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false 0000752642 0000752642 2025-08-06 2025-08-06 0000752642 UMH:CommonStock0.10ParValueMember 2025-08-06 2025-08-06 0000752642 UMH:Sec6.375SeriesDCumulativeRedeemablePreferredStock0.10ParValueMember 2025-08-06 2025-08-06 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 6, 2025

 

 

 

UMH Properties, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   001-12690   22-1890929
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)

 

Juniper Business Plaza, 3499 Route 9 North, Suite 3-C, Freehold, NJ   07728
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code:   (732) 577-9997

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a- 12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common Stock, $0.10 par value   UMH   New York Stock Exchange
6.375% Series D Cumulative Redeemable Preferred Stock, $0.10 par value   UMH PD   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.

 

On August 6, 2025, UMH Properties, Inc. issued a press release announcing the results for the second quarter June 30, 2025 and disclosed a supplemental information package in connection with its earnings conference call for the second quarter June 30, 2025. A copy of the supplemental information package and press release is furnished with this report as Exhibit 99.1 and Exhibit 99.2 and is incorporated herein by reference.

 

The information in this report and the exhibit attached hereto is being furnished, not filed, for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Item 2.02 and Item 7.01 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

 

Forward-Looking Statements

 

Statements contained in this report, including the document that is incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995 (the “Exchange Act”). All statements, other than statements of historical facts that address activities, events or developments where the Company uses any of the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” or similar expressions, are forward-looking statements. These forward-looking statements are not guaranteed and are based on the Company’s current intentions and on the Company’s current expectations and assumptions. These statements, intentions, expectations and assumptions involve risks and uncertainties, some of which are beyond the Company’s control that could cause actual results or events to differ materially from those that the Company anticipates or projects, such as:

 

  changes in the real estate market conditions and general economic conditions;
  the inherent risks associated with owning real estate, including local real estate market conditions, governing laws and regulations affecting manufactured housing communities and illiquidity of real estate investments;
  increased competition in the geographic areas in which we own and operate manufactured housing communities;
  our ability to continue to identify, negotiate and acquire manufactured housing communities and/or vacant land which may be developed into manufactured housing communities on terms favorable to us;
  our ability to maintain or increase rental rates and occupancy levels;
  changes in market rates of interest;
  inflation and increases in costs, including personnel, insurance and the cost of purchasing manufactured homes;
  our ability to purchase manufactured homes for rental or sale;
  our ability to repay debt financing obligations;

 

2

 

  our ability to refinance amounts outstanding under our credit facilities at maturity on terms favorable to us;
  our ability to comply with certain debt covenants;
  our ability to integrate acquired properties and operations into existing operations;
  the availability of other debt and equity financing alternatives;
  continued ability to access the debt or equity markets;
  the loss of any member of our management team;
  our ability to maintain internal controls and processes to ensure all transactions are accounted for properly, all relevant disclosures and filings are made in a timely manner in accordance with all rules and regulations, and any potential fraud or embezzlement is thwarted or detected;
  the ability of manufactured home buyers to obtain financing;
  the level of repossessions by manufactured home lenders;
  market conditions affecting our investment securities;
  changes in federal or state tax rules or regulations that could have adverse tax consequences;
  our ability to qualify as a real estate investment trust for federal income tax purposes;
  litigation, judgments or settlements, including costs associated with prosecuting or defending claims and any adverse outcomes;
  changes in real estate and zoning laws and regulations;
  legislative or regulatory changes, including changes to laws governing the taxation of REITs;
  risks and uncertainties related to pandemics or other highly infectious or contagious diseases.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.
   
99.1 Press Release dated August 6, 2025
99.2 Supplemental information package for the second quarter June 30, 2025
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

3

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  UMH Properties, Inc.
     
Date: August 6, 2025 By: /s/ Anna T. Chew
  Name:  Anna T. Chew
  Title: Executive Vice President and Chief Financial Officer

 

4

 

EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

UMH PROPERTIES, INC.

Juniper Business Plaza

3499 Route 9 North, Suite 3-C

Freehold, NJ 07728

(732) 577-9997

Fax: (732) 577-9980

 

FOR IMMEDIATE RELEASE August 6, 2025
  Contact: Nelli Madden
  732-577-9997

 

UMH PROPERTIES, INC. REPORTS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2025

 

FREEHOLD, NJ, August 6, 2025........ UMH Properties, Inc. (NYSE:UMH) (TASE:UMH) reported Total Income for the quarter ended June 30, 2025 of $66.6 million as compared to $60.3 million for the quarter ended June 30, 2024, representing an increase of 10%. Net Income Attributable to Common Shareholders amounted to $2.5 million or $0.03 per diluted share for the quarter ended June 30, 2025 as compared to Net Income Attributable to Common Shareholders of $527,000 or $0.01 per diluted share for the quarter ended June 30, 2024. Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”), was $19.5 million or $0.23 per diluted share for the quarter ended June 30, 2025, as compared to $16.8 million or $0.23 per diluted share for the quarter ended June 30, 2024.

