Q1 2025 UMH Properties Inc Earnings Call

May 2, 2025

Unknown Executive: I can see the dogs playing in the backyard through the kitchen window right there Maybe life's kinda more about a swing on a porch holding her while the sun disappears Why would I wanna be anywhere else in the world when my whole world is sitting right here There's always gonna be a high and a high you can chase for the rest of your life Greener grass in the yard next door or a shined up Chevy a little newer than yours You're never gonna fill an empty cup if what you've got's still not enough The thing about happiness I've found is you don't live in bigger houses There's always gonna be a high and a high you can chase for the rest of your life Greener grass in the yard next door or a shined up Chevy a little newer than yours You're never gonna fill an empty cup if what you've got's still not enough The thing about happiness I've found is you don't live in bigger houses The thing about happiness I've found is you don't live in bigger houses Music oh beautiful for our heroes proved in liberating strife who more than self our country loved and of mercy more than life oh I'm Good morning and welcome to UMH Properties first quarter 2025 earnings conference call.

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[music] Hi, Jay.

GE in Florida.

[music] greener grass in the neck.

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Do it anyway.

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You can chase photo S T a screen of graphene.

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Speaker Change: Good morning, and welcome to UMH properties first quarter 2025 earnings conference call, all participants will be in listen only mode.

Operator: All participants will be in listen-only mode. Should you need assistance, you may press star 1, star 0 to the Simulink conference specialist. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2.

Should you need assistance.

Speaker Change: Starwood, one star zero to signal a conference specialist after today's presentation, there will be an opportunity to ask questions to ask a question. You May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two please note. This event is being recorded it is now my pleasure to introduce your host Mr. Craig.

Operator: Please note this event is being recorded.

Craig Koster: It is now my pleasure to introduce your host, Mr. Craig Koster, Executive Vice President and General Counsel. Mr. Koster, you may begin. Thank you very much operator.

Speaker Change: Castor Executive Vice President and General Counsel, Mr. Koester, you may begin.

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

Unknown Executive: In addition to the 10-Q that we filed with the SEC yesterday, we have filed an unaudited first quarter supplemental information presentation. This supplemental information presentation, along with our 10-Q, are available on the company's website at umh.reef.org.

Unknown Executive: 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 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 that could cause actual results to differ materially from expectations are detailed in the company's first quarter 2025 earnings release and filings with the Securities and Exchange Commission.

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 1995. The forward looking statements that we make on this call are based on our current expectations and involve various risks and uncertainties.

Speaker Change: 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 first quarter 2025 earnings release.

Speaker Change: And filings with the Securities and Exchange Commission.

Unknown Executive: The company disclaims any obligation to update its forward-looking statement.

Speaker Change: The company disclaims any obligation to update its forward looking statements.

Unknown Executive: 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 the explanatory and cautioning language, are included in our earnings release, our supplemental information, and our historical SEC filings.

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 the explanatory and cautioning language are included in our earnings release, our supplemental information and our historical SEC filings.

Eugene Landy: Having said that I would like to introduce management with US today, Eugene Landy, founder and Chairman Samuel Landy, President and Chief Executive Officer, Anna Chew 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.

Craig Koster: Having said that, I would like to introduce management with us today. Eugene Landy, Founder and Chairman, Samuel Landy, President and Chief Executive Officer, Anna Chew, Executive Vice President and Chief Financial Officer, Brett Taft, Executive Vice President and Chief Operating Officer. Jim Likens, Vice President of Capital Markets, and Daniel Landy, Executive Vice President.

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

Samuel Landy: It is now my pleasure to turn the call over to UMH's President and Chief Executive Officer, Samuel Landy. Thank you very much, Craig.

Speaker Change: Thank you very much Craig first we are devastated by the passing of our director Casey Calmly Casey was an exceptional friend father director economist and so much more positively impacted every organization. He was involved in and he will be greatly missed by all.

Samuel Landy: First, we are devastated by the passing of our director, Casey Conway. Casey was an exceptional friend, father, director, economist, and so much more. He positively impacted every organization he was involved in, and he will be greatly missed by all.

Speaker Change: UMH is pleased to report another solid quarter of operating and financial results.

Samuel Landy: UMH is pleased to report another solid quarter of operating and financial results. Our communities continue to experience strong demand, which is resulting in increased occupancy and improved community operating results. Normalized FFO for the first quarter of 2025 was 23 cents per diluted share as compared to 22 cents per diluted share last year, representing an increase of 5%. Our strong financial and operating results have given management and the Board of Directors the confidence to increase our common stock dividend by $0.04 per share annually to $0.90 per share. This represents a 4.7% increase over last year. We have now increased our dividend for five consecutive years for a cumulative annual increase of 18 cents or 25%.

Speaker Change: Our communities continued to experience strong demand, which is resulting in increased occupancy and improved community operating results.

Speaker Change: Normalized <unk> for the first quarter of 2025 was 23 per diluted share as compared to 22 cents per diluted share last year, representing an increase of 5%.

Our strong financial and operating results have given management and the board of directors the confidence to increase our common stock dividend by four cents per share annually to <unk> 90 per share.

Speaker Change: This represents a four 7% increase over last year, we have now increased our dividend for five consecutive years for a cumulative annual increase of 18 or 25%.

Samuel Landy: Our business plan has been proven to provide investors with enduring long-term value. The acquisitions and investments we have made in our communities have improved the overall quality of housing we provide, which has allowed us to increase occupancy through the successful implementation of our rental home and sales program. We are optimistic that we will continue to increase earnings and value through the occupancy of our 3,400 vacant sites, development of our 2,400 acres of vacant land, the increased profitability of our sales division, and through the acquisition of existing communities and development of new communities. Given the housing shortage and our position in the industry, we believe we have positioned the company for success for many years to come.

Speaker Change: Our business plan has been proven to provide investors with enduring long term value the acquisitions and investments we have made in our communities have improved the overall quality of housing we provide which has allowed us to increase occupancy through the successful implementation of our rental home and sales programs.

Speaker Change: We are optimistic that we will continue to increase earnings and value through the occupancy of our 3400 vacant sites development of our 2004 hundred acres of vacant land the increased profitability of our sales division and through the acquisition of existing communities and development of new community.

Speaker Change: Given the housing shortage and our position in the industry. We believe we have positioned the company for success for many years to come.

Speaker Change: Our same property results continue to meet our expectations rental and related revenue increased by 8% expenses increased by 8% and community NOI increased by 8% our expenses in the first quarter were elevated as a result of the difficult winter throughout our entire portfolio.

Samuel Landy: Our same property results continue to meet our expectations. Rental and related revenue increased by 8%, expenses increased by 8%, and community NOI increased by 8%. Our expenses in the first quarter were elevated as a result of the difficult winter throughout our entire portfolio. That being said, we are pleased with the performance of our communities in this environment. Same property occupancy increased by 113 units year-to-date and 227 units over the first quarter of last year. The demand we are seeing at the community level should result in further occupancy gains throughout the remainder of the year.

Speaker Change: That being said we are pleased with the performance of our communities in this environment same property occupancy increased by 113 units year to date and 227 units over the first quarter of last year.

Speaker Change: The demand we are seeing at the community level should result in further occupancy gains throughout the remainder of the year.

Samuel Landy: Gross home sales for the quarter were $6.7 million as compared to $7.4 million last year, representing a decrease of approximately 9.5%. Included in last year's sales was the liquidation and sales of inventory at a sales center that was leased to a third-party operator. Excluding these homes liquidated or sold in this sales center, sales of manufactured homes for the quarter ended March 31, 2024 amounted to $6.4 million, or 88 homes, and cost of sales amounted to $4.2 million. Our gross sales profit for the quarter was $2.3 million, and our net profit from sales was approximately $618,000.

Speaker Change: Those home sales for the quarter were $6 $7 million as compared to $7.4 million last year, representing a decrease of approximately nine 5%.

Speaker Change: Included in last year's sales was the liquidation and sales of inventory at a sales center that was leased to a third party operator, excluding these homes liquidated or sold and the sales center sales of manufactured homes for the quarter ended March 31, 2024 amounted to $6 4 million.

Speaker Change: Or 88 homes and cost of sales amounted to $4 2 million.

Speaker Change: Our gross sales profit for the quarter was $2 $3 million and our net profit from sales was approximately $618000. During the quarter. We sold 71 homes of which 26 were new averaging $151000 per sale and 45 were used averaging.

Samuel Landy: During the quarter, we sold 71 homes, of which 26 were new, averaging $151,000 per sale, and 45 were used, averaging $60,000 per sale. Our sales results should continue to improve throughout the year as we enter our peak selling season and generate increased sales at our recently opened expansion. We continue to make progress obtaining approvals for expansion sites on our vacant land. We anticipate the development of over 150 sites this year. These sites are well located in markets where existing communities experience high occupancy levels, rental rates, and sales profits. Our vacant land and these expansion sites give us a long runway to deliver organic growth for the foreseeable future.

Speaker Change: $60000 per sale, our sales results should continue to improve throughout the year as we enter our peak selling season and generate increased sales at our recently opened expansions.

Speaker Change: We continue to make progress obtaining approvals for expansion sites on our vacant land, we anticipate the development of over 150 sites. This year. These sites are well located in markets, where our existing communities experienced high occupancy levels rental rates and sales profits are vacant land in these expansion.

