Have there been any state-level legislative movements or positives regarding the ROAD to Housing Act's provision for chassis-free homes?

Management believes the Act preempts states, requiring them to allow two-story HUD-code homes without chassis. This will enable placing larger homes in high-demand areas, with municipalities unable to object due to HUD preemption. “We believe the ROAD to Housing Act does away with the requirement that the homes have chassis. We believe each state that has a manufactured home community will be required because they're preempted by HUD to allow two-story houses.”

Given 150 homes ready and 300 being set up, what are the expectations for net rental additions in the second half of the year?

The company installed 360 new rental homes in H1 and expects to hit or exceed its target of 800 new rental homes for the year, driven by strong demand and homes in various stages of readiness. “We did 360 units in the first half of the year, and with 150 homes on-site ready for occupancy, 300 homes currently being set up and another 300 on order. Given the demand we're seeing in the locations, we believe we'll hit our target of 800 new rental homes this year.”

Year-to-date FFO per share annualizes below the guidance range. What are the drivers for the expected uptick in earnings in the second half?

The company is on plan, having modeled $0.23 for Q1 and $0.25 for Q2. Assumptions for the guidance include 5% rent increases, 800 new rentals, and $120M-$150M in capital raised, with no additional ATM shares or acquisitions modeled. “So we are exactly on plan for where we thought we would be this year. And as far as assumptions go, it's laid out in our investor presentation, 5% rent increases, 800 new rentals, $120 million to $150 million in capital raised.”

UMH

UMH Properties (UMH) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Aug 6, 2026

Source: earnings call transcript

Executive summary

UMH Properties Q2 FY26 — Strong Operational Performance and FFO Growth

UMH Properties delivered a strong second quarter, driven by operational improvements and strategic investments. The company highlighted the long-term value of its vacant lots and land pipeline, emphasizing the potential for future growth through home sales and rentals, particularly with the anticipated positive impact of the ROAD to Housing Act on financing and home design. Management expects continued earnings growth throughout the remainder of the year.

Highlights

Normalized FFO per share increased 9% to $0.25.
Rental and related income grew 9% to $61.1 million.
Same-property NOI increased 9% to $37.2 million.
Home sales revenue broke a quarterly record, increasing 10% to $11.4 million.
Overall occupancy improved by 97 units to 89%.

Guidance & targets

Category	Target	Timeline	Confidence
Normalized FFO per share	$0.98 to $1.04 high materiality	FY26	High
New rental homes filled	800 or more medium materiality	FY26	High
Site rent increases	5% medium materiality	FY26	High
Capital raised	$120 million to $150 million medium materiality	FY26	High
Same-property NOI growth	high single-digit high materiality	FY26	High
Same-property operating expenses growth	5% to 7% range medium materiality	H2 FY26	Medium
New expansion sites developed per year	200 to 400 medium materiality	annual	Medium

Orderbook & backlog

Sales pipeline $5M Q2 FY26

Expected to lead to strong Q3 sales.

Vacant sites 3,200 Q2 FY26

Available for infill and development.

Vacant land 2,400 acres Q2 FY26

Available for future development.

Unsecured revolving credit facility accordion feature $340M Q2 FY26

Potential to increase total availability up to $600M.

Deals & partnerships

Nuveen Joint venture for Honey Ridge community

Honey Ridge community is owned through this joint venture.

Triad Financial Third-party loan origination program for veterans

New zero down payment lending program for veterans to purchase manufactured homes. Successfully closed a handful of deals. VA is considering instituting a similar program.

Capital programs

Unsecured revolving credit facility extended $600M

Benefit:$260M facility expanded with $340M accordion feature

Expanded and extended in May. Maturity date extended to May 2030 with a further 1-year extension option. Interest rate reduced by 35-40 bps, now SOFR + 1.3%-1.9% or prime + 0.3%-0.9%. Availability based on 60% of unencumbered communities valued at 6% cap rate.

Coxsackie, NY development 90% approved

Benefit:360 lots

Almost 90% approved, expecting full approvals this year. Favorable government reaction.

Marysville, Ohio development about to start construction

Benefit:98 sites

Part of the 315 sites expected to start construction this year.

What to watch in Q3 FY26

Net rental additions for FY26

FY26

Current 360 units (H1 FY26)

Target 800 or more new rental homes

Why it matters

Indicates continued organic growth and FFO contribution from the rental program.

We are well positioned to fill 800 or more new rental homes this year.

Find out whether UMH delivers this. Inve re-checks your case every morning.

Q&A highlights

How has the uptake been for the new zero down payment lending program for veterans since its launch a month ago?

The program has received positive feedback and closed a handful of deals, with more in the pipeline. It's too early to quantify volume, but the VA is considering instituting a similar program with their own funds, which would be a major industry benefit.

“So far, we're getting a lot of positive feedback. I think it's something that really allows veterans to experience manufactured housing... we've successfully closed a handful of deals and we've got more in the pipeline.”

asked by Craig Kucera · answered by Brett Taft

2 min read 6 chapters

Detailed narrative

Strategic Pillars for Value Creation

UMH Properties has consistently focused on three key areas since 1987: managing inventory of vacant lots for sales and rental income growth, financing homes for retail customers, and improving manufactured home products. The company emphasizes that its pipeline of vacant and approved lots, built over nearly 40 years, represents significant value not fully reflected in current financial statements, as operating expenses for these sites are already being expensed.

Impact of ROAD to Housing Act

The recently passed ROAD to Housing Act is expected to dramatically improve potential for financing home sales, increase design flexibility by allowing chassis-free, two-story HUD code homes, and encourage development. UMH, in partnership with Champion Homes, will showcase two-story HUD code homes at the Innovative Housing Showcase.

The company believes this legislation will address past issues of limited retail financing and lack of places to put homes, which previously constrained industry growth.

Rental Home Program Performance

The rental home program continues to drive occupancy gains and operates efficiently. In Q2 FY26, UMH added 193 new rental homes, bringing the total inventory to approximately 11,200 units with a 95.3% occupancy rate. The program maintains an annual turnover rate of approximately 20% and generates a 10% return on additional investment in rental homes, even as older units are sold and replaced.

Development and Expansion Strategy

UMH has approximately 500 vacant expansion sites that have been developed and paid for, which are expected to substantially improve earnings as they are filled. The company plans to start construction on 315 new sites in FY26, with 111 already underway and 98 more commencing soon.

Management anticipates maintaining a pace of 200 to 400 new expansion sites per year, with favorable government reactions to expansion requests.

CFO Transition and Leadership

Anna Chew retired as CFO after 35 years of service but will remain in an advisory role and on the Board of Directors. Kevin Miller, former CFO of Monmouth Real Estate Investment Corporation and CFO of UMH's OZ Fund, has been appointed as the new Chief Financial Officer.

The company expresses confidence in its leadership team and its ability to continue growing the company internally and externally.

Veteran Lending Program Launch

UMH launched a new zero down payment lending program for veterans through a third-party loan origination program with Triad Financial. While early, the program has received positive feedback and successfully closed a handful of deals. There is potential for the VA to adopt and fund a similar program, which would significantly benefit the manufactured housing industry by increasing accessibility for veterans.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.