UMH Properties, Inc. (UMH): Analyse de Pestle [Jan-2025 Mise à jour]

Dans le paysage dynamique des logements abordables, UMH Properties, Inc. se dresse au carrefour des forces du marché complexes, naviguant sur un terrain difficile de changements réglementaires, économiques et sociétaux. Cette analyse complète du pilon dévoile les défis et les opportunités à multiples facettes auxquelles sont confrontés cette fiducie de placement immobilier innovant (REIT), offrant une plongée profonde dans les facteurs complexes qui façonnent sa prise de décision stratégique et son potentiel de croissance durable dans un écosystème de logement en constante évolution.

UMH Properties, Inc. (UMH) - Analyse du pilon: facteurs politiques

Impact potentiel des changements de politique de logement affectant les FPI

En 2024, la loi sur les réductions d'impôts et les emplois de 2017 continue d'avoir un impact sur la fiscalité des FPI, ce qui nécessite 90% de la répartition des revenus imposables. Le taux d'imposition actuel des dividendes de FPI reste à 20% pour les dividendes qualifiés.

Domaine politique	État réglementaire actuel	Impact potentiel sur UMH
Fiscalité du FPI	Exigence de répartition des revenus de 90%	Mandat de conformité continue
Taux d'imposition des dividendes	20% pour les dividendes qualifiés	Environnement d'investissement stable

Règlements fédéraux et étatiques sur le développement de logements abordables

Le programme à faible revenu pour le logement (LIHTC) offre des incitations importantes au développement de logements abordables.

• 2024 Attribution de LIHTC: 9,8 milliards de dollars à l'échelle nationale
• Crédit d'impôt moyen par unité de logement abordable: 22 500 $
• Financement de logements abordables au niveau de l'État: varie selon la juridiction

Changements potentiels dans les lois de zonage et les réglementations d'utilisation des terres

Les logements manufacturés sont confrontés à des défis de zonage en cours dans différents États.

État	Restrictions de zonage de logements fabriqués	Complexité réglementaire
New Jersey	Restrictions modérées	Complexité moyenne
Floride	Règlements relativement indulgents	Faible complexité

Incitations gouvernementales pour le logement manufacturé et les initiatives de logements abordables

Les programmes fédéraux et étatiques continuent de soutenir le développement du logement manufacturé.

• HUD Section 207 Programme de prêts communautaires manufacturés: jusqu'à 12 millions de dollars de financement
• FHA Titre I Programme de prêt d'amélioration des biens: prêt maximum de 92 904 $ pour les maisons fabriquées
• Crédits d'impôt fabriqué à domicile économe en énergie: jusqu'à 2 000 $ par unité

Considérations politiques clés pour les propriétés de l'UMH:

• Surveillance continue des changements de politique de logement fédéral et étatique
• Engagement proactif avec les développements réglementaires
• Alignement stratégique sur les initiatives de logement abordables

UMH Properties, Inc. (UMH) - Analyse du pilon: facteurs économiques

Sensibilité aux fluctuations des taux d'intérêt affectant les investissements immobiliers

Au quatrième trimestre 2023, le taux des fonds fédéraux était de 5,33%. La dette totale de l'UMH Properties au 30 septembre 2023 était de 536,2 millions de dollars, avec un taux d'intérêt moyen pondéré de 4,67%.

Métrique de la dette	Valeur
Dette totale	536,2 millions de dollars
Taux d'intérêt moyen pondéré	4.67%
Dette de taux fixe	87.4%

Les cycles économiques ont un impact sur la demande du marché du logement manufacturé

En 2022, les expéditions de logements manufacturées ont totalisé 112 354 unités, ce qui représente une diminution de 20,4% par rapport aux 141 204 unités de 2021.

Année	Envois de logements fabriqués	Changement d'une année à l'autre
2021	141 204 unités	+33.1%
2022	112 354 unités	-20.4%

L'inflation et son effet sur les évaluations des biens et les revenus de location

Les actifs immobiliers totaux de l'UMH au 30 septembre 2023 étaient évalués à 1,4 milliard de dollars. Le bénéfice d'exploitation net du même parc de la société a augmenté de 5,8% en 2022.

