Download PDF

1. Company Snapshot

1.a. Company Description

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 124 manufactured home communities containing approximately 23,400 developed homesites.These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland.In addition, the Company owns a portfolio of REIT securities.

Show Full description

1.b. Last Insights on UMH

UMH Properties' recent performance is driven by its undervaluation and growth potential in the affordable housing sector. The company's strategic land bank, high occupancy, and Southeast expansion drive organic FFO growth. Recent results show 12% same-property NOI growth, 11% rental income growth, and 4% normalized FFO/share growth year-over-year. With a 5.64% dividend yield and 16.8x Forward P/FFO, below peers, UMH remains a compelling 'Buy' for income and total returns. Additionally, the company added 170 new homes in Q4 2025, rented and plans to utilize proceeds from a recent $91.8 million loan to invest in acquisitions and expansions.

1.c. Company Highlights

2. UMH Properties' Strong Q3 2025 Earnings Reflect Continued Execution on Growth Strategy

UMH Properties reported normalized FFO of $0.25 per diluted share for the third quarter of 2025, in line with analyst estimates, representing a 4% increase from the same period last year and a 9% sequential increase. The company's financial performance was bolstered by its continued execution on its long-term business plan, resulting in increased occupancy, sales, and net operating income. With a 87.2% occupancy rate across its 145 communities containing approximately 27,000 developed homesites, UMH is well-positioned for continued growth.

Publication Date: Nov -16

📋 Highlights
  • FFO Growth:: Normalized FFO rose 4% YoY to $0.25/share and 9% sequentially.
  • Occupancy & Assets:: 87.2% occupancy across 10,800 rental homes; 27,000 developed sites in 145 communities.
  • Capital Structure:: $673M in debt at 4.83% WAC; raised $80M in 5.85% bonds for growth, with $100M+ annual capital needs.
  • Acquisition Strategy:: Acquired 3 properties (GA, MD) for $17.2M; Southern strategy drove 469% revenue growth in GA.
  • Rental & Sales Growth:: 5% YoY manufactured home sales growth ($9.1M Q3), pipeline of $3M; 30 units/year target from Georgia acquisition.

Operational Highlights

The company's sales of manufactured homes grew 5% year-over-year, with gross sales of $9.1 million in the third quarter. UMH also acquired 2 Maryland communities consisting of 191 lots for a total purchase price of $14.6 million and closed on the acquisition of one community in Georgia for $2.6 million. These acquisitions are expected to contribute to the company's continued growth, with Brett Taft noting that the Georgia acquisition is expected to have a 30% occupancy rate and significant upside potential.

Capital Structure and Funding

UMH raised $80 million in new 5.85% Series B Israeli bonds, which will be deployed accretively over time. The company had approximately $673 million in debt at quarter-end, with a weighted average interest rate of 4.83%. With a strong balance sheet and a 'P/E Ratio' of 41.59, and a 'P/B Ratio' of 1.36, the company is well-positioned to continue growing earnings per share and increasing property values.

Growth Prospects

UMH remains focused on the strong fundamentals of the manufactured housing sector and the broader need for housing across the country. The company is well-positioned to continue growing earnings per share, increasing property values, and enhancing long-term shareholder value, with analysts estimating revenue growth of 8.2% next year. The company's Southern strategy is also working, with revenue increases of 469% in Georgia, 37% in South Carolina, and 23% in Alabama.

Valuation and Return Metrics

With a 'Dividend Yield (%)' of 5.82% and a 'Free Cash Flow Yield (%)' of 6.31%, UMH offers an attractive return profile for investors. However, the company's 'ROIC (%)' of -520.36 and 'ROE (%)' of 3.38 suggest that there may be room for improvement in terms of return on capital. Overall, UMH's strong Q3 2025 earnings reflect the company's continued execution on its growth strategy, and its attractive valuation and return metrics make it an interesting investment opportunity.

3. NewsRoom

Card image cap

REIT Replay: U.S. REIT Indexes Outperform Broader Market During Last Week Of Feb.

Mar -02

Source: seekingalpha.com

Card image cap

UMH Properties, Inc. $UMH Shares Bought by Citigroup Inc.