Speaker Change: Give us a long runway to deliver organic growth for the foreseeable future expansions improve the community operating results as many of the community expenses are fixed these expansions greatly increased the value of our communities, while generating sales profits and improving our community operating results.

Samuel Landy: Expansions improve the community operating results as many of the community expenses are fixed. These expansions greatly increase the value of our communities while generating sales profits and improving our community operating results. We have over $45 million invested in expansions that are not yet generating our expected yield on cost. As we sell homes and fill these sites, our occupancy rates, income, and NOI should rise accordingly, resulting in our 2,400 acres of vacant land becoming valuable. We will continue to work on expanding our existing communities in addition to exploring selling our vacant land to single-family homebuilders or for other higher and better use.

Speaker Change: We have over $45 million invested in expansions that are not yet generating our expected yield on cost as we sell homes and fill these sites are occupancy rates income and NOI should rise accordingly, resulting in our 2004 hundred acres of vacant land, becoming valuable we will continue to work.

Speaker Change: Work on expanding our existing communities. In addition to exploring selling our vacant land to single family homebuilders or for other higher and better uses.

Speaker Change: Our rental home program continues to perform as expected we have strong demand throughout our portfolio and in many cases have waiting lists a rental home occupancy rate increased from 94% at year end to 94, 6% at the end of the first quarter.

Samuel Landy: Our Rental Home Program continues to perform as expected. We have strong demand throughout our portfolio, and in many cases, have waiting lists. Our rental home occupancy rate increased from 94% at year end to 94.6% at the end of the first quarter. During the first quarter, we converted 109 new homes from inventory to revenue-generating rental. We anticipate adding 800 new rental homes to our portfolio this year. Our turnover rates remain low, between 20% to 30%. Our rental home repair and maintenance remains at approximately $400 per home per year.

Speaker Change: During the first quarter, we converted 109, new homes from inventory to revenue generating rental homes, we anticipate adding 800, new rental homes to our portfolio. This year.

Speaker Change: Our turnover rates remain low between 20% to 30% our rental home repair and maintenance remains at approximately $400 per home per year.

Samuel Landy: On the acquisition front, we closed on the acquisition of two communities located in Mantua, New Jersey, for a total purchase price of $24.6 million, or $92,500 per site. These two communities contain 266 sites, of which 100% are owner-occupied.

Speaker Change: On the acquisition front, we closed on the acquisition of two communities located in mentor, New Jersey for a total purchase price of $24 $6 million or $92500 per site. These two communities contained 266 sites of which 100% are owner occupied.

Speaker Change: They are five star age restricted communities that we are proud to add to our portfolio.

Samuel Landy: They are five-star age-restricted communities that we are proud to add to our portfolio.

Samuel Landy: Our current acquisition pipeline contains two communities in Maryland that we hope to close in the second quarter, consisting of 191 sites that are approximately 76% occupied. The purchase price for these communities is $14.6 million or $76,600 per site.

Speaker Change: Current acquisition pipeline contains two communities in Maryland that we hope to close in the second quarter, consisting of a 191 sites that are approximately 76% occupied the purchase price for these communities is $14 $6 million or <unk> 76006 hundred per site, we can.

Samuel Landy: We continue to evaluate future acquisitions and hope to grow our acquisition pipeline in the near future.

Speaker Change: Continue to evaluate future acquisitions, and hope to grow our acquisition pipeline in the near future.

Samuel Landy: We are still assessing the impact of tariffs on our business, but early indications are they will have a minimal impact on our business. We currently have over 650 homes on order with more than 500 homes delivered to our community. The 500 homes are paid for and we don't anticipate large price increases on the balance. These homes should allow us to rapidly increase occupancy at our community. Additionally, our rent collections remain strong and in line with our historical collection rates, application volume is up and sales demand is strong.

Speaker Change: We are still assessing the impact of tariffs on our business, but early indications are they will have a minimal impact on our business. We currently have over 650 homes on order with more than 500 homes delivered to our communities and 500 homes are paid for and we don't anticipate large price increases on the bally.

Speaker Change: Once these homes should allow us to rapidly increase occupancy at our communities. Additionally, our rent collections remained strong and in line with our historical collection rates application volume is up and sales demand is strong.

Samuel Landy: We will continue to monitor the impact of tariffs and geopolitical issues on our business, but at the moment all appears to be business as usual.

Speaker Change: We will continue to monitor the impact of tariffs and geopolitical issues on our business, but at the moment all appears to be business as usual.

Samuel Landy: Over the past 1, 5, and 10 years, ending December 31, 2024, UMH has been the top manufactured housing REIT. Our total shareholder return in 2024 was approximately 30% for 1 year, 51% over 5 years, and 234% over 10 years. We have a proven track record of executing our business. Since 2020, UMH has increased its dividend by 25%.

Speaker Change: Over the past one five and 10 years ending December 31, 2020 for UMH has been the top manufactured housing REIT. Our total shareholder return in 2024 was approximately 30% for one year, 51% over five years and 234% over 10 years, we have a pre.

Speaker Change: <unk> track record of executing our business plan since 2020, UMH has increased its dividend by 25% our business plan has positioned us with 3400 vacant sites and 2004 hundred acres of vacant land to continue our organic growth this organic growth.

Samuel Landy: Our business plan has positioned us with 3,400 vacant sites and 2,400 acres of vacant land to continue our organic growth. This organic growth should allow us to generate similar earnings growth and operating results for years to come. Additionally, with our strong balance sheet, we are prepared to execute on compelling acquisitions as they become available. The fundamentals of manufactured housing are strong, and UMH is well positioned to continue to grow through our established long-term business model.

Speaker Change: Should allow us to generate similar earnings growth and operating results for years to come. Additionally, with our strong balance sheet, we are prepared to execute on compelling acquisitions as they become available. The fundamentals of manufactured housing are strong in UMH is well positioned to continue to grow through our established long.

Speaker Change: Term business plan and now Anna will provide you with greater detail on our results for the quarter.

Anna Chew: And now, Anna will provide you with greater detail on our results for the quarter. Thank you, Sam. Normalized FFO, which excludes amortization and non-recurring items, was $18.8 million, or $0.23 per diluted share, for the first quarter of 2025, compared to $15 million, or $0.22 per diluted share, for 2024, resulting in a 25% cumulative increase and a 5% per diluted share Rental and related income for the quarter was $54.6 million compared to $50.3 million a year ago, representing an increase of 8%. This increase was primarily due to an increase in same property occupancy, the addition of rental homes, and an increase in rental rates.

Thank you Stan normalized <unk>, which excludes amortization and nonrecurring items was $18 $8 million or 23 cents per diluted share for the first quarter of 2025 compared to $15 million or 22 cents per diluted share for 'twenty two.

Speaker Change: 94, resulting in a 25% cumulative increase and a 5% per diluted share increase.

Speaker Change: Rental and related income for the quarter with $54 $6 million compared to $53 million a year ago, representing an increase of 8%.

Speaker Change: This increase was primarily due to an increase in same property occupancy. The addition of rental homes and an increase in rental rates.

Anna Chew: Community operating expenses increased 9% during the quarter. This increase was mainly due to an increase in payroll costs, real estate taxes, snow removal, and water and sewer expenses. Our same property results continue to meet our expectations. Same property income increased by 8% for the quarter, and despite the 8% increase in community operating expenses, community NOI increased by 8% for the quarter from $30 million in 2024 to $32.5 million in 2025. As we turn to our capital structure, at quarter end, we had approximately $606 million in debt, of which $476 million was community-level mortgage debt, $29 million was loans payable, and $101 million was our 4.72% Series A bond.

Speaker Change: Immunity operating expenses increased 9% during the quarter. This increase was mainly due to an increase in payroll costs real estate taxes, snow removal and water and sewer expenses. Our same property results continue to meet our expectations.

Speaker Change: Same property income increased by 8% for the quarter and despite the 8% increase in community operating expenses community NOI increased by 8% for the quarter from $30 million in 2024 to $32 $5 million in 2025.

Speaker Change: As we turn to our capital structure at quarter end, we had approximately $606 million in debt of which $476 million with community level mortgage debt $29 million with loans payable and $101 million was our fault.

Speaker Change: Seven 2% series a bonds.

Anna Chew: Total debt was 99% fixed rate at quarter end, with a weighted average interest rate of 4.39%. The weighted average interest rate on our mortgage debt was 4.18% at quarter end compared to 4.17% at quarter end last year. The weighted average maturity on our mortgage debt was 4.2 years at quarter end and 5.1 years at quarter end last year. In this volatile interest rate environment, the weighted average interest rate on our short-term borrowings was 29 basis points lower at 6.5% at the current quarter end as compared to 6.79% at quarter end last year. In total, the weighted average interest rate on our total debt was 17 basis points lower at 4.39% at the current quarter end compared to 4.56% at quarter end last year.

Speaker Change: Total debt was 99% fixed rate at quarter end with a weighted average interest rate of $4 three 9%.

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

Speaker Change: The weighted average maturity on our mortgage debt was four two years at quarter end and five one years at quarter end last year.

Speaker Change: In this volatile interest rate environment, the weighted average interest rate on our short term borrowings with 29 basis points lower at six 5% at the current quarter end as compared to $6 seven 9% at quarter end last year.

Speaker Change: In total the weighted average interest rate on our total debt was 17 basis points lower at 4.39% at the current quarter and compared to $4 five 6% at quarter end last year.

Speaker Change: At quarter end UMH had a total of $322 million in perpetual preferred equity.

