UMH Properties Inc Q4 2024 Earnings Call Transcript

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

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Thank you. Good morning. I wanted to, go back to your comments. I think you men mentioned four acquisitions on the contract. I wanted to get some more colour on those acquisitions, how those acquisitions are sourced, and is there any value add up opportunity in those acquisitions.

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, thank you. Second question I wanted to ask on the mortgage. I think you said you're looking to refinance with, Fannie Mae for mortgages coming due in the first half of 25. Just wanted to get some more colour on what kind of interest rate should we expect on those refinancing. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 3:00PM, UMH.N - Q4 2024 UMH Properties Inc Earnings Call

Question: Robert Stevenson - Janney Montgomery Scott - Analyst : Good morning, guys. Anna, what are the big swing factors that cause you to report the high end versus the low end of your 2025 guidance range?

Question: Robert Stevenson - Janney Montgomery Scott - Analyst : Okay, so at the top end, you do more than the four that you guys have talked that Brett talked about before, and then, you'd also be doing more home sales than what you did in 2024.

Question: Robert Stevenson - Janney Montgomery Scott - Analyst : I guess along those same lines you've got still a significant occupancy upside at your 5 southernmost assets in Alabama, Georgia, and South Carolina. What type of monthly leasing velocity have you seen there and how has that been trending over the last 6 months or so?

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, that's helpful. And then you guys talked about adding 800 new rental homes in 2025 to the portfolio. What is the average price per rental home you're buying today and how's that cost changing given the elevated levels of inflation and changes to material labour costs? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 3:00PM, UMH.N - Q4 2024 UMH Properties Inc Earnings Call

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay. And then the last one for me, how much more does it cost to put the solar shingles on one of these homes than traditional shingles that Gene was talking about?

Question: Gaurav Mehta - Alliance Global Partners - Analyst : And does that number already include any type of federal or local rebates, etc. Is that net or is there benefits to you guys on top of that?

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, so your cost on those homes isn't going up to $75,000 to $80,000. That $15,000 for the factory done stuff is being paid for by Solar run or one of those type of companies out there, and that cost is not basically hitting you guys in terms of the cost of the rental unit. Can I get it all right, Brett? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 3:00PM, UMH.N - Q4 2024 UMH Properties Inc Earnings Call

Question: Gaurav Mehta - Alliance Global Partners - Analyst : Okay, so no cost no cost differential to you, that's a third party. Okay, that's helpful. Thank you. Appreciate the time this morning, guys.

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Thanks, and good morning. So, 565 rentals added in 2024, a target of 800. What gives you the confidence that you can see that type of acceleration on the on the rental side?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : What is the chance that some of those 5 or 600 homes that are sitting in inventory don't get rented but get sold.

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : No, go ahead. We talked, a month or so ago about some of the changes in you referred to, maybe an ability to sell more homes with the new administration in place and so on. I'm wondering, what your thought is about the ability to sell more, perhaps relaxing Dodd-Frank or whatever driver that might be. Do you feel like the economics are better or worse as a home renter or a home seller from your lens, or is it a kind of a wash and you just like the optionality?

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Okay, do you, when you're talking to your rental residents, is there a very clear, percentage of those people that are renting that would love to own but simply can't? I mean, do you get that that very palpable. Sort of indication within your portfolio.

Question: Richard Anderson - Wedbush Securities Inc. - Analyst : Okay, that's really interesting. I would be really curious of that 10,300 of rental homes, if you ever were to do a survey, how many of them are happy as renters or would rather be an owner? That would be interesting data for me, I guess. But anyway, just a comment. Thanks very much, great quarter. I appreciate it. Thank you.

Question: Craig Kucera - Lucid Capital Markets - Analyst : Yeah, hey, good morning, guys. Your leverage has significantly dropped over the past couple of years, and I'd be curious to hear, is there a target that UMH is looking to work toward, or is it just been a matter of taking advantage of the capital markets?

Question: Craig Kucera - Lucid Capital Markets - Analyst : Changing gears, Bratt, I think your operating expense budget typically is about 5% to 7% on the same sort of basis. Is that still the expectation in 2025 or is there may be going to be a little bit more ex-access because of the very snowy winter and snow removal costs or any colour that'd be appreciated.

Question: Craig Kucera - Lucid Capital Markets - Analyst : Got it. That's appreciated. Let's talk about UMH finance for a second. Just given what's happened with home prices, are you seeing any change in the typical buyer versus a few years ago, are they may be better credits or higher income than they were that have been completely pushed out of maybe potentially buying a single-family home, or has credit and income been relatively constant over the last few years?

Question: Craig Kucera - Lucid Capital Markets - Analyst : Great. Just one more for me. I'd be curious if you had any conversations with the manufactured housing builders about how tariffs might impact their business, are they worried about input costs, or maybe would there be any supply chain issues?

Question: John Massocca - B. Riley Securities, Inc. - Analyst : Good morning. So, with the acquisitions, I know you kind of get the cap rate, but what's kind of the stabilized return you're looking for across that entire pipeline?

Question: John Massocca - B. Riley Securities, Inc. - Analyst : Okay, appreciate the colour and then on the in-place portfolio, any change in kind of bad debt expense in for you or even anything you're seeing into this year thus far?

Question: John Massocca - B. Riley Securities, Inc. - Analyst : Okay. And then, how should we kind of think about, headline occupancy as you keep adding new homes to the portfolio I guess is the level we kind of saw in 4Q, indicative of where things should go just given. It is kind of new vacancy being added portfolio every quarter if you will, because you're putting in new sites and you're putting in new rental units, etc. Or is there potential for that, vacancy number to shrink even further?

Question: John Massocca - B. Riley Securities, Inc. - Analyst : Okay, and then now with that in mind, how should we think about the split in future acquisitions between on balance sheet and JV? I mean, I guess how value add would an asset need to be for it to be better structured in a joint venture?

Question: John Massocca - B. Riley Securities, Inc. - Analyst : Yeah, it makes sense. And then last one for me, any update on the kind of single-family housing developments that that were kind of potentially in the pipeline, either the one in New Jersey or any other kind of opportunities that were out there?

Question: John Massocca - B. Riley Securities, Inc. - Analyst : Okay, was very detailed. I appreciate it, and that's for me.