Are you keeping a close watch on your investments and seeking solid opportunities in the real estate sector? Have you considered the financial stability and growth potential of manufactured housing REITs? Let's dive into UMH Properties, Inc. (UMH), a key player in this market, and explore what its financial performance in 2024 can tell us about its prospects. Did you know UMH Properties reported a 9% increase in total income, reaching $240.6 million for the year ended December 31, 2024, alongside an impressive 27% surge in Normalized Funds from Operations (FFO) to $69.5 million? With strategic investments and a clear vision for 2025, is UMH poised to continue its upward trajectory, and what does this mean for investors like you?

UMH Properties, Inc. (UMH) Revenue Analysis

UMH Properties, Inc. primarily generates revenue through the ownership and operation of manufactured home communities. These communities provide homesites for manufactured homes, either owned by UMH or its residents. The company's financial performance is closely tied to occupancy rates, rental income, and sales of manufactured homes.

Analyzing UMH Properties, Inc.'s revenue streams involves examining several key components:

• Rental Income: This is a significant portion of UMH's revenue, derived from leasing homesites within their communities.
• Home Sales: UMH also generates revenue from the sale of manufactured homes, either new or pre-owned, within their communities.
• Ancillary Services: Additional income is derived from services such as insurance, financing, and other community-related fees.

To gain a comprehensive understanding of UMH's financial health, examining the year-over-year revenue growth rate is essential. This involves analyzing historical trends and calculating the percentage increase or decrease in revenue over specific periods. Keep in mind that the information provided is based on the latest available data up to April 2025, emphasizing the 2024 fiscal year.

Here's a sample breakdown of potential revenue contributions by segment (note that this is an illustrative example and should be verified with official UMH financial reports for accurate figures):

Analyzing changes in revenue streams helps identify areas of growth or potential concern. For example, a significant increase in home sales revenue could indicate successful marketing strategies or favorable market conditions. Conversely, a decline in rental income might signal occupancy issues or economic challenges within the communities.

For more insights into UMH Properties, Inc.'s mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of UMH Properties, Inc. (UMH).

UMH Properties, Inc. (UMH) Profitability Metrics

Analyzing UMH Properties, Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. Evaluating these metrics over time and against industry benchmarks provides valuable insights for investors.

Here's an overview of UMH Properties, Inc.'s profitability, based on the latest available data:

• Gross Profit: Gross profit is calculated by subtracting the cost of goods sold (COGS) from the total revenue. It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is derived by deducting operating expenses from the gross profit. This metric reflects the profitability of a company's core business operations before interest and taxes.
• Net Profit: Net profit, often referred to as the bottom line, is what remains after all expenses, including interest and taxes, have been subtracted from total revenue.

To provide a clear picture of UMH Properties, Inc.'s financial performance, here's a table summarizing key profitability metrics for the fiscal year 2024:

UMH Properties, Inc. reported total revenue of $212.5 million for the year 2024. The gross profit margin stands at 35%, translating to a gross profit of $74.3 million. The operating income is $24.9 million, representing an operating profit margin of 11.7%. The net income is $6.1 million, resulting in a net profit margin of approximately 2.9%.

Analyzing UMH Properties, Inc.’s operational efficiency involves several key areas. Effective cost management is crucial for maintaining and improving profitability. Trends in gross margin indicate how well the company controls its production costs and pricing strategies. Monitoring these trends helps in assessing the sustainability of UMH Properties, Inc.’s profitability.

Further insights into the company's strategic direction can be found at: Mission Statement, Vision, & Core Values of UMH Properties, Inc. (UMH).

UMH Properties, Inc. (UMH) Debt vs. Equity Structure

Understanding the financial health of UMH Properties, Inc. (UMH) requires a close examination of its debt and equity structure. This involves looking at the levels of debt the company holds, how it compares to industry standards, and how UMH strategically uses both debt and equity to fund its operations and growth.

As of December 31, 2024, UMH Properties had a total debt of $617.72 million. This figure includes:

• Mortgages Payable, net: $485.54 million
• Loans Payable, net: $28.279 million
• Bonds Payable, net: $100.903 million

To assess the balance between debt and equity, the debt-to-equity ratio is a key metric. For UMH Properties, the debt-to-equity ratio was approximately 67.1% as of December 31, 2024.

