Q4 2024 UMH Properties Inc Earnings Call

Listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone to withdraw your question. Please press Star then two please.

Speaker Change: Please note. This event is being recorded it is now my pleasure to introduce your host Mr. Craig Coster Executive Vice President and General Counsel. Thank you. Mr. Koester, you may begin thank.

Thank you very much operator in addition to the 10-K that we filed with the SEC yesterday, we have filed an unaudited fourth quarter and yearend supplemental information presentation. This supplemental information presentation, along with our 10-K are available on the company's website at UMH Dot REIT.

Speaker Change: We would like to remind everyone that certain statements made during this conference call, which are not historical facts may be deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095.

Forward looking statements that we make on this call are based on our current expectations and involve various risks and uncertainties. Although the company believes the expectations reflected in any forward looking statements are based on reasonable assumptions. The company can provide no assurance that its expectations will be achieved the risks and uncertainties.

We just think it's something like that.

Speaker Change: Good morning, and welcome to UMH properties fourth quarter and year end 2024 earnings conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Speaker Change: Could cause actual results to differ materially from expectations are detailed in the company's fourth quarter and year end 2024 earnings release and filings with the Securities and Exchange Commission. The company disclaims any obligation to update its forward looking statements.

Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on a touchtone phone.

Speaker Change: In addition, during today's call, we will be discussing non-GAAP financial metrics reconciliations of these non-GAAP financial metrics to the comparable GAAP financial metrics as well as explanatory and cautioning language are included in our earnings release, our supplemental information and our historical SEC filings having said.

Speaker Change: To withdraw your question. Please press Star then two please.

Speaker Change: Please note. This event is being recorded it is now my pleasure to introduce your host Mr. Craig Castor Executive Vice President and General Counsel. Thank you. Mr. Koester, you may begin thank.

Speaker Change: That I would like to introduce management with US today, Eugene Landy, founder and Chairman Samuel Landy, President and Chief Executive Officer, and Shoe Executive Vice President and Chief Financial Officer, Brett Taft Executive Vice President and Chief Operating Officer, Jim <unk>, Vice President of capital markets and Daniel Landy.

Koester: Thank you very much operator in addition to the 10-K that we filed with the SEC yesterday, we have filed an unaudited fourth quarter and yearend supplemental information presentation. This supplemental information presentation, along with our 10-K are available on the company's website at UMH Dot REIT.

Koester: We would like to remind everyone that certain statements made during this conference call, which are not historical facts may be deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. The forward looking statements that we make on this call are based on our current expectations and involve various risks and.

Speaker Change: Executive Vice President is now my pleasure to turn the call over to <unk>, President and Chief Executive Officer Samuel Landy.

Samuel Landy: Thank you very much Craig UMH is pleased to deliver another quarter and year of increased <unk> per share double digit community NOI growth and a new all time high sales record.

Koester: Although the company believes the expectations reflected in any forward looking statements are based on reasonable assumptions. The company can provide no assurance that its expectations will be achieved the risks and uncertainties that could cause actual results to differ materially from expectations are detailed in the company's fourth quarter and year end.

Samuel Landy: Normalized <unk> for the quarter was 24 cents per share as compared to 23 per share last year, representing an increase of 4%.

Samuel Landy: Normalized <unk> for the year was 93.

Samuel Landy: Per share as compared to 86 last year, representing an increase of 8%.

Koester: 2024 earnings release and filings with the Securities and Exchange Commission.

Samuel Landy: We are very proud of these results and we look forward to delivering another great year on all fronts in 2025 and beyond.

Koester: Company disclaims any obligation to update its forward looking statements and.

Koester: In addition, during today's call, we will be discussing non-GAAP financial metrics reconciliations of these non-GAAP financial metrics to the comparable GAAP financial metrics as well as explanatory and cautioning language are included in our earnings release, our supplemental information and our historical SEC filings having said.

Samuel Landy: We have opportunistically raised equity at prices at or near our 52 week high his capital will be invested accretively into our platform.

Samuel Landy: UMH has a long term value add business plan, our password generates our current income and <unk> does not fully reflect the tremendous effort, we're putting into our future results.

Eugene Landy: That I would like to introduce management with US today, Eugene Landy, founder and Chairman Samuel Landy, President and Chief Executive Officer, Andy Chu Executive Vice President and Chief Financial Officer, Brett Test Executive Vice President and Chief Operating Officer, Jim <unk>, Vice President of capital markets and Daniel Andy.

Samuel Landy: Our approximately 2400 acres of vacant land 3300 vacant sites 500, new homes in inventory in various stages of setup with an additional 200 on the way are all part of our efforts to generate future income and ensure that we have sites available to continue our income and earnings growth.

Koester: Executive Vice President.

Koester: Now my pleasure to turn the call over to <unk>, President and Chief Executive Officer Samuel Landy.

Samuel Landy: We are balancing growth with earnings accretion and have been successfully delivering on both fronts.

Koester: Thank you very much Craig UMH is pleased to deliver another quarter and year of increased <unk> per share double digit community NOI growth and a new all time high sales record.

Samuel Landy: At any given time UMH has $100 million or more invested that is not yet producing accretive returns. Our results are strong, but we continue to work to achieve even better results. Additionally, we have opportunistically tapped the equity market through our common ATM and raised.

Koester: Normalized <unk> for the quarter was 24 cents per share as compared to 23 per share last year, representing an increase of 4%.

Koester: Normalized <unk> for the year was 93.

Samuel Landy: A substantial amount of capital that has not yet been invested.

Koester: Per share as compared to 86 last year, representing an increase of 8%.

Samuel Landy: The capital raised has invested in new acquisitions rental homes and expansions are earnings per share should continue to grow.

Koester: We are very proud of these results and we look forward to delivering another great year on all fronts in 2025 and beyond.

Samuel Landy: Our same property operating results continue to grow our value add strategy allows us to drive substantial improvements in occupancy revenue and value over time.

Koester: We have opportunistically raised equity at prices at or near our 52 week high this capital will be invested accretively into our platform.

Samuel Landy: Not only our operating results strong, but our business plan accomplishes in important social mission of upgrading and adding to the current supply of affordable housing.

Koester: UMH has a long term value add business plan, our password generates our current income and <unk> does not fully reflect the tremendous effort, we're putting into our future results.

Samuel Landy: In the fourth quarter same property income increased by 8% and same property NOI increased by 8% same property income for the year increased by 9% and same property NOI increased by 11 5 million.

Koester: Our approximately 2400 acres of vacant land 3300 vacant sites 500, new homes in inventory in various stages of setup with an additional 200 on the way are all part of our efforts to generate future income and ensure that we have sites available to continue our income and earnings.

Samuel Landy: Salting and an increase of 10%.

Samuel Landy: These increases were driven by an increase in occupancy of 216 units, resulting in an increase of 70 basis points.

Koester: Sure.

Koester: We are balancing growth with earnings accretion and have been successfully delivering on both fronts.

Samuel Landy: In 2025, we anticipate similar if not improved same property operating results.

Koester: At any given time UMH has $100 million or more invested that is not yet producing accretive returns. Our results are strong, but we continue to work to achieve even better results. Additionally, we have opportunistically tapped the equity market through our common ATM and raised some.

Samuel Landy: We anticipate further occupancy growth as we rent and sell our in place inventory and more aggressively procure homes throughout the year.

Samuel Landy: Additionally, we anticipate continuing to achieve our 5% rent increases throughout the portfolio.

Samuel Landy: Our rental home program had another good year.

Koester: Stansell amount of capital that has not yet been invested as the capital raised has invested in new acquisitions rental homes and expansions are earnings per share should continue to grow.

Samuel Landy: We added 565 homes to our portfolio, we now own 10300 rental homes of which 94% are currently occupy our annual rental home turnover is only approximately 20%.

Koester: Our same property operating results continue to grow our value add strategy allows us to drive substantial improvements in occupancy revenue and value over time.

Samuel Landy: Our repairs and maintenance expenses per home were approximately $400 per home per year, we anticipate adding another 800 homes or more in 2025.

Koester: Not only our operating results strong, but our business plan accomplishes in important social mission of upgrading and adding to the current supply of affordable housing.

Samuel Landy: We are proud that our sales division broke our all time sales record for the third consecutive year gross sales. This year were $33 5 million as compared to $31 $2 million.

Koester: In the fourth quarter same property income increased by 8% and same property NOI increased by 8% same property income for the year increased by 9% and same property NOI increased by 11 5 million, resulting in an increase of 10%.

Samuel Landy: Last year, representing an increase of 8%.

Samuel Landy: We sold 258 used homes at an average price of $50000 and 136, new homes at an average price of $151000.

Koester: These increases were driven by an increase in occupancy of 216 units, resulting in an increase of 70 basis points. In 2025, we anticipate similar if not improved same property operating results.

Samuel Landy: Our gross sales margin for the year was 35% we financed approximately 59% of our home sales. We now have $89 2 million in loans at an average rate of 7%.

Koester: We anticipate further occupancy growth as we rent and sell our in place inventory and more aggressively procure homes throughout the year.

Samuel Landy: Our sales division has the opportunity to grow further as we have several high end expansions that opened in the second half of 2024, we're scheduled to open in the first half of 2025.

Koester: Additionally, we anticipate continuing to achieve our 5% rent increases throughout the portfolio.

Samuel Landy: Also we are hopeful that the new administration will revise the financing Louis so that we can get more potential buyers approved for financing.

Koester: Our rental home program had another good year.

Koester: We added 565 homes to our portfolio, we now own 10300 rental homes of which 94% are currently occupied our annual rental home turnover is only approximately 20%.

Samuel Landy: This could convert existing renters that have a strong payment history to homeowners that development could create a meaningful increase in our home sales.

Samuel Landy: We are optimistic that we will be active in the acquisition market in 2025, we anticipate that this prolonged high interest rate environment May result in communities being available at more reasonable prices in 2025.

Koester: Our repairs and maintenance expenses per home were approximately $400 per home per year, we anticipate adding another 800 homes or more in 2025.

Koester: We are proud that our sales division broker all time sales record for the third consecutive year gross sales this year were $33 $5 million as compared to $31 $2 million.