 

A summary of significant financial information for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands except per share amounts):

 

    For the Three Months Ended  
    June 30,  
    2025     2024  
             
Total Income   $ 66,643     $ 60,328  
Total Expenses   $ 54,013     $ 49,307  
Net Income Attributable to Common Shareholders   $ 2,532     $ 527  
Net Income Attributable to Common Shareholders
per Diluted Common Share
  $ 0.03     $ 0.01  
FFO (1)   $ 18,703     $ 16,182  
FFO (1) per Diluted Common Share   $ 0.22     $ 0.23  
Normalized FFO (1)   $ 19,452     $ 16,807  
Normalized FFO (1) per Diluted Common Share   $ 0.23     $ 0.23  
Basic Weighted Average Shares Outstanding     83,974       71,418  
Diluted Weighted Average Shares Outstanding     84,779       71,884  

 

 
Page | 2

 

    Six Months Ended  
    June 30,  
    2025     2024  
             
Total Income   $ 127,868     $ 118,008  
Total Expenses   $ 105,664     $ 97,715  
Net Income (Loss) Attributable to Common Shareholders   $ 2,261     $ (5,737 )
Net Income (Loss) Attributable to Common Shareholders
per Diluted Common Share
  $ 0.03     $ (0.08 )
FFO (1)   $ 36,875     $ 30,228  
FFO (1) per Diluted Common Share   $ 0.44     $ 0.43  
Normalized FFO (1)   $ 38,272     $ 31,824  
Normalized FFO (1) per Diluted Common Share   $ 0.46     $ 0.45  
Basic Weighted Average Shares Outstanding     83,233       70,291  
Diluted Weighted Average Shares Outstanding     84,051       70,700  

 

A summary of significant balance sheet information as of June 30, 2025 and December 31, 2024 is as follows (in thousands):

 

   

June 30,

2025

   

December 31,

2024

 
             
Gross Real Estate Investments   $ 1,740,234     $ 1,669,114  
Marketable Securities at Fair Value   $ 30,159     $ 31,883  
Total Assets   $ 1,624,022     $ 1,563,728  
Mortgages Payable, net   $ 530,193     $ 485,540  
Loans Payable, net   $ 27,639     $ 28,279  
Bonds Payable, net   $ 101,327     $ 100,903  
Total Shareholders’ Equity   $ 933,758     $ 915,909  

 

Samuel A. Landy, President and CEO, commented on the results of the second quarter of 2025.

 

“We are pleased to announce another solid quarter of operating results. During the quarter, we:

 

Increased Rental and Related Income by 9%;
  Increased Sales of Manufactured Homes by 19%;
Increased Community Net Operating Income (“NOI”) by 11%;
Increased Normalized Funds from Operations (“Normalized FFO”) by 16%;
Increased Same Property Community NOI by 10%;
Increased Same Property Occupancy by 80 basis points from 87.4% to 88.2%;
Improved our Same Property expense ratio from 39.4% in the second quarter of 2024 to 38.2% at quarter end;
Completed the addition of ten communities to our Fannie Mae credit facility through Wells Fargo Bank, N.A., for total proceeds of approximately $101.4 million. This interest only loan is at a fixed rate of 5.855% with a 10-year term;

 

 
Page | 3

 

Raised our quarterly common stock dividend by $0.01 representing a 4.7% increase to $0.225 per share or $0.90 annually, representing our fifth consecutive common stock dividend increase within the last five years, resulting in a total increase of $0.18 or 25% over this period;
Issued and sold approximately 1.8 million shares of Common Stock through our At-the-Market Sale Program at a weighted average price of $17.60 per share, generating gross proceeds of $31.0 million and net proceeds of $30.3 million, after offering expenses;
  Subsequent to quarter end, acquired two communities in Maryland containing approximately 191 homesites for a total cost of approximately $14.6 million;
  Subsequent to quarter end, issued approximately $80.2 million aggregate principal amount of 5.85% Series B Bonds due 2030 in an offering to investors in Israel;
Subsequent to quarter end, issued and sold approximately 160,000 shares of Common Stock through our At-the-Market Sale Program at a weighted average price of $16.99 per share, generating gross proceeds and net proceeds, after offering expenses, of $2.7 million, net of offering expenses; and
Subsequent to quarter end, amended our $35 million revolving line of credit with OceanFirst Bank to extend the maturity date to June 1, 2027.”

 

Samuel A. Landy, President and CEO, commented, “UMH is pleased to report Normalized FFO of $19.5 million or $0.23 per diluted share for the second quarter of 2025, compared to $16.8 million or $0.23 per diluted share for 2024, resulting in a 16% increase on a dollar basis and no change on a per diluted share basis. Total revenue increased from $60.3 million in the second quarter of 2024 to $66.6 million in the second quarter of 2025, representing an increase of 10%. For the three and six months ended June 30, 2025, rental and related income increased by 9% from the prior year and community net operating income increased by 11% and 9%, respectively.

 

“Our same property operating results continue to demonstrate the strength of our portfolio and our ability to drive increased occupancy, revenue and ultimately property level value. During the quarter, same property rental and related income increased by 8% and same property net operating income increased by 10%, or $3.1 million. Year to date, same property rental and related income increased by 8% and same property net operating income increased by 9% or $5.6 million. The improved operating results were driven by an increase in overall occupancy of 251 units over last year and 189 units to date. We anticipate further occupancy and revenue growth as we continue to install and rent new rental units.

 

“Sales of manufactured homes generated gross sales for the quarter of approximately $10.5 million as compared to $8.8 million last year. This represents a quarterly sales record. We anticipate sales will continue to be strong as we gain additional traffic at our recently opened expansions.

 

“Subsequent to quarter end, we closed on the acquisition of two communities in Maryland, containing 191 units, for a total purchase price of $14.6 million. Year to date, we have closed on four communities, containing 457 homesites, for a total purchase price of $39.2 million. We are pleased with our ability to source and acquire new communities. We continue to evaluate potential acquisitions and hope to grow our acquisition pipeline in the near future.”

 

“UMH continues to deliver improved operating results, property valuations and increase the strength and stability of the company. We look forward to generating growing earnings per share in the coming quarters.”

 

 
Page | 4

 

UMH Properties, Inc. will host its Second Quarter 2025 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time.

