UMH Properties(US:UMH)2024-02-28 21:16Company Operations and Properties - As of December 31, 2023, the company owned and operated 135 manufactured home communities with approximately 25,800 developed homesites[16] - In 2023, the company purchased one community in Georgia containing 118 developed homesites through its opportunity zone fund[17] - The company currently holds a 77% interest in an opportunity zone fund that owns two communities in South Carolina and Georgia[15] - Approximately 39% of developed homesites are represented by 10,000 rental homes owned by the company as of December 31, 2023[23] - The company has quadrupled the number of developed homesites since 2010, acquiring 107 communities with approximately 18,800 homesites[25] - The company operates 135 manufactured home communities as of December 31, 2023, with 46 having their own wastewater treatment facility or water distribution system[76] - The company has a joint venture with Nuveen Real Estate, which has acquired two communities in Sebring, Florida, for a total of $37.3 million[177] - The company is seeking site plan approvals for approximately 360 sites for a property currently under redevelopment[171] - The company’s larger properties include Friendly Village (Ohio) with 824 developed sites and Woods Edge (Indiana) with 599 developed sites[174] - The company’s joint venture with Nuveen is focused on acquiring newly developed manufactured housing communities that meet specific investment guidelines[176] Financial Performance and Investments - The Company increased Rental and Related Income by 11% and Community Net Operating Income (NOI) by 14% in 2023[196] - Same Property NOI increased by 13%, and Same Property Occupancy rose by 230 basis points from 86.2% to 88.5%[197] - The rental home portfolio expanded by 871 homes, totaling approximately 10,000 rental homes, representing a 10% increase from year-end 2022[197] - The Company raised its quarterly common stock dividend by 2.5% to $0.205 per share, totaling $0.82 annually[197] - Total Market Capitalization increased by 6% to over $2 billion at year-end 2023[197] - Net Debt to Total Market Capitalization decreased from 38.2% in 2022 to 31.3% in 2023[197] - The Company financed eight existing communities for total proceeds of approximately $57.7 million[197] - The Company holds a portfolio of marketable equity securities of other REITs valued at $34.5 million, representing 1.9% of undepreciated assets[203] - The weighted average yield on the securities portfolio was approximately 6.7% at December 31, 2023, with unrealized losses of $39.7 million[204] - The Company issued and sold a total of 9.4 million shares of Common Stock, generating gross proceeds of $148.6 million and net proceeds of $145.8 million during 2023[205] - Approximately 2.6 million shares of Series D Preferred Stock were issued, generating gross proceeds of $56.7 million and net proceeds of $55.7 million in 2023[206] - The Company had approximately $57.3 million in cash and cash equivalents and $110 million available on its credit facility as of December 31, 2023[208] - The Company raised approximately $9.0 million in new capital through the Dividend Reinvestment and Stock Purchase Plan during 2023[205] Market and Economic Conditions - The company faces risks associated with potential natural disasters and climate change, which may adversely affect its business operations[48] - The concentration of investments in the manufactured housing sector exposes the company to economic downturns in that sector, impacting cash flow and profitability[48] - Changes in interest rates may affect the company's cost of capital, impacting financial results and operational flexibility[48] - Global economic conditions, including inflation and high unemployment, could materially adversely affect the company's business and financial condition[108] - Future terrorist attacks and military conflicts could adversely affect economic conditions and increase borrowing costs, impacting earnings[134] - Disruptions in financial markets may hinder the company's ability to obtain financing on reasonable terms, affecting property acquisitions and investment strategies[135] Risks and Challenges - The company is subject to risks related to its debt, including potential foreclosure risks due to property mortgages and reliance on external capital sources[48] - The company may face increased competition for acquisitions, leading to higher purchase prices for manufactured home communities[60] - The company may not be able to maintain or increase rental rates and occupancy levels, which could adversely affect revenue generation[55] - The company is subject to various federal, state, and local taxes, which could impact financial performance despite its REIT status[48] - The company may face risks related to public health crises, such as the COVID-19 pandemic, which could adversely affect operations and financial results[60] - The company is subject to significant regulations that may increase costs and inhibit expansion, including compliance with the SAFE Act and other financing laws[69][71] - The company may incur additional debt to maintain its status as a REIT, leading to increased leverage and risk of default on obligations[89] - The company faces risks related to financing home sales, including potential regulatory changes that could impact operating results[94] - The company is subject to various covenants in credit agreements that may limit operational flexibility and could result in defaults if breached[91] - The company may incur losses that exceed insurance coverage, which could adversely affect cash flow and financial condition[81] Occupancy and Rental Rates - The occupancy percentage for developed sites was 97% at 12/31/23, compared to 96% at 12/31/22 for the Allentown community[151] - The average monthly rent per site at Allentown was $568, while Arbor Estates had an average rent of $852 per site[151] - Auburn Estates showed an occupancy increase to 93% at 12/31/23 from 90% at 12/31/22, with an average rent of $443 per site[152] - The company reported a significant occupancy rate of 100% for the Clinton Mobile Home Resort as of 12/31/23[154] - The average monthly rent per site for the Countryside Estates community was reported as $476/$503, indicating a pricing strategy adjustment[154] - The occupancy percentage for the Broadmore Estates community was 92% at 12/31/23, slightly down from 93% at 12/31/22[152] - The average rent per site at Cedarcrest Village was $741, reflecting the company's pricing strategy in high-demand areas[152] - The occupancy percentage for Dallas Mobile Home Community increased to 94% in Q4 2023 from 89% in Q4 2022[156] - D & R Village maintained a stable occupancy rate of 94% for both Q4 2023 and Q4 2022, with a rent per site of $696[156] - Fairview Manor reported a rent per site of $808, with an occupancy rate of 95% for both Q4 2023 and Q4 2022[156] - Friendly Village's occupancy percentage improved to 58% in Q4 2023 from 50% in Q4 2022, with a rent per site of $472[158] - Highland Estates achieved a high occupancy rate of 97% in Q4 2023, slightly down from 98% in Q4 2022, with a rent per site of $716[158] - Kinnebrook reported a 100% occupancy rate in Q4 2023, with a rent per site of $708[160] - Holiday Village's occupancy percentage increased to 93% in Q4 2023 from 90% in Q4 2022, with a rent per site of $579[160] - The average rent per site across various communities shows a range from $191 at Deer Run to $808 at Fairview Manor, indicating diverse pricing strategies[156][160] - The total occupancy percentage across all developed sites increased to 86.7% in 2023 from 84.6% in 2022[170] - The company is focusing on maintaining high occupancy rates while adjusting rent prices to optimize revenue across its communities[156][158][160]