Samuel Landy: We are well positioned to execute on these opportunities when they arise.

Samuel Landy: Our acquisition pipeline has grown we now have four communities under contract, which contain 457 sites of which approximately 90% are occupied the purchase price of these communities is $39 1 million or <unk> $85000 per site.

Koester: Last year, representing an increase of 8%.

Koester: We sold 258 used homes at an average price of $50000 and 136, new homes at an average price of $151000.

Samuel Landy: Pipeline contains a 191 sites in Maryland, which we anticipate closing in early 2025, and 266 sites in New Jersey.

Koester: Our gross sales margin for the year was 35% we financed approximately 59% of our home sales, we now have $89 $2 million in loans at an average rate of 7%.

Samuel Landy: The blended cap rate on these communities is approximately five 5% we are optimistic that compelling acquisitions are becoming available.

Koester: Our sales division has the opportunity to grow further as we have several high end expansions that opened in the second half of 2024, we're scheduled to open in the first half of 2025.

Samuel Landy: In 2024, we completed 190 expansion sites as I mentioned above these sites should allow us to further grow our sales results in 2025 and beyond.

Koester: Also we are hopeful that the new administration will revise the financing Louis so that we can get more potential buyers approved for financing.

Samuel Landy: We anticipate obtaining approvals for 500 or more sites in 2025 and building 300 to 400 sites.

Koester: This could convert existing renters that have a strong payment history to homeowners that development could create a meaningful increase in our home sales.

Samuel Landy: Additionally, we expect to open hunting ridge, a joint venture property, which is a 113th site Greenfield development community and Honey Brook, Pennsylvania in the second quarter of 2025.

Koester: We are optimistic that we will be active in the acquisition market in 2025, we anticipate that this prolonged high interest rate environment May result in communities being available at more reasonable prices in 2025.

Samuel Landy: Greenfield developments and expansions take time to build and generate returns, but greatly add to the long term value of the company.

Samuel Landy: UMH has a 56 year history in the manufactured housing industry, our asset class is highly coveted and our portfolio of communities is irreplaceable and valuable over the past one five and 10 years UMH has the top performing manufactured housing REIT, our total shareholder return in 2024.

We are well positioned to execute on these opportunities when they arise our acquisition pipeline has grown we now have four communities under contract, which contain 457 sites of which approximately 90% are occupied the purchase price of these communities is $39 1 million.

Samuel Landy: It was approximately 30%.

Koester: Or $85000 per site.

Samuel Landy: Over five years, it's 51% and over 10 years it is 234%.

Koester: The pipeline contains a 191 sites in Maryland, which we anticipate closing in early 2025, and 266 sites in New Jersey.

Samuel Landy: We have a proven track record of executing our business plan since 2020, UMH has increased the dividend by approximately 19%.

Koester: The blended cap rate on these communities is approximately five 5% we are optimistic that compelling acquisitions are becoming available.

Samuel Landy: Our business plan has positioned us with 3300 vacant sites in 2004 hundred acres of vacant land to continue our organic growth. This organic growth should allow us to generate similar earnings growth and operating results for the years to come. Additionally, with our strong balance sheet, we are prepared to X.

Koester: In 2024, we completed 190 expansion sites as I mentioned above these sites should allow us to further grow our sales results in 2025 and beyond we.

Koester: We anticipate obtaining approvals for 500 or more sites in 2025 and building 300 to 400 sites.

Samuel Landy: Cute on compelling acquisitions as they become available and now Anna will provide you with greater detail on our results for the quarter.

Koester: Additionally, we expect to open hunting ridge, a joint venture property, which is a 113th site Greenfield development community and Honey Brook, Pennsylvania in the second quarter of 2025.

Anna: Thank you Sam normalized <unk>, which excludes amortization and nonrecurring items was $19 2 million or 24 cents per diluted share for the fourth quarter of 2024 compared to $15 4 million or 23 per diluted share for 2020.

Koester: Greenfield developments and expansions take time to build and generate returns, but greatly add to the long term value of the company.

Speaker Change: Rate, resulting in a 4% per share increase.

Koester: UMH has a 56 year history in the manufactured housing industry are asset classes highly coveted and our portfolio of communities is irreplaceable and valuable over the past one five and 10 years UMH has the top performing manufactured housing REIT, our total shareholder return in 2024.

Speaker Change: For the full year 2020 for normalized <unk> was $69 5 million or <unk> 93 per diluted share compared to $54 5 million or <unk> 86 per diluted share for 2023, resulting in an 8% per share increase.

Koester: Was approximately 30%.

Speaker Change: We were able to obtain this increase in normalized <unk>. Despite our operating results being impacted by our investments in growing the company and value add acquisitions and developments and increasing expenses due to inflation.

Koester: Over five years, it's 51% and over 10 years. It is 234% we have a proven track record of executing our business plan. Since 2020, UMH has increased the dividend by approximately 19%.

Koester: Our business plan has positioned us with 3300 vacant sites in 2004 hundred acres of vacant land to continue our organic growth. This organic growth should allow us to generate similar earnings growth and operating results for the years to come. Additionally, with our strong balance sheet, we are prepared to exit.

Rental and related income for the quarter was $53 3 million compared.

Speaker Change: Compared to $49 2 million a year ago, representing an increase of 8%.

Speaker Change: For the full year rental and related income increased from $189 7 million in 2000 $23 million to $207 million in 2024, an increase of 9%.

Koester: Acute on compelling acquisitions as they become available and now Anna will provide you with greater detail on our results for the quarter.

Speaker Change: This increase was primarily due to the increases in rental rates same property occupancy and additional rental homes.

Anna: Thank you Sam normalized <unk>, which excludes amortization and nonrecurring items was $19 2 million or 24 cents per diluted share for the fourth quarter of 2024 compared to $15 4 million or 23 per diluted share for 2023.

Speaker Change: Community operating expenses increased 8% during the quarter and 7% for the year. This increase was mainly due to increases in payroll and payroll costs real estate taxes insurance professional fees waste removal what expenses as to expenses.

Anna: We still think in a 4% per share increase for.

Anna: For the full year 2020 for normalized <unk> was $69 5 million or <unk> 93 per diluted share compared to $54 5 million or <unk> 86 per diluted share for 2023, resulting in an 8% per share increase.

Speaker Change: Despite the increase in community operating expenses community NOI increased by 8% for the quarter from $28 7 million in 2023 to $31 1 million in 2024 and increased by 10% for the full year from $108 4 million.

Anna: We were able to obtain this increase in normalized <unk>. Despite operating results being impacted by our investments in growing the company through value add acquisitions and developments and increasing expenses due to inflation.

Speaker Change: In 2023 to $119 7 million in 2024.

Speaker Change: Our same property results continue to meet our expectations.

Speaker Change: Same property income increased by 8% for the quarter and 9% for the year generating same property NOI growth of 8% for the quarter and 10% for the year.

Anna: Rental and related income for the quarter was $53 3 million compared to $49 2 million a year ago, representing an increase of 8% for.

Speaker Change: From a liquidity standpoint, we ended the year with $99 7 million in cash and cash equivalents and $260 million available on our credit facility. We also had $138 million available on our revolving lines of credit for the financing of home sales and.

Anna: For the full year rental and related income increased from $189 $7 million in 2000 $23 million to $207 million in 2024, an increase of 9%.

Anna: This increase was primarily due to the increases in rental rates same property occupancy and additional rental homes.

Speaker Change: The purchase of inventory and $55 million available on our lines of credit secured by rental homes and rental home leases.

Anna: Community operating expenses increased 8% during the quarter and 7% for the year. This increase was mainly due to increases in payroll and payroll costs real estate taxes insurance.

Speaker Change: As we turn to our capital structure at year end, we had approximately $615 million in debt.

Speaker Change: Of which $486 million with community level mortgage debt $28 million with loans payable and $101 million with a 472% series a bonds.

Anna: Professional fees waste removal, what expenses as to expenses.

Anna: Despite the increase in community operating expenses community NOI increased by 8% for the quarter from $28 7 million in 2023 to $31 1 million in 2024 and increased by 10% for the full year from $108 4 million.

Speaker Change: 99% of our total debt is fixed rate.

Speaker Change: The weighted average interest rate on our mortgage debt was $4 one 8% at year end compared to $4 one 7% at year end last year.

Speaker Change: Weighted average maturity on our mortgage debt with four four years at year end and five three years at year end last year.

Anna: In 2023 to $119 $7 million in 2024.

Anna: Our same property results continue to meet our expectations.

Speaker Change: The weighted average interest rate on our short term borrowings was 654% as compared to $6 nine 8% last year.

Anna: Same property income increased by 8% for the quarter and 9% for the year generating same property NOI growth of 8% for the quarter and 10% for the year.

Speaker Change: In total the weighted average interest rate on our total debt was slightly lower at $4 three 8% at year end compared to $4, 63% at year end last year.

Anna: From a liquidity standpoint, we ended the year with $99 7 million in cash and cash equivalents and $260 million available on our credit facility. We also had $138 million available on our revolving lines of credit for the financing of home sales and.

As of year end, we had 23 mortgages totaling $115 2 million.

Speaker Change: Due within the next 12 months of which 10 mortgages totaling $45 9 million are due in the first and second quarters of 2025.

Anna: The purchase of inventory and $55 million available on our lines of credit secured by rental homes and rental home leases.

Speaker Change: We are in the process of refinancing these mortgages with Fannie Mae we believes that proceeds from these refinancings will exceed the current balances.

Anna: As we turn to our capital structure at year end, we had approximately $615 million in debt of which $486 million with community level mortgage debt $28 million with loans payable and $101 million with a 472% series a pause.

Speaker Change: At year end UMH had a total of $321 million in perpetual preferred equity.

Our preferred stock combined with an equity market capitalization of over one 5 billion.

Speaker Change: And our $615 million in debt results in total market capitalization of approximately $2 5 billion at year end as compared to $2 billion last year generating an increase of 23%.

Anna: Yes.

Anna: 99% of our total debt is fixed rate.