 

The Company’s 2025 second quarter financial results being released herein will be available on the Company’s website at www.umh.reit in the “Financials” section.

 

To participate in the webcast, select the webcast icon on the homepage of the Company’s website at www.umh.reit, in the Upcoming Events section. Interested parties can also participate via conference call by 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, August 7, 2025, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 4486279. 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 currently owns and operates 144 manufactured home communities containing approximately 26,800 developed homesites, of which 10,600 contain rental homes, and over 1,000 self-storage units. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia. Included in the 144 communities are two communities in Florida, containing 363 sites, and one community in Pennsylvania, that UMH has an ownership interest in and operates 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.

 

 
Page | 5

 

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 certain 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 84.8 million and 84.1 million shares for the three and six months ended June 30, 2025, respectively, and 71.9 million and 70.7 million shares for the three and six months ended June 30, 2024, respectively. Common stock equivalents resulting from employee stock options to purchase 6.3 million shares of common stock amounted to 805,000 shares and 818,000 shares, respectively, for the three and six months ended June 30, 2025, were included in the computation of Diluted Net Income per Share. Common stock equivalents resulting from employee stock options to purchase 4.0 million shares of common stock amounted to 466,000 shares, for the three months ended June 30, 2024, were included in the computation of Diluted Net Income per Share. Common stock equivalents resulting from stock options in the amount of 409,000 for the six months ended June 30, 2024, were excluded from the computation of the Diluted Net Loss per Share as their effect would be anti-dilutive.

 

The reconciliation of the Company’s U.S. GAAP net loss to the Company’s FFO and Normalized FFO for the three and six months ended June 30, 2025 and 2024 are calculated as follows (in thousands):

 

    Three Months Ended     Six Months Ended  
    June 30, 2025     June 30, 2024     June 30, 2025     June 30, 2024  
Net Income (Loss) Attributable to Common Shareholders   $ 2,532     $ 527     $ 2,261     $ (5,737 )
Depreciation Expense     15,739       15,001       32,402       29,742  
Depreciation Expense from Unconsolidated Joint Venture     221       204       438       401  
Loss on Sales of Investment Property and Equipment     36       10       37       13  
(Increase) Decrease in Fair Value of Marketable Securities     175       (3,338 )     1,737       2,031  
Loss on Sales of Marketable Securities, net     -0-       3,778       -0-       3,778  
FFO Attributable to Common Shareholders     18,703       16,182       36,875       30,228  
Amortization of Financing Costs     647       607       1,246       1,163  
Non-Recurring Other Expense (2)     102       18       151       433  
Normalized FFO Attributable to Common Shareholders   $ 19,452     $ 16,807     $ 38,272     $ 31,824  

 

 
Page | 6

 

(2) Consists of one-time legal and professional fees ($102 and $151, respectively) for the three and six months ended June 30, 2025. Consisted of one-time legal fees ($18 and $51, respectively) and costs associated with the liquidation/sale of inventory in a particular sales center ($0 and $382, respectively) for the three and six months ended June 30, 2024.

 

The following are the cash flows provided by (used in) operating, investing and financing activities for the six months ended June 30, 2025 and 2024 (in thousands):

 

    2025     2024  
Operating Activities   $ 37,195     $ 37,605  
Investing Activities     (100,648 )     (58,758 )
Financing Activities     42,125       7,598  

 

 

 

EX-99.2 3 ex99-2.htm EX-99.2

 

Exhibit 99.2

 

 

 

 

Table of Contents

 

 

    Page
     
Financial Highlights   3
     
Consolidated Balance Sheets   4
     
Consolidated Statements of Income (Loss)   5
     
Consolidated Statements of Cash Flows   6
     
Reconciliation of Net Income to Adjusted EBITDA excluding Non-Recurring Other Expense and Net Income (Loss) Attributable to Common Shareholders to FFO and Normalized FFO   7
     
Market Capitalization, Debt and Coverage Ratios   8
     
Debt Analysis   9
     
Debt Maturity   10
     
Securities Portfolio Performance   11
     
Property Summary and Snapshot   12
     
Same Property Statistics   13
     
Acquisitions Summary and Property Portfolio   14
     
Definitions   15

 

Certain information in this Supplemental Information Package contains Non-GAAP financial measures. These Non-GAAP financial measures are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America. Please see page 15 for a definition of these Non-GAAP financial measures and page 7 for the reconciliation of certain captions in the Supplemental Information Package to the statement of operations as reported in the Company’s filings with the SEC on Form 10-Q.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 2

 

Financial Highlights

(dollars in thousands except per share amounts) (unaudited)

 

    Three Months Ended     Six Months Ended  
    June 30, 2025     June 30, 2024     June 30, 2025     June 30, 2024  
Operating Information                                
Number of Communities (1)                     142       136  
Total Sites (1)                     26,821       25,787  
Rental and Related Income   $ 56,165     $ 51,494     $ 110,739     $ 101,823  
Community Operating Expenses   $ 23,047     $ 21,595     $ 46,076     $ 42,692  
Community NOI   $ 33,118     $ 29,899     $ 64,663     $ 59,131  
Expense Ratio     41.0 %     41.9 %     41.6 %     41.9 %
Sales of Manufactured Homes   $ 10,478     $ 8,834     $ 17,129     $ 16,185  
Number of Homes Sold     102       105       173       200  
Number of Rentals Added, net     128       111       237       167  
Net Income   $ 7,605     $ 5,181     $ 12,415     $ 3,556  
Net Income (Loss) Attributable to Common Shareholders   $ 2,532     $ 527     $ 2,261     $ (5,737 )
Adjusted EBITDA excluding Non-Recurring Other Expense   $ 31,360     $ 28,329     $ 60,745     $ 55,014  
FFO Attributable to Common Shareholders   $ 18,703     $ 16,182     $ 36,875     $ 30,228  
Normalized FFO Attributable to Common Shareholders   $ 19,452     $ 16,807     $ 38,272     $ 31,824  
                                 