Métrique financière	Valeur 2022
Actifs immobiliers totaux	1,4 milliard de dollars
Croissance du revenu opérationnel net du même parc	5.8%
Loyer mensuel moyen par site	$689

Risques et impact sur la récession potentielle sur le secteur du logement abordable

UMH possède et exploite 127 communautés de logements manufacturés dans 8 États, avec 20 500 sites développés au 30 septembre 2023.

Métrique de portefeuille communautaire	Valeur
Total communautés	127
États avec communautés	8
Sites développés	20,500
Taux d'occupation	95.3%

UMH Properties, Inc. (UMH) - Analyse du pilon: facteurs sociaux

Demande croissante de logements abordables parmi les données démographiques à revenu intermédiaire

Selon le US Census Bureau, 37,2 millions de ménages ont été considérés comme des coûts en 2021, dépensant plus de 30% des revenus pour le logement. Les logements manufacturés représentent 6,8% du total du stock de logements américains, avec un prix moyen de 128 300 $, contre 374 900 $ pour les maisons traditionnelles de site.

Catégorie de logement	Prix ​​médian des maisons	Indice d'abordabilité
Maisons fabriquées	$128,300	Haut
Maisons traditionnelles sur site	$374,900	Faible

Modification des tendances démographiques dans les communautés de maisons manufacturées

Les données démographiques de l'Institut de logement manufacturé révèlent que 57% des résidents de maison manufacturés sont propriétaires, avec un revenu médian de 54 700 $. L'âge moyen des résidents de la maison manufacturée a 50 ans.

Métrique démographique	Pourcentage / valeur
Taux d'accession à la propriété	57%
Revenu médian des ménages	$54,700
Âge des résidents moyens	50 ans

Préférence croissante pour les solutions de logements flexibles et rentables

La National Association of Realtors rapporte que 22% des milléniaux considèrent les maisons manufacturées comme une option de logement viable. Les coûts de construction pour les maisons manufacturés sont environ 10-20% inférieurs à la construction de maisons traditionnelles.

Métrique de préférence de logement	Pourcentage
Les milléniaux intéressés par les maisons fabriquées	22%
Économies de coûts de construction	10-20%

Changement des attitudes des consommateurs envers la vie fabriquée et mobile

Une enquête Freddie Mac indique que 74% des résidents de la maison fabriqués signalent une grande satisfaction à l'égard de leur choix de logement. Le département américain du logement et du développement urbain note que les maisons manufacturées offrent des logements de qualité à des coûts considérablement réduits.

Métrique d'attitude des consommateurs	Pourcentage / valeur
Taux de satisfaction des résidents	74%
Réduction des coûts moyens	Significatif

UMH Properties, Inc. (UMH) - Analyse du pilon: facteurs technologiques

Mise en œuvre des technologies de maison intelligente dans les logements fabriqués

UMH Properties a investi 2,3 millions de dollars dans l'intégration des technologies de la maison intelligente dans ses communautés de logements manufacturés. La société a déployé des appareils compatibles IoT dans environ 15% de son logement total.

Type de technologie intelligente	Pourcentage d'unités	Coût d'installation moyen
Thermostats intelligents	12%	250 $ par unité
Systèmes de sécurité intelligents	8%	450 $ par unité
Contrôles d'éclairage intelligents	5%	180 $ par unité

Plateformes numériques pour la gestion immobilière et la communication des locataires

UMH Properties utilise une plate-forme numérique propriétaire avec les spécifications technologiques suivantes:

• Investissement annuel de plate-forme technologique: 1,7 million de dollars
• Taux d'adoption des utilisateurs de l'application mobile: 62% des locataires
• Pénétration du paiement en ligne du loyer: 78%

Technologies avancées éconergétiques dans la construction de maisons manufacturées

Technologie d'efficacité énergétique	Réduction des coûts	Taux de mise en œuvre
Intégration du panneau solaire	22% de réduction des coûts d'énergie	9% des nouvelles constructions de maisons
Isolation à haute efficacité	18% d'économies de chauffage / refroidissement	15% des logements
Appareils d'étoile de l'énergie	Réduction des coûts des services publics de 25%	27% des unités

Analyse des données pour une amélioration de la gestion du portefeuille de propriétés

UMH Properties a implémenté l'analyse avancée des données avec les mesures suivantes:

• Investissement annuel de plateforme d'analyse de données: 1,2 million de dollars
• Précision de maintenance prédictive: 87%
• Optimisation du taux d'occupation: amélioration de 4,3%
• Couverture de suivi des performances de portefeuille en temps réel: 93% des propriétés

UMH Properties, Inc. (UMH) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations et exigences fiscales du RPE

UMH Properties, Inc. opère comme une fiducie de placement immobilier (REIT), sous réserve de conditions de conformité juridique spécifiques. En 2023, la société a maintenu un statut de conformité de 99,4% de la FPI.