Anna: Weighted average interest rate on our mortgage debt was $4 one 8% at year end compared to $4 one 7% at year end last year.

Speaker Change: During the year, we issued and sold 12 5 million shares of common stock through our common ATM programs generating net proceeds of approximately $226 million.

Anna: He did average maturity.

Anna: Mortgage debt was four four years at year end and five three years at year end last year.

Anna: The weighted average interest rate on our short term borrowings was 654% as compared to $6 nine 8% last year.

Speaker Change: The company also received $10 2 million <unk>.

Speaker Change: Including dividends, we invested through the drip.

Anna: In total the weighted average interest rate on our total debt was slightly lower at $4 three 8% at year end compared to $4, 63% at year end last year.

Speaker Change: In addition, we issued and sold one 2 million shares of our series D preferred stock during 2024 through the preferred ATM program generating net proceeds of approximately $28 million.

Anna: As of year end, we had 23 mortgages totaling $115 $2 million due within the next 12 months.

Speaker Change: Subsequent to year end, we issued 270000 shares of common stock through our common ATM program generating net proceeds of approximately $4 8 million.

Anna: Of which 10 mortgages totaling $45 $9 million due in the first and second quarters of 2025.

Speaker Change: In addition, we issued 49000 shares of our series D preferred stock through our preferred ATM program generating net proceeds of approximately $1 1 million.

Anna: We are in the process of refinancing these mortgages with Fannie Mae we believe that proceeds from these refinancings will exceed the current balances.

Speaker Change: From a credit standpoint, we ended the year with net debt to total market capitalization of 28% net debt less securities to total market capitalization of 19, 5% net debt to adjusted EBITDA of four five times and net debt less securities to adjusted EBITDA of $4.

Anna: At year end UMH had a total of $321 million in perpetual preferred equity.

Anna: Our preferred stock combined with an equity market capitalization of over one $5 billion and our $615 million in debt results in total market capitalization of approximately $2 5 billion at year end as compared to $2 billion last year generating an increase.

Speaker Change: Three times.

Speaker Change: Interest coverage was three four times and fixed charge coverage was two two times.

Anna: <unk> of 23%.

Speaker Change: Additionally, we had $31 $9 million in our REIT securities portfolio, all of which is unencumbered portfolio represents only approximately one 6% of our underappreciated assets. We are committed to not increasing our investments in our fleet securities portfolio and have in fact.

Anna: During the year, we issued and sold 12 5 million shares of common stock through our common ATM programs generating net proceeds of approximately $226 million. The company also received $10 2 million <unk>.

Anna: Including dividends reinvested through the drip.

Speaker Change: <unk> to sell certain physicians.

Anna: In addition, we issued and sold one 2 million shares of our series D preferred stock during 2024 through the preferred ATM program generating net proceeds of approximately $28 million.

Speaker Change: We're well positioned to continue to grow the company internally and externally and are introducing 2025 normalized <unk> guidance in a range of 96.

Speaker Change: Two a dollar and <unk> <unk> per share or a dollar per share at the midpoint.

Anna: Subsequent to year end, we issued 270000 shares of common stock through our common ATM program generating net proceeds of approximately $4 $8 million. In addition, we issued 49000 shares of our series D preferred stock throughout preferred ATM program generating net proceeds.

Gene: And now let me turn it over to gene before we open it up for questions.

Gene: We have a mission to provide the nation with high quality affordable housing.

Gene: We have made strides in executing this mission through the acquisition and rehabilitation of older communities. The development of expansion sites and new communities and a financing of home sales.

Anna: <unk> of approximately $1 $1 million.

Anna: From a credit standpoint, we ended the year with net debt to total market capitalization of 28% net debt securities to total market capitalization of 19, 5% net debt to adjusted EBITDA of four five times and net debt less securities to adjusted EBITDA of $4.

Gene: We have the best quality affordable housing at a price point.

Gene: UMH is a leader in the manufacturing housing industry.

Gene: We have worked with MH IMF manufacturers to improve our product and provide housing solutions in both rural and urban settings.

Anna: Three times.

Anna: Interest coverage was three four times and fixed charge coverage was two two times.

Gene: We have championed the duplex manufactured home, which allows us to increase density and provide affordable housing in more expensive markets.

Anna: Additionally, we had $31 $9 million in.

Anna: In our REIT securities portfolio, all of which is unencumbered.

Gene: We have also worked with Cif to pilot a solar home where solar singles. Unlike solar panels are installed at the factory.

Anna: Portfolio represents only approximately one 6% of our underappreciated assets.

Gene: This will ultimately reduce our tons monthly payment, thereby giving them more discretionary income.

Anna: We are committed to not increasing our investments securities portfolio and have in fact continued to sell certain physicians.

Gene: And still I am saying is at the factory greatly reduces the cost.

Anna: We are well positioned to continue to grow the company internally and externally and are introducing 2025 normalized <unk> guidance in a range of 96.

Gene: Additionally, we are working on obtaining long term patient capital.

Gene: Opportunity Zone fund and our joint venture with <unk>.

Anna: Two a dollar and four cents per share or a dollar per share at the midpoint.

Gene: There are many opportunities available, but they take time to upgrade develop and Phil with.

Gene: And now let me turn it over to gene before we open it up for questions.

Gene: With the availability of long term patient capital, we were able to continue to upgrade our existing communities, while increasing the pace of development and a value add deals and growing <unk> future acquisition pipeline.

Gene: We have a mission to provide the nation with high quality affordable housing.

Gene: We have made strides in executing this motion to the acquisition and rehabilitation of older communities the development of expansion sites and new communities.

Gene: Our country needs in an affordable housing solutions.

Gene: We're working diligently to do more to help provide this housing and position manufactured housing as a preferred solution to the problem.

Gene: Financing of home sales.

Gene: We have the best quality affordable housing at a price point.

Gene: We've done a lot over the past 36 years, but we have a lot more to do with a strong balance sheet and growth opportunities 2025 should be an exciting year for UMH.

Gene: UMH is a leader in the manufacturing housing industry.

Gene: We have worked with MH IMF manufacturers to improve our product and provide housing solutions in both rural and urban settings. We have championed the duplex manufactured home, which allows us to increase density and provide a portable housing in more expensive markets.

Gene: Okay.

Gene: Thank you we will now begin the question and answer session.

Gene: Ask a question you May press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press star and then two.

Gene: We have also worked with <unk> to pilot a solar home where solar singles. Unlike solar panels are installed at the factory.

Gene: This will ultimately reduce our tons monthly payment, thereby giving them more discretionary income.

Gaurav: Our first question comes from Gaurav.

Speaker Change: <unk> with Alliance Global Partners. Please go ahead.

Gene: And still I am saying was that the factor a greatly reduces the cost.

Speaker Change: Good morning.

Speaker Change: I wanted to go back to your comments I think <unk> mentioned four acquisitions under contract and wanted to get some more color on those acquisitions, although acquisitions were sourced and then the value add opportunity in those acquisitions.

Gene: Additionally, we are working on obtaining long term patient capital.

Gene: Opportunity Zone fund and our joint venture with <unk>.

Gene: There are many opportunities available, but they take time to upgrade develop and Phil with.

Brett Taft: Yes, Brett Taft here.

Brett Taft: As you mentioned, we've got four communities under contract now previously we had two communities under contract.

Gene: With the availability of long term patient capital, we were able to continue to upgrade our existing communities, while increasing the pace of development and value add deals and Boeing <unk> future acquisition pipeline.

Brett Taft: So we've increased our pipeline by two communities both located in New Jersey. Those communities contained 266 sites. They are 100% occupied the purchase price on those is $24 6 million or about $92000 a site.

Gene: Our country needs in an affordable housing solutions, we are working diligently to do more to help provide this housing and position manufactured housing as a preferred solution to the problem we.

Brett Taft: Those two communities are obviously stabilize given the high occupancy rates, we do have some upside there.

Gene: We have done a lot over the past five six years, but we have a lot more to do with a strong balance sheet and growth opportunities 2025 should be an exciting year for UMH.

Brett Taft: Turning over a portion of the homes and increasing the rents to market because they are.

Brett Taft: Jersey.

Brett Taft: Additionally, there is an opportunity for sales profits as we remove some of the older homes in those community, which theres not too. Many will also be able to increase our brokerage income there through reselling tenant homes.

Gene: Thank you we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press star.

Brett Taft: The two communities.

Brett Taft: Two additional communities are in Maryland, or the same two communities we've had under contract for a while now we've been working through some diligence matters with the seller. We believe we're close to the end of that process and those should close in the second quarter. So.

Gene: And then too.

Gaurav: Our first question comes from Gaurav.

Gene: Mehta with Alliance Global Partners. Please go ahead.

Brett Taft: These four communities $39 2 million total should close in the first half of the year things can change and we'll see where we land but were happy to grow the pipeline. We're looking at a lot of additional opportunities and think we're going to find more deals that meet our growth criteria.

Gene: Thank you good morning, I wanted to go back to your comment I think you mentioned four acquisitions under contract I wanted to get some more color on those acquisitions, how does acquisitions were sourced.

Gene: Is there any value add opportunity in those acquisitions.

Brett Taft: You also mentioned value add component.

Brett Taft: The only deal with a real value add component. There is one of the two Maryland properties. Its about 70% occupied there is 45 vacant sites.

Gene: Yeah, Brett Taft here Oh, Yeah. As you mentioned, we've got four communities under contract now previously we had two communities under contract.

Brett Taft: We will implement our typical strategy upgrading the community paving the road, making sure the infrastructure and the amenities are in place and that will put our rental home program and drive occupancy growth.

Gene: So we've increased our pipeline by two communities both located in New Jersey. Those communities contained 266 sites. They are a 100% occupied the purchase price on those is $24 6 million or about $92000 a site.

Brett Taft: Okay.

Brett Taft: Okay. Thank you second question I wanted to ask on the mortgage I think you said, you're looking to refinance with Fannie Mae for mortgages coming due in first half of 'twenty five.

Gene: Those two communities are obviously stabilize given the high occupancy rates, we do have some upside there in.

Brett Taft: Good to get some more color on what kind of infrastructure do you expect on those refinancing.