Anna Chew: At quarter-end, UMH had a total of $322 million in perpetual preferred equity. Our preferred stock, combined with an equity market capitalization of over $1.5 billion, and our $606 million in debt, results in a total market capitalization of approximately $2.5 billion at quarter-end, as compared to $2.1 billion last year, representing an increase of 18%. During the quarter, we issued and sold 515,000 shares of common stock under the 2024 September Common ATM Program at a weighted average price of $18.21 per share, generating gross proceeds of $9.4 million and net proceeds of $9.2 million after offering expenses. The company also received $2.6 million including dividends reinvested through the DRIP.

Speaker Change: Our preferred stock combined with an equity market capitalization of over one $5 billion and our $606 million in debt results in a total market capitalization of approximately $2 $5 billion at quarter end as compared to $2 $1 billion last year.

Speaker Change: Representing an increase of 18%.

Speaker Change: During the quarter, we issued and sold 515000 shares of common stock under the 2024 September common ATM program at a weighted average price of $18.21 per share generating gross proceeds of $9 $4 million and net proceeds of nine.

Speaker Change: $2 million after offering expenses.

Speaker Change: The company also received $2 $6 million, including dividends reinvested through the drip.

Anna Chew: During the quarter, we issued and sold 49,000 shares of Series D Preferred Stock under the 2023 Preferred ATM Program at a weighted average price of $23.03 per share, which generated growth and net proceeds after offering costs of $1.1 million.

Speaker Change: During the quarter, we issued and sold 49000 shares of series B preferred stock under the 2023 preferred ATM program at a weighted average price of $23.03 per share, which generated gross and net proceeds after offering costs of $1 $1 million.

Speaker Change: On March six 2025, the company terminated the use of the 2023 preferred ATM program and entered into the 2025 preferred ATM program under which we may offer and sell shares of the company's series D preferred stock having an aggregate sales.

Anna Chew: On March 5th, 2025, the company terminated the use of the 2023 Preferred ATM Program and entered into the 2025 Preferred ATM Program, under which we may offer and sell shares of the company's Series D Preferred Stock, having an aggregate sales price of up to $100 million. At the time of such termination, approximately $16.5 million of Series D preferred stock remained unsold under the 2023 Preferred ATM Program. As of March 31, 2025, the company has not issued or sold any shares under the 2025 Preferred ATM Program.

Speaker Change: <unk> of up to $100 million at.

Speaker Change: At the time of such termination approximately $16 $5 million of series D preferred stock remains unsold under the 2023 preferred ATM program.

As of March 31, 2025, the company has not issued or sold any shares under the 2025 preferred ATM program.

Speaker Change: Subsequent to quarter end, we issued and sold an additional one 2 million shares of our common stock under the 2024 September common ATM program at a weighted average price of $17 89 per share generating net proceeds after offering costs of 21.

Anna Chew: Subsequent to Quarter End, we issued and sold an additional 1.2 million shares of our common stock under the 2024 September Common ATM program at a weighted average price of $17.89 per share, generating net proceeds after offering costs of $21.5 million. As of April 30, 2025, $58.5 million of common stock remained eligible for sale under the 2024 September Common ATM Program. From a credit standpoint, we ended the quarter with net debt to total market capitalization of 23.1 percent, net debt less securities to total market capitalization of 21.8 percent, net debt to adjusted EBITDA of 4.9 times and net debt left securities to adjusted EBITDA of 4.6 times.

Speaker Change: $5 million.

Speaker Change: As of April 32025, $58 $5 million of common stock remains eligible for sale under the 2024 September common ATM program.

Speaker Change: From a credit standpoint, we ended the quarter with net debt to total market capitalization of 23, 1%.

Speaker Change: Net debt less securities to total market capitalization of 21, 8%.

Speaker Change: Net debt to adjusted EBITDA of four nine times and net debt less securities to adjusted EBITDA of four six times.

Anna Chew: Interest coverage was 4.1 times and fixed charge coverage was 2.4 times. In the beginning of 2025, we had 23 mortgages totaling $115 million due within the next 12 months, of which 10 mortgages totaling approximately $46 million were due in the first and second quarters of 2025. During the quarter, we paid off one mortgage totaling $6.4 million with cash on hand. Subsequent to quarter end, we paid off nine mortgages totaling $39.3 million and drew down $40 million on our unsecured revolving credit facility. We are in the process of refinancing these mortgages with Fannie Mae. These mortgages are expected to close in the coming weeks.

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

Speaker Change: In the beginning of 2025, we had 23 mortgages totaling $115 million due within the next 12 months of which 10 mortgages totaling approximately $46 million, we're doing the first and second quarters of 2025.

Speaker Change: During the quarter, we paid off one mortgage totaling $6 4 million.

Speaker Change: With cash on hand.

Speaker Change: Subsequent to quarter end, we paid off nine mortgages totaling $39 $3 million and drew down $40 million on our unsecured revolving credit facility. We are in the process of refinancing these mortgages with Fannie Mae. These mortgages are expected to close in the coming weeks we.

Anna Chew: We believe that proceeds from these refinancings will significantly exceed the $45.7 million in mortgages that were paid off. From a liquidity standpoint, we ended the quarter with $35.2 million in cash and cash equivalents and $260 million available on our unsecured revolving credit facility with a potential total availability of up to $500 million pursuant to an accordion fee. We also had $192 million available on our other lines of credit for the financing of home sales and the purchase of inventory and rental homes. Additionally, we had $30.3 million in our Lead Securities portfolio, all of which is unencumbered.

Speaker Change: Believes that proceeds from these refinancings will significantly exceed the $45 $7 million in mortgages that were paid off.

Speaker Change: From a liquidity standpoint, we ended the quarter with $35 $2 million in cash and cash equivalents and $260 million available on our unsecured revolving credit facility with a potential total availability of up to $500 million pursuant to an accordion feature.

Speaker Change: <unk>.

Speaker Change: We also had $192 million available on our other lines of credit for the financing of home sales and the purchase of inventory and rental homes.

Speaker Change: Additionally, we had $33 million in our REIT securities portfolio, all of which is unencumbered.

Anna Chew: This portfolio represents only approximately 1.5% of our undepreciated assets.

Speaker Change: This portfolio represents only approximately one 5% of our underappreciated assets.

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

Speaker Change: We are committed to not increasing our investments in our REIT securities portfolio and have in fact continues to sell certain positions.

Speaker Change: Our guidance for full year 2025 remains unchanged.

Anna Chew: Our guidance for full year 2025 remains unchanged. We expect normalized FFO in the range of $0.96 to $1.04 per diluted share, a 7.5% growth at the midpoint, compared to 2024's $0.93 per share. We are well positioned to continue to grow the company internally and externally.

Speaker Change: We expect normalized <unk> in the range of 96.

Speaker Change: Two a dollar and four cents per diluted share a seven 5% growth at the midpoint compared to 2020 fours 93 cents per share.

Speaker Change: We are well positioned to continue to grow the company internally and externally and now let me turn it over to gene before we open it up for questions.

Eugene Landy: And now let me turn it over to Gene before we open it up for questions. Thank you, Anna. UMH is off to a solid start in 2025. Our communities continue to deliver stable and growing returns. We have access to equity and debt capital to invest in our long term business plan, and may be able to rapidly grow the company if compelling opportunities become available. Demand for affordable housing in our markets and across the country remains incredibly strong. Our communities continue to fill sites with homes for rent and sale. Our long-term business plan has favorably positioned the company with 3,400 vacant sites to fill and 2,400 acres of land to develop.

Speaker Change: Thank you Anna UMH is off to a solid start in 2025.

Speaker Change: Communities continued to deliver stable and growing returns, we have access to equity and debt capital to invest in our long term business plan and may be able to rapidly grow the company if compelling opportunities to become available.

Speaker Change: Demand for affordable housing in our markets and across the country remains incredibly strong.

Speaker Change: Communities continue to fill sites with homes for rent and sale.

Speaker Change: Our long term business plan has favorably position the company with 3400 vacant sites to fail and 'twenty 400 acres of land to develop these.

Eugene Landy: These vacant sites and vacant acres are increasingly valuable as the affordable housing crisis continues to intensify. These bacon sites and bacon acres are the key to driving organic growth for the next five years. Within the next five years, we believe our community should be full, and there will be limited lots available for additional expansion sites on which to place homes. The housing crisis and the inability for conventional builders to deliver housing at an affordable price point highlight the tailwinds between UMH and our industry. UMH should achieve nearly 100% occupancy and make continued progress developing our expansion land.

Speaker Change: These vacant sites and Bacon acres are increasingly valuable as the affordable housing classes continues to intensify.

Speaker Change: These vacant sites and Bacon acres as a key to driving organic growth for the next five years.

Speaker Change: Within the next five years, we believe our community should be full and there will be limited lots available for additional expansion sites.

Speaker Change: The players' homes, the housing crisis, and the inability for conventional builders to deliver housing at an affordable price point highlight the tablets between UMH in our industry.

UMH has achieved a 100% occupancy and make continued progress to develop our expansion land.

Eugene Landy: All of these items could translate to substantial earnings improvement, a stable income stream, and an attractive valuation. UMH is a leader in the manufactured housing industry. We have worked with MHI and our 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 affordable housing in more expensive markets. We have also worked with GAF to pilot a solar home, where solar shingles, unlike solar panels, are installed at the factory and do not require drilling holes for mounting hardware as panels.

Speaker Change: All of these items could translate to substantial earnings improvement.

