Sam Landy, President and CEO UMH Properties, Inc. (NYSE:UMH) and (TASE:UMH) participated in a video interview during Nareit’s REITworld: 2023 annual conference, held November 14-16 in Los Angeles.
Landy said 2023 was initially a tough year for UMH. The REIT had 1,200 homes in inventory that needed to be set up and rented. That was accomplished, and UMH’s net operating income increased 15.8% last quarter.
Landy said NOI will continue to improve because UMH has fully paid off the expensive financing used to acquire the homes and is now positioned for a 5% rent increase next year, and on a just-in basis. But will add another 1,000 homes. -the timetable.
Landy also commented on the potential benefits to UMH from exposure to the Marcellus and Utica Shale natural gas fields. He pointed to the potential for substantial economic and population growth in those areas.
Meanwhile, Landy said efforts to raise equity throughout the year had a negative impact on the REIT’s share price. However, he pointed out that such steps strengthen the company’s balance sheet so that it can continue to grow. “We’ve proven that these factory-built homes renting for $1,000 a month are profitable and in high demand… This is a business we can and will grow.”