Gene: Turning over a portion of the homes and increasing the rents to market because they are.

Brett Taft: Well, we are using a Fannie may and we are in discussions with Fannie Mae as a matter of fact, we are in the due diligence process in that respect.

Gene: Jersey.

Gene: Additionally, there is an opportunity for sales profits as we remove some of the older homes in those community, which theres not too. Many will also be able to increase our brokerage income there through reselling tenant homes.

Brett Taft: Based on the current.

Brett Taft: Interest rates, we believe that we will be under 6% probably in the five 5% to five and three quarter range.

Gene: The two communities there too.

Gene: Two additional communities are in Maryland, or the same two communities we've had under contract for a while now we've been working through some diligence matters with the seller. We believe we're close to the end of that process and those should close in the second quarter. So are these four communities $39 2 million total should close in the first half of the year.

Brett Taft: And we believe that the proceeds from it have.

Brett Taft: <unk> is more than our current balances. So we will be able to take additional capital out of those refinancings.

Brett Taft: I came here I just want to mention when when we refinance these properties, we get appraisals and appraisals prove everything we always say.

Gene: Things can change and we will see where we land but were happy to grow the pipeline. We're looking at a lot of additional opportunities and think we're going to find more deals that meet our growth criteria.

Brett Taft: You take every dollar we paid for our community every dollar we put into it and 10 years later a double in value.

Speaker Change: You also mentioned value add component.

Brett Taft: To that.

Brett Taft: I looked at one of the community being refinanced where we had built a headline.

Speaker Change: The only deal with a real value add component. There is one of the two Maryland properties. Its about 70% occupied there is 45 vacant sites.

Ken lot expansion years ago, but back then the expansion lots.

Speaker Change: We will implement our typical strategy upgrading the community paving the road to making sure the infrastructure and the amenities are in place and that will put our rental home program in and drive occupancy growth.

Approximately $50000 per lot and we were adding sales profit earnings sales profit.

Brett Taft: The net cost of those losses.

Brett Taft: Significantly less than 50000 today, those lots of trades at a $102000 per watt.

Speaker Change: Okay. Thank you second question I wanted to ask on the mortgage.

Speaker Change: You said, you're looking to refinance with Fannie Mae for mortgages coming due in first half of 'twenty five just wanted to get some more color on what kind of an frustrated should we expect on those refinancings.

Brett Taft: Okay.

Brett Taft: Last question I have is on G&A.

Brett Taft: To get some more color was there any nonrecurring items in the <unk> that you guys reported.

Speaker Change: Well, we are using a Fannie may and we are in discussions with Fannie Mae as a matter of fact, we are in the due diligence process in that respect base.

Brett Taft: On the G&A, yes, it did increase for the fourth quarter that was primarily due to additional bonuses that we accrued for because of our good operating results over the year, we record the amount that's based upon again current earning.

Speaker Change: Based on the current.

Speaker Change: Interest rates, we believe that we will be under 6% probably in the five five to five and three quarter.

Speaker Change: <unk>.

Speaker Change: And we believe that the proceeds from it have.

Brett Taft: Earnings and current.

Brett Taft: Operations, but at year end, what we do is we look at the whole picture and see how much we need in total I think.

Speaker Change: <unk> is more than our current balances. So we will be able to take additional capital out of those refinancings.

Brett Taft: G&A did go up about 8%. So therefore, we believe that that is probably the going rate into next year around there anyway, 7% to 8% depending of course on inflation and other things that we do.

Speaker Change: I came here I just wanted to mention when when we refinance these properties, we get appraisals and the appraisals prove everything we always say.

Speaker Change: You take every dollar we paid for our community every dollar we put into it and 10 years later they double in value.

Brett Taft: Okay. Thank you that's all I had.

Speaker Change: That.

Rob Stevenson: And the next question comes from Rob Stevenson with Janney. Please go ahead.

Speaker Change: I looked at one of the communities being refinanced where we had built a.

Speaker Change: Ken lot expansion years ago, but back then the expansion lost cost.

Rob Stevenson: Good morning, guys.

Speaker Change: The big swing factors that cause you to report the high end versus the low end of your 2025 guidance range.

Speaker Change: Approximately $50000 per lot and we were adding sales profit earnings sales profits. So that the net cost of those lots was <unk>.

Speaker Change: I will give that to Jim Jim I would say the big two our home sales and acquisitions.

Speaker Change: Significantly less than 50000 today, those lots appraised at a $102000 per lot.

Speaker Change: Okay. So at the top end you do more than the four that you guys have talked that Brett talked about before.

Speaker Change: Okay.

Speaker Change: And last question I had was on G&A. This one.

Speaker Change: Or to get some more color was there any non recurring items in the <unk> that you guys reported.

Speaker Change: And then you'd all.

Speaker Change: So we'll be doing more home sales than what you did in 2024.

Speaker Change: On the G&A, yes, it did increase for the fourth quarter that was primarily due to additional bonuses that we accrued for because of our good operating results over the year, we record the amount that's based upon again current earning.

Speaker Change: Exactly okay.

Speaker Change: Okay, and just to add on the home sales comment.

Speaker Change: Over the past few years, we've invested a lot of money into our expansions, which are now opening theyre getting a lot of positive traction and there is always a variable in the pace and the timing of sales. So we've got the opportunity in Maryland at sentiment Woods.

Speaker Change: Earnings and current.

Speaker Change: I believe it's 60 lots, which we've just opened those should be highly profitable sales. The question is how many and how quickly do we gained traction holiday village in Nashville, which two years ago. We had a new expansion opened we sold 36, new homes $5 million in volume.

Speaker Change: Operations, but at year end, what we do is we look at the whole picture and see how much we need in total I think.

Speaker Change: G&A did go up about 8%. So therefore, we believe that that is probably the going rate into next year around there anyway, 7% to 8% depending of course on inflation and other things that we do.

Speaker Change: That was an exceptional year. It was so good that we ran out of lots so that really wasn't totally reflected in the 2024 numbers, but the good news is we are opening a new phase right now with another 70 lots. So we've got the opportunity to substantially improve sales at that location.

Speaker Change: Okay. Thank you that's all I had.

Speaker Change: And the next question comes from Rob Stevenson with Janney. Please go ahead.

Speaker Change: You look at Duck River of states down in Colombia, Tennessee, an outstanding location only a few vacant lots right now, but we're in construction on another phase so that'll be believe its 95 lots. So I could keep going down this list, but the point being there is a lot of expansions opening its hard to exactly predict what sales are going to be they could completely.

Rob Stevenson: Good morning, guys and what are the big swing factors that cause you to report the high end versus the low end of your 2025 guidance range.

Speaker Change: I will give that to Jim Jim I would say the big two our home sales and acquisitions.

Speaker Change: Our expectations or it could be 10% growth over 2024.

Speaker Change: Okay. So at the top end you do more than the four that you guys have talked to that Brent talked about before.

Speaker Change: I guess, along those same lines, you've got still a significant occupancy upside at your five.

Speaker Change: And then you'd also be doing more home sales than what you did in 2024.

Speaker Change: Southern most assets in Alabama, Georgia, and South Carolina, what type of monthly leasing velocity. If you are seeing there and how has that been trending over the last six months or so.

Speaker Change: Exactly okay.

Speaker Change: Okay, and just to add on the home sales comment.

Speaker Change: Over the past few years, we've invested a lot of money into our expansions, which are now opening they're getting a lot of positive traction and theres always a variable in the pace and the timing of sales. So we've got the opportunity in Maryland at sentiment voids.

Speaker Change: Yes, we have been doing very well at those communities I would say, Alabama is probably got 40 vacant sites left to fill we believe that at the first property down there day, Iran. We expect those sites to be full this year. The second property that we opened in Alabama, we ran into some zoning.

Speaker Change: I believe it's 60 lots, which we've just opened those should be highly profitable sales. The question is how many and how quickly do we gained traction holiday village in Nashville, which two years ago. We had a new expansion opened we sold 36, new homes $5 million in volume.

Speaker Change: And site plan issues, we're through those problems now and were rapidly filling that property over the last three months of the year I believe we filled 20 units, but again now we're at the point, where we're bringing new inventory and getting it set up and have a few capital improvements we need to complete before we can really work on filling the rest of that property South Carolina, the first asset.

Speaker Change: You know that that was an exceptional year. It was so good that we ran out of lots so that really wasn't totally reflected in the 2024 numbers, but the good news is we're opening a new phase right now with another 70 lots. So we've got the opportunity to substantially improve sales at that location.

Speaker Change: We acquired is basically full theres a few vacant sites, but it's really just rental home turnover. The second property. We're again working on infrastructure improvements. So we can keep putting homes and so I'd say demand and velocity is extremely strong. It's just a function of when can we complete these improvements when can we get the homes.

Speaker Change: You look at Duck River of states down in Colombia, Tennessee, an outstanding location only a few vacant lots right now, but we're in construction on another phase that'll be I believe it's 95 lots. So I could keep going down this list, but the point being there is a lot of expansions opening its hard to exactly predict what sales are going to be they could completely.

Speaker Change: Ultimately once we have the homes in place and setup their renting as rapidly as we can get them in.

Speaker Change: Okay. That's helpful. And then you guys talked about adding 800, new rental homes in 2025 to the portfolio. What is the average price per rental home youre buying today, and how has that cost changing given the.

Speaker Change: Our expectations or you know it could be 10% growth over 2024.

Speaker Change: I guess, along those same lines, you've got still a significant occupancy upside at your five.

Speaker Change: Elevated levels of inflation and changes to material and labor costs.

Speaker Change: Southern most assets in Alabama, Georgia, and South Carolina, what type of monthly leasing velocity. If you are seeing there and how has that been trending over the last six months or so.

Speaker Change: Yes prices have actually been relatively consistent over the last year, where.

Speaker Change: Yeah, we've been doing very well at those communities I would say, Alabama is probably got 40 vacant sites left to fill we believe that at the first property down there do you run a we expect those sites to be full this year. The second property that we opened in Alabama, we ran into some zoning.