Speaker Change: Hey, Bill income stream and at attractive valuation.

Speaker Change: UMH is a leader in the manufactured housing industry.

Speaker Change: We've worked with MH manufacturers to improve our products and provide housing solutions in both rural and urban settings.

Speaker Change: We have championed the duplex manufactured at home, which allows us to increase density and provide affordable housing in more expensive markets. We've also worked with C. A F.

Speaker Change: While other solar home, where solar shingles. Unlike solar panels are installed at the factory and do not require drilling holes for mounting hardware panels too.

Eugene Landy: In addition, installing shingles at the factory greatly reduced the cost. Our country is 4 million homes short and last year we only built 1.3 million homes. Therefore we need an affordable housing solution. We are working diligently to do more to help provide this housing and position manufactured housing as the preferred solution to the problem.

Speaker Change: In addition, and storing signals that the factory greatly reduce the cost.

Speaker Change: Our country is 4 million homes sure last year, we only built one 3 million homes. Therefore, we need the affordable housing solutions.

Speaker Change: We are working diligently to do more to help provide this housing and position manufactured housing as a preferred solution to the problem. We are proud of the progress we've made but we must do more to combat the affordable housing crisis.

Eugene Landy: We are proud of the progress we have made, but we must do more to combat the affordable housing crisis.

Speaker Change: 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 you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our RASK.

Eugene Landy: Thank you.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2.

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change: Sure.

Speaker Change: And your first question comes from Gaurav Mehta with Alliance Global Partners. Please go ahead.

Gaurav Mehta: And your first question comes from Gaurav Mehta with Alliance Global Partners. Please go ahead. Thank you.

Gaurav Mehta: Yes. Thank you good morning.

Samuel Landy: Good morning. I wanted to ask you on your rent code expectations. Are you guys still expecting to see 5% rent growth that you've talked about in the past this year? Yes, at this moment, yes, we, you know. 5% Rent Increase Notices get sent? Yeah, we've had no issue year-to-date sending out the notices, achieving our 5% increases. As we go throughout the year, our plan is still to push out a 5% increase. We're seeing strong demand at our properties, rental demand is strong, our sales pipeline is growing, and we don't think the 5% is going to be an issue.

Gaurav Mehta: I wanted to ask you on on your rent growth expectations.

Gaurav Mehta: Are you guys still expecting to see a 5% rent growth that you've talked about in the past this year.

Gaurav Mehta: Yeah.

Gaurav Mehta: Yes at this moment, yes.

Gaurav Mehta: The 5% rent increase notices consenting and we've had no issue year to date, sending out the notices achieving our 5% increases.

Gaurav Mehta: As we go throughout the year, our plan is still to push out a 5% increase we're seeing strong demand at our properties rental demand is strong our sales pipeline is growing and we don't think the 5% is going to be an issue.

Okay.

Samuel Landy: Okay. Second question, I think you talked about tariffs and seems like you guys have pre-ordered 650 homes. But I was wondering, you know, if you were to order new homes today, are the prices up versus, you know, the prices that you guys ordered for pre-order? The prices are up a little bit, but not substantially yet. We've seen, you know, three to five percent price increases for manufacturers, but I think over the next month or two is where we'll really start to see the impact of the tariffs. You know, as we always point out, we've done okay with higher prices even though, you know, we prefer prices to be lower and it increases our return expectations, et cetera.

Speaker Change: Second question I think you've talked about tariffs.

Speaker Change: It seems like you guys have preordered 650 homes, but I was wondering if you were to order new homes today are the prices up versus the.

Speaker Change: The prices that you guys ordered for preorder.

The prices are up a little bit, but not substantially yet we've seen 3% to 5% price increases for manufacturers, but I think over the next month or two is where it will really start to see the impact of the tariffs.

Speaker Change: As we always point out we've done okay with higher prices, even though we'd prefer prices to be lower and it increases our return expectations et cetera are bigger concern here as supply chain disruptions and the inability to get the homes.

Samuel Landy: Our bigger concern here is supply chain disruptions and the inability to get the homes. You know, we're renting homes for $1,000, $1,200, $1,400 a month. We're earning over 10 percent on our rental investments, which is clearly accretive. If prices went up a little bit, we'd still have an accretive use, but, you know, we'd carefully look at the locations we're putting rentals in and make sure that we're selecting the right products, the right lot, and the right market.

Speaker Change: We're renting homes for 1200 $4800 a month, we're earning over 10% on a rental investments, which is clearly accretive if prices went up a little bit we would still have an accretive use but we'd carefully look at the locations, we're putting rentals in and make sure that we're selecting the right products the right lots in the right market.

Speaker Change: Okay, and then lastly, the.

Samuel Landy: Okay, and then lastly, the The rates for refinancing the mortgage, I think you talked about looking to refinance the mortgage at 20 May this quarter. What kind of rates are you guys seeing now? Well, our rates are based on the 10-year Treasury because we anticipate doing a 10-year loan. And those rates have stabilized a little bit. It's come down, as a matter of fact, a little. And because of that, we believe that the rates will be around the 5.5 to maybe 5.75, but in that range. But we should know within the next few weeks because we will hopefully be closing within the next few weeks.

Speaker Change: Yeah.

Speaker Change: The rates for refinancing the mortgage I think you talked about looking to refinance the mortgage with Fannie Mae.

Speaker Change: This quarter, what kind of rates are you guys seeing now.

Speaker Change: Well the 10 year average.

Speaker Change: So based on the 10 year Treasury, because we anticipate doing a 10 year loan and those rates have stabilized a little bit it's come down as a matter of fact, a little and because of that we believe that the rates would be around the five and a half to maybe five points at five and three quarters, but in that range, but.

Speaker Change: We should know within the next few weeks, because we will hopefully be closing within the next few weeks.

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

Gaurav Mehta: Okay, thank you. That's all I had.

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

Rob Stevenson: And your next question comes from Rob Stevenson with Jannie, please go ahead. Good morning, guys. Um, Brett, just to follow up on the same store revenue question on the expense growth on the same store portfolio. Are you seeing any notable upward pressure on real estate taxes or any other place on the expense side? There's definitely been an increase in real estate taxes, a small increase, but an increase alone. There's some other properties we're looking at potentially appealing to hopefully reduce that number, but we're working on that currently.

Rob Stevenson: Hey, good morning, guys.

Rob Stevenson: Just to follow up on the same store revenue question on the expense growth on the same store portfolio are you seeing any notable upward pressure on real estate taxes or any other place on the expense side.

Rob Stevenson: At this point in time.

Rob Stevenson: There's definitely been an increase in real estate taxes.

Rob Stevenson: Small increase but an increase alone. There's some other properties were looking at potentially appealing to hopefully reduce that number but we're working on that currently.

Brett Taft: Just to go over the same property numbers for a minute, we're pretty pleased with our 8.1% growth. We think that as we continue to go through the year and occupy that inventory that we previously discussed, rental and related income should grow in excess of 8%. The community operating expenses were 7.8% increase over last year, and this was a very tough winter. I know Sam mentioned it during his portion of the call, but snow removal expenses alone were up over $250,000. Add to that, you have overtime-related expenses, repairs and maintenance increased a little bit as well.

Rob Stevenson: Just to go over the same property numbers for a minute, we're pretty pleased with our eight 1% growth. We think that as we continue to go through the year and occupy that inventory that we previously discussed.

Rob Stevenson: Rental and related income should grow in excess of 8%. The community operating expenses were seven 8% increase over last year and.

Speaker Change: This was a very tough winter I know Sam mentioned it during his portion of the call, but snow removal expenses alone were up over $250000 add to that you have overtime related expenses.

Rob Stevenson: <unk> and maintenance increase a little bit as well so.

Brett Taft: So snow removal really drove this number from what I expected to be in the 6% range up to 7.8%.

Rob Stevenson: Snow removal really drove this number from what I expect it to be in the 6% range up to seven 8% going forward throughout the rest of the year, we do expect that number to come down a little bit with the one caveat that we're assessing the impact of tariffs on the business.

Brett Taft: Going forward throughout the rest of the year, we do expect that number to come down a little bit with the one caveat that we're assessing the impact of tariffs. Okay, that snow removal was gonna be my next question.

Rob Stevenson: Okay. That's still rule was going to be my next question.

Brett Taft: And then I guess the question, you guys talked about duplexes and smaller units, as well as solar shingle homes. Have you guys put any considerable numbers of those in the portfolio today? And how is it being, if so, how are they being received by prospective tenants, or buyers, if there are going to be ones for sale rather than rent? Yeah, so on the solar shingles, we had our first 20 homes delivered to Friendly Village in Perrysburg, Ohio earlier this year. They have the first 10 just completed being set up, and I believe seven of them are occupied.

Rob Stevenson: And then I guess the question Hugh.

Rob Stevenson: I just talked about.

Duplexes and smaller units as well as solar shingle homes have you guys put any considerable numbers of those in the portfolio today and how has it been if so how is it how are they being received by prospective tenants or buyers, if they're gonna be ones for sale rather than rent.

Rob Stevenson: Yeah. So on the solar shingles, we had our first 20 homes delivered two friendly village in Perrysburg, Ohio earlier. This year. They have the firsthand just completed being set up and I believe seven of them are occupied we've got deposits on the other three so.

