UMH Properties (NYSE:UMH) reported higher second-quarter earnings and operating results, driven by rental income growth, increased occupancy and record manufactured-home sales, while maintaining its full-year normalized funds from operations guidance.
Normalized FFO was $21.5 million, or $0.25 per diluted share, for the quarter ended June 30, up from $19.5 million, or $0.23 per share, a year earlier. Net income attributable to common shareholders rose to $4.4 million, or $0.05 per diluted share, compared with $2.5 million, or $0.03 per share, in the prior-year period.
Rental Income, Occupancy and Sales Rise
Rental and related income increased 9% year over year to $61.1 million. Chief Financial Officer Kevin Miller said the increase reflected 2025 acquisitions, higher same-property occupancy, additional rental homes and increased rental rates.
Community net operating income increased 8%, while same-property revenue rose 8% and same-property NOI increased 9% to $37.2 million. Management said same-property performance was supported by 5% site-rent increases and an increase of 437 occupied units from the prior year.
Overall occupancy increased by 97 units during the quarter to 89%. Occupancy rose by 268 units in the first half and by 631 units from June 30, 2025, according to Samuel Landy.
The company added and rented 193 new homes during the quarter, including units at joint-venture communities, bringing its rental-home inventory to about 11,200 units with occupancy of 95.3%. UMH said it remains positioned to install and rent 800 or more new rental homes during 2026. At quarter-end, the company had 150 homes on-site and ready for occupancy, about 300 being set up and 330 on order.
Manufactured-home sales revenue increased 10% to a quarterly record of $11.5 million, including sales at Honey Ridge, which is owned through a joint venture with Nuveen. Chief Operating Officer Brett Taft said July sales were about $1 million ahead of the prior-year month and that the company had a roughly $5 million sales pipeline entering the third quarter.
Development Pipeline and Financing
Management emphasized the company’s inventory of vacant sites and land as a source of potential future growth. Eugene Landy, UMH’s founder and chairman, said the company has 3,200 vacant sites and 2,400 acres of vacant land.
Samuel Landy said UMH has about 500 developed but vacant expansion sites, which have already been paid for. Filling those sites with homes could increase revenue with limited additional investment, he said. The company has developed an average of about 200 sites annually over the past four years.
Taft said UMH expects to begin construction on about 315 expansion sites during 2026, including 111 already started and a planned 98-site project in Marysville, Ohio. He said the company believes it can maintain a pace of 200 to 400 new expansion sites per year.
During May, UMH expanded and extended its unsecured revolving credit facility. The $260 million facility has a $340 million accordion feature, creating potential availability of up to $600 million, and now matures in May 2030, with an optional one-year extension.
At quarter-end, UMH had approximately $789 million of debt, 94% of which was fixed rate, with a weighted average interest rate of 4.92%. The company reported $28.6 million of cash and cash equivalents and $220 million available under its unsecured revolver. It also had $184 million available on other lines of credit for home-sales financing and purchases of inventory and rental homes.
Management Discusses Housing Legislation and Veteran Lending
Management repeatedly cited what it called the recently passed U.S. Road to Housing legislation as a potential catalyst for manufactured housing. Executives said they believe the legislation could improve access to financing for lower-dollar manufactured-home loans, support development of additional communities and permit greater design flexibility, including chassis-free and two-story HUD-code homes.
Samuel Landy said UMH and Champion Homes plan to display a two-story manufactured home at the Innovative Housing Showcase in Washington, D.C., from Sept. 22 through Sept. 24.
The company also recently introduced a lending program for veterans through its third-party loan origination program with Triad Financial. Taft said the program had closed “a handful” of transactions during its first month and had additional deals in the pipeline. Eugene Landy added that UMH initially began the program using its own capital and later received outreach from the head of VA lending regarding a possible broader program.
UMH also announced a finance leadership transition. Former CFO Anna Chew retired from the CFO role on June 1 after 35 years with the company, though she will remain in an advisory capacity and continue serving on the board. Miller, who previously served as CFO of UMH’s opportunity-zone fund and was CFO of Monmouth Real Estate Investment Corp. for 10 years before joining UMH, succeeded Chew as CFO.
About UMH Properties (NYSE:UMH)
UMH Properties, Inc is a self-administered real estate investment trust (REIT) that specializes in the ownership, operation, acquisition and development of manufactured home communities and recreational vehicle (RV) communities. The company’s business model centers on providing affordable housing solutions by offering land lease lots and home sales in well-maintained, amenity-rich settings. UMH Properties focuses on maximizing occupancy and enhancing tenant satisfaction through professional on-site management and ongoing community improvements.
The company generates revenue through rental lot fees, home sales and related community services.
