Q2 2024 UMH Properties Inc Earnings Call Transcript
Key Points
- UMH Properties Inc (UMH) reported a 10% year-over-year increase in normalized FFO per share for the second quarter of 2024, from $0.21 to $0.23.
- The company announced a 4.9% increase in its quarterly common stock dividend, raising it to $0.215 per share.
- UMH experienced strong demand for home sales and rentals, with overall occupancy increasing by 64 units to 87% during the quarter.
- Rental and related income for the quarter increased by 9% compared to the previous year, driven by higher rental rates and occupancy.
- UMH has a strong balance sheet with net debt to total market capitalization of less than 30%, positioning it well for future investments and growth opportunities.
- Community operating expenses increased by 8% during the quarter, primarily due to higher payroll costs, real estate taxes, and rental home expenses.
- The weighted average interest rate on mortgage debt increased from 3.88% last year to 4.17% this year, impacting financing costs.
- UMH's expansion sites are not yet fully occupied and accretive to earnings, indicating a delay in realizing potential revenue from these investments.
- The company faces challenges in monetizing vacant land, requiring government approvals for joint ventures and development projects.
- UMH's guidance for the remainder of 2024 includes significant capital needs of $110 million to $120 million, which may require additional equity or debt financing.
Good morning, and welcome to UMH Properties second-quarter 2024 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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