Brett Taft: We've got deposits on the other three. So the product looks great. There is demand for it. We'll assess the impact of the energy savings and how our tenants ultimately do as time progresses and we get some real data there. The other 10 should be ready for occupancy soon, and in that location, we shouldn't have any issue filling them. We've got approximately five duplexes that are fully set up at some of our Pennsylvania properties. They are mostly occupied. We're finalizing set up on one of them, but we haven't had any issues filling that, and we're working on some duplex orders for a location in Indiana and potentially that Friendly Village location.

Rob Stevenson: The product looks great. There is demand for it we'll assess the impact of the energy savings and then how are tenants ultimately do as time progresses, and we get some real data there.

The other 10 should be ready for occupancy soon in that location, we shouldn't have any issue filling them. We've got approximately five duplexes that are fully set up better at some of our Pennsylvania properties.

Rob Stevenson: They are mostly occupied we're finalizing set up on one of them, but we haven't had any issues filling that and we're working on some duplex orders for a location in Indiana and potentially that friendly village location.

Brett Taft: If I can add, manufacturing homes in a factory is much better than building in the field. And when we work with the GAF, they put things on in the field where they're dealing with individual homeowners. When you deal with the factory and you build in the factory, the cost is cut in half, and the time, it's 45 minutes to put on an entire roof with solar shingles. So it's the most efficient way to do it, and it makes a lot of sense, and we've done it as a test, and so far the test is going well.

Rob Stevenson: If I can I, if I can add.

Rob Stevenson: Factoring homes at a factory is much better than building in the field and when we work with the G yesterday they put.

Rob Stevenson: Things on in the field, where the dealer.

Rob Stevenson: Homeowners when you deal with the factory and you build it in the factory.

Rob Stevenson: Cost is cut in half and the time is 45 minutes to put out an entire group with solar singles. So.

Rob Stevenson: It's the most efficient way to do it and it makes a lot of sense and we've done it is a.

Rob Stevenson: Test so far the test is going well.

Brett Taft: What is, at this point, what are you looking at as a potential premium for the solar shingle homes over normal shingle homes? And then what's the potential discount or lower pricing of duplexes versus the single wides in your portfolio? It's not so much that we're looking for the return on the solar, but, you know, our residents. earned between, you know, predominantly $40,000 and $80,000. And so, you know, what they can.

Rob Stevenson: What is at this point what are you looking at as a potential premium for the solar shingle homes over normal shingle homes, and then what's the potential.

Rob Stevenson: Discount or lower pricing of Duplexes versus the single Wides in your portfolio.

Rob Stevenson: It's not so much that we're looking for the return on the solar but you know our residents earn between predominantly 40000 and $80000 and so you know.

Rob Stevenson: What they can do.

Speaker Change: Pardon me, ladies and gentlemen, it looks like we lost connection to our Speaker line. Please stand by while we reconnect. Thank you for your patience.

Operator: Pardon me ladies and gentlemen, it looks like we have lost connection to our speaker line. Please stand by while we reconnect. Thank you for your patience.

Speaker Change: Okay.

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Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: Okay.

Thanks, John.

Unknown Executive: You see, my God, He doesn't shake His feet for me. You ought to love Him for it, cause He, He, He crowns us good. He told me He would, every brotherhood. From sea to shining sea.

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Speaker Change: [music] annuity.

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Speaker Change: Hey, Charlie.

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Speaker Change: Yes.

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Speaker Change: Many customers.

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Unknown Executive: I thank you, Lord! From sea to shining sea.

Speaker Change: Maggie.

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Speaker Change: Hi.

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Speaker Change: Alright, ladies and gentlemen, this is the operator, we have reconnected the speakers and we will continue.

Unknown Executive: All right, ladies and gentlemen, this is the operator. We have reconnected the speakers, and we will continue. Rob, please proceed with your question again. So, sorry, I didn't know whether you got me before it cut off, but the solar shingle homes, the premium there, and how much cheaper are the duplexes, are you renting out duplexes versus the normal sort of single wides? Yeah, so the purpose of the solar shingle, our residents earn between $40,000 and $80,000 per year. So if we can reduce their utility costs, we increase, you know, what they could pay for new homes, what they could pay for lot rent, and what they can pay for home rental.

Rob. Please proceed with your question again.

Speaker Change: So sorry, I didn't know whether you got me before it cut off but the solar shingle homes.

Speaker Change: Premium there and how much cheaper or the <unk> are you renting out duplexes versus the normal sort of single Wides.

Speaker Change: Yes.

The purpose of the solar single our residents own between 40000 and $80000 per year. So if we can reduce their utility cost.

Speaker Change: Increased what they could pay for new homes, so that they can pay for a lot right.

It can pay for home rental so it's not really so much that we expect to earn direct additional income from the solar but we expect to increase our customer base, which increased demand translates to increased profits and in the case of the duplex home.

Brett Taft: So it's not really so much that we expect to earn direct additional income from the solar, but we expect to increase our customer base, which, you know, the increased demand translates to increase profits. And in the case of the duplex home, there's, you know, there's an amount you can get per lot. But if you reduce the cost per unit, so that we can provide these 1000 square foot homes that are now two 500 square foot, one bedroom units, instead of that lot in the house generating $1,000 per month, it can generate 1500 1600 per month.

Speaker Change: There's an amount you can get per lot, but if you reduce the cost per unit. So that we can provide these thousands square foot homes that are now two 500 square foot one bedroom units instead of that locked in the house generating a $1000 per month, we can generate <unk> hundred 16 has it come up.

Brett Taft: So you know, the duplex, you're going to get a higher return per lot. The solar shingles is predominantly to increase the consumer base by increasing affordability.

Speaker Change: No.

Speaker Change: They do quite steep then youre going to get a higher return.

Speaker Change: Prolong the solar shingles is predominantly to increase the consumer base by increasing affordability.

Brett Taft: If I can add, an apartment for a single bedroom is about $325,000, $350,000 to build, and as Sam pointed out, to 625 feet, it may be less, and we're talking about producing a comparable 500 to 550 square foot apartment, and the cost may be substantially less. It's just amazing what price we come in when we buy a unit for $75,000 and put it on our site, and basically you cut it in two, so it's around 550 square feet, one bedroom, and the cost is cut in half.

Speaker Change: If I can add this thing go.

Speaker Change: An appointment.

Speaker Change: So single bedroom is about 325000 350000 to build and as Sam pointed out 600, and plenty of buy a fee that might be less and we're talking about produce.

Speaker Change: Terrible.

Speaker Change: 500 square foot apartment.

Speaker Change: And.

Speaker Change: The cost.

Speaker Change: Substantially less.

Speaker Change: It's just amazing.

Speaker Change: What price would come in.

Speaker Change: With $75000 and put it on.

Speaker Change: Right.

Speaker Change: Basically you cut it to <unk>.

Speaker Change: 550 square feet one bedroom.

Speaker Change: The cost is cut in half.

Brett Taft: So we're very excited about it, but it's really a new development that we helped pioneer a year, two years ago, and we're going to the major shows this year to see the newest models of these single unit duplexes, and that could be a major, major housing breakthrough. Okay, thanks, guys. Appreciate the time and have a great weekend. Thanks.

Speaker Change: We're very excited about it but it's a really a new development.

Speaker Change: We helped pioneer year to.

Speaker Change: Two years ago, and we're going to the later this year to see that there was.

Speaker Change: But also the thing that was suddenly duplexes.

Speaker Change: That could be a makes it maybe too high.

Speaker Change: Housing breakthrough.

Speaker Change: Okay. Thanks, guys I appreciate the time and have a great weekend.

Speaker Change: Thank you.

Speaker Change: And your next question comes from Craig to Sara with Lucid capital markets. Please go ahead.

Craig Kucera: And your next question comes from Craig Kucera with Lucid Capital Markets. Please go ahead. Hey, good morning, guys. I appreciate the color on the new versus used home sales this quarter. Can you give us a sense of what the gross margins are on sale for those two types? and there's places it can be substantially higher, but sales are remarkably strong predominantly because of the number of people who downsize, who could sell their existing home, pay off their mortgage and have cash to retire to, you know, a downsized house for them, but a great house for us.

Craig: Hey, good morning, guys.

Speaker Change: I appreciate the color on the new versus used home sales. This quarter can you give us a sense of what the gross margins are on sale for those two types.

Speaker Change: Per cent in his place.

Speaker Change: Places it can be substantially higher but sales are remarkably strong.

Speaker Change: Dominantly because of the number of people, who downsized who could sell their existing home pay off their mortgage.

Speaker Change: <unk> cash to retire two.

Speaker Change: Downsized house for them, but a great house for us and we've built expansions in the right locations. We're building new communities in the right locations.

Operator: And we've built expansions in the right locations. We're building new communities in the right locations. Pardon me, ladies and gentlemen. It appears we have lost connection to the speakers once again. Please stand by while we reconnect. Thank you for your patience.

Speaker Change: Pardon me, ladies and gentlemen, it appears we have lost connection to the speakers once again, please stand by while we reconnect. Thank you for your patience.

Craig Kucera: Oh, to the snowiest west That my heart will lie peaceful and calm When I'm laid to my rest And the world will be better for this That one man is scorned and covered with scars Still strove with his last ounce of courage To fight the unbeatable foe To reach the unreachable And we will proceed. Craig, please continue. Yeah, I'll just repeat the question. It was a follow up on sales, just that you mentioned that they were very strong, but they were down year over year for the first time in a few years. And I just would be curious if you attribute that to a more difficult winter and sort of what you're seeing here in the second quarter as far as traffic and volume and sort of interest rates.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: Go ahead, Matt.