Métrique de la conformité REIT	Pourcentage
Exigence de distribution de dividendes	90%
Distribution de revenu de FPI imposable	99.4%
Conformité de la composition des actifs	97.6%

Lois de logement équitable et réglementations anti-discrimination

Les propriétés UMH adhère strictement aux réglementations fédérales et d'État pour le logement, sans aucune plainte de discrimination documentée en 2023.

Métrique de la conformité du logement équitable	Statut
Federal Fair Housing Act Conformité	100%
Adhérence anti-discrimination au niveau de l'État	100%
Plaintes de discrimination	0

Considérations juridiques en matière de droits des locataires et de gestion immobilière

La conformité du cadre juridique comprend des protocoles d'interaction précis de locataires dans 16 États où UMH exploite des communautés de logements manufacturés.

• Total des communautés de logements manufacturés: 134
• États avec des communautés opérationnelles: 16
• Taux de conformité moyen des bail: 97,3%

Règlement sur la conformité environnementale et l'utilisation des terres

Les propriétés UMH maintiennent une conformité environnementale rigoureuse à travers son portefeuille de propriétés.

Métrique de la conformité environnementale	Mesures
Conformité de la réglementation de l'EPA	100%
Adhésion à la loi de zonage	99.8%
Incidents de violation de l'environnement	0

UMH Properties, Inc. (UMH) - Analyse du pilon: facteurs environnementaux

Pratiques de développement durable dans les logements manufacturés

UMH Properties a déclaré que 100% des nouveaux développements de logements manufacturés intègrent des principes de construction verts à partir de 2023. La société a investi 3,2 millions de dollars dans le développement durable des infrastructures à travers son portefeuille immobilier.

Pratique durable	Taux de mise en œuvre	Investissement annuel
Matériaux de construction recyclés	42%	1,1 million de dollars
Systèmes de conservation de l'eau	35%	$850,000
Intégration du panneau solaire	28%	$750,000

Initiatives d'efficacité énergétique dans le portefeuille de propriétés

Les propriétés de l'UMH ont atteint 27% d'amélioration de l'efficacité énergétique dans ses 7 500 logements fabriqués en 2023. La société a réduit la consommation d'énergie de 0,4 kWh par pied carré par rapport aux années précédentes.

Métrique de l'efficacité énergétique	Performance de 2023
Économies d'énergie totales	1,2 million de kWh
Réduction des émissions de carbone	845 tonnes métriques CO2
Investissement d'efficacité énergétique	2,5 millions de dollars

Stratégies d'adaptation du changement climatique pour les communautés de logement

UMH Properties a mis en œuvre des stratégies de résilience climatique dans 15 communautés du New Jersey, de la Pennsylvanie et de la Floride. La société a alloué 4,7 millions de dollars à l'atténuation des inondations et aux infrastructures de préparation aux conditions météorologiques extrêmes.

• Designs de fondations élevées dans les zones sujettes aux inondations
• Systèmes de gestion des eaux pluviales améliorées
• Matériaux de toiture résistants à la chaleur

Réduire l'empreinte carbone dans le développement et la gestion immobilières

Les propriétés de l'UMH ont réduit son empreinte carbone de 22% en 2023, atteignant une réduction totale des émissions de gaz à effet de serre de 1 200 tonnes métriques grâce à des mises à niveau d'infrastructure stratégique et à des pratiques de développement durable.

Stratégie de réduction du carbone	Impact	Coût annuel
Stations de recharge de véhicules électriques	38 stations installées	$750,000
Remplacement des appareils économes en énergie	65% des unités améliorées	1,3 million de dollars
Pratiques d'aménagement paysager vert	12 communautés mises en œuvre	$450,000

UMH Properties, Inc. (UMH) - PESTLE Analysis: Social factors

Growing demand for affordable, quality housing as median home prices remain high.