Mar -01

Source: defenseworld.net

Card image cap

UMH Properties, Inc. (UMH) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

Card image cap

UMH PROPERTIES, INC. REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2025

Feb -25

Source: globenewswire.com

Card image cap

Head to Head Contrast: UMH Properties (NYSE:UMH) & Elme Communities (NYSE:ELME)

Feb -05

Source: defenseworld.net

Card image cap

UMH PROPERTIES, INC. ANNOUNCES TAX TREATMENT FOR 2025 DISTRIBUTIONS

Jan -23

Source: globenewswire.com

Card image cap

UMH PROPERTIES, INC. DECLARES COMMON AND PREFERRED DIVIDENDS

Jan -21

Source: globenewswire.com

Card image cap

3 Stocks Built for America's Affordable Housing Reality

Jan -17

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.56%)

6. Segments

Rental and Related Income

Expected Growth: 8%

The 8% growth in Rental and Related Income from UMH Properties, Inc. is driven by increasing demand for manufactured homes, expansion of existing communities, and strategic acquisitions. Additionally, favorable demographic trends, such as aging baby boomers seeking affordable housing, and a strong economy with low unemployment rates, contribute to the growth.

Manufactured Homes

Expected Growth: 12%

UMH Properties' 12% growth in Manufactured Homes is driven by increasing demand for affordable housing, rising rental income, and strategic acquisitions. Additionally, the company's focus on community expansion, renovation, and redevelopment initiatives has contributed to the growth. Furthermore, the trend towards downsizing and simplification of living arrangements, particularly among baby boomers, has also boosted demand for manufactured homes.

7. Detailed Products

Manufactured Homes

UMH Properties, Inc. offers a wide range of manufactured homes designed to provide affordable and comfortable living solutions. These homes are built in a factory and transported to the site, offering a cost-effective alternative to traditional site-built homes.

Rental Properties

The company owns and operates a portfolio of rental properties, including apartments, homes, and communities, offering a range of rental options to suit different needs and budgets.

Home Sales

UMH Properties, Inc. offers a range of home sales services, including new and pre-owned homes, providing customers with a one-stop-shop for all their home buying needs.

Community Operations

The company provides community operations services, including property management, maintenance, and amenities, to ensure a comfortable and convenient living experience for residents.

Land-Lease Communities

UMH Properties, Inc. owns and operates land-lease communities, offering residents a unique blend of homeownership and community living.

8. UMH Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for UMH Properties, Inc. is medium because while there are some alternative options available, they are not significantly cheaper or better than what UMH Properties, Inc. offers.

Bargaining Power Of Customers

The bargaining power of customers for UMH Properties, Inc. is low because the company has a strong brand and a wide range of products, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for UMH Properties, Inc. is medium because while the company has some negotiating power, suppliers also have some bargaining power due to the specialized nature of their products.

Threat Of New Entrants

The threat of new entrants for UMH Properties, Inc. is high because the company operates in a highly competitive industry with low barriers to entry, making it easy for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry for UMH Properties, Inc. is high because the company operates in a highly competitive industry with many established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.04%
Debt Cost 3.95%
Equity Weight 49.96%
Equity Cost 10.07%
WACC 7.01%
Leverage 100.17%

11. Quality Control: UMH Properties, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Clipper Realty

A-Score: 6.4/10

Value: 9.8

Growth: 6.2

Quality: 5.8

Yield: 10.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
NexPoint Residential Trust

A-Score: 6.0/10

Value: 6.6

Growth: 5.1

Quality: 5.2

Yield: 9.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Centerspace

A-Score: 5.8/10

Value: 6.0

Growth: 3.2

Quality: 4.5

Yield: 8.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
BRT Apartments

A-Score: 5.8/10

Value: 6.1

Growth: 5.3

Quality: 3.8

Yield: 9.0

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
UMH Properties

A-Score: 5.5/10

Value: 3.9

Growth: 2.9

Quality: 4.6

Yield: 9.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Bluerock Homes Trust

A-Score: 5.2/10

Value: 7.5

Growth: 5.6

Quality: 3.2

Yield: 9.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.83$

Current Price

14.83$

Potential

-0.00%

Expected Cash-Flows