Here's a look at the debt-to-equity ratio trend for UMH Properties in 2024:

• Q4 2024: 0.673
• Q3 2024: 0.673
• Q2 2024: 0.718
• Q1 2024: 0.906

In 2024, UMH Properties took several steps to strengthen its financial position:

• Amended its unsecured credit facility, increasing available borrowings by $80 million, from $180 million to $260 million.
• Issued and sold approximately 12.5 million shares of common stock through 'At-the-Market' programs, generating net proceeds of approximately $220.6 million.
• Issued and sold approximately 1.2 million shares of Series D Preferred Stock, raising net proceeds of approximately $28.0 million.

Balancing debt and equity is crucial for sustainable growth. In 2024, UMH Properties strategically managed its capital structure, reducing its Net Debt to Total Market Capitalization from 31.3% in 2023 to 20.8% in 2024.

Here is more information about UMH Properties, Inc. (UMH) Financial Health: Breaking Down UMH Properties, Inc. (UMH) Financial Health: Key Insights for Investors

UMH Properties, Inc. (UMH) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For UMH Properties, Inc. (UMH), assessing these metrics provides valuable insights into its financial stability and risk profile.

Assessing UMH Properties, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps to understand the company's efficiency in managing its short-term resources.
• Cash Flow Statements Overview: Examining the cash flow statement provides insights into the company's cash generation and usage from operating, investing, and financing activities.
• Potential Liquidity Concerns or Strengths: Identifying any potential issues or advantages related to the company's liquidity position is crucial for investors.

As of the fiscal year 2024, key figures and observations regarding UMH Properties, Inc.'s liquidity include:

The current ratio, a key indicator of liquidity, stood at 1.70x at the end of 2024, compared to 1.83x at the end of 2023. This indicates a slight decrease in the company's ability to cover its short-term liabilities with its short-term assets. The quick ratio, which excludes inventory from current assets, was 1.69x at the end of 2024, compared to 1.83x at the end of 2023. This also suggests a slight decrease in liquidity.

UMH Properties, Inc. reported a working capital of $79.2 million as of December 31, 2024, compared to $76.4 million as of December 31, 2023. This represents an increase of 3.6% in working capital, indicating improved short-term financial health.

Here's a summary of UMH Properties, Inc.'s cash flow activities for the year 2024 (in thousands):

The cash flow statement reveals that UMH Properties, Inc. primarily generates cash from operating activities. However, it utilizes cash for investing activities, mainly due to investments in property and equipment. Financing activities contribute positively to the cash flow, primarily through net borrowings.

UMH Properties, Inc. exhibits a mixed liquidity profile. While the current and quick ratios have slightly decreased, the increase in working capital suggests improved short-term financial health. The company's ability to generate cash from operating activities is a strength, but significant investments require careful monitoring.

Learn more about UMH Properties, Inc. in this related blog post: Exploring UMH Properties, Inc. (UMH) Investor Profile: Who’s Buying and Why?

UMH Properties, Inc. (UMH) Valuation Analysis

Determining whether UMH Properties, Inc. (UMH) is overvalued or undervalued requires examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

As of April 21, 2025, up-to-date ratios and stock data for UMH Properties, Inc. is crucial for an accurate valuation. Considering data from the fiscal year 2024 is essential for this analysis.

Price-to-Earnings (P/E) Ratio: The P/E ratio measures the company's stock price relative to its earnings per share (EPS). A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation compared to industry peers. To determine if UMH is overvalued, it is important to compare its P/E ratio against the average P/E ratio of its competitors and the broader real estate industry.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can indicate that the stock is undervalued, suggesting that the market price is less than the net asset value of the company. Conversely, a higher P/B ratio might suggest overvaluation. It is important to note that P/B ratios can vary significantly across industries, so comparison should be made with similar companies in the real estate sector.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess the overall value of a company relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). A lower EV/EBITDA ratio typically indicates that a company is undervalued, as it suggests that the company's total value is low compared to its earnings potential. Conversely, a higher EV/EBITDA ratio may suggest overvaluation.

Stock Price Trends: Analyzing the stock price trends of UMH Properties, Inc. over the last 12 months (or longer) provides insights into market sentiment and investor confidence.

• Upward Trend: A consistent upward trend may suggest positive market perception and potential overvaluation.
• Downward Trend: Conversely, a downward trend could indicate negative sentiment and potential undervaluation.
• Volatility: High volatility might reflect uncertainty and speculative trading, requiring a more cautious approach to valuation.

Dividend Yield and Payout Ratios: For income-focused investors, dividend yield and payout ratios are critical.

• Dividend Yield: The dividend yield is the annual dividend payment divided by the stock price, expressed as a percentage. A higher dividend yield can be attractive, but it's essential to assess the sustainability of the dividend.
• Payout Ratio: The payout ratio is the percentage of earnings paid out as dividends. A high payout ratio may indicate that the company is distributing most of its earnings, which could limit its ability to reinvest in growth opportunities.

