UMH Properties, Inc. UMH, a REIT that specializes in manufactured home communities, has recently come up with its operating update for the first quarter that reflected an occupancy increase in the quarter.
UMH’s same-property occupancy rose by 113 units in the quarter and 227 units year over year, reaching 88%. It converted 115 new homes from inventory to revenue-generating rental homes in the first quarter of 2025, bringing its total rental portfolio to approximately 10,400 homes. The rental home occupancy rate increased to 94.7%, reflecting continued demand for the company’s properties. Management anticipates continued occupancy and sales growth heading into the spring and summer months, driven by seasonally higher demand.
Moreover, in the first quarter, UMH acquired two fully occupied, age-restricted manufactured home communities in Mantua, NJ, for $24.6 million. These acquisitions add 266 developed homesites across 38 acres, enhancing UMH’s portfolio. Additionally, the company has two Maryland communities under contract, with closings anticipated in the second quarter of 2025. The company expects to remain active in the acquisition market as it moves forward throughout the year.
Per Samuel A. Landy, president and CEO of UMH Properties, “UMH is on track to generate increased revenue through our 5% annual rent increase and our investment in 800 new rental homes.” Furthermore, he noted that the company’s prior investments in expansions and new developments position UMH to enhance both gross sales and sales profits.
Earlier this week, UMH Properties announced a 4.7% increase in the company’s quarterly common stock dividend, raising it to 22.5 cents per share from 21.5 cents paid earlier. The increased dividend will be paid out on June 16 to shareholders on record as of May 15, 2025. Backed by solid and growing operating results, UMH increased its dividend for the fifth consecutive year to an annual distribution of 90 cents per share, reflecting a 25% increase over the past five years.
Final Take on UMH Properties
UMH Properties’ occupancy growth, strategic acquisitions and consistent dividend increases highlight its resilience and growth potential. With an improving payout ratio, disciplined capital management and continued portfolio expansion, UMH is well-positioned to deliver long-term value to shareholders, though elevated supply, macroeconomic uncertainty and high interest rates remain concerns.
Shares of this Zacks Rank #3 (Hold) company have rallied 18.9% in the past year, outperforming the industry's growth of 15.4%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Welltower Inc. WELL and Cousins Properties Incorporated CUZ. Welltower and Cousins Properties each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2025 FFO per share is pegged at $4.93, which indicates year-over-year growth of 14.1%.
The Zacks Consensus Estimate for Cousins’ 2025 FFO per share is pegged at $2.79, which implies a year-over-year increase of 3.7%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).
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