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Jun 30, 2023
UMH Properties Q2 2023 Earnings Report
Reported solid operating results driven by strong demand and increased occupancy.
Key Takeaways
UMH Properties reported a 12.3% increase in total income, with Normalized FFO growing sequentially, indicating improved bottom-line results. The company saw growth in sales and reduced its inventory, leading to increased cash flows from operating activities.
Total income increased by 12.3% compared to the same quarter last year.
Net Loss Attributable to Common Shareholders was $4.4 million, an improvement from the $22.5 million loss in the prior year quarter.
Normalized FFO increased to $13.0 million, or $0.21 per diluted share.
Same property NOI increased by 12.6% due to increased occupancy and rental rate increases.
Forward Guidance
UMH Properties continues to execute its long-term business plan, focusing on value-add acquisitions, expansions, and greenfield development to generate excellent long-term returns and deliver shareholders a resilient and growing dividend.
Positive Outlook
- Strong demand in communities is translating to increased occupancy.
- Revenue growth is meeting expectations.
- NOI growth is increasing due to operational strength.
- Inventory levels are being reduced, contributing to cash flow improvements.
- Sales are experiencing growth.
Challenges Ahead
- Higher than usual inventory levels resulted in increased carrying costs.
- High interest expense associated with floorplan lines impacted profitability.
- Investments in acquisitions, expansions, and greenfield development take time to become accretive.
- The company incurred a net loss attributable to common shareholders.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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