UMH Properties Inc Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : I think last quarter, the expectation was that you were deferring rent increases for the second quarter. Did that play out? As we moved into third quarter, have you begun raising that again?

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : Got it. I think back in May, you had surveyed a number of your tenants. And you thought there might have been as much as 30% unemployment amongst kind of the folks that weren't retired. As we move kind of further along through the summer, kind of can you garner where that would be today?

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : No, that's good news. I think I know the answer based on your commentary, Anna. But just looking at your same-store operating expense this quarter, it was down year-over-year. Was that just driven by the fact that some of those year 1 acquisition expenses, where you're cleaning up the community, just did not occur this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2020 / 2:00PM, UMH.N - Q2 2020 UMH Properties Inc Earnings Call

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : Got it. Just switching things up, your dividend income has been trending downward year-to-date, tough second quarter for a lot of retail names in the portfolio. What are your current thoughts on the portfolio going forward?

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : Okay. Great. Just moving to the expansion side. I'd imagine it got quite a bit tougher to get those kind of approved. And through that process in the second quarter, a number of municipal offices were closed. Have things started to normalize here in the third quarter, which should allow you to kind of push some of those approvals ahead?

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : Okay. Anna, I have a question about the credit facility...

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : Got it. Anna, I wanted to circle back with you on some of the new debt products that you're working with on the GSEs and some of your banks. I guess, first, when you're looking at a credit facility using rental homes as collateral, can you kind of talk about the loan to value that a bank is willing to look at? Is that pretty similar to an apartment? Or just any color there would be great.

Question: Craig Gerald Kucera - B. Riley Securities, Inc., Research Division - Analyst : Okay. That was my next question. Just thinking about the GSE debt that you're looking to price here at about 3%, do you think they're going to roll that out across the industry? Or are they going to kind of have a little bit more stringent underwriting to whom they're willing to offer that to?

Question: Merrill Hadady Ross - Compass Point Research & Trading, LLC, Research Division - Analyst : At some point during your comments, you mentioned that there's $310 million of assets purchased with preferred stock that could be refinanced with GSE debt. Would that be subject to the call dates on the preferred?

Question: Merrill Hadady Ross - Compass Point Research & Trading, LLC, Research Division - Analyst : Good. I'd look up those dates. The other question is sort of more interesting. Going national, what's at the top of the list?

Question: Merrill Hadady Ross - Compass Point Research & Trading, LLC, Research Division - Analyst : Yes. That makes sense. I mean the Smile States would seem to be appealing, a higher rental population and no winterization.