Markets Corp., JPMorgan Chase Bank, NA and Wells Fargo, N.A.;
- Raised our quarterly common stock dividend by 4.9% to $0.215 per share or $0.86 annually;
- Increased our Total Market Capitalization by 23% to over $2.5 billion at yearend;
- Increased our Equity Market Capitalization by 48% to over $1.5 billion at yearend;
- Reduced our Net Debt to Total Market Capitalization from 31.3% in 2023 to 20.8% in 2024;
- Issued and sold approximately 12.5 million shares of Common Stock through our At-the-Market Sale Programs at a weighted average price of $17.92 per share, generating gross proceeds of $224.5 million and net proceeds of $220.6 million, after offering expenses;
- Issued and sold approximately 1.2 million shares of Series D Preferred Stock through our At-the-Market Sale Program at a weighted average price of $23.41 per share, generating gross proceeds of $28.5 million and net proceeds of $28.0 million, after offering expenses;
- Subsequent to year end, issued and sold approximately 270,000 shares of Common Stock through our At-the-Market Sale Program at a weighted average price of $18.18 per share, generating gross proceeds of $4.9 million and net proceeds of $4.8 million, after offering expenses; and
- Subsequent to year end, issued and sold approximately 49,000 shares of Series D Preferred Stock through our At-the-Market Sale Program at a weighted average price of $23.03 per share, generating gross proceeds and net proceeds of $1.1 million, after offering expenses.”
Mr. Landy stated, “Our success in 2024—marked by a stellar total shareholder return, a double-digit same property NOI increase, and strong sales revenue growth—is a testament to the hard work of our employees, the trust of our residents, and the support of our shareholders. We remain dedicated to driving performance, enhancing communities, and delivering value, and we’re excited to build on this foundation in 2025.”
“This year, we delivered a total shareholder return of 30%, reflecting the strength of our growth strategy and the value we’ve created for investors. In 2024, we achieved normalized funds from operations of $0.93 per diluted share, an 8% increase from 2023, reflecting the strength of our portfolio and our ability to drive consistent earnings per share growth.”
“Our communities continue to experience strong demand which is resulting in increased sales revenue and strong home rental occupancy. In 2024, our sales revenue grew by 8% to $33.5 million while increasing our gross sales margin from 32% in 2023 to 35% in 2024. Additionally, we added 565 new homes to our rental home portfolio while maintaining 94% rental home occupancy. We continue to make investments in the expansion of our communities and anticipate these valuable developments as a key component to growing income in the future. The fundamentals of our business remain solid and indicate strong performance in 2025.”
“As we enter 2025, this strong performance positions UMH Properties to seize new opportunities in the manufactured housing market. We anticipate obtaining our 5% rent increases and adding 800 new homes to our rental home portfolio. Additionally, our sales and finance division has the ability to increase sales revenue and profits further increasing our normalized FFO per share. Our long-term business plan has positioned us for another year of excellent operating and financial performance.”
“We are initiating 2025 guidance with Normalized FFO in a range of $0.96-$1.04 per diluted share for the full year, or $1.00 at the midpoint. This represents 7.5% annual normalized FFO growth at the midpoint over full year 2024 Normalized FFO of $0.93 per diluted share.”
“We have opportunistically raised capital through our common and preferred ATM programs. This capital will allow us to make accretive investments in our existing portfolio and give us the ability to complete compelling acquisitions as they become available. UMH Properties remains committed to enhancing our communities, driving financial performance, and delivering sustainable value as we embark on an exciting 2025 with momentum and purpose.”
UMH Properties, Inc. will host its Fourth Quarter and Year Ended December 31, 2024 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, February 27, 2025 at 10:00 a.m. Eastern Time.
The Company’s fourth quarter and year ended December 31, 2024 financial results being released herein will be available on the Company’s website at www.umh.reit in the “Financials” section.
To participate in thewebcast,select the microphone icon found on the homepagewww.umh.reitto access the call. Interested parties can also participate via conference callby calling toll free 877-513-1898 (domestically) or 412-902-4147 (internationally).
The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, February 27, 2025 and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 6664574. A transcript of the call and the webcast replay will be available at the Company’s website,www.umh.reit.
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that operates 139 manufactured home communities containing approximately 26,300 developed homesites, including two communities owned through its joint venture in which the Company has a 40% interest. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia.
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.