Shares Outstanding and Per Share Data                                
Weighted Average Shares Outstanding                                
Basic     83,974       71,418       83,233       70,291  
Diluted     84,779       71,884       84,051       70,700  
Net Income (Loss) Attributable to Shareholders per Share-                                
Basic and Diluted   $ 0.03     $ 0.01     $ 0.03     $ (0.08 )
FFO per Share- (2)                                
Basic and Diluted   $ 0.22     $ 0.23     $ 0.44     $ 0.43  
Normalized FFO per Share- (2)                                
Basic and Diluted   $ 0.23     $ 0.23     $ 0.46     $ 0.45  
Dividends per Common Share   $ 0.225     $ 0.215     $ 0.44     $ 0.42  
                                 
Balance Sheet                                
Total Assets                   $ 1,624,022     $ 1,441,295  
Total Liabilities                   $ 690,264     $ 697,315  
                                 
Market Capitalization                                
Total Debt, Net of Unamortized Debt Issuance Costs                   $ 659,159     $ 668,875  
Equity Market Capitalization                   $ 1,422,807     $ 1,163,272  
Series D Preferred Stock                   $ 321,804     $ 295,757  
Total Market Capitalization                   $ 2,403,770     $ 2,127,905  

 

  (1) Includes Duck River Estates and River Bluff Estates, two newly constructed communities in 2024, and Sebring Square, Rum Runner and Honey Ridge, three communities owned in a joint venture with Nuveen Real Estate in which the company has a 40% interest.
     
  (2) Please see Definitions on page 15.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 3

 

Consolidated Balance Sheets

(in thousands except per share amounts)

 

    June 30, 2025     December 31, 2024  
    (unaudited)        
ASSETS                
Investment Property and Equipment                
Land   $ 89,588     $ 88,037  
Site and Land Improvements     1,008,884       970,053  
Buildings and Improvements     45,647       44,782  
Rental Homes and Accessories     596,115       566,242  
Total Investment Property     1,740,234       1,669,114  
Equipment and Vehicles     32,148       31,488  
Total Investment Property and Equipment     1,772,382       1,700,602  
Accumulated Depreciation     (502,132 )     (471,703 )
Net Investment Property and Equipment     1,270,250       1,228,899  
                 
Other Assets                
Cash and Cash Equivalents     79,235       99,720  
Marketable Securities at Fair Value     30,159       31,883  
Inventory of Manufactured Homes     38,688       34,982  
Notes and Other Receivables, net     97,639       91,668  
Prepaid Expenses and Other Assets     16,420       14,261  
Land Development Costs     62,057       33,868  
Investment in Joint Ventures     29,574       28,447  
Total Other Assets     353,772       334,829  
                 
TOTAL ASSETS   $ 1,624,022     $ 1,563,728  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Liabilities                
Mortgages Payable, net of unamortized debt issuance costs   $ 530,193     $ 485,540  
Other Liabilities                
Accounts Payable     8,527       7,979  
Loans Payable, net of unamortized debt issuance costs     27,639       28,279  
Series A Bonds, net of unamortized debt issuance costs     101,327       100,903  
Accrued Liabilities and Deposits     12,125       15,091  
Tenant Security Deposits     10,453       10,027  
Total Other Liabilities     160,071       162,279  
Total Liabilities     690,264       647,819  
                 
COMMITMENTS AND CONTINGENCIES                
                 
Shareholders’ Equity:                
Series D- 6.375% Cumulative Redeemable Preferred Stock, $0.10 par value per share: 18,700 and 13,700 shares authorized as of June 30, 2025 and December 31, 2024, respectively; 12,872 and 12,823 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively     321,804       320,572  
Common Stock- $0.10 par value per share: 183,714 and 163,714 shares authorized as of June 30, 2025 and December 31, 2024, respectively; 84,741 and 81,909 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively     8,474       8,191  
Excess Stock- $0.10 par value per share: 3,000 shares authorized; no shares issued or outstanding as of June 30, 2025 and December 31, 2024     -0-       -0-  
Additional Paid-In Capital     627,068       610,630  
Accumulated Deficit     (25,364 )     (25,364 )
Total UMH Properties, Inc. Shareholders’ Equity     931,982       914,029  
Non-Controlling Interest in Consolidated Subsidiaries     1,776       1,880  
Total Shareholders’ Equity     933,758       915,909  
                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 1,624,022     $ 1,563,728  


 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 4

 

Consolidated Statements of Income (Loss)

(in thousands except per share amounts) (unaudited)

 

    Three Months Ended     Six Months Ended  
    June 30, 2025     June 30, 2024     June 30, 2025     June 30, 2024  
INCOME:                        
Rental and Related Income   $ 56,165     $ 51,494     $ 110,739     $ 101,823  
Sales of Manufactured Homes     10,478       8,834       17,129       16,185  
TOTAL INCOME     66,643       60,328       127,868       118,008  
                                 
EXPENSES:                                
Community Operating Expenses     23,047       21,595       46,076       42,692  
Cost of Sales of Manufactured Homes     7,124       5,461       11,469       11,017  
Selling Expenses     1,847       1,744       3,462       3,390  
General and Administrative Expenses     6,256       5,506       12,255       10,874  
Depreciation Expense     15,739       15,001       32,402       29,742  
TOTAL EXPENSES     54,013       49,307       105,664       97,715  
                                 