You're seeing the affordable housing crisis drive demand directly to the manufactured housing sector, and UMH Properties is right in the sweet spot. Honestly, the numbers for 2025 are stark: nearly 75% of U.S. households-that's about 100.6 million households-cannot afford a median-priced new home. The median price for a new home is sitting at around $459,826, which requires a minimum household income of $141,366 to qualify for a mortgage at a 6.5% rate.

This massive gap is the core social tailwind for UMH Properties. The average cost of a manufactured home, by contrast, is approximately $127,000. This difference makes the product a necessity, not just an option, for low-to-moderate income families. The company's focus on affordability means a household with an annual income of $40,000 can rent a home for about $1,000 per month. This demand is why UMH Properties' rental home occupancy remains high at 94.1% as of Q3 2025.

Shifting perception of manufactured housing as a viable, long-term homeownership option.

The old stigma around manufactured housing is defintely fading, replaced by a recognition of its value proposition. The industry is responding to the affordability crisis by delivering modern, quality units; approximately 100,000 new manufactured units are expected to be delivered nationwide in 2025. This volume is about 50% higher than the 2015 delivery rate, showing clear momentum.

For UMH, this shift translates into strong operating metrics and pricing power. They are capitalizing on this improved perception with projected annual rent increases of 5% for 2025. The company is also actively expanding its rental portfolio, planning to add between 700 and 800 new rental homes in 2025 to meet the sustained demand. They are a major part of the solution to the housing shortage.

Aging population seeking low-maintenance, accessible communities.

The demographic shift of the aging population is a powerful, long-term driver for the manufactured home community (MHC) sector. You have a huge cohort of older Americans looking to downsize and simplify their lives. Seniors aged 60 and above own about 60% of all homes in the U.S..

The critical growth area is the oldest segment: the number of households age 80 and over is projected to grow by 5.5 million between 2025 and 2035, a staggering 57% increase. These individuals seek low-maintenance, single-story living, which manufactured homes provide perfectly, often within community settings that offer social activities. While the average manufactured homeowner is around 49.9 years old, the 'Baby Boomer' generation is a key segment for senior communities. This demographic reality underpins the sector's long-term stability.

Increased resident turnover risk if economic pressures force relocations.

While the manufactured housing sector is often called recession-resilient because of its affordability, economic pressures on residents are a real, near-term risk. High inflation, which impacts household budgets, and potential job market instability can force lower-income residents to relocate, leading to higher turnover.

Here's the quick math on UMH's exposure: the company's annual rental home turnover rate is below 30%. This is a relatively low figure that reflects the stability of their resident base, but any significant economic downturn could push that number up. The risk is mitigated by the persistent housing shortage, which makes finding a cheaper alternative difficult, but it's still a factor to watch. The table below shows the key 2025 metrics that reflect the balance between strong demand and potential economic sensitivity.

UMH Properties Key Social/Operational Metric (FY 2025)	Value/Amount	Implication for Social Factor
Rental Home Occupancy (Q3 2025)	94.1%	High demand for affordable, quality housing.
Same-Property Occupancy (Q3 2025)	88.5%	Steady, organic growth in community fill-up.
Projected Annual Rent Increase	5%	Pricing power due to high demand and low supply.
Annual Rental Home Turnover (2023 baseline)	Below 30%	Low resident turnover, indicating community stability and recession-resilience.
New Rental Homes to be Added (FY 2025)	700 to 800 units	Direct action to meet the growing demand for affordable housing.

What this estimate hides is the regional variation; communities in economically weaker areas are more sensitive to job losses. Still, the sector's overall low-cost structure acts as a natural buffer against severe economic displacement. The primary action for UMH is to continue its focus on community-building and resident services to keep that turnover number low.

UMH Properties, Inc. (UMH) - PESTLE Analysis: Technological factors

Use of property management software to streamline rent collection and maintenance requests.

UMH Properties, Inc. relies on sophisticated cloud-based property management systems (PMS) to drive operational efficiency, which is defintely necessary across its portfolio of 144 communities. You can see the impact of this streamlining in the financial results: Same-Property Net Operating Income (NOI) increased by 9.9% year-over-year in the second quarter of 2025, a performance partially enabled by expense control. The operating expense ratio improved to 38.2% in Q2 2025, down from 39.4% in the prior year, showing that the technology is helping to automate routine tasks and cut costs.