Speaker Change: Invoicing around 60 to 65000 in some cases less than that based on winter discounts, which is 10 to $15000 and set up so we're in that 70 to $75000 for your typical single wide rental home.

Speaker Change: In certain cases, we're renting multi section homes those are on the books for probably about $90000 a home, but they are generating higher rents.

Speaker Change: Site plan issues, we're through those problems now and we're rapidly and filling that property over the last three months of the year I believe we filled 20 units, but again now we're at the point, where we're bringing new inventory and getting it set up and have a few capital improvements we need to complete before we can really work on filling the rest of that property South Carolina, the first asset.

Speaker Change: So thats, where its been we were optimistic there.

Speaker Change: Home prices will not change too much if you go back to.

Speaker Change: The middle to end of Covid prices have come down from there. So we're still well below that peak and.

Speaker Change: Hopefully it doesn't get up there again, but only time will tell.

Speaker Change: We acquired is basically full theres a few vacant sites, but it's really just rental home turnover the second property.

Speaker Change: Okay, and then last one for me how much more does it cost to put those solar shingles on one of these homes than traditional shingles that Jim was talking about.

Speaker Change: We're again working on infrastructure improvements. So we can keep putting homes and so I'd say demand and velocity is extremely strong. It's just a function of when can we complete these improvements when can we get the homes and.

Speaker Change: This is absolutely amazing.

Speaker Change: To put a.

Speaker Change: Silver.

Speaker Change: Manufactured home.

Speaker Change: Ultimately once we have the homes in place and setup their renting as rapidly as we can get them in.

Speaker Change: <unk>.

Speaker Change: And our park is over $25000 and to put it in in a factory when you're building is under 15000 on top of that is simply amazing to see the process.

Speaker Change: Okay. That's helpful. And then you guys talked about adding 800, new rental homes in 2025 to the portfolio. What is the average price per rental home, you're buying today and how has that cost changing given the.

Speaker Change: It takes less than 45 minutes to put a roof on a house. This is a remarkable what we can do with the factory built housing.

Speaker Change: Elevated levels of inflation and changes to material and labor costs.

Speaker Change: Yes prices have actually been relatively consistent over the last year, where.

Speaker Change: Does that number already include any type of.

Speaker Change: Invoicing around 60 to 65000 in some cases less than that based on winter discounts 10 to $15000 and set up so we're in that 70 to $75000 for your typical single wide rental home.

Speaker Change: Federal or local.

Speaker Change: Rebates et cetera, or is that net or is their benefits to you guys.

Speaker Change: On top of that.

Speaker Change: I'm not sure.

Speaker Change: Yes.

Speaker Change: Go ahead.

Speaker Change: In certain cases, we're renting multi section homes are on the books for probably about $90000 a home, but they are generating higher rents.

Speaker Change: The roof is that going to be owned by <unk> in the beginning.

Speaker Change: Got.

Speaker Change: A third party company will own the roofing shingles.

Speaker Change: So that's where it's been we were optimistic there.

Speaker Change: The.

Speaker Change: That home prices will not change too much if you go back to.

Speaker Change: Tenants utility Bill is going to go down because of the solar roof.

Speaker Change: The middle to end of Covid, our prices have come down from there. So we're still well below that peak and we are hopeful that it doesn't get up there again, but only time will tell.

Speaker Change: <unk> will be paid a small amount for use of the room.

Speaker Change: Benefit is reducing the residents monthly utility coal through solar the second step of this.

Speaker Change: Okay, and then last one for me how much more does it cost to put the solar shingles on one of these homes than traditional shingles that Jim was talking about.

Speaker Change: At some point the technology is not there today, but at some point the factory can install the battery.

Speaker Change: This is absolutely amazing.

And they can install the battery at the factory at a lower cost than doing it anywhere else and then they can install the car charger at the factory at a lower cost than doing it anywhere else. So ultimately and it may be three years from today I don't know what it'll be but ultimately the factory home will have a solar roof.

Speaker Change: To put a.

Speaker Change: So we're in a.

Speaker Change: Manufactured home.

Speaker Change: <unk>.

Speaker Change: And our park is over $25000 and to put it in the factory. When you build it is under 15000 on top of that it is simply amazing to see the process.

Speaker Change: The owner of that shingle gets all of the rebates.

Speaker Change: Okay.

Speaker Change: It takes less than 45 minutes to put a roof on a house. This is a remarkable what we can do with the factory built housing.

Speaker Change: Factory solar roof.

Speaker Change: Factory battery in a factory car charger.

Speaker Change: And our houses.

Speaker Change: So we could park their car in the driveway plug into their solar car charger at night because.

Speaker Change: Does that number already include any type of.

Speaker Change: Federal or local.

Speaker Change: The electric coming from the battery and charges their car at a lower fuel cost than anywhere else. So that's the ultimate objective.

Speaker Change: Rebates et cetera, or is that net or is their benefits to you guys on top of that.

Speaker Change: At this moment I think it's 20 homes are being delivered with the solar shingle.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Go ahead.

Speaker Change: Yes, the roof is not going to be owned by you and me in the beginning.

Speaker Change: And that's where we are.

Speaker Change: Okay.

Speaker Change: Your cost on those homes isn't going up to $75 to 80000.

Speaker Change: A third party company.

Speaker Change: We'll own the roofing shingles.

Speaker Change: That 15000 for the factory ton stuff is being paid for by solar Ron or one of those types of companies out there and that cost is not basically hitting you guys in terms of the cost of the rental unit.

Speaker Change: The.

Speaker Change: Tenants utility Bill is going to go down because of the solar roof and UMH will be paid a small amount for use of the room.

Speaker Change: The big.

Speaker Change: Can I get it all right Brett.

Speaker Change: Benefit is reducing the residents monthly utility costs through solar the second step of this.

Speaker Change: That is absolutely correct, yes.

Speaker Change: Okay, So no cost or no cost differential to use that as a third party. Okay. That's helpful. Thank you I appreciate the time this morning guys.

Speaker Change: At some point the technology is not there today, but at some point the factory can install the battery.

Speaker Change: Yes.

Speaker Change: And the next question comes from Rich Anderson with Wedbush. Please go ahead.

Speaker Change: And they can install the battery at the factory at a lower cost than doing it anywhere else and then they can install the car charger at the factory at a lower cost than doing it anywhere else. So ultimately and it may be three years from today I don't know what it'll be but ultimately the factory home will have a solar roof.

Rich Anderson: Thanks, and good morning.

Speaker Change: 565 rentals.

Rich Anderson: In 2024 target of 800.

Speaker Change: What gives you the confidence that you can see that type of acceleration.

Speaker Change: The owner of that shingle gets all of the rebates.

Rich Anderson: On the rental side.

Speaker Change: And a lot of factory solar roof factory battery in a factory car charger.

Rich Anderson: Yes, Brett here. So if you go back to 2023, when we had adequate inventory, we're able to rent.

Speaker Change: And our houses.

Speaker Change: Someone could park their car in the driveway plug into their solar car charger.

Rich Anderson: Close to 1000 homes and including sales. It was I think it was around 1100 total homes moved from our inventory.

Speaker Change: At night because.

Rich Anderson: Inventory last year, given the challenges we had in 2023.

Speaker Change: The electric coming from the battery and charges their car at a lower fuel cost than anywhere else. So that's the ultimate objective.

Rich Anderson: Obtaining the homes getting them setup utility issues carrying costs related to interest on floor plan et cetera, we were just a little bit more conservative in the first quarter, which really sets us up for occupancy gains throughout the year. So this year right now we have about including our joint venture of 680.

Speaker Change: This moment I think it's 20 homes are being delivered with the solar shingle.

Speaker Change: And that's where we are.

Speaker Change: Okay.

Speaker Change: Our cost on those homes isn't going up to 75% to 80000.

Speaker Change: That 15000 for the factory ton stuff is being paid for by solar Ron or one of those types of companies out there and that cost is not basically hitting you guys in terms of the cost of the rental unit.

Rich Anderson: Homes in inventory or on order I'm, sorry, we've got about 490 of those already delivered to our communities about 390 of those were delivered within the last six months. So we already have a better starting inventory place than we did these homes are located in strong markets, where they generally rent as soon as they are fully set up and.

Brett Taft: Can I get it all right Brett.

Speaker Change: That is absolutely correct, yes.

Speaker Change: Okay, So no cost or no cost differential to use that as a third party. Okay. That's helpful. Thank you I appreciate the time this morning guys.

Rich Anderson: And ready for occupancy.

Rich Anderson: So we anticipate faster growth in the rental home program in the first half than we saw last year and we will more aggressively order homes as we are occupying homes at these strong demand locations.

Speaker Change: Yes.

Rich Anderson: And the next question comes from Rich Anderson with Wedbush. Please go ahead.

Rich Anderson: Thanks, and good morning.

Speaker Change: 565 rentals.

Rich Anderson: What is the.

Speaker Change: Add it in 2024 target of 800.

Rich Anderson: The chance that some of those five or 600 homes that are sitting in inventory.

Speaker Change: What gives you the confidence that you can see that type of acceleration.

Rich Anderson: Don't get rent if it gets sold.

Speaker Change: On the on the rental side.

Rich Anderson: There is definitely a good chance that a lot of those homes in inventory gets sold.

Speaker Change: Yeah, Brett here. So if you go back to 2023, when we had adequate inventory, we're able to rent.

Rich Anderson: Again same strategy, we would go and continue to replace those homes and if somebody wants to come in and buy it we will sell it to them if somebody wants to rent it we will rent it to them.

Speaker Change: Close to 1000 homes and including sales. It was I think it was around 1100 total homes moved from our inventory last year given the challenges we had in 2023.

Rich Anderson: We do anticipate growing sales last year, given some of the expansions we've opened that we discussed earlier on the call.

Speaker Change: Obtaining the homes getting them set up utility issues carrying costs related to interest on floor plan et cetera, we were just a little bit more conservative in the first quarter.

Rich Anderson: I would think that sales of new homes should be in the 200, new homes next year I think we did about 130 last year or 136, yes, we expect growing sales, but again I think that we're going to see a lot more of our growth through the rental program at our high demand locations, which have historically <unk>.