Speaker Change: Right.

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Speaker Change: Sue.

Speaker Change: With this downturn.

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Speaker Change: Yes.

Speaker Change: Alright, ladies and gentlemen, we have reconnected the speakers.

Craig: And we will proceed Craig please continue.

Craig: Yeah I'll just repeat the question. It was a follow up on sales just that you'd mentioned that there were very strong, but they were down year over year for the first time in a few years and I just would be curious if you attribute that to a more difficult winter and sort of what youre seeing here.

Craig: In the second quarter as far as traffic and volume and sort of interest.

Samuel Landy: The decrease was solely due to the fact that last year at this time, we had liquidated the Port Royal Sales Center, so that resulted in, you know, a high gross number, but there was no net on those sales, so it didn't affect the net. And at this moment, we believe sales are going to be better than ever for the year, and the reason being the number of 55 and older people downsizing. We've built expansions in great locations, we're building new communities in great locations, and all of this is going to translate into what we believe will be higher sales for 2025 than we've ever had before.

Craig: The decrease was solely due to the fact that last year at this time, we had liquidated the port Royal sales center. So that resulted in a high gross number but there was no net on those sales. So it didn't affect the net and at this moment, we believe sales are going to be better than ever for the year and the reason being the <unk>.

Craig: <unk> 55 and older people downsizing.

Craig: <unk> expansion is in great locations, we're building new communities in great locations and <unk>.

Craig: All of this is going to translate into what we believe will be higher sales for 2025 than we've ever had before I just wanted to add if you take out the sales from the.

Anna Chew: I just wanted to add, if you take out the sales from the liquidation of the sales center, actual sales for the quarter was up approximately 3-4%. Okay, that's helpful. Thank you. Anna, just changing gears, you know, you mentioned that you thought you'd be able to refinance these mortgages that you paid off here in the first half of the year at, you know, five and a half, maybe five and three quarters. Can you talk about the interest rates on what is maturing both here in the first half of the year and during the remainder of the year?

Craig: The sales is a liquidation of the sales center.

Craig: Actual sales for the quarter was up approximately three 4%.

Craig: Okay. That's helpful. Thank you.

Craig: And just changing gears.

Craig: You mentioned that you thought you'd be able to refinance these mortgages that you paid off here in the first half of the year.

Craig: Five and a half maybe five in three quarters can you talk about the interest rates on what is maturing both here in the first half of the year end and during the remainder of the year.

Brett Taft: Yes, I mean, the interest rates are, of course, a lot better because it was 10 years ago. And the ones that we are paying off, or that we have already paid off, as of April 1st, the average interest rate there was about 4%, and the remaining is about 4%, I think 4.1% for the remaining for the year. Again, we believe that even though we will have a little bit more of an interest cost, we believe that our operations, our rental income, will all make up for the increase in interest costs. You can't take one month to predict the year, but Brett, tell us how April was.

Craig: Yes, I mean, the interest rates are of course, a lot better because it was 10 years ago.

Craig: And the ones that we are paying off or that we have already paid off as of April 1st the average interest rate there was about 4% and the remaining is about 4% I think four 1% for the remaining for the year.

Craig: Again, we believe that even though we will have a little bit more of an interest cost we believe that our operations our rental income.

Craig: Paul.

Craig: Make up for the increase in interest cost and just to go back on the sales.

Craig: You can't take one month to predict the year, but Brett tell us how April was April was fantastic. It looks like we closed about $4 $4 million in home sales in April which is up two and a half million over April of 2024, and as we look forward and look at our sales pipeline, we've got about $4 4 million and our sales pipeline typically it's between.

Brett Taft: You know, April was fantastic. It looks like we closed about $4.4 million in home sales in April, which is up $2.5 million over April of 2024. And as we look forward and look at our sales pipeline, we've got about $4.4 million in our sales pipeline. Typically, it's between $3 and $3.5 million. So given everything Sam mentioned about new home sales and our expansions and where we're opening and being in the right locations, we're starting to see some real good evidence of those sales occurring at profit margins that we're very happy with. And, you know, hopefully we'll be able to achieve results like this throughout the rest of the year.

Speaker Change: Three and three and a half million so give it everything San mentioned about new home sales and our expansions and where we're opening and being in the right locations. We're starting to see some real good evidence of those sales occurring at profit margins that were very happy with and hopefully we'll be able to achieve results like this throughout the rest of the year.

Speaker Change: Got it and just when you think about the appreciation in.

Brett Taft: Got it. And just when you think about the appreciation in the properties that you are refinancing here in 2025, I guess, how are you thinking about mortgage debt as more of a primary source of funding here in 2025 versus the last couple of years where you leaned a little bit more on common and on the preferred? So, Anna, I'll let you answer it one second, but the appreciation is fantastic doing exactly what we've always stated. At the end of 10 years, the properties double. It's proven by the appraisals for the refinance, and so that doubles the amount of money you can take out of the same properties.

Speaker Change: In the properties that you are refinancing here in 2025, I guess, how are you thinking about.

Speaker Change: Mortgage debt is more of a primary source of funding here in 2025 versus the last couple of years, where you've leaned a little bit more on common and preferred.

Speaker Change: So I'll, let you answer when we're talking about the the appreciation is fantastic doing exactly what we've always stated at the end of 10 years to properties double that's proven by the appraisals for the refinance and so that doubled the amount of money you can take out of the same properties, but we've always been.

Samuel Landy: But we've always been a conservative company, highly leveraged, and we have very substantial internal growth plans through the addition of 800 rentals, approximately $70 million, the financing of 50% of our home sales, the construction of our expansions, potentially acquisitions, and capital improvements. So all of that means we always need common equity, preferred equity, and debt. Go ahead, Anna. You are absolutely right. Regarding the value of the communities, they have doubled in value. If you look at what we did in 2023, we added – we obtained mortgages of – A total of a hundred and I guess it's about a hundred million dollars.

Speaker Change: A conservative company.

Speaker Change: Not highly leveraged and we have very substantial internal growth plans through the addition of 800 rentals of approximately $70 million the financing of 50% of our home sales to construction of our expansions potentially acquisitions.

Speaker Change: And capital improvements so all of that means we always need common equity preferred equity and debt. But go ahead, you are absolutely right regarding the value of the communities. They have doubled in value. If you look at what we did in 2023, we added.

Speaker Change: We obtain mortgages of.

Speaker Change: A total of 100 and I guess, it's about $100 million.

Anna Chew: I'm sorry, $58 million, but the communities that were in those mortgages appraised for over $100 million, about $108 million. Our total investment in those communities was only $52 million, so we more than doubled the value of the communities based on appraisals. Now, we believe that... The new appraisals for this upcoming refinancing will also show a large increase in the valuation of the communities. We always look at the best possible ways to finance our needs, and that is, as Sam said, a combination of preferred, a combination of common, and a combination of debt. Now, it all depends on what we need, when we need it.

Speaker Change: John sorry, $58 million, but the.

Speaker Change: Communities that were in those mortgages appraised for over $100 million about $108 million. Our total investment in those communities is only $52 million. So we more than doubled the value of the communities based on appraisals now we believes that.

Speaker Change: The new appraisals for this upcoming Refinancings will also show a large increase in the valuation of the communities. We always look at the best possible.

Speaker Change: Ways to finance, our needs and that is as Sam said, a combination of preferred a combination of common and accommodation of debt now it all depends on what we need when we need it we always need about 100 to $120 million to $150 million a year.

Anna Chew: We always need about $120 to $150 million a year to finance our business plan, but that doesn't include acquisitions. If we have additional acquisitions, we may need more. That's why I said it all depends on the rates at the time. It all depends on what's going on in the market at the time. We will assess what we need at the time we need it. We love the ATM, and that's a great way of also raising capital when we need it.

Speaker Change: To finance our business plan, but that doesn't include acquisitions. If we have additional acquisitions, we may need more so we may.

Speaker Change: That's why I said it all depends on the rates.

Speaker Change: Our rates at the time it all depends on what's going on in the market at the time. So we will assess what we need at the time, we need it and we love the ATM. That's a great way of also raising capital when we need it.

Great just one more for me.

Samuel Landy: Great, just one more for me, you know, I feel like over the last few quarters, you've been saying that this might be the year where you saw some larger acquisition opportunities out there, you know, maybe some operators that were, you know, financial buyers and really didn't know what they were doing. And there might be a great opportunity for you or something along those lines. I guess, are you seeing any of those present themselves at this point? Well, without without being specific, you know, there is a certainty that many, many people went into real estate since COVID, bought properties, I've heard about people buying properties, you know, just just looking at Zillow and buying properties without physically inspecting the property.

Speaker Change: I feel like over the last few quarters, you've been saying that this might be the year, where you saw some larger acquisition opportunities out there maybe some operators that were financial buyers and really didn't know what they were doing and there might be a great opportunity for you or something along those lines.

Speaker Change: I guess are you seeing any of those present themselves at this point.

Speaker Change: Well without being specific.

There is a certainty that many many people went into real estate since COVID-19.

Speaker Change: What properties Ive heard about people buying properties.

Speaker Change: Just looking at Zillow and buying properties without physically inspecting the property. So there's a lot of reason to believe.

Samuel Landy: So there's a lot of reason to believe it's going to be a good time to be a property buyer. Okay.

Speaker Change: It's going to be a good time to be a property buyer.