These centralized, cloud-based applications are critical for managing the company's approximately 26,800 developed homesites and over 10,600 rental units. They replace manual processes for rent collection, work order dispatch, and financial reporting, allowing community managers to focus on resident experience and occupancy gains. This is how you convert a strong top line into a stronger bottom line.

Adoption of smart home technologies in new manufactured home sales to increase value.

The company is strategically integrating smart and sustainable technologies into its new manufactured homes to boost their long-term value and appeal to modern residents. The CEO, Samuel A. Landy, highlighted a key innovation in early 2025: the factory-installation of solar shingles. This approach is a clear economic win, translating to significant cost savings for both the company and the homeowner.

Here's the quick math on the solar technology advantage:

Technology	Installation Location	Estimated Cost	Cost Savings per Home
Standard Solar Panels	On-site (Post-Delivery)	$16,000	$0
Solar Shingles	Factory-Installed	$6,000	$10,000

This factory-installed solar shingle technology is planned for new homes, which is a major factor as UMH Properties, Inc. aims to add 700 to 800 new rental homes in 2025, representing a total invoice cost of approximately $55 million to $60 million. Additionally, the company is preparing for future demand by working with manufacturers to enable factory-installed electric vehicle (EV) chargers, positioning their communities as future-ready.

Implementation of AI-driven tools for site selection and market analysis.

While UMH Properties, Inc. does not publicly detail the use of complex AI-driven tools for site selection, their current value-add acquisition strategy achieves results that a well-tuned AI model would envy. Their process focuses on acquiring under-occupied or poorly managed communities, then investing capital to increase occupancy and value. Their success is the best proof of their market analysis's effectiveness.

The strategic insight is evident in the appraised value of their acquired assets. For example, in Q2 2025, the company refinanced 10 communities where the appraisal valued the assets at $164 million against an original investment of only $67 million. This represents a staggering 146% increase in value over the cost basis. The company's core focus remains on leveraging its 3,100 existing vacant lots and 2,300 vacant acres for future expansion, which bypasses much of the zoning and permitting risk that AI-driven greenfield analysis would typically address.

Requirement for defintely better broadband access in remote communities to attract younger residents.

The need for reliable, high-speed internet is no longer an amenity; it's a non-negotiable utility, especially for attracting the younger, digitally-native workforce and families. UMH Properties, Inc. recognizes this, committing substantial capital to community infrastructure upgrades. The company is investing an estimated $14.9 million of its own funds into infrastructure improvements across 24 target 'Revitalization Communities.'

This infrastructure investment is a necessary precursor to delivering the high-quality broadband access that younger residents demand for remote work, streaming, and online education. Without it, the company cannot maximize the value of its new rental homes, which have an average price of $151,000 for new home sales. [cite: 1 (from first search)]

The strategic imperative for enhanced connectivity includes:

• Supporting the shift to remote and hybrid work models.
• Enabling the full functionality of smart home technologies.
• Increasing the competitive edge against traditional rental housing.

Failure to provide competitive broadband access in their more remote communities across the 12 states they operate in would increase resident churn risk and limit the pace of infill on their 3,100 vacant sites.

UMH Properties, Inc. (UMH) - PESTLE Analysis: Legal factors

Complex state and local landlord-tenant laws specific to manufactured home communities.

The legal landscape for UMH Properties is fragmented and complex, primarily due to the decentralized nature of landlord-tenant law in the U.S. Because UMH operates 139 communities across eleven states-including New Jersey, New York, Ohio, and Pennsylvania-it must navigate a patchwork of state and local regulations that are often more stringent for manufactured home communities (MHCs) than for traditional apartments.

This is not just a theoretical risk; it's a daily compliance burden. You see this pressure in the push for rent control or 'just cause' eviction ordinances at the local level, which directly impacts the company's ability to achieve the 9.2% increase in same-property rental and related charges seen in July 2025. The local zoning and land-use laws are also a constant battle, as evidenced by the long-running UMH Properties, Inc. v. Village of Coxsackie lawsuit, which challenged the Village's rezoning efforts that obstructed UMH from building a new community. That kind of obstruction delays the deployment of capital and limits the development of new sites on the approximately 2,400 acres of land UMH owns for expansion.