Speaker Change: It's really set us up for occupancy gains throughout the year. So this year right now we have about including our joint venture 680 homes in inventory or on order I'm sorry, We've got about 490 of those already delivered to our communities.

Rich Anderson: And that they are able to do this again going back to 2023, we had one community that rented 100 homes. We had several other communities that rented 60 or 70 those properties do still have vacancy and do still have strong demand and are doing a good job keeping their occupancy rates up on the existing rental program. So.

Speaker Change: About 390 of those were delivered within the last six months. So we already have a better starting inventory place. When we did these homes are located in strong markets, where they generally rent as soon as they are fully set up and sealed and ready for occupancy.

Rich Anderson: Not promising we'll hit those exact numbers again, but we do believe that we'll be able to get 800, new homes in this year on the rental front and hopefully sell 200, new homes, Okay and then.

Speaker Change: So we anticipate faster growth in the rental home program in the first half than we saw last year and we will more aggressively order homes as we're occupying homes at these strong demand locations.

Rich Anderson: Tim.

Tim: We talked some.

Rich Anderson: What's that.

Speaker Change: What is the.

No go ahead.

Speaker Change: Chance that some of those five or 600 homes that are sitting in inventory.

Rich Anderson: So we talked.

Speaker Change: Month, or so ago about some of the changes in Sam you referred to.

Speaker Change: Don't get rent if it gets sold.

Rich Anderson: Maybe.

There is definitely a good chance that a lot of those homes in inventory gets sold.

Rich Anderson: The ability to sell more homes with the new administration in place and so on.

Rich Anderson: I'm wondering.

Speaker Change: Again same strategy, we would go and continue to replace those homes and you know if somebody wants to come in and buy it we will sell it to them if somebody wants to rent it we will rent it to them.

Rich Anderson: What your thought is about.

Rich Anderson: The ability to sell more.

Rich Anderson: Perhaps relaxing dodd, Frank or whatever whatever driver that might be.

Speaker Change: We do anticipate growing sales last year, given some of the expansions we've opened that we discussed earlier on the call.

Speaker Change: Do you feel like the economics are better or worse.

Rich Anderson: Home.

Speaker Change: I would think that sales of new homes should be in the 200, new homes next year I think we did about 130 last year or 136, yeah. We expect a growing sales, but again I think that we're going to see a lot more of our growth through the rental program at our high demand locations, which have historically proof.

Speaker Change: A renter or a home seller from your from your lens or is it is it is it a kind of a wash and you just like the optionality.

Rich Anderson: Sure.

UMH is over a 50 year history operating communities and we have.

Rich Anderson: Absolutely proven <unk>.

Rich Anderson: <unk> with factory built homes for sale or rent.

Speaker Change: And that Theyre able to do this again going back to 2023, we had one community that rented 100 homes. We had several other communities that rented 60 or 70 those properties do still have vacancy and do still have strong demand and are doing a good job keeping their occupancy rates up on the existing rental program. So.

Rich Anderson: It's that simple.

Rich Anderson: Where is the most efficient provider.

Rich Anderson: Housing because the factories provide a great product at a low price and then we provide a great community at a fair price and there are people, who only need housing on a one or three year basis. They see themselves as temporary those are always going to be rentals and because we opened the door to those people right.

Speaker Change: Not not promising we'll hit those exact numbers again, but we do believe that we'll be able to get 800, new homes in this year on the rental front and hopefully sell 200, new homes, Okay and then.

Rich Anderson: That store was close to them previously the original model of manufactured home communities with you own the home and rented a lot. So that whole group of people was not a potential customer.

Speaker Change: Sam.

Sam: We talked sector.

Speaker Change: What's that.

Speaker Change: No go ahead.

Speaker Change: Yeah, So we talked a.

Rich Anderson: 10300 of those people and our customers now sales continue because as somebody who lives in a rental and so.

Speaker Change: A month or so ago about some of the changes in Sam you referred to.

Speaker Change: Maybe.

Speaker Change: <unk> to sell more homes with the new administration in place and so on.

<unk>.

Rich Anderson: You know this is a great community and this is where I want to live.

Speaker Change: I'm wondering what your thought is about.

Rich Anderson: And the house.

Rich Anderson: Appreciate in value you built equity in the house.

Speaker Change: The ability to sell more.

Rich Anderson: As this occurs we get more and more sales.

Speaker Change: Perhaps relaxing Dodd, Frank or whatever whatever driver that might be do you do you feel like the economics are better or worse as a home.

Rich Anderson: We've done a great job, putting our community near each other and our marketing and all of that's increasing sales, but add to that the possible changes in the finance laws. If it happens would create a dramatic increase in home sales.

Renter or a home seller from your from your lens or is it is it is it a kind of a wash or do you just like the optionality.

Rich Anderson: Okay.

Speaker Change: Sure.

Rich Anderson: Do you when you're talking to your rental.

Speaker Change: UMH is over a 50 year history operating communities and we have.

Rich Anderson: <unk>.

Rich Anderson: As there are very clear.

Absolutely proven hit communities with factory built homes for sale or rent, where it's that simple.

Rich Anderson: Percentage of those people that are renting that would love to own but simply can't I mean, do you get that that very palpable.

Speaker Change: The most efficient provider.

Speaker Change: Housing because the factories provide a great product at a low price and then we can provide a great community at a fair price and there are people, who only need housing on a one or three year basis. They see themselves as temporary those are always going to be renters, and because we opened the door to those people right.

Rich Anderson: Indication within your portfolio.

Rich Anderson: Well, we do convert.

Rich Anderson: Resident owned homes for rentals today.

Rich Anderson: They build equity in their house, they only get the rent increase on the lot rent not on the full home run so they've reduced their running Kris.

Speaker Change: Basically 50% by owning the home.

Rich Anderson: Yes.

Speaker Change: Previously was that door was close to them previously the original model of manufactured home communities. Once you own the home and rented a lot. So that whole group of people was not a potential customer we brought 10300 of those people and our customers now sales continue because as somebody who lives.

Rich Anderson: Yeah.

Speaker Change: I don't talk to enough residents to give you an actual survey, but but Mike.

The ultimate objective is.

Speaker Change: 100 to 300, and maybe more of those 15 year old homes, each year could be sold to the existing residents and we'd continue to still grow the rental home portfolio by 800 units with 800 new rentals.

Speaker Change: In our rental and says you know this is a great community and this is where I want to live and the house.

Speaker Change: Okay, that's really it.

Speaker Change: Appreciate and value your built equity in the house.

Speaker Change: Really curious does that 10300 of rental homes.

Speaker Change: As this occurs we get more and more sales and we've done a great job, putting our community near each other and our marketing and all that's increasing sales, but add to that the possible changes in the finance laws. If it happens would create a dramatic increase in home sales.

Speaker Change: Do you ever were to do a survey how many of them are happy as renters are would rather be an owner that would be interesting data for me I guess, but anyway just.

Speaker Change: Thanks, very much great quarter I appreciate it.

Speaker Change: Thank you.

Craig Sarah: And the next question comes from Craig Sarah with Lucid capital markets. Please go ahead.

Speaker Change: Hey.

Speaker Change: Do you when you're talking to your rental.

Craig Sarah: Hey, good morning, guys.

Speaker Change: Residents is there are very clear.

Your leverage has significantly dropped over the past couple of years.

Speaker Change: Percentage of those people that are renting that would love to own but simply can't I mean, do you get that that very palpable.

Speaker Change: Curious the years is there a target that UMH is looking to work toward or is this just been a matter of taking advantage of the capital markets.

Speaker Change: Sort of indication within your portfolio.

Speaker Change: Well, we do convert.

Speaker Change: Well Greg.

Resident owned homes to rentals today.

Speaker Change: We are.

Speaker Change: We as you know we've always been a conservative company net debt to total market cap is usually in the 30% 30% to 40% range.

Speaker Change: Build equity in their house, they only get the rent increase on the lot rent not on a full home run so they reduced their renting Kris.

Speaker Change: Basically 50% by owning the home.

Speaker Change: We did take advantage of the capital markets, but don't forget every year, we are growing company based on our business plan, we need between $120 million to $150 million a year. So therefore, we opportunistically raised.

Speaker Change: Okay.

Speaker Change: I don't talk to enough residents to give you an actual survey, but but Mike.

The ultimate objective here.

Speaker Change: <unk>.

Speaker Change: 100 to 300, and maybe more of those 15 year old homes, each year could be sold to the existing residents and we'd continue to still grow the rental home portfolio by 800 units with 800 new rentals.

Speaker Change: Raise additional capital, which we believe that we will use. Additionally, we did have a $115 million in debt coming due so we wanted to make sure that we have the capital not only to pay down our debt, but also for to grow our company. So we did.

Speaker Change: That's really it.

Speaker Change: Really curious does that 10300 of rental homes.

Speaker Change: We have additional <unk>.

Speaker Change: ATM proceeds last year, which is fine which is great because we will be using it this year.

Speaker Change: If you ever were to do a survey how many of them are happy as renters are would rather be an owner that would be interesting data for me I guess, but anyway, just a just a comment thanks very much great quarter I appreciate it.

Speaker Change: Okay.

Speaker Change: Our goal was to build at least a thousand homes, a year and I would like to see you too.

Speaker Change: Thank you.

Craig Sarah: And the next question comes from Craig Sarah with Lucid capital markets. Please go ahead.

Speaker Change: 2000 homes a year.

Over the course of 100000 for the home and stored.

150 <unk>.

Speaker Change: Yeah, Hey, good morning, guys.

Speaker Change: Total cost of 200000 or even call it $2 50, so $200 million.

Craig Sarah: Your leverage has significantly dropped over the past couple of years.

Speaker Change: Be curious to hear is is there a target that UMH is looking to work toward or is this just been a matter of taking advantage of the capital markets.

Speaker Change: Bill 1000 homes and we'd like to believe in more so it's a capital intensive business and it takes a.

Speaker Change: A long time too.

Greg: Well Greg.

Speaker Change: Build these communities.

Speaker Change: We are.

Speaker Change: To get the community filled and to get the reps.