OTHER INCOME (EXPENSE):                                
Interest Income     2,060       1,501       4,323       3,068  
Dividend Income     375       362       749       722  
Loss on Sales of Marketable Securities, net     -0-       (3,778 )     -0-       (3,778 )
Increase (Decrease) in Fair Value of Marketable Securities     (175 )     3,338       (1,737 )     (2,031 )
Other Income     252       205       429       364  
Loss on Investment in Joint Ventures     (133 )     (87 )     (214 )     (224 )
Interest Expense     (7,368 )     (7,371 )     (13,302 )     (14,845 )
TOTAL OTHER INCOME (EXPENSE)     (4,989 )     (5,830 )     (9,752 )     (16,724 )
                                 
Income before Loss on Sales of Investment Property and Equipment     7,641       5,191       12,452       3,569  
Loss on Sales of Investment Property and Equipment     (36 )     (10 )     (37 )     (13 )
NET INCOME     7,605       5,181       12,415       3,556  
                                 
Preferred Dividends     (5,129 )     (4,712 )     (10,258 )     (9,385 )
Loss Attributable to Non-Controlling Interest     56       58       104       92  
                                 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ 2,532     $ 527     $ 2,261     $ (5,737 )
                                 
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS PER SHARE –                                
Basic and Diluted   $ 0.03     $ 0.01     $ 0.03     $ (0.08 )
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                                
Basic     83,974       71,418       83,233       70,291  
Diluted     84,779       71,884       84,051       70,700  

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 5

 

Consolidated Statements of Cash Flows

(in thousands)(unaudited)

 

    Six Months Ended  
    June 30, 2025     June 30, 2024  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net Income   $ 12,415     $ 3,556  
Non-Cash Items Included in Net Income:                
Depreciation     32,402       29,742  
Amortization of Financing Costs     1,246       1,163  
Stock Compensation Expense     3,619       2,543  
Provision for Uncollectible Notes and Other Receivables     845       795  
Loss on Sales of Marketable Securities, net     -0-       3,778  
Decrease in Fair Value of Marketable Securities     1,737       2,031  
Loss on Sales of Investment Property and Equipment     37       13  
Loss on Investment in Joint Ventures     410       469  
Changes in Operating Assets and Liabilities:                
Inventory of Manufactured Homes     (3,706 )     954  
Notes and Other Receivables, net of notes acquired with acquisitions     (6,816 )     (5,664 )
Prepaid Expenses and Other Assets     (3,002 )     552  
Accounts Payable     548       (720 )
Accrued Liabilities and Deposits     (2,966 )     (1,972 )
Tenant Security Deposits     426       365  
Net Cash Provided by Operating Activities     37,195       37,605  
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchase of Manufactured Home Communities     (25,367 )     -0-  
Purchase of Investment Property and Equipment     (50,494 )     (41,052 )
Proceeds from Sales of Investment Property and Equipment     2,072       2,348  
Additions to Land Development Costs     (25,308 )     (18,249 )
Purchase of Marketable Securities through automatic reinvestments     (13 )     (12 )
Proceeds from Sales of Marketable Securities     -0-       36  
Investment in Joint Ventures     (1,538 )     (1,829 )
Net Cash Used in Investing Activities     (100,648 )     (58,758 )
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from Mortgages, net of mortgages assumed     101,392       -0-  
Net Payments from Short-Term Borrowings     (928 )     (15,837 )
Principal Payments of Mortgages and Loans     (55,194 )     (5,915 )
Financing Costs on Debt     (2,079 )     (552 )
Proceeds from At-The-Market Preferred Equity Program, net of offering costs     982       5,058  
Proceeds from At-The-Market Common Equity Program, net of offering costs     39,565       56,478  
Proceeds from Issuance of Common Stock in the DRIP, net of dividend reinvestments     3,131       3,503  
Proceeds from Exercise of Stock Options     491       2,079  
Preferred Dividends Paid     (10,258 )     (9,385 )
Common Dividends Paid, net of dividend reinvestments     (34,977 )     (27,831 )
Net Cash Provided by Financing Activities     42,125       7,598  
                 
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH     (21,328 )     (13,555 )
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD     108,811       64,437  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD   $ 87,483     $ 50,882  

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 6

 

Reconciliation of Net Income to Adjusted EBITDA and Net Income (Loss) Attributable

to Common Shareholders to FFO and Normalized FFO

(in thousands) (unaudited)

 

    Three Months Ended     Six Months Ended  
    June 30, 2025     June 30, 2024     June 30, 2025     June 30, 2024  
Reconciliation of Net Income to Adjusted EBITDA                                
                                 
Net Income   $ 7,605     $ 5,181     $ 12,415     $ 3,556  
Interest Expense     7,368       7,371       13,302       14,845  
Franchise Taxes     150       114       300       228  
Depreciation Expense     15,739       15,001       32,402       29,742  
Depreciation Expense from Unconsolidated Joint Ventures     221       204       438       401  
(Increase) Decrease in Fair Value of Marketable Securities     175       (3,338 )     1,737       2,031  
Loss on Sales of Marketable Securities, net     -0-       3,778       -0-       3,778  
Adjusted EBITDA     31,258       28,311       60,594       54,581  
Non-Recurring Other Expense (1)     102       18       151       433  
Adjusted EBITDA excluding Non-Recurring Other Expense   $ 31,360     $ 28,329     $ 60,745     $ 55,014  
                                 
Reconciliation of Net Income (Loss) Attributable to Common Shareholders to Funds from Operations                                
                                 
