Q2 2026 UMH Properties Inc Earnings Call Transcript
Key Points
- Normalized FFO per share increased 9% year-over-year to $0.25, with net income attributable to common shareholders up 75% on a dollar basis.
- Same property NOI grew 9% in Q2 2026, driven by 5% site rent increases and a 437-unit occupancy gain year-over-year.
- Home sales revenue hit a new quarterly record of $11.5 million, up 10% year-over-year, with a strong $5 million sales pipeline and July sales $1 million ahead of last year.
- The Road to Housing Act is expected to boost home sales by improving access to low-dollar-amount financing and allowing chassis-free, two-story homes, which could significantly increase demand for UMH's vacant lots.
- The company has a solid balance sheet with 94% fixed-rate debt, a reduced interest rate on its revolving credit facility, and no common stock ATM sales in over 10 months, supporting liquidity and growth.
- Community operating expenses increased 10% in Q2, driven by higher payroll, real estate taxes, insurance, and water/sewer costs, with same property expenses up 7%.
- Overall occupancy remains at 89%, with only 97 units added in Q2, indicating slower-than-desired fill rates despite strong demand.
- The company faces uncertainty in the pace of sales growth and the impact of the Road to Housing Act, as the exact timing and volume of benefits are not yet clear.
- Weighted average interest rate on mortgage debt increased to 4.75% from 4.52% year-over-year, reflecting higher borrowing costs in a volatile rate environment.
- The company's guidance assumes no acquisitions and no additional ATM share sales, which may limit external growth opportunities and could be conservative if market conditions change.
Good morning and welcome to UMH Properties second-quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
It is now my pleasure to introduce your host, Mr. Craig Koster, Executive Vice President and General Counsel. Thank you. Mr. Koster, you may begin.
Thank you very much, Operator. In addition to the 10-Q that we filed with the SEC yesterday, we have filed an unaudited second-quarter supplemental information presentation. This supplemental information presentation, along with our 10-Q, are available on the company's website at umh.reit.
We would like to remind everyone that certain statements made during this conference call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements that we make on this call are based on our current expectations and involve various risks and
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