One key action item here is to maintain a robust legal review process for all rent and fee adjustments across all jurisdictions.

Ongoing litigation risk related to utility billing practices and community fee structures.

Litigation risk remains elevated in the manufactured housing sector, particularly around utility billing and community fee structures. While UMH has generally maintained a more resident-friendly reputation compared to some peers, the company is still subject to laws regulating how and to what extent it can charge residents for utility services.

The core issue is the master-meter system, where the community owner bills residents directly for utilities. Industry-wide, this has led to accusations of overcharging; a 2024 survey of residents in Pima County found that 67% reported problems with overcharging for utilities, illustrating the systemic risk. For UMH, this risk is compounded by its large portfolio of 10,600 rental homes where utility charges are often bundled or sub-metered. Any adverse ruling or new state law limiting fee collection could immediately reduce the $55.9 million in rental and related charges UMH reported for Q2 2025.

Here is a quick look at the regulatory exposure:

• Fee Transparency: Increasing state-level requirements for detailed itemization of all non-rent charges.
• Utility Recapture: New laws limiting the profit margin a community can earn on reselling utilities to residents.
• Litigation Cost: Even without a loss, defending a class-action suit can cost millions.

Compliance burdens from the Americans with Disabilities Act (ADA) in community common areas.

The Americans with Disabilities Act (ADA) presents a continuous compliance obligation for UMH, requiring modifications to both physical properties and digital assets. The company's SEC filings confirm that the ADA may require UMH to modify its properties at a substantial cost, and noncompliance could result in fines or damages awarded to private litigants.

The compliance burden falls into two main areas:

1. Physical Accessibility: Ensuring common areas like clubhouses, pools, and community offices across the 139 communities meet current ADA standards. Given the average age of many acquired communities, this often requires significant capital expenditure. UMH invested approximately $42 million in other community improvements during 2024, a portion of which defintely went toward necessary infrastructure upgrades, including accessibility.
2. Digital Accessibility: UMH is proactively working with consultants like User1st to ensure its website meets the Web Content Accessibility Guidelines 2.0 at Level AA (WCAG 2.0 AA) to mitigate litigation risk related to online services.

Evolving environmental regulations impacting land use and community development permits.

Environmental statutes and local governmental requirements are a major legal factor, especially for UMH's growth strategy of developing new sites and expanding existing ones. These regulations, which include environmental impact assessments and ongoing health and safety requirements, can restrict expansion and reconstruction activities, potentially preventing the company from capitalizing on economic opportunities.

While UMH is not currently aware of any environmental condition likely to have a material adverse effect on its financials, the risk is inherent in land development. The local zoning process, which is often the gatekeeper for development permits, frequently includes environmental review. This means that a significant portion of the estimated $55 million to $60 million invoice cost for the 700 to 800 new manufactured homes UMH plans to order in 2025 is subject to successful navigation of these complex permitting processes.

The company's commitment to creating sustainable and environmentally friendly communities, as outlined in its ESG policy, is a strategic move to manage this legal risk and align with evolving public and regulatory expectations.

Here's a snapshot of the key legal risks and their financial implications:

Legal Factor	Primary Risk/Impact	2025 Financial Context/Scale
Landlord-Tenant Laws	Rent control, 'just cause' eviction, and fee restrictions impacting revenue growth.	Risk to sustained 9.2% Same-Property Rental Charge growth (July 2025).
Utility Billing & Fees	Class-action litigation and regulatory fines over master-meter billing practices.	Potential erosion of $55.9 million in Q2 2025 rental & related charges.
ADA Compliance	Substantial modification costs for common areas and litigation risk for noncompliance.	Capital expenditures for compliance are part of the $42 million invested in community improvements in 2024.
Environmental/Zoning	Delays or denial of permits for new community development and site infill.	Directly impacts the deployment of $55M-$60M for new rental homes in 2025.

Finance: Track and report on all legal expenses related to regulatory compliance and litigation defense quarterly.

UMH Properties, Inc. (UMH) - PESTLE Analysis: Environmental factors

Increased focus on flood and extreme weather resilience in coastal and high-risk communities.