Net Income (Loss) Attributable to Common Shareholders   $ 2,532     $ 527     $ 2,261     $ (5,737 )
Depreciation Expense     15,739       15,001       32,402       29,742  
Depreciation Expense from Unconsolidated Joint Ventures     221       204       438       401  
Loss on Sales of Investment Property and Equipment     36       10       37       13  
(Increase) Decrease in Fair Value of Marketable Securities     175       (3,338 )     1,737       2,031  
Loss on Sales of Marketable Securities, net     -0-       3,778       -0-       3,778  
Funds from Operations Attributable to Common Shareholders (“FFO”)     18,703       16,182       36,875       30,228  
                                 
Adjustments:                                
Amortization of Financing Costs     647       607       1,246       1,163  
Non-Recurring Other Expense (1)     102       18       151       433  
Normalized Funds from Operations Attributable to Common Shareholders (“Normalized FFO”)   $ 19,452     $ 16,807     $ 38,272     $ 31,824  

 

  (1) Consists of one-time legal and professional fees ($102 and $151, respectively) for the three and six months ended June 30, 2025. Consisted of one-time legal fees ($18 and $51, respectively) and costs associated with the liquidation/sale of inventory in a particular sales center ($0 and $382, respectively) for the three and six months ended June 30, 2024.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 7

 

Market Capitalization, Debt and Coverage Ratios

(in thousands except per share data) (unaudited)

 

    Six Months Ended     Year Ended  
    June 30, 2025     June 30, 2024     December 31, 2024  
Shares Outstanding     84,741       72,750       81,909  
Market Price Per Share   $ 16.79     $ 15.99     $ 18.88  
Equity Market Capitalization   $ 1,422,807     $ 1,163,272     $ 1,546,449  
Total Debt     659,159       668,876       614,722  
Preferred     321,804       295,757       320,572  
Total Market Capitalization   $ 2,403,770     $ 2,127,905     $ 2,481,743  
                         
Total Debt   $ 659,159     $ 668,876     $ 614,722  
Less: Cash and Cash Equivalents     (79,235 )     (39,457 )     (99,720 )
Net Debt     579,924       629,419       515,002  
Less: Marketable Securities at Fair Value (“Securities”)     (30,159 )     (28,673 )     (31,883 )
Net Debt Less Securities   $ 549,765     $ 600,746     $ 483,119  
                         
Interest Expense   $ 13,302     $ 14,845     $ 27,287  
Capitalized Interest     2,496       2,378       5,976  
Preferred Dividends     10,258       9,385       19,163  
Total Fixed Charges   $ 26,056     $ 26,608     $ 52,426  
                         
Adjusted EBITDA excluding Non-Recurring Other Expense   $ 60,745     $ 55,014     $ 113,958  
                         
Debt and Coverage Ratios                        
Net Debt / Total Market Capitalization     24.1 %     29.6 %     20.8 %
Net Debt Plus Preferred / Total Market Capitalization     37.5 %     43.5 %     33.7 %
Net Debt Less Securities / Total Market Capitalization     22.9 %     28.2 %     19.5 %
Net Debt Less Securities Plus Preferred / Total Market Capitalization     36.3 %     42.1 %     32.4 %
Interest Coverage     3.8 x     3.2 x     3.4 x
Fixed Charge Coverage     2.3 x     2.1 x     2.2 x
Net Debt / Adjusted EBITDA excluding Non-Recurring Other Expense     4.8 x     5.7 x     4.5 x
Net Debt Less Securities / Adjusted EBITDA excluding Non-Recurring Other Expense     4.5 x     5.5 x     4.3 x
Net Debt Plus Preferred / Adjusted EBITDA excluding Non-Recurring Other Expense     7.4 x     8.4 x     7.4 x
Net Debt Less Securities Plus Preferred / Adjusted EBITDA excluding Non-Recurring Other Expense     7.2 x     8.1 x     7.1 x

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 8

 

Debt Analysis

(in thousands) (unaudited)

 

    Six Months Ended     Year Ended  
    June 30, 2025     June 30, 2024     December 31, 2024  
Debt Outstanding                        
Mortgages Payable:                        
Fixed Rate Mortgages   $ 535,469       495,219     $ 489,271  
Unamortized Debt Issuance Costs     (5,276 )     (4,189 )     (3,731 )
Mortgages, Net of Unamortized Debt Issuance Costs   $ 530,193     $ 491,030     $ 485,540  
Loans Payable:                        
Unsecured Line of Credit   $ -0-     $ 50,000     $ -0-  
Other Loans Payable     28,585       28,846       29,512  
Total Loans Before Unamortized Debt Issuance Costs     28,585       78,846       29,512  
Unamortized Debt Issuance Costs     (946 )     (1,479 )     (1,233 )
Loans, Net of Unamortized Debt Issuance Costs   $ 27,639     $ 77,367     $ 28,279  
Bonds Payable:                        
Series A Bonds   $ 102,670     $ 102,670     $ 102,670  
Unamortized Debt Issuance Costs     (1,343 )     (2,191 )     (1,767 )
Bonds, Net of Unamortized Debt Issuance Costs   $ 101,327     $ 100,479     $ 100,903  
                         
Total Debt, Net of Unamortized Debt Issuance Costs   $ 659,159     $ 668,876     $ 614,722  
                         
% Fixed/Floating                        
Fixed     99.3 %     91.9 %     99.1 %
Floating     0.7 %     8.1 %     0.9 %
Total     100.0 %     100.0 %     100.0 %
                         
Weighted Average Interest Rates (1)                        
Mortgages Payable     4.52 %     4.17 %     4.18 %
Loans Payable     6.44 %     6.81 %     6.54 %
Bonds Payable     4.72 %     4.72 %     4.72 %
Total Average     4.63 %     4.56 %     4.38 %
                         
