UMH Properties, Inc.

Thank you for standing by. Good morning and welcome to UMH Properties' third quarter 2024 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone 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 Koster, Executive Vice President and General Counsel. Thank you, Mr. Koster. 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 third quarter supplemental information presentation. This supplemental information presentation, along with our 10-Q, are available on the company's website at umh.reit. 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 third quarter 2024 earnings release and filings with the Securities and Exchange Commission. The company disclaims any obligation to update its forward-looking statements. 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. 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 Chu, Executive Vice President and Chief Financial Officer. Brett Taft, Executive Vice President and Chief Operating Officer. Jim Mikens, Vice President of Capital Markets, and Daniel Landy, Executive Vice President. It is now my pleasure to turn the call over to UMH's President and Chief Executive Officer, Samuel Landy.

UMH is pleased to report a third consecutive quarter of year-over-year normalized FFO growth. Normalized FFO per diluted share for the third quarter of 2024 was 24 cents as compared to 22 cents last year, representing an increase of approximately 9%. Sequentially, normalized FFO per diluted share increased from 23 cents in the second quarter to 24 cents in the third quarter, representing a 4% per diluted share increase. Year to date, normalized FFO increased from $39.2 million last year to $50.3 million this year, representing an increase of 28%. Our communities continue to experience strong demand for our homes, which is resulting in increased occupancy, revenue, sales income, and ultimately earnings per share. Our long-term business plan is delivering best-in-class results. We will continue to improve our operating results through the infill of our 3,300 vacant sites development of our vacant land, and increasing the profitability of our sales and rental programs. During the quarter, we issued and sold approximately 5.7 million shares through our common ATM at a weighted average price of $18.93, raising net proceeds of $107 million. In the short term, we utilized this capital to fully pay down our line of credit. This capital will allow us to invest in our value-added business plan and positions us to execute on potential acquisitions should they become available at the right prices. Turning to our third quarter operating results, we are proud that our communities are experiencing strong demand for home sales and rentals. This demand is the result of investing in the right locations and rapidly improving the quality and reputation of our communities. Overall, occupancy increased by 39 units to 87.4% during the quarter and 234 units year to date. Year over year, overall occupancy increased by 271 units or 120 basis points. During the quarter, we experienced some storm-related expenses, which increased our overall expense ratio to 43.3%. Year to date, our expense ratio is 42.4% as compared to 43.3% last year. Our collection rate remains strong and our third quarter rents are 98.5% collected. Our same property results continue to meet expectations. Third quarter rental and related income grew by approximately 8% and NOI increased by approximately 7%. Year to date, same property income is up 9%. and the same property NOI is up 11%, or $9.2 million. Angularized, this equates to a $12 million increase in community NOI. We anticipate similar results in the coming quarters and years as we continue to fill our 3,300 vacant sites through our rental and sales programs. We anticipate further occupancy growth in the coming quarters as we obtain and set up our rental homes. We currently have over 200 homes on order and 300 homes recently delivered that are ready for occupancy or are in various stages of setup. Next year, we anticipate a $10 million increase in revenue through the occupancy of 800 new rental homes and a $10 million increase from our 5% annual rent increases. We continue to invest in new rental homes and now own 10,300 homes. Our rental home occupancy rates remained stable at 94% compared to the prior year. During the quarter, we converted 179 new homes from inventory to revenue-producing rental homes. The net increase in our rental home portfolio was 117 homes because of the sale of older homes. Year to date, we have converted 443 homes from inventory to revenue-producing rental homes. The net increase was 284 units because of the sale of older homes. During the first half of the year, we replenished our inventory, which will allow us to further increase occupancy, revenue, and sales income in the fourth quarter of the year and into 2025. Our annual investment in new rental homes yields approximately 10% on the funds invested. We anticipate the addition of 800 new rental homes in 2025. Moving on to sales, our team sold 100 homes during the quarter, of which 34 were new home sales for gross home sales revenue of approximately $8.7 million. This compares to 90 homes last year, of which 41 were new home sales with gross home sales revenue of $7.9 million, representing an increase of 10%. Our gross sales margin increased 500 basis points from 33% for the same quarter last year to 38% for this year's quarter. Our gross sales profit increased 30% from $2.6 million in the third quarter of last year to $3.3 million this year. We financed approximately 53% of these home sales. We have a $4 million sales pipeline, which should allow us to generate year-over-year sales growth in the fourth quarter. Our sales results still have the potential to substantially improve. Several high-end expansions in good locations are just opening or are just about to open, which will generate a pipeline of sites where we can profitably sell homes. We are on track to develop approximately 200 expansion sites this year. Additionally, we anticipate approvals to develop approximately 500 new sites next year. We plan to develop approximately 300 of these sites in 2025. These expansion sites allow us to grow organically without the need for acquisitions. We have 2,200 acres of vacant land that may be able to be developed into 8,800 sites. We have made progress negotiating a joint venture with a major home builder for 131 acres in Vineland, New Jersey. UMH is on track to continue to deliver per share earnings growth this year, and we are pleased with the results being generated by our platform. We have a business plan and a platform that has proven to deliver outstanding results and a pipeline of organic growth opportunities to continue delivering these results for the next several years. Our 3,300 vacant sites and our 2,200 vacant acres provide internal growth opportunities for years to come. We have positioned the company with a strong balance sheet with $66.7 million in cash and full availability of our credit line. Our strong balance sheet and access to capital gives us the ability to invest in new homes, capital improvements, and the expansion of our communities, which will enhance the long-term value of our portfolio and further increase our earnings per share. Additionally, we are prepared to acquire new communities when accretive investment opportunities become available. And now Anna will provide you with greater detail on our results for the quarter.