Speaker Change: We as you know we've always been a conservative company, our net debt to total market cap is usually in the 30% 30% to 40% range.

Speaker Change: It's a very productive, but we've been doing it a long time and we're going to continue to do it.

Speaker Change: We're going to continue to grow the company both equity.

Speaker Change: We did take advantage of the capital markets, but don't forget every year, we are a growing company based on our business plan, we need between $120 million to $150 million a year. So therefore, we opportunistically.

Speaker Change: <unk> preferred capital and debt capital and if I can add one thing the country facilities Wednesday, and housing very well and Thats. The government sponsored entities. What Anders said is we can get long term financing of our communities our below 6% in this market at this time.

Speaker Change: Additional capital, which we believe that we will use. Additionally, we did have a $115 million in debt coming due so we wanted to make sure that we had the capital not only to pay down our debt, but also for us to grow our company. So we did.

Speaker Change: That is simply amazing other rates that are in different categories offices hotels.

Speaker Change: They don't have the advance of the government sponsored entities and they're paying 234 points higher than we have access to the capital market the debt market. So it's a big advantage to our sector and to you Amit.

Speaker Change: Have additional.

Speaker Change: ATM proceeds last year, which is fine which is great because we will be using it this year.

Speaker Change: Okay.

Speaker Change: Our goal was to build at least a thousand homes, a year and I'd like to see you. It makes 2000 homes a year.

Speaker Change: Okay great.

Speaker Change: Changing gears.

Speaker Change: Brent I think your operating expense budget typically it's about 5% to 7% on a same store basis is that still the expectation in 2020 fiber.

Speaker Change: Cost 100000 for the home installed.

Speaker Change: 150.

Speaker Change: Or maybe you can be a little bit more access because of the very snowy winter and snow removal costs or any color there would be appreciated.

Speaker Change: Total cost is 200000 or even call it $2 50, so $200 million.

Speaker Change: Yes, I would say.

Speaker Change: To do a 1000 homes and we'd like to believe in more so it's a capital intensive business and it takes a long time too.

Speaker Change: 5% to 7% is still the right range honestly, 5% would be phenomenal I think it's probably in the 6% to 7% range given what you've mentioned with the <unk>.

Speaker Change: Build these communities and to get the community filled and to get the reps, where we're it's a very productive, but we've been doing it a long time and we're going to continue to do it.

Speaker Change: Storm snow removal et cetera, I would also add there is a few other items that are in our 8% in the fourth quarter professional fees related to some various projects and tax appeals and things like that that increased.

Speaker Change: We're going to continue to grow the company, both equity capital preferred capital and debt capital and then if I could add one thing the country is still a Wednesday and housing very well and that's the government sponsored entities. What Anders said is we can get long term financing of our communities or below.

Speaker Change: Which we don't expect to happen next year, so we feel pretty comfortable for the full year 2025, we will be in that call. It 6% to 7% range, 5% would be great. There is probably going to be some other additional inflationary pressure on our operations.

Speaker Change: Got it I appreciate it.

Speaker Change: 6% in this market at this time and that's simply amazing other rates.

Speaker Change: Let's talk about UMH finance for a second just given what's happened with home prices.

Speaker Change: There are different categories offices hotels.

Speaker Change: Are you seeing any change in the typical buyer versus a few years ago are they may be better credits or higher income than they were.

Speaker Change: You don't have the advance of the government sponsored entities.

Speaker Change: Paying 234 points higher than we have access to the capital market the debt market. So it's a big advantage to our sector and to UMH.

Speaker Change: Pushed out or maybe potentially buying a single family home or as credit income and relatively constant over the last few years.

Speaker Change: No my belief in the <unk>.

Speaker Change: Lightening of the affordability gap plus the fact that we're building these great expansion is putting in.

Speaker Change: Okay great.

Speaker Change: Changing gears.

Speaker Change: Brad I think your operating expense budget typically it's about 5% to 7% on a same store basis is that still the expectation in 2025 or <unk>.

Speaker Change: Screamingly high end homes better than any homes in the past.

Speaker Change: Results.

Speaker Change: In higher credit quality higher down payments, you can see the percentage of paid cash for their homes. So.

Speaker Change: Maybe you can be a little bit more access because of the very snowy winter and snow removal costs or any color there would be appreciated.

Speaker Change: Yeah, I would say.

Speaker Change: Hi.

Speaker Change: Conventional.

Speaker Change: 5% to 7% is still the right range honestly, 5% would be phenomenal I think it's probably in the 6% to 7% range given what you've mentioned with the.

Speaker Change: Conventional home sales are currently a little bit blocked but people can sell their existing home youre going to see more and more of them downside and buy a house from us all cash and those are going to be our highest in homestead too.

Speaker Change: Storm snow removal et cetera, I'd also add there is a few other items that are in our 8% in the fourth quarter professional fees related to some various projects and tax appeals and things like that that increased.

Speaker Change: 250000, or 300000 lot rents of about $7 50 per month.

Speaker Change: And that it's kind of more like 2006 when we.

Speaker Change: Which we don't expect to happen next year, so we feel pretty comfortable for the full year 2025, we will be in that call. It 6% to 7% range, 5% would be great. There is probably going to be some other additional inflationary pressure on our operations.

Speaker Change: We were selling the biggest most expensive houses to people downsizing and I see that occurring for.

Speaker Change: For the next five years, while we have available extension loss.

Speaker Change: Great just one more for me.

Speaker Change: Got it I appreciate it.

Speaker Change: Would be curious if you had any conversations with the manufactured housing builders about how tariffs might impact your business.

Speaker Change: Let's talk about UMH finance for a second just given what's happened with home prices.

Speaker Change: Are they worried about input costs or maybe would there be any supply chain issues.

Speaker Change: Are you seeing any change in the typical buyer versus a few years ago are they may be better credits or higher income than then they were that had been completely pushed out or maybe potentially buying a single family home or as credit in income and relatively constant over the last few years.

Brett Taft: Brett do you have anything there I don't know of anything.

Brett Taft: All I can really say there is that in speaking with an ordering homes from our manufacturers, we haven't experienced any issues yet.

Speaker Change: My belief is.

Brett Taft: Backlogs are still in that call. It eight week range some of them a little bit further out than that so to this point there haven't been any major problems Im sure its something our manufacturers are worried about.

Speaker Change: Widening of the affordability gap plus the fact that we're building these great expansion is putting in.

Speaker Change: Extremely high end homes better than any homes in the past.

Speaker Change: Sure.

Speaker Change: Results.

Brett Taft: But we'll update you as we get more information there.

Speaker Change: In higher credit quality higher down payments, you can see the percentage of paid cash for their homes.

Brett Taft: Okay, great. Thanks.

Speaker Change: And the next question comes from John <unk>.

No.

Speaker Change: Hi.

Speaker Change: Conventional.

Speaker Change: <unk> with B Riley. Please go ahead.

Speaker Change: Conventional home sales are currently a little bit blocked but people can sell their existing home youre going to see more and more of them downsize and buy a house from US all cash and those are going to be our highest in homestead.

Speaker Change: Good morning.

Speaker Change: Good morning.

Speaker Change: So with the acquisitions.

Speaker Change: I know you kind of give the cap rate, but what's kind of the stabilized return youre looking for cloud across that entire pipeline.

Speaker Change: 250000, or 300000 with lot rents of about $7 50 per months.

Speaker Change: Yes, so looking out over call. It five years, we should be yielding in the six 5% to 7% range on these properties.

Speaker Change: And that it's kind of more like 2006 when we.

Speaker Change: We were selling the biggest most expensive houses to people downsizing and I see that occurring for.

Speaker Change: Okay I appreciate that color and then.

On the in place portfolio any change in kind of bad debt expense in <unk> or even anything youre seeing into this year thus far.

Speaker Change: For the next five years, while we have available extension lots.

Speaker Change: Great just one more for me.

Speaker Change: Would be curious if you had any conversations with the manufactured housing builders about how tariffs might impact your business.

Speaker Change: Not at all we still maintain approximately a 1% write off so we're very happy with our.

Speaker Change: Are they worried about input costs or maybe would there be any supply chain issues.

Speaker Change: Experience in that regard.

Speaker Change: Okay.

Brett Taft: Brett do you have anything there I don't know of anything.

Speaker Change: And then.

Speaker Change: How should we kind of think about headline occupancy as you keep adding new homes the portfolio I guess.

Brett Taft: All I can really say there is that in speaking with an ordering homes from our manufacturers, we haven't experienced any issues yet.

Speaker Change: Is the level, we kind of saw in four Q indicative of where things could go just given.

Brett Taft: Backlogs are still in that call. It eight week range some of them a little bit further out than that so to this point there haven't been any major problems Im sure its something our manufacturers are worried about.

Speaker Change: It is kind of new vacancy being add portfolio every quarter. If you will because youre, putting in new states and youre, putting in new rental units et cetera, or is there potential for that vacancy number to shrink even further.

Brett Taft: But we'll update you as we get more information there.

Brett Taft: Okay, great. Thanks.

Speaker Change: Yes.

Speaker Change: And the next question comes from John <unk> with B Riley. Please go ahead.

Speaker Change: So what I would say is that there's definitely potential for this existing pool of assets in the vacancy number to shrink further.

Speaker Change: Good morning.

Speaker Change: Good morning.

Speaker Change: Overall occupancy in 2024 increased by 216 sites. This is same property now brought occupancy to 88%. If we fill 800, new rental homes sell 200, new homes I would expect an increase in overall occupancy of 6% to 700 units Youre always going to have some turnover youre always going to have some ops.

Speaker Change: So we see acquisitions.

Speaker Change: And then you kind of gave the cap rate, but what's kind of the stabilized return youre looking for a cloud across that entire pipeline.

Speaker Change: Yeah, so looking out over call. It five years, we should be yielding in the six 5% to 7% range on these properties.

Speaker Change: Since in our portfolio. So we will be removing some homes as well, which is why there is that gap there.

Speaker Change: Okay I appreciate that color and then.

Speaker Change: On the in place portfolio any change in kind of bad debt expense in <unk> or even anything youre seeing into this year thus far.

