UMH Properties, Inc. Reports Strong Growth and Financial Results for FY 2025

Key Financial Highlights

• Total Income: UMH Properties, Inc. (NYSE:UMH; TASE:UMH) reported total income of \$261.7 million for the year ended December 31, 2025, an increase of 9% from \$240.6 million in 2024. For Q4 2025, total income was \$67 million, up 8% from \$61.9 million in Q4 2024.
• Net Income: Net income attributable to common shareholders rose to \$6.0 million (\$0.07 per diluted share) for 2025, compared to \$2.5 million (\$0.03 per diluted share) in 2024. However, Q4 2025 saw a net loss of \$506,000 (\$0.01 per diluted share), versus a net income of \$28,000 (\$0.00 per diluted share) in Q4 2024.
• Funds from Operations (FFO): FFO attributable to common shareholders was \$76.0 million (\$0.90 per diluted share) for 2025, up from \$66.3 million (\$0.88 per diluted share) in 2024. Normalized FFO was \$80.1 million (\$0.95 per diluted share), an increase from \$69.5 million (\$0.93 per diluted share) in 2024.
• Balance Sheet Strength: Gross real estate investments increased to \$1.87 billion from \$1.67 billion. Total assets rose to \$1.70 billion from \$1.56 billion. Mortgages payable were \$556.1 million, up from \$485.5 million. Total shareholders’ equity stood at \$907.2 million, slightly down from \$915.9 million.

Operational Achievements and Growth Drivers

• Rental and Related Income: Increased by 10% year-over-year.
• Community Net Operating Income (NOI): Grew by 9%.
• Same Property NOI: Increased by 9% and occupancy improved by 80 basis points to 88.3%.
• Expense Ratio: Same property expense ratio improved from 39.7% to 39.3%.
• Acquisitions: Five communities acquired, adding 587 homesites for \$41.8 million.
• Sales of Manufactured Homes: Sales increased by 4%, hitting a new record of \$36.4 million and profitability of \$4.4 million.

Strategic Financing and Capital Moves

• Credit Facility Expansion: Added 17 communities to Fannie Mae credit facility through Wells Fargo Bank, with total proceeds of \$193.2 million. Loans feature fixed rates (5.855% for 10 years, 5.46% for 9 years).
• Israeli Bond Issuance: Issued \$80.2 million in aggregate principal amount of 5.85% Series B Bonds due 2030 to Israeli investors.
• Common Stock and Preferred Stock Issuance: Issued and sold 2.6 million shares of Common Stock via At-the-Market Sale Program at \$17.59 per share, raising \$45.1 million gross (\$44.1 million net). Also issued 93,000 shares of Series D Preferred Stock at \$22.93 per share (\$2.1 million gross, \$2.0 million net), with 66,000 more shares issued after year-end.
• Dividend Increase: Quarterly common stock dividend raised by \$0.01 to \$0.225 per share (annualized \$0.90), marking the fifth consecutive increase in five years with a 25% total rise.
• Share Buyback: Repurchased 320,000 shares of common stock.

Management Commentary

Samuel A. Landy, President and CEO, highlighted the company’s substantial progress in 2025, citing strong operating results, improved financial position, and strategic capital raising. He emphasized the documented increase in property values through refinancings, noting that 17 communities were refinanced for \$193.2 million, with a valuation increase of 121% (\$169 million gain).

Landy also pointed out that UMH’s investments in value-added communities, expansions, and developments provide a pipeline of 3,300 sites for future growth. The company plans to add 700-800 new rental homes and develop 300+ sites in 2026, projecting high single-digit or low double-digit same property growth. Full-year 2026 guidance for Normalized FFO is \$0.97 – \$1.05 per share, an 8% increase at the midpoint.

Upcoming Events and Investor Information

UMH will host its Fourth Quarter and Year-End 2025 Financial Results Webcast and Conference Call on February 26, 2026. Financial results and the webcast replay will be available on UMH’s website. The company currently owns and operates 145 manufactured home communities (27,100 homesites, 11,000 rental homes, 1,000+ self-storage units) across 12 states, including joint ventures with Nuveen Real Estate.

Cash Flow Summary

• Operating Activities: Cash provided was \$82 million in 2025, largely unchanged from 2024.
• Investing Activities: Cash used was \$209.2 million in 2025, significantly higher than \$139.9 million in 2024, reflecting increased investments and acquisitions.
• Financing Activities: Cash provided was \$99.3 million in 2025, compared to \$102.6 million in 2024.

Potential Share Price Sensitivities

• Dividend Increase: The fifth consecutive annual dividend increase may drive positive investor sentiment.
• Guidance Upgrade: Management’s 2026 Normalized FFO guidance signals continued growth, potentially impacting future share valuations.
• Acquisitions and Refinancings: The aggressive acquisition strategy, successful refinancing at favorable rates, and documented property value increases could positively affect the company’s asset base and future earnings power.
• Stock Issuances and Buybacks: Capital raised via At-the-Market programs and stock buybacks demonstrate active capital management, which may influence share price and liquidity.

Important Considerations for Shareholders

• Q4 2025 recorded a net loss, though full-year results remained positive.
• Strong growth in real estate investments and assets, but slight decrease in shareholders’ equity.
• Debt levels increased due to acquisitions and refinancing activities.
• Potential risks and uncertainties remain, as highlighted in company filings with the SEC.

Disclaimer

This article is intended for informational purposes only. It does not constitute investment advice. Forward-looking statements are based on current expectations and involve risks and uncertainties. Actual results may differ materially from projections. Investors should review UMH Properties, Inc.’s SEC filings for a full discussion of risks and uncertainties. The author is not liable for any investment decisions made based on this article.

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