UMH Properties, Inc.

What they do

UMH Properties, Inc. is a self-administered and self-managed REIT focused on the ownership and operation of manufactured home communities, leasing homesites and homes to residents. Through its taxable subsidiary S&F, it also sells and finances manufactured homes, and offers self-storage units and oil and gas leases. The company operates one reportable segment.

Revenue drivers

• Rental and Related Income — Leasing of manufactured homesites and rental homes is the core revenue source. Rental and Related Income increased 9% in Q2 2026, supported by same-property occupancy up 110 basis points to 89.4%.
• Sales of Manufactured Homes — Through S&F, UMH sells manufactured homes to current and prospective residents. Sales increased 10% in Q2 2026, including sales at Honey Ridge, a joint venture property.
• Financing and Other Services — Provides financing to home purchasers through a COP program with Triad Financial, and earns fees from joint ventures and the opportunity zone fund. These are complementary to core leasing and sales.
• Self-Storage and Other — More than 1,000 self-storage units leased to residents, along with oil and gas leases and cable service agreements, contribute additional income.

Recent performance

For Q2 2026, UMH reported Total Income of $71.6 million, up 7% from $66.6 million in Q2 2025. Net Income Attributable to Common Shareholders rose 75% to $4.4 million ($0.05 per diluted share) from $2.5 million ($0.03). Normalized FFO was $21.5 million ($0.25 per diluted share), up 11% from $19.5 million ($0.23). Six-month Total Income was $137.5 million, with Normalized FFO of $40.9 million. Total assets were $1.71 billion as of June 30, 2026, with shareholder equity of $891.9 million.

Strategy

UMH continues its growth strategy of acquiring well-located communities in target markets, including the Marcellus and Utica Shale regions. The company also formed an opportunity zone fund (77% owned) to develop communities in distressed areas. It focuses on increasing occupancy and same-property NOI, evidenced by a 9% same-property NOI increase and a 40 basis point improvement in the expense ratio. Management emphasizes expanding and extending its existing operations, as mentioned in the Q2 2026 commentary.

Risks

• Geographic Concentration — Properties are concentrated in the Eastern U.S., particularly energy-dependent regions, making revenue sensitive to local economic downturns.
• Energy Market Dependency — The Marcellus and Utica Shale regions could be adversely impacted by drilling restrictions or industry slowdowns, reducing demand.
• Occupancy and Rental Rate Pressure — Local oversupply of manufactured homesites or reduced demand could lower occupancy and rental rates, impacting revenue.
• Repossessed Homes Supply — An increase in repossessed homes in the market could compete with new home sales and affect pricing and occupancy.

Outlook

Management expressed satisfaction with the solid second-quarter results and expects continued growth, particularly through increased sales at Honey Ridge and the joint venture portfolio. The company remains focused on maintaining occupancy gains and improving expense efficiency. No specific forward guidance was provided.