Speaker Change: And just thinking about it a little further.

Speaker Change: 262 units would be about 100 basis point improvement, so that would bring us up into the low 90% range.

Speaker Change: Not at all we still maintain approximately a 1% write off so we're very happy with our <unk>.

Speaker Change: Now we are out there looking for value add acquisitions that do have some more vacancy that would give us more vacant lots to fill and grow income in the future. So this pool of assets I would say, there's definitely occupancy upside, but again I wouldn't be surprised if we do some acquisitions that bring the overall weighted occupancy rate down.

Speaker Change: Experience in that regard.

Speaker Change: Okay.

Speaker Change:

Speaker Change: And then.

How should we kind of think about headline occupancy as you keep adding new homes. The portfolio I guess is the level, we kind of saw in for Q.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Where things should go just given.

Speaker Change: No I was just going to say, we believe same store will continue to go up it's just the overall based upon our business plan of buying value add communities.

Speaker Change: It is kind of new vacancy being add portfolio every quarter. If you will because youre, putting in new states and youre, putting in new rental units et cetera, or is there potential for that vacancy number to shrink even further.

Speaker Change: Okay, and then with that in mind, how should we think about the split in future acquisitions between on balance sheet and JV I mean, I guess, how value add within asset needs to be for it to be.

Speaker Change: Yeah.

Speaker Change: What I would say is that there's definitely potential for this existing pool of assets in the vacancy number to shrink further.

Speaker Change: That are structured as a joint venture.

Speaker Change: Since we don't know the answer to that question I'll tell you why we have a joint venture with Nuveen for development, which works extremely well for both us and nuveen and one of those properties my belief is already profitable.

Speaker Change: Overall occupancy in 2024 increased by 216 sites. This is same property now brought occupancy to 88%. If we fill 800, new rental homes sell 200, new homes I would expect an increase in overall occupancy up 6% to 700 units Youre always going to have some turnover youre always going to have some obsolesce.

Speaker Change: We hesitate to do more new development at this moment.

Speaker Change: Until.

Speaker Change: Since in our portfolio. So we will be removing some homes as well, which is why there's a gap there.

Speaker Change: More.

Speaker Change: Earning more sales income and more rental profit. Once these three development deals are profitable next time, we might consider doing six because it won't negatively impact our earnings is greatest fix would today and then on turnaround property, we created the opportunity.

Speaker Change: And just thinking about it a little further 262 units would be about 100 basis point improvement so that would bring us up into the low 90% range.

Speaker Change: Now we are out there looking for value add acquisitions that do have some more vacancy that would give us more vacant lots to fill and grow income in the future. So this pool of assets I would say, there's definitely occupancy upside, but again I wouldn't be surprised if we do some acquisitions that bring the overall weighted occupancy rate down.

Speaker Change: <unk> funds, if we succeed in getting that law amended so any investment.

Speaker Change: And affordable housing in an opportunity zone.

Speaker Change: Not paying the capital gains tax at the end of 10 years.

Speaker Change: And we can do many more turnaround properties and the opportunity zone without hurting you will make as earnings. So it goes back to our number one goal keep increasing <unk> per share. So we're in a position to increase the dividend every acquisition with that thought in mind.

Speaker Change: Okay.

Speaker Change: Hello.

Speaker Change: No I was just going to say, we believe same store will continue to go up it's just the overall based upon our business plan of buying value add communities.

Okay, and then kind of with that in mind, how should we think about the split in future acquisitions between on balance sheet and JV I mean, I guess, how value add with an asset need to be for it to be better.

Speaker Change: But those two vehicles.

Speaker Change: The <unk> joint venture and the opportunities on funds give us the opportunity to increase.

Speaker Change: Development and rehabilitation without going away from our main goal.

Speaker Change: And restructure did the joint venture.

Speaker Change: In a sense, we don't know the answer to that question I'll tell you why we have the joint venture with Nuveen for development, which works extremely well for both both us and nuveen and one of those properties my belief is already profitable.

Speaker Change: Okay. It makes sense and then last one for me any update on the kind of single family housing developments that were kind of potentially in the pipeline either the one in new Jersey or any other kind of opportunities that were out there.

Speaker Change: We hesitate to do more new development at this moment until.

Speaker Change: Craig Hoskins, you want to cover that.

Speaker Change: Sure.

Speaker Change: We recently entered into a preliminary agreement with a leading national luxury homebuilder regarding the potential formation of a JV to develop a 131 acres in Vineland New Jersey.

Speaker Change: More.

Speaker Change: Earning more sales income and more rental profits. Once these three development deals are profitable next time, we might consider doing six because it won't negatively impact our earnings is greatest six week today and then on turnaround properties, we created the opportunity zone.

Speaker Change: Jason to one of our existing communities.

Speaker Change: We're currently the parties that we're currently engaged in a 90 day due diligence period during which we intend to commence preliminary discussions for approvals with the municipality.

Speaker Change: Fun, if we succeed in getting that more menu so any investment.

Speaker Change: If the parties of our to proceed then the potential JV partner would.

Speaker Change: And affordable housing in an opportunities onward.

Speaker Change: Not paying the capital gains tax at the end of 10 years.

Speaker Change: See preliminary subdivision in site plan approval over the next two years and they would be responsible for the cost from doing so.

Speaker Change: Then we can do many more turnaround properties and the opportunity zone without hurting UMH is earnings. So it goes back to our number one goal keep increasing <unk> per share. So we're in a position to increase the dividend way every acquisition with that thought in mind.

Speaker Change: If the approvals are obtained the joint venture would then be formally established.

Speaker Change: <unk> partner would construct the roads infrastructure the site improvements.

Speaker Change: And then sell the improved lots to an affiliate of the joint venture partner, which would construct is luxury single family homes to sell to purchasers.

Speaker Change: But those two vehicles.

Speaker Change: The <unk> joint venture in the opportunity Zone fund give us the opportunity to increase.

Speaker Change: <unk> would contribute the real property to the JV and receive a percentage of the gross sales price of each of the homes, it's anticipated to be 20% minus certain deductions.

Speaker Change: Development and rehabilitation without going away from our main goals.

Speaker Change: Okay. It makes sense and then last one for me any update on the kind of single family housing developments.

Speaker Change: Okay. That's very detailed I appreciate it and that's it for me.

Speaker Change: Potentially in the pipeline either the one in new Jersey, or any other kind of opportunities that were out there.

Speaker Change: Well, if I could add.

Speaker Change: Sure.

Greg Kostoff: Greg costume, you want to cover that.

Speaker Change: The houses if it needs 4 million houses.

Speaker Change: Sure.

Speaker Change: We recently entered into a preliminary agreement with a leading national luxury homebuilder regarding the potential formation of a JV to develop a 131 acres in Vineland, New Jersey adjacent to one of our existing communities.

Speaker Change: Sure.

Speaker Change: We must have 4 million lots the builders of this country.

Speaker Change: The tremendous size and they build a lot of lots, but we are talking about.

Speaker Change: <unk>.

Speaker Change: Dave for land that leads to improve sites.

Speaker Change: We're currently the parties that we're currently engaged in a 90 day due diligence period during which we intend to commence preliminary discussions for approvals with the municipality.

Speaker Change: UMH because some of these acres 2400 2400 acres.

Speaker Change: We hope eventually to use that for residential development and ease of use of our own manufactured housing or if it's more valuable to a single family development that will be used for that but the nation has a shortage of land.

Speaker Change: If the parties would like to proceed then the potential JV partner would.

Speaker Change: See preliminary subdivision in site plan approval over the next two years and they would be responsible for the cost in doing so.

Speaker Change: If the approvals are obtained the joint venture would then be formally established.

Speaker Change: And we have.

Speaker Change: Always bought landed.

Speaker Change: That is adjacent to existing communities, we've done that for many many years and we have a very nice portfolio of land that we're now putting to work.

Speaker Change: JV partner would construct the roads infrastructure the site improvements.

Speaker Change: And then sell the improved lots to an affiliate of the joint venture partner, which would construct these luxury single family homes to sell to purchasers UMH would contribute the real property to the JV and receive a percentage of the gross sales price of each of the homes.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Samuel Landy for any closing remarks.

Speaker Change: Thank you operator, I would like to thank the participants on this call for their continued support and interest in our company as always gene Anna Brett and I are available for any follow up questions. We look forward to reporting back to you in may with our first quarter 2025 results. Thank you.

Speaker Change: Anticipated to be 20% minus a certain deductions.

Speaker Change: Okay that was very detailed I appreciate it and thats It for me.

Speaker Change: Well, if I could add one more.

Speaker Change: They should leads.

Speaker Change: Houses if it needs 4 million houses because they saw this we must have 4 million blocks the builders of this country.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation. The teleconference replay will be available in approximately one hour to access. This replay please dial U S toll free one 870, 734 475 $2.

Speaker Change: Due to the tremendous size and they build a lot of lots, but you're talking about.

Speaker Change: For the land lease for approved sites.

Speaker Change: Nine international for 123.

Speaker Change: UMH because some of these acres 2400 2400 acres that we hope eventually to use that for residential development and ease of use of Oh manufactured housing or if it's more valuable with single family development that would be used for that but the nation.

Speaker Change: <unk> 70088.

Speaker Change: Access code is 666.

Speaker Change: 4574, Thank you and please disconnect your lines.

Speaker Change: <unk> has a shortage of land and we have.

Speaker Change: Always bought landed.

Speaker Change: That is adjacent to our existing communities, we've done that for many many years and we have a very nice portfolio of land that we're now putting to work.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Samuel Landy for any closing remarks.

Samuel Landy: Thank you operator, I would like to thank the participants on this call for their continued support and interest in our company as always gene Anna Brett and I are available for any follow up questions. We look forward to reporting back to you in may with our first quarter 2025 results.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation. The teleconference replay will be available in approximately one hour to access. This replay please dial U S toll free one 870 73447.

Speaker Change: 529 or international for 123.

Speaker Change: 3170088.

Speaker Change: Access code is 666.

Speaker Change: 4574, Thank you and please disconnect your lines.