UMH Properties Q4 2024: Key Contradictions on Acquisitions, Costs, and Rental Pricing Stability

These are the key contradictions discussed in UMH Properties' latest 2024Q4 earnings call, specifically including: acquisition pipeline and timing, costs of rental homes, acquisition market interest rates and home sales impact, and rental home pricing stability:



Financial Performance and Shareholder Returns:
- UMH Properties reported normalized FFO of $0.24 per share for Q4 2024, representing a 4% increase from the previous year, and an 8% increase for the full year at $0.93 per share.
- The growth was driven by substantial improvements in occupancy, revenue, and value across the portfolio, along with strategic acquisitions and developments.

Rental Income and Occupancy Growth:
- UMH's rental and related income increased by 8% for the fourth quarter and 9% for the full year, with same property income up 8% for the quarter and 10% for the year.
- This growth was attributed to a 216-unit increase in occupancy, which contributed to a 70 basis point rise in occupancy rates.

Home Sales and Expansions:
- The company's home sales increased by 8%, with $33.5 million in sales in 2024 compared to $31.2 million in 2023.
- This was driven by strategic expansions and new developments in various communities, contributing to significant sales margins and offering a mix of used and new homes.

Acquisition and Development Pipeline:
- UMH acquired four communities, adding 457 sites, with a blended cap rate of approximately 5.5%, and plans for 190 expansion sites in 2025.
- These acquisitions and developments are part of a long-term strategy to grow the rental and sales portfolio through value-add acquisitions and expansions.