Weighted Average Maturity (Years) Mortgages Payable     5.4       4.8       4.4  

 

(1) Weighted average interest rates do not include the effect of unamortized debt issuance costs.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 9

 

Debt Maturity

(in thousands) (unaudited)

 

 

As of June 30, 2025:                              
Year Ended   Mortgages     Loans     Bonds     Total     % of Total  
2025   $ 64,337     $ 4,901     $ -0-     $ 69,238       10.4 %
2026     35,360       -0-       -0-       35,360       5.3 %
2027     37,539       -0-       102,670 (1)     140,209       21.0 %
2028     24,286       23,684       -0-       47,970       7.2 %
2029     39,303       -0-       -0-       39,303       5.9 %
Thereafter     334,644       -0-       -0-       334,644       50.2 %
                                         
Total Debt Before Unamortized Debt Issuance Costs     535,469       28,585       102,670       666,724       100.0 %
                                         
Unamortized Debt Issuance Costs     (5,276 )     (946 )     (1,343 )     (7,565 )        
                                         

Total Debt, Net of Unamortized Debt Issuance Costs

  $ 530,193     $ 27,639     $ 101,327     $ 659,159          

 

(1) Represents $102.7 million balance outstanding of the Company’s Series A Bonds due February 28, 2027.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 10

 


Securities Portfolio Performance

(in thousands) (unaudited)

 

 

 

Year Ended   Securities Available for Sale     Dividend Income     Net Realized Gain (Loss) on Sale of Securities     Net Realized Gain (Loss) on Sale of Securities & Dividend Income  
2010-2015     75,011     $ 19,465     $ 14,618     $ 34,083  
2016     108,755       6,636       2,285       8,921  
2017     132,964       8,135       1,747       9,882  
2018     99,596       10,367       20       10,387  
2019     116,186       7,535       -0-       7,535  
2020     103,172       5,729       -0-       5,729  
2021     113,748       5,098       2,342       7,440  
2022     42,178       2,903       6,394       9,297  
2023     34,506       2,318       183       2,501  
2024     31,883       1,452       (3,778 )     (2,326 )
2025*     30,159       749       -0-       749  
                                 
            $ 70,387     $ 23,811     $ 94,198  

 

* For the six months ended June 30, 2025.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 11

 

Property Summary and Snapshot

(unaudited)

 

    June 30, 2025     June 30, 2024     % Change  
UMH Communities (1)     139       136       2.2%  
Total Sites     26,159       25,787       1.4%  
Occupied Sites     23,072       22,526       546 sites, 2.4%  
Occupancy %     88.2 %     87.4 %     80 bps  
Total Rentals     10,570       10,136       4.3%  
Occupied Rentals     9,974       9,630       3.6%  
Rental Occupancy %     94.4 %     95.0 %     (60 bps)  
Monthly Rent Per Site   $ 558     $ 531       5.1%  
Monthly Rent Per Home Rental Including Site   $ 1,016     $ 960       5.8%  

 

State   Number     Total Acreage     Developed Acreage     Vacant Acreage     Total Sites    

Occupied

Sites

    Occupancy Percentage    

Monthly Rent

Per Site

    Total Rentals     Occupied Rentals     Rental Occupancy Percentage    

Monthly

Rent Per

Home Rental (3)

 
                                                                         
Alabama     2       69       62       7       299       153       51.2 %   $ 230       137       125       91.2 %   $ 1,122  
Georgia     1       26       26       -0-       118       37       31.4 %   $ 450       38       36       94.7 %   $ 1,199  
Indiana     14       1,111       929       182       4,078       3,587       88.0 %   $ 518       1,995       1,861       93.3 %   $ 1,009  
Maryland     1       77       63       14       76       67       88.2 %   $ 657       -0-       -0-       N/A       N/A  
Michigan     4       241       222       19       1,089       926       85.0 %   $ 524       403       379       94.0 %   $ 1,071  
New Jersey     7       428       264       164       1,530       1,475       96.4 %   $ 717       43       36       83.7 %   $ 1,333  
New York (2)     8       819       327       492       1,367       1,189       87.0 %   $ 655       499       461       92.4 %   $ 1,179  
Ohio     38       2,069       1,557       512       7,290       6,490       89.0 %   $ 514       3,091       2,930       94.8 %   $ 967  
Pennsylvania     53       2,392       1,909       483       7,970       7,032       88.2 %   $ 583       3,238       3,058       94.4 %   $ 1,009  
South Carolina     2       134       55       79       322       228       70.8 %   $ 284       176       170       96.6 %   $ 1,136  
Tennessee (1)     9       733       419       314       2,020       1,888       93.5 %   $ 577       950       918       96.6 %   $ 1,052  
Total UMH as of June 30, 2025(1)     139       8,099       5,833       2,266       26,159       23,072       88.2 %   $ 558       10,570       9,974       94.4 %   $ 1,016  
                                                                                                 
Acquisition (4)     2       82       61       21       191       151       79.1 %   $ 632       -0-       -0-       N/A       N/A  
Grand Total UMH 2025 to Date     141       8,181       5,894       2,287       26,350       23,223       88.1 %   $ 558       10,570       9,974       94.4 %   $ 1,016  

 

(1) Includes Duck River Estates and River Bluff Estates, two newly constructed communities in 2024. Excludes two Florida communities and one Pennsylvania community owned through joint ventures with Nuveen Real Estate in which the company has a 40% interest for 2025.

(2) Total and Vacant Acreage of 220 acres for Mountain View Estates property is included in the above summary.

(3) Includes home and site rent charges.