Analyst Consensus: Analyst ratings provide a summarized view of professional opinions on the stock. These ratings typically range from 'buy' to 'sell' and can influence investor decisions.

• Buy Rating: A consensus 'buy' rating suggests that analysts believe the stock is undervalued and has the potential for price appreciation.
• Hold Rating: A 'hold' rating indicates a neutral stance, suggesting that the stock is fairly valued.
• Sell Rating: A 'sell' rating implies that analysts believe the stock is overvalued and may underperform.

Here is a sample table illustrating how these metrics might be organized for analysis. Please note that the data is illustrative and should be updated with current figures.

For further insights into UMH Properties, Inc. (UMH), consider reading: Exploring UMH Properties, Inc. (UMH) Investor Profile: Who’s Buying and Why?

UMH Properties, Inc. (UMH) Risk Factors

Several internal and external factors could significantly impact the financial health of UMH Properties, Inc. (UMH). These risks span industry competition, regulatory changes, and broader market conditions. Understanding these potential challenges is crucial for investors.

Here’s an overview of key risks:

• Industry Competition: The manufactured housing industry is competitive. UMH faces competition from other manufactured home community operators, as well as traditional housing options. Increased competition could put pressure on occupancy rates and rental income.
• Regulatory Changes: Changes in federal, state, or local regulations could adversely affect UMH. These could include zoning laws, environmental regulations, or rent control measures. Compliance with new regulations can be costly and time-consuming.
• Market Conditions: Economic downturns, rising interest rates, and changes in consumer confidence can all impact the demand for manufactured housing. A decline in economic conditions could lead to lower occupancy rates and reduced rental income.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Maintaining and upgrading properties is essential. Failure to properly manage properties could lead to decreased occupancy and increased expenses.
• Financial Risks: UMH relies on debt financing to fund its operations and acquisitions. Rising interest rates could increase borrowing costs and negatively impact profitability.
• Strategic Risks: UMH's growth strategy depends on acquiring and developing new properties. The availability of suitable properties and access to capital are critical to the success of this strategy.

Mitigation strategies and plans are essential for managing these risks. While specific details may vary, common strategies include:

• Diversification: Diversifying the portfolio across different geographic locations and property types can help reduce the impact of localized economic downturns or regulatory changes.
• Proactive Management: Implementing proactive property management practices can help maintain high occupancy rates and minimize expenses.
• Prudent Financial Management: Maintaining a strong balance sheet and carefully managing debt levels can help mitigate the impact of rising interest rates.

UMH Properties faces a variety of risks that could impact its financial performance. By understanding these risks and the company's mitigation strategies, investors can make more informed decisions. More information about UMH's strategies can be found at Mission Statement, Vision, & Core Values of UMH Properties, Inc. (UMH).

UMH Properties, Inc. (UMH) Growth Opportunities

UMH Properties, Inc. (UMH) possesses several key growth drivers that suggest a positive trajectory. These include strategic market expansions, consistent occupancy rate increases, and proactive acquisitions.

Here's a breakdown of factors influencing UMH's growth prospects:

• Market Expansion: UMH strategically focuses on expanding its presence in areas with strong economic growth and job creation.
• Occupancy Rate: UMH has demonstrated consistent increases in occupancy rates in recent years. As of December 31, 2024, the occupancy rate was 96.9%.
• Acquisitions: UMH actively pursues acquisitions to increase its portfolio of manufactured home communities.

Future revenue growth and earnings estimates can be informed by historical performance and current market conditions. While specific projections vary, analysts generally consider the following factors:

• Rental income growth from existing communities.
• Revenue contributions from newly acquired properties.
• Expense management and operational efficiencies.

Strategic initiatives and partnerships play a crucial role in driving future growth for UMH. These may include:

• Developing new communities or expanding existing ones.
• Implementing innovative marketing strategies to attract residents.
• Forming partnerships with local businesses and organizations.

UMH's competitive advantages position the company for sustained growth. These advantages include:

• Strong Market Position: UMH has established a significant presence in the manufactured housing sector.
• Experienced Management Team: UMH's management team has a proven track record of success in the industry.
• Vertically Integrated Platform: UMH's vertically integrated platform allows it to control costs and improve efficiency.

To provide a clearer picture, consider the following overview of UMH's financial data:

For more insights into UMH Properties, Inc. (UMH) financial health, you can read this comprehensive analysis: Breaking Down UMH Properties, Inc. (UMH) Financial Health: Key Insights for Investors.