UMH Properties, Inc.

Good morning and welcome to UMH Properties second quarter 2025 earnings conference call. All participants will be in a 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 that 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 10Q that we filed with the SEC yesterday, we have filed an unaudited second quarter supplemental information presentation. This supplemental information presentation along with our 10Q 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 second quarter 2025 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, Reconciliation 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 Micans, 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.

Thank you very much, Craig. Normalized FFO for the quarter was 23 cents per share for both the second quarter of 2024 and 2025. Overall, normalized FFO is up 16% or $2.6 million for the quarter and 20% or $6.4 million for the year. Our strong financial and operating results have given management and the board of directors the confidence to increase our quarterly common stock dividend by .7% from 21.5 cents per share to 22.5 cents per share, representing an annual dividend rate of 90 cents per share. We have now increased our dividend for five consecutive years for a cumulative annual increase of 18 cents or 25%. Our earnings per share were impacted by the issuance of $101.4 million of new GSE debt at a .855% interest rate. Subsequent to quarter end, we issued a new Series B Israeli bond at a .85% interest rate. The capital raise sub 6% will be deployed accretively over time. We have capital needs of $120 to $150 million annually, which we invest in our capital improvements, new rental homes, expansions, and financing of home sales, most of these uses being accrued of uses of capital. Over the past two years, we have relied on our common ATM to fund our growth initiatives. This year we are utilizing our ATM less and debt more. In the long term, this debt will be repaid and the equity should increase in value. We currently have $150 million in capital available to invest in our growth initiatives. Additionally, we are actively exploring acquisition opportunities and we believe we will find compelling deals to deploy this capital, grow the company, and ultimately grow earnings per share and our share price. UMH had an active and outstanding second quarter of 2025. The quarter was highlighted by the refinancing of 10 communities for gross proceeds of $101.4 million. These properties were appraised as part of the refinancing process. The appraised value of the 10 communities was $164 million or $82,000 per site. UMH's total investment in those properties to date is just $67 million, meaning that in 10 out of our 144 communities, we have created $97 million in value. The incredible takeaway from these results is that as important as FFO and FFO per share results are, it's as important to be aware of the value UMH adds to our investments in our communities. Our Marcellus and Utica Shale Strategy, which began in 2011, has resulted in substantial appreciation of the land, communities, homes, and approvals we own in the area. Data centers, the Shell Cracker Plant, pipeline projects, new gas wells, and electric generation plants all create the need for more quality affordable housing. UMH owns 4,000 acres of land in 78 communities with 12,300 homesites in the Marcellus and Utica Shale areas. Currently, we own and operate a total of 144 communities, including our three joint venture communities containing 26,800 developed homesites, 10,600 rental homes situated on 8,200 acres of land. The $10 billion Homer City Gas Fired Power Plant, located in close proximity to four UMH communities, is demonstrating proof that our strategic investments in the energy-rich Marcellus and Utica Shale regions are working. This power plant will benefit the Pennsylvania economy and especially western Pennsylvania, where we own 28 communities and where we have also seen increased interest in the leasing of our oil and gas rates. Our Nashville and Southeastern United States strategy is also delivering occupancy increases, strong sales profits, and increased property values. Our well-located communities with our strategy of creating quality affordable housing in communities of factory-built homes for sale or rent is generating industry-leading performance. As of July 18, 2025, UMH's total two-year return was an industry-leading 17% and our five-year total return was an industry-leading 76.7%. During the second quarter, we increased total revenue from $60.3 million in the second quarter of last year, consisting of $51.5 million in rental and related income and $8.8 million in sales income to $66.6 million in the second quarter of this year, consisting of $56.1 million in rental and related income and $10.5 million in sales income. That represents an increase in quarterly total income of approximately 10%. For the three and six months ended June 30, 2025, rental and related income increased 9% from the prior year period and community NOI increased by 11% and 9% respectively. During the quarter, we increased same property occupancy by 76 units over the first quarter and by 251 units over last year. Same property rental and related income increased by 8% and same property NOI increased by 10% or approximately $3.1 million. Year to date, same property rental and related income increased by 8% and same property NOI increased by 9% or $5.6 million. Our same property operating expense ratio the quarter fell to .2% as compared to .4% last year. Our rental home occupancy was .4% as compared to 95% last year. During the quarter, we converted 190 new homes from inventory to revenue generating rental homes. Year to date, we have converted 305 new homes from inventory to revenue generating rental homes. We currently have 450 homes on site with 145 ready for occupancy and another 300 being set up and an additional 200 homes on order that have not yet been delivered. We anticipate by the end of 2025, we will have added 700 to 800 new rental homes. Sales of manufactured homes continues to grow, driving additional sales profits. Growth sales for the quarter were a sales record at $10.5 million. For the three and six months ended June 30, 2025, sales of manufactured homes increased by 19% and 6% respectively from the prior year period. Gains from the sales for the quarter was $1.5 million or 14% of total sales. Gain from the sales for the six months was $2.2 million or 13% compared to $1.8 million or 11% last year. We acquired two New Jersey communities on March 24, 2025, consisting of 266 lots which are 100% occupied and subsequent to quarter end, we acquired two Maryland communities consisting of 191 lots which are 79% occupied. Year to date, we have closed on four communities containing 457 sites for a total purchase price of $39 million. We continue to evaluate future acquisitions and anticipate growing our acquisition pipeline in short order. We continue to invest in green field development through our joint venture with Nuveen Real Estate. We have made progress filling our two Sebring Florida communities and have recently opened our third joint venture community, Honey Ridge in Honeybrook, Pennsylvania. Honey Ridge is a 113 site community that officially opened in June. Sales traffic is incredibly strong and the homes are selling as we set them up. We anticipate our investments in a joint venture to generate increased cash flows and improve results as we continue to fill the communities. We invite you all to come to the Innovative Housing Showcase on September 6, September 9 in Washington, DC on the National Mall where we will be showing three of our homes. These homes will be a Ritz-Kraft multi-section home, a Champion single section home, both homes with factory installed GAF solar shingles, factory installed solar batteries, and factory installed car chargers, and a Capco multi-section home to highlight the upcoming possibility of two-story HUD code homes. We are excited about HUD's desire to solve the affordable housing crisis by breaking down zoning barriers and providing incentives for more manufactured home community development with easier to obtain lower cost financing. The big beautiful bill made Opportunity Zones a permanent structure which could enable UMH to improve and build more communities within Opportunity Zones. UMH's current Opportunity Zone fund has grown its annualized revenue from a year ago by more than $900,000. These results demonstrate the potential growth impact of Opportunity Zones. We view our 3,100 vacant lots and 2,300 acres of vacant land, 349 fully entitled lots, 406 completed and constructed lots, and 500 lots in the approval process as incredible opportunities to increase rental revenue, sales revenue, finance and insurance revenue, and increase value in FFO per share. This organic growth should allow us to generate earnings growth and improve operating results for the 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 grow through our established long-term business plan. Now I turn it over to Anna to discuss our second quarter results.