(4) Acquisition of two communities completed on July 2,2025.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 12

 

Same Property Statistics

(in thousands) (unaudited)

 

    For Three Months Ended     For Six Months Ended  
    June 30, 2025     June 30, 2024     Change     % Change     June 30, 2025     June 30, 2024     Change     % Change  
Same Property Community Net Operating Income (“NOI”)
                                                                 
Rental and Related Income   $ 54,957     $ 50,967     $ 3,990       7.8 %   $ 108,717     $ 100,681     $ 8,036       8.0 %
Community Operating Expenses     20,995       20,058       937       4.7 %     42,219       39,753       2,466       6.2 %
                                                                 
Same Property Community NOI   $ 33,962     $ 30,909     $ 3,053       9.9 %   $ 66,498     $ 60,928     $ 5,570       9.1 %

 

    June 30, 2025     June 30, 2024     Change  
                   
Total Sites     25,617       25,575       0.2%  
Occupied Sites     22,594       22,343       251 sites, 1.1%  
Occupancy %     88.2 %     87.4 %     80 bps  
Number of Properties     134       134       N/A  
Total Rentals     10,411       9,990       4.2%  
Occupied Rentals     9,820       9,495       3.4%  
Rental Occupancy     94.3 %     95.0 %     (70 bps)  
Monthly Rent Per Site   $ 557     $ 534       4.3%  
Monthly Rent Per Home Rental Including Site   $ 1,014     $ 958       5.8%  

 

Same Property includes all UMH communities owned as of January 1, 2024, with the exception of Memphis Blues, Duck River Estates and River Bluff Estates.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 13

 

Acquisitions Summary

(dollars in thousands)

 

Year of Acquisition   Number of Communities   Sites  

Occupancy % at Acquisition

   

Purchase

Price

   

Price

Per Site

    Total Acres
2021   3   543     59%     $ 18,300     $ 34     113
2022   7   1,480     65%     $ 86,223     $ 58     461
2023   1   118     -0-%     $ 3,650     $ 31     26
2025   4   457     91%     $ 39,225     $ 86     121

 

 

2025 Acquisitions

 

Community   Date of Acquisition   State   Number
of Sites
    Purchase Price    

Number

of Acres

    Occupancy  
Cedar Grove   March 24, 2025   NJ     186     $ 17,000       25       100 %
Maplewood   March 24, 2025   NJ     80       7,600       13       100 %
Conowingo Court   July 2, 2025   MD     142       9,855       55       70 %
Maybelle Manor   July 2, 2025   MD     49       4,770       28       100 %
Total 2025 to Date             457     $ 39,225       121       91 %

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 14

 

Definitions

 

Investors and analysts following the real estate industry utilize funds from operations available to common shareholders (“FFO”), normalized funds from operations available to common shareholders (“Normalized FFO”), Community NOI, Same Property Community NOI, and earnings before interest, taxes, depreciation, amortization and acquisition costs (“Adjusted EBITDA excluding Non-Recurring Other Expense”), variously defined, as supplemental performance measures. While the Company believes net income (loss) available to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers Community NOI, Same Property Community NOI, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized FFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. FFO also adjusts for the effects of the change in the fair value of marketable securities and gains and losses realized on marketable securities. Normalized FFO reflects the same assumptions as FFO except that it also adjusts for amortization of financing costs and certain one-time charges. Community NOI and Same Property Community NOI provide a measure of rental operations and do not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. Adjusted EBITDA excluding Non-Recurring Other Expense provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. In addition, Community NOI, Same Property Community NOI, Adjusted EBITDA, excluding Non-Recurring Other Expense, FFO and Normalized FFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.

 

FFO, as defined by The National Association of Real Estate Investment Trusts (“Nareit”), is calculated to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding certain 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 and change in the fair value of marketable securities from our FFO calculation. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance.

 

Normalized FFO is calculated as FFO excluding amortization and certain one-time charges.

 

Normalized FFO per Diluted Common Share is calculated using diluted weighted shares outstanding of 84.8 million and 84.1 million shares for the three and six months ended June 30, 2025, respectively, and 71.9 million and 70.7 million shares for the three and six months ended June 30, 2024, respectively. Common stock equivalents resulting from employee stock options to purchase 6.3 million shares of common stock amounted to 805,000 shares and 818,000 shares, respectively, for the three and six months ended June 30, 2025, were included in the computation of Diluted Net Income per Share. Common stock equivalents resulting from employee stock options to purchase 4.0 million shares of common stock amounted to 466,000 shares, for the three months ended June 30, 2024, were included in the computation of Diluted Net Income per Share. Common stock equivalents resulting from stock options in the amount of 409,000 for the six months ended June 30, 2024, were excluded from the computation of Diluted Net Loss per Share as their effect would have been anti-dilutive.

 

Community NOI is calculated as rental and related income less community operating expenses such as real estate taxes, repairs and maintenance, community salaries, utilities, insurance and other expenses.

 

Same Property Community NOI is calculated as Community NOI, using all properties owned as of January 1, 2024, with the exception of Memphis Blues, Duck River Estates and River Bluff Estates.

 

Adjusted EBITDA excluding Non-Recurring Other Expense is calculated as net income (loss) plus interest expense, franchise taxes, depreciation, the change in the fair value of marketable securities and the gain (loss) on sales of marketable securities, adjusted for non-recurring other expenses.

 

Community NOI, Same Property Community NOI, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized FFO do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. Community NOI, Same Property Community NOI, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized FFO should not be considered as substitutes for net income (loss) applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations, or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. Community NOI, Same Property Community NOI, Adjusted EBITDA excluding Non-Recurring Other Expense, FFO and Normalized FFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.

 

UMH Properties, Inc. | Second Quarter FY 2025 Supplemental Information 15