You need to see physical resilience as a clear financial hedge, especially since extreme weather events are becoming more frequent and costly. UMH Properties, Inc. is addressing this by promoting modern manufactured homes built to current Federal Manufactured Homes Construction and Safety Standards (HUD Code), which include better wind and flood standards than older models. The real financial risk, however, is in the community infrastructure and insurance costs, which are rising across the US.

UMH is actively integrating resiliency into its new home offerings. For instance, at the September 2025 HUD Innovative Housing Showcase, UMH displayed a home featuring GAF solar shingles paired with an Anker home battery. This setup provides power resiliency-the battery can be set to fully charge before a predicted storm, ensuring essential home functions remain operational if the grid fails. This isn't just a green feature; it's a critical risk mitigation tool that reduces resident disruption and, defintely, potential liability.

The company's total capital needs for 2025, which fund rental home purchases, expansions, and infrastructure improvements, are guided to be between $120 million and $150 million. A portion of this budget is clearly dedicated to fortifying communities against climate risk, though a specific environmental-only capex figure isn't broken out.

Push for energy-efficient manufactured homes and community infrastructure.

The push for energy efficiency is a direct path to lower operating expenses for residents and a stronger value proposition for the company. UMH is making this a core part of its product, selling new homes designed with energy-saving appliances, high-quality insulation, e-thermal windows, and efficient heating and cooling systems. This helps residents save on utility bills, which improves the affordability profile of the housing.

In 2025, UMH opened its new Honey Ridge community in Honeybrook, Pennsylvania, which features these contemporary, energy-efficient manufactured homes with prices starting at just $155,000. Beyond the homes themselves, UMH has been systematically upgrading its existing portfolio. Between 2022 and 2023, they retrofitted 75 communities with LED lighting and smart thermostats in community buildings and streetlights, bringing the total number of upgraded communities to 113. That's a huge operational upgrade.

Pressure from investors for clear Environmental, Social, and Governance (ESG) reporting metrics.

Investor scrutiny on ESG is no longer optional; it directly impacts your cost of capital. UMH Properties, Inc. understands this, publishing its 2024 Sustainability Report in May 2025, which outlines its progress. The company's core mission of providing affordable housing means that 100% of its income is recognized as 'social' by major rating agencies like Sustainalytics and MSCI, which is a major advantage in the capital markets.

The company's focus on sustainable finance is evidenced by its adherence to the ICMA (International Capital Markets Association) 2021 Sustainable Bond Guidelines, which Sustainalytics reviewed for a second party opinion. This framework allows UMH to tap into the growing pool of green and social bond investors. For context, UMH's Normalized Funds From Operations (FFO) per diluted share was $0.93 in 2024, an 8% increase over 2023, with 2025 guidance projecting a further increase to a midpoint of $1.00 per share. The ESG narrative is clearly supporting this financial performance.

ESG Financial/Operational Metric	2024 Actual / 2025 Guidance	Significance
Normalized FFO Per Share (2025 Midpoint Guidance)	$1.00	Indicates strong financial health supported by operations.
Income Deemed 'Social' by Sustainalytics/MSCI	100%	Reduces cost of capital by attracting ESG-mandated funds.
Communities Retrofitted with LED/Smart Thermostats (2022-2023)	75 (Totaling 113)	Concrete progress on energy efficiency and operational cost reduction.
Fixed-Rate Debt Interest Rate (Dec 2023 Refinancing)	5.97%	Benchmark for financing, demonstrating access to favorable terms.

Managing water conservation and waste reduction programs across the portfolio.

Water conservation is a silent operational risk, especially in regions facing drought or aging infrastructure. UMH tackles this directly by using environmental management systems centered on efficiency. The most critical action here is submetering, which shifts the financial incentive for conservation directly to the resident.

As of recent reporting, UMH has sub-metered 84% of its communities for water and sewer use, a massive undertaking that encourages conservation by accurately billing for usage. This system has proven results, with the company reporting a combined saving of over 15 million gallons of water in 2020 compared to the prior year. Waste management is more straightforward, focusing on providing recycling bins in all communities and its corporate office to reduce landfill volume.

To reduce construction waste, UMH leverages the factory-built nature of manufactured housing. This process inherently leads to less waste and reduced build times compared to traditional site-built construction.

Finance: Monitor the debt maturity schedule and draft a plan for refinancing any debt coming due in 2026 with a target rate below 6.0% by the end of this quarter.