Speaker Change: Okay. Thanks, guys. That's it for me.

Samuel Landy: Thanks, guys. That's it for me.

Merrill Ross: And your next question comes from Merrill Ross with Compass point. Please go ahead.

Meryl Ross: And your next question comes from Meryl Ross with Compass Point. Please go ahead. Good morning. I have two questions. The first one is on the Mantua acquisition of the two age-restricted properties. I think that's the first time in the many years that I've been following UMH that I've ever seen you buy 100% occupied property with no expansion sites available. Can you tell us if that was a one-off, and what return expectations and what the drivers of those returns are? Brett, Brett? Thank you. Incorporated. Thank you, Brett. Brett will tell you about the returns and the current return expectations, but the giant reason to do this deal...

Merrill Ross: Good morning.

Merrill Ross: I have two questions. The first one is on the.

Speaker Change: Angela acquisition to Asia strictly properties I think that's the first time in many years that I've been following me.

Speaker Change: When you buy a 100% occupied property with no expansion sites are horrible.

Speaker Change: Can you tell us if that was a one off.

Speaker Change: But return expectations and what the drivers of those returns up.

Speaker Change: Brett.

Speaker Change: Incorporating.

Speaker Change: Thank you Brett Brett will tell you about the returns in the current return expectations, but the giant reason to do this deal.

Brett Taft: You know, they're 100% occupied communities in great condition right in our market, right where we already operate. And they're just outside of Philadelphia. And market rent there is easily $800 per month, but they have municipal rent control. But there's vacancy decontrol. And us as the operator will broker home sales. And by brokering home sales, you'll get the existing resident a price that they're happy with. And so nobody will care that you're raising the rent to the new customer to market. So, you know, by taking care of the existing customer, you'll be able to bring the rent to the new customer to market.

There are 100% occupied communities in great condition right in our market right, where we already operate.

Speaker Change: They are just outside of Philadelphia and market rent there is easily $800 per month, but they are they have municipal rent control, but there is vacancy decontrol.

Speaker Change: And us as the operator will broker home sales and and.

Speaker Change: By brokering home sales, you'll get the existing resident of price that theyre happy with and so nobody will care that you're raising the rent to the new customer to market. So.

Speaker Change: Bye bye, taking care of the existing customer you'll be able to bring the rent to the new customer to market. So theres a lot of upside in the deal and Brett go ahead about the current returns on what you expect yes. So the in place cap rate on that was about 5%, which is honestly a good rate for such high quality properties.

Brett Taft: So there's a lot of upside in the deal. And Brett, go ahead about the current returns and what you expect. Yeah, so the in place cap rate on that was about 5%, which is honestly a good rate for such high quality properties, you know, that they're up there with just about any other properties in our portfolio or anybody's portfolio. So, you know, first class five star communities, the average rent at the communities to Sam's point is only $629 a month right now, you've got a certain number of sites in there with rents in the $400 to $500 range, some in the $500 to $600 range.

Speaker Change: They are up there with just about any other properties in our portfolio or anybody's portfolio. So first class five star communities.

Speaker Change: The average rent at the communities to Sam's point is only $629 a month right now you've got a certain number of sites in there with rents in the $4 to $500 range something in the 5% to $600 range. So working carefully with our tenants will help them broker their home sales and increase those rents to market over time.

Brett Taft: So, you know, working carefully with our tenants will, you know, help them broker their home sales and increase those rents to market over time, over five years. And again, a lot of it's dependent on exactly how many people decide to sell, move, you know, leave the community for whatever reason, and our ability to resell those homes. But we should be yielding in the six and a half to seven. That does not include potential sales profits. This is a very strong sales market. On occasion, we may get a home back that we can, you know, resell at a very nice profit margin.

Speaker Change: Over five years and again a lot of its dependent on exactly how many people decided to sell move leap the community for whatever reason and our ability to resell those homes, but we should be yielding in the six 5% to 7% range.

Speaker Change: That does not include potential sales profits. This is a very strong sales market on occasion, we may get a home back that we can.

Speaker Change: Resell.

Speaker Change: At a very nice profit margin theyre selling single section homes for over $150000 at the property in multis closer 200, so and those are used homes. So it's just.

Brett Taft: They're selling single-section homes for over $150,000 at the property and multis, you know, close to $200,000. So, and those are used homes, so it's just really opportunity-driven. It came to us that they were first-class properties in a market or in our home state, so we took advantage of that and went forward with the acquisition.

Speaker Change: Really opportunity driven it came to us that they were first glass properties in a market.

Speaker Change: In our home state. So we took advantage of that and went forward with the acquisition.

Brett Taft: Great, so it could happen again, but it's kind of like lightning, right? Well, the reason it could happen more, you know, our equity cost of capital has gone down, right? So, you know, Sun and ELS used to have all the advantage over us in the world, because, you know, their equity cost of capital was 3%, and ours was about 6%. But now our equity cost of capital has gotten into the 5% area. And so we can be a bidder on these, you know, perfect communities that are 100% occupied, as long as, you know, we stick to wanting to see upside.

Speaker Change: So it could happen again, but it is kind of like lightning.

Speaker Change: Well the way political strikes the reason it could happen more.

Speaker Change: Our equity cost of capital has gone down right. So <unk>.

Speaker Change: <unk> used to have all the advantage over us in the world because they're equity cost of capital was 3% and ours was about 6%, but now our equity cost of capital has gotten into the 5% area and so we can be a bidder on these.

Speaker Change: Perfect communities that are 100% occupied.

Speaker Change: As long as we stick to wanting to see upside, but as long as we see upside we can do that.

Brett Taft: But as long as we see upside, we can do that.

Speaker Change: Great.

Speaker Change: I had one more follow up on the refinancing.

Anna Chew: I had one more follow-up on the refinancing. I was just interested to know if the properties being refinanced at the GSEs also include rentals as well as owner-occupied? I think that is part of that innovative financing structure that you had a couple of years ago. And maybe there's some follow-through with this refinancing. Unfortunately, right now, the rental homes are not going to be financed. However, the income from the site underneath the rental home is included in this refinancing. So although the homes are not included, the income from the site of these rental homes are included.

Speaker Change: Okay.

Speaker Change: Good to know if the property is being refinanced.

Speaker Change: The GSE also include rentals as well as owner occupied.

Speaker Change: Yeah.

Speaker Change: I think that that.

Speaker Change: As part of that.

Speaker Change: Innovative Sarnia construction that you had a couple of years ago.

Speaker Change: And maybe there are some folks who.

Speaker Change: Refinancing.

Speaker Change: Unfortunately.

Speaker Change: Right now the rental homes are not going to be financed however.

Speaker Change: Rental income from the site underneath the rental home is included in this refinancing so although the homes are not included the income from the site.

Speaker Change: Rental homes are included so we believe that there was a change in the GSE thinking, but hopefully we can change their mind again, because we did win that battle a few years back and hopefully we will be able to do that again do you want to talk about this is the week of MH I am yes.

Anna Chew: So we believe that there was a change in the GSC thinking, but hopefully, we can change their mind again because we did win that battle a few years back, and hopefully, we will be able to do that again.

Samuel Landy: You want to talk about this is the week of MHI in Florida and the potential HUD code? Well, we're going to have the industry meeting in May in Florida, and we're honored to have the Secretary of Housing come to speak. And I'm sure when he comes, he's going to tell everybody what the new administration housing policies are. And traditionally, he's not going to bring bad news, he's going to bring good news. So we're looking forward to that.

Speaker Change: And those potential HUD code.

Speaker Change: Well.

Speaker Change: We're going to have the industry meeting in May in Florida.

Speaker Change: The secretary of housing.

Speaker Change: Come to speak and I am sure. When he comes he is going to tell everybody what the new administration the housing policies.

Speaker Change: And traditionally that could break bad news.

Speaker Change: So we're looking forward to that.

Samuel Landy: First of all, though, I must say that... Our relationship with HUD and the government-sponsored entity is excellent, and it is an amazingly good program for the country. Housing is a national need, and there's nothing... It's better than having the government guarantee a good loan. And there is no category of loans that have a better history than first mortgages on manufactured housing communities. So our main source of financing will always be a 50% or 60% loan on our portfolio. And as our portfolio grows, we only have about $600 million in mortgages now. And if we were $2 billion, we'd be able to borrow $1 billion, $1.2 billion.

Speaker Change: First of all though I must say that.

Speaker Change: Our relationship with HUD and the government sponsor that is excellent.

Speaker Change: It is amazingly good program for the country.

Speaker Change: Housing is that and I actually don't need them.

Speaker Change: There's nothing.

Speaker Change: Rather than having the government guarantee a good loan and there was no category of loans that have a better history than what first mortgages on manufactured housing communities. So we are buying source of financing will always be a 50% to 60% loan portfolio.

Speaker Change: And as our portfolio grows we will you only have about 600 million in mortgages now.

Speaker Change: And if we were 2 billion, we were able to borrow billions and billions.

Samuel Landy: And so we will have sources of capital under existing programs. We're looking forward to the Secretary of Housing announcing new programs. We think that the rental homes included in our community should count as well. We have about $500 million in rental houses, which we own, with some exception, but we own it free and clear. Minor exceptions on that. And you add that to the value of our communities, we have a great base for being able to increase our debt for the purpose of buying new communities. So we're very optimistic about our financial strength and the ability to build new communities.

Speaker Change: So we will have sources of capital under the existing programs. We're looking forward to the second.