Note:
(1) Non-GAAP Information: We assess and measure our overall operating results based upon an industry performance measure referred to as Funds from Operations Attributable to Common Shareholders (“FFO”), which management believes is a useful indicator of our operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure of a REIT. FFO, as defined by The National Association of Real Estate Investment Trusts (“Nareit”), represents net income (loss) attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (“U.S. GAAP”), excluding gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, the change in the fair value of marketable securities, and the gain or loss on the sale of marketable securities plus certain non-cash items such as real estate asset depreciation and amortization. Included in the Nareit FFO White Paper – 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude gains and losses on the sale of these assets, such as marketable equity securities, and include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper – 2018 Restatement, for all periods presented, we have elected to exclude the gains and losses realized on marketable securities investments and the change in the fair value of marketable securities from our FFO calculation. Nareit created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance. We define Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), as FFO excluding certain one-time charges. FFO and Normalized FFO should be considered as supplemental measures of operating performance used by REITs. FFO and Normalized FFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO and Normalized FFO and, accordingly, our FFO and Normalized FFO may not be comparable to all other REITs. The items excluded from FFO and Normalized FFO are significant components in understanding the Company’s financial performance.
FFO and Normalized FFO (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as alternatives to net income (loss) as a measure of operating performance or to cash flows from operating, investing and financing activities; and (iii) are not alternatives to cash flow as a measure of liquidity. FFO and Normalized FFO, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.
The diluted weighted shares outstanding used in the calculation of FFO per Diluted Common Share and Normalized FFO per Diluted Common Share were 81.2 million and 74.9 million shares for the three months and year ended December 31, 2024, respectively, and 67.2 million and 63.7 million shares for the three months and year ended December 31, 2023, respectively. Common stock equivalents resulting from stock options in the amount of 1.1 million shares and 315,000 shares for the three months ended December 31, 2024 and 2023, respectively, were included in the computation of Diluted Net Income (Loss) per share. Common stock equivalents resulting from stock options in the amount of 798,000 for the year ended December 31, 2024, were included in the computation of Diluted Net Income (Loss) per share. Common stock equivalents resulting from stock options in the amount 613,000 shares for the year ended December 31, 2023 were excluded from the computation of Diluted Net Income (Loss) per Share as their effect would have been anti-dilutive.
The reconciliation of the Company’s U.S. GAAP net income (loss) to the Company’s FFO and Normalized FFO for the three months and year ended December 31, 2024 and 2023 are calculated as follows (in thousands):
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||
| Net Income (Loss) Attributable to Common Shareholders | $ | 28 | $ | 6,832 | $ | 2,472 | $ | (8,714 | ) | |||||||
| Depreciation Expense | 15,804 | 14,448 | 60,239 | 55,719 | ||||||||||||
| Depreciation Expense from Unconsolidated Joint Venture | 214 | 188 | 824 | 692 | ||||||||||||
| Loss on Sales of Investment Property and Equipment | 22 | 11 | 113 | -0- | ||||||||||||
| (Increase) Decrease in Fair Value of Marketable Securities | 2,301 | (6,884 | ) | (1,167 | ) | 3,555 | ||||||||||
| (Gain) Loss on Sales of Marketable Securities, net | -0- | -0- | 3,778 | (183 | ) | |||||||||||
| FFO Attributable to Common Shareholders | 18,369 | 14,595 | 66,259 | 51,069 | ||||||||||||
| Amortization of Financing Costs | 613 | 543 | 2,384 | 2,135 | ||||||||||||
| Non-Recurring Other Expense (2) | 221 | 226 | 846 | 1,329 | ||||||||||||
| Normalized FFO Attributable to Common Shareholders | $ | 19,203 | $ | 15,364 | $ | 69,489 | $ | 54,533 | ||||||||
(2) Consists of one-time legal and professional fees ($209 and $452, respectively), costs associated with acquisition not completed ($12 and $12, respectively) and costs associated with the liquidation/sale of inventory in a particular sales center ($0 and $382, respectively) for the three months and year ended December 31, 2024. Consists of special bonus and restricted stock grants for the August 2020 groundbreaking Fannie Mae financing, which were being expensed over the vesting period ($0 and $862, respectively), non-recurring expenses for the joint venture with Nuveen ($42 and $135, respectively), one-time legal fees ($1 and $76, respectively), fees related to the establishment of the Opportunity Zone Fund ($0 and $37, respectively), and costs associated with acquisitions and financing that were not completed ($183 and $219, respectively) for the three months and year ended December 31, 2023.
The following are the cash flows provided by (used in) operating, investing and financing activities for the year ended December 31, 2024 and 2023(in thousands):
| 2024 | 2023 | |||||||
| Operating Activities | $ | 81,601 | $ | 120,077 | ||||
| Investing Activities | (139,865 | ) | (165,573 | ) | ||||
| Financing Activities | 102,638 | 69,057 |
| Contact: Nelli Madden |
| 732-577-9997 |
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