UMH Properties (NYSE:UMH) executives highlighted portfolio growth, higher occupancy, and continued investment in rentals and development during the company’s fourth-quarter and full-year 2025 earnings call, while also introducing 2026 normalized funds from operations (FFO) guidance.
2025 normalized FFO and 2026 outlook
President and CEO Samuel Landy said 2025 was “another strong year,” citing “operational excellence, strategic growth, and solid financial performance.” The company reported normalized FFO of $0.24 per share in the fourth quarter of 2025, unchanged from the prior-year period. For the full year, normalized FFO was $0.95 per share, up from $0.93 in 2024, a 2% increase.
Revenue, same-property growth, and expense drivers
Chief Financial Officer Anna Chew said rental and related income increased to $58.2 million in the fourth quarter from $53.3 million a year ago, and rose to $226.7 million for the full year, up from $207.0 million in 2024. Total revenue including home sales was $261.8 million for 2025, which management said was up 9% year over year.
On the same-property portfolio, Landy reported same-property revenue growth of 8.2% (or $16.9 million) and same-property NOI growth of 9% (or $11.1 million) in 2025. He attributed that performance to 5% site rent increases and occupancy gains of 354 net units.
Chew said community operating expenses rose 12% in the fourth quarter and 10% for the year, primarily due to acquisitions and increased payroll costs, real estate taxes, snow removal, and water and sewer costs. She also noted the increase included $724,000 of one-time legal and professional fees in 2025. Despite the higher expenses, community NOI increased 7% for the quarter (to $33.3 million) and 9% for the year (to $130.7 million).
During Q&A, COO Brett Taft said fourth-quarter same-store expenses were elevated by snow-related costs and other items such as tree removal, real estate taxes, and insurance. He added that without the “bad winter,” same-store NOI growth would have been expected “in that 10% range.”
Rental home program, home sales, and operations
Management emphasized the rental home program as a key driver of occupancy gains. Landy said UMH added and rented 717 new homes in 2025 across the portfolio (including joint venture communities), bringing total rental home inventory to approximately 11,000 units with a 93.8% occupancy rate. The company’s turnover rate on rentals was about 20%, and management said expenses per unit per year were approximately $400.
In response to a question about the long-term mix of rentals versus owned homes, Landy said rentals help fill sites more quickly and can create future buyers. He added that the mix varies by market, but said that at the company level, “do I think we’ll have 50% rentals? Yes.” He also discussed potential changes to Title I financing limits, describing how higher loan limits could make it easier for residents to purchase homes and convert rental payments into loan payments that build equity.
UMH’s home sales business also grew. Landy said gross home sales revenue was $36.4 million for 2025, up from $33.5 million in 2024, including contributions from the Honey Ridge community in a joint venture with Nuveen Real Estate. Fourth-quarter gross home sales were $9.3 million, up 8% from the prior year.
Taft said manufactured home pricing and availability appeared stable, with “no dramatic waits for houses.” He said rental homes were still generally being acquired in the $75,000 to $80,000 range, and factory backlogs were largely in the 6–8 week timeframe, though winter conditions can slow home setups in some markets.
Acquisitions, development, and the pipeline
On external growth, Landy said UMH acquired five communities in 2025, adding 587 developed home sites for a total purchase price of $41.8 million. The average occupancy in those communities was 78% at acquisition, which management characterized as providing upside through infill.
The company also opened Honey Ridge, a 113-site greenfield development in Honeybrook, Pennsylvania. In addition, UMH completed 34 expansion sites and said it made progress on entitlements that could allow it to develop 400 or more sites in 2026.
Asked about acquisitions in 2026, Taft said the market remained competitive. He said stabilized, high-quality assets were trading in the “sub 5%” cap rate range in many cases, sometimes “sub 4%,” while smaller portfolios and one-off opportunities could trade in the 5%–6% range. Management said there was “nothing to report” on the acquisition pipeline at the time of the call, but noted ongoing underwriting efforts. Taft also pointed to the company’s joint venture and Opportunity Zone Fund as ways to pursue new community construction with less impact on near-term earnings.
Capital structure, refinancing activity, and liquidity
UMH executives outlined refinancing and capital actions taken during 2025. Landy and Chew said the company refinanced 17 communities, generating $193.2 million in total proceeds at a weighted average interest rate of 5.67%. They said these communities were appraised at approximately $309 million versus an original investment of about $140 million, representing a 121% increase in value.
The company also issued $80.2 million in 5.85% Series B Bonds due 2030 to foreign investors. Chew said year-end debt totaled approximately $761 million, and 99% of total debt was fixed-rate. She reported total liquidity of $72 million in cash and cash equivalents and $260 million available on the credit facility, with potential total availability up to $500 million via an accordion feature.
UMH repurchased 320,000 shares during the fourth quarter at an average price of $15.06 per share for a total cost of $4.8 million. Chew said the repurchase program authorizes up to $100 million of buybacks. The company also sold 100,000 shares of Realty Income Corporation from its securities portfolio for $5.7 million in gross proceeds. In Q&A, management reiterated its intent to reduce the securities portfolio over time, while noting it provides liquidity and that management views its own properties as the better investment.
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.