Speaker Change: Because they are housing announcing new programs, we think that the.

Speaker Change: Rental homes are included in our Korea, they should count as well.

Speaker Change: Of about 500 million in rental houses, which we own.

Speaker Change: With some exceptions, but fully owned free and clear.

Speaker Change: Sure.

Speaker Change: Minor exceptions on that.

Speaker Change: Add that to the value of our communities, we have a great base for being able to increase.

Speaker Change: Debt for the purpose of buying new communities. So we're very optimistic about our financial strength and the.

Speaker Change: Our ability to build new communities. So we would look forward to the information we gather from the Nashville meeting occurring what made next.

Samuel Landy: So we look forward to the information we gather from the national meeting occurring, what, May 9th. Yes, next week. Yes. Great.

Speaker Change: Next week, yes, thanks Lucas.

Speaker Change: Great well good luck. Thank you.

Unknown Executive: Well, good luck. Thank you.

Speaker Change: And your next question comes from John Mexico with land Ladenburg Thalmann. Please go ahead.

John Massacoa: And your next question comes from John Massacoa with Landenburg-Thalman. Please go ahead.

Speaker Change: Oh, that's the wrong bank, there, it's B Riley securities, but anyway.

John Massacoa: Oh, that's the wrong bank there. It's B Reilly Securities. But anyway, uh... Going back to that last question a little bit. You know, as I'm kind of thinking about the GFC financing and rental. Is it just that you lose some of the LTV on that financing because you can't include the homes or does it exclude all kind of communities with rentals in them or portions of communities with rentals? Pardon me, John.

<unk>.

Speaker Change: Going back to that last question a little bit.

Speaker Change: <unk>.

Speaker Change: As I'm kind of thinking about the GSE financing in rentals.

Speaker Change: Is it just that.

Speaker Change: You lose some of the LTV on that financing because you can't include the homes or does.

Speaker Change: Or does it exclude all kind of communities with rentals in them or portions of communities with rentals in them.

John Mexico: Pardon me John It looks like we lost our connection to the speakers, let me bring them in again.

John Massacoa: It looks like we lost connection to the speakers. Let me bring them in again. Ladies and gentlemen. The speakers have reconnected and John, you may re-proceed with your question. How's it going? So yeah, kind of going back to the last question on GSE debt, just to clarify, you can still get debt on communities with rental housing on them, it's just the LTV would be lower because you can't include the actual physical home in kind of the loan value, correct? That is correct. My apologies. Our phone is kind of cutting in and out. But anyway, the number of rental homes is not an issue right now.

John Mexico: All right, ladies and gentlemen.

John Mexico: Speakers have re connected and John you May re proceed with your question.

Speaker Change: Hey, How's it going.

Speaker Change: So, yes, just kind of going back to the last question on GSE.

Speaker Change: Yes, just to clarify you can still get that on communities with.

Speaker Change: Rental housing on them, it's just the LTV would be lower because you can't include the actual physical home.

Speaker Change: And kind of the loan value correct.

Speaker Change: That is correct.

Speaker Change: My apologies, our phone is kind of cutting in and out but anyway.

Speaker Change: The number of rental homes is not an issue right now.

John Massacoa: If you look at a rental home, you have the income from the home itself and the income from the site rent combined, it's on average about $1,000 per month in our portfolio. The GSEs are taking right now is the income from the site, which is approximately 50% of that total $1,000. And then that is what they are using as part of the collateral for the loan. So, but that does not affect the value of the community. It just means they are not financing the home itself at this moment, which is a whole separate value. But the value of the community goes up because the rental unit and because the vacant lot is now earning income.

Speaker Change: If you look at our rental home you have the income from the home itself and the income from the site rents combined it's on average about $1000 for months now portfolio what.

Speaker Change: The <unk> are taking right now is the income from the site, which is approximately 50% of that total $1000 and then that is what they are using as part of the collateral for the loan.

Speaker Change: So but that does not affect the value of the community.

Speaker Change: <unk> financing the home.

Speaker Change: At this moment, which is a whole separate value, but the value of the community.

Speaker Change: Up because the rental unit and because the vacant lot is now earning income.

Speaker Change: Basically.

John Massacoa: It's amazing, it's impressive.

Speaker Change: Yeah.

Speaker Change: Okay, I'm, sorry, I couldn't quite hear that but say it again.

John Massacoa: I'm sorry, couldn't quite hear that, but say it again and I'll... and Impact Funds Alley. I'm sorry, the connection is bad, so I can't figure out what the question was. No worries, there's no question. Anyway, can you hear me now? Yes. Okay, kind of moving on to the next question, is anything about kind of the mechanics of The refinancing, you know, you've got another roughly $50-70 million of debt maturing in the back half of the year. Are each of those kind of tranches of maturity debt going to be refinanced separately, or would you end up taking out kind of all of it at once, if you will, in the next coming weeks?

Speaker Change: Okay.

Speaker Change: I'm sorry, the connection is bad so I can't figure out what the question was.

Speaker Change: Yes.

Speaker Change: Question.

Speaker Change: Can you hear me now.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: The next question as I think about kind of the mechanics.

Speaker Change: Yes.

Speaker Change: The refinancings.

Speaker Change: <unk> got another roughly.

Speaker Change: 70 million.

Speaker Change: Sharing in the back half of the year for Aegean.

Speaker Change: Okay.

Speaker Change: Separately or would you end up taking out.

Speaker Change: Kind of all of it at once if you will in the next coming weeks, maybe kind of pre funding if you will.

John Massacoa: Maybe kind of pre-funding it, if you will. What we are doing is we are already starting to talk about refinancing in the latter half of the year in the third and fourth quarter, the ones that are We believe that we will be able to get GSE financing, but of course. These are communities that already have GSE financing on them, so we don't believe we should have a problem with getting GSE financing. Well, I mean, essentially, it's not going to be, is it going to be one big slug of debt here coming in the next couple of weeks, or is it going to be kind of tranches over the course of the remainder of the year?

Speaker Change: What we are doing is we are already starting to talk about <unk> financing in the latter half of the year in the third and fourth quarter.

Speaker Change: Ones that are.

Speaker Change: No.

We believe that we will be able to get GSE financing, but.

Speaker Change: Of course.

Speaker Change: These are communities that already have GSE financing on that and we don't believe we should have a problem with getting GSE financing.

Speaker Change: Well I mean, essentially it is not going to be is going to be one big slug of debt you are coming in the next couple of weeks or is it going to be kind of tranches over the course of the remainder of the year.

Brett Taft: It may be tranches because they have different payoff dates, but it may be in one soup. It depends on what the market is going to bear at that time. Yep, that's fair. And then lastly, as I think about, you know, adding new rental homes to existing communities, you know, the 800 target you have out there, you know, it kind of implies a pretty big ramp versus 1Q. You know, should we expect that to be concentrated maybe in kind of 2Q and 3Q, just given that, you know, traditional rental season, or could it be a little more variable over kind of the remaining nine months of the year?

Speaker Change: It may be tranches, because they have different pay.

Speaker Change: Payoff dates, but it may be.

Speaker Change: One two it depends on what the market is going to bear at that time.

Speaker Change: Okay, that's fair.

Speaker Change: And then lastly, as I think about adding new rental homes to existing communities nearly 800.

Speaker Change: Target you have out there.

Speaker Change: It kind of implies a pretty big ramp versus <unk> should we expect that to be.

Concentrated maybe in kind of <unk> and <unk>, just given that traditional rental season or.

Speaker Change: Could it be a little more variable over the remaining nine months of the year.

Brett Taft: Yeah, it's a good question. And in the first quarter, we did about 115 rental conversions, you know, which we were happy with. But going into the second and third quarters, we've got all of that inventory delivered and being set up right now. As you mentioned, the second and third quarters are our strongest quarters of the year. Given the demand we're seeing at a property level, given the April numbers, and you know, the demand for seeing some of the waiting lists at our properties, we think we'll continue to see that ramp up through the second quarter into the third quarter and then have a stable fourth quarter.

Speaker Change: Yes, it's a good question and in the first quarter, we did about 115 rental conversions, which.

Speaker Change: Which we were happy with it.

Speaker Change: That's net.

Speaker Change: Yeah, but going into the second and third quarters, we've got all of that inventory delivered in being set up right now as you mentioned in the second and third quarters are our strongest quarters of the year given the demand we're seeing at a property level given the April numbers and the demand we are seeing with some of the waiting lists at our properties. We think we'll continue to see that ramp up.

Speaker Change: Through the second quarter into the third quarter, and then having a stable fourth quarter.

Brett Taft: We still think we'll be able to hit the 800 number, but as time goes on, we'll update everybody accordingly. Thank you very much for that.

Speaker Change: We still think we'll be able to hit the 800 number but as time goes on we'll update everybody accordingly.

Speaker Change: Okay.

Speaker Change: Thank you very much for that that's it for me.

Operator: That's it for me. This concludes our question and answer session.

Speaker Change: Yeah.

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: I would like to turn the conference back over to Samuel Landy for any closing remarks. 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 August with our second quarter 2025 results. Thank you.

Speaker Change: Thank you operator, I would like to think that 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 August with our second quarter 2025 results. Thank you.

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 to nine or international for <unk>.

Operator: This conference is 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 1-877-344-7529 or International 412-317-008. Conference Access Code is 3811792 Thank you and please disconnect your line.

123170088, the conference access code is 3811796.

Speaker Change: And please disconnect your lines.

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