Sam Landy, president and CEO of UMH Properties, Inc. (NYSE:UMH) and (TASE:UMH), participated in a video interview during Nareit’s REITworld: 2023 Annual Conference held Nov. 14-16 in Los Angeles.
Landy said 2023 was a difficult year for UMH, initially. The REIT had 1,200 homes in inventory that needed to be set up and rented. That was accomplished, and in the last quarter UMH’s net operating income was up 15.8%.
Landy added that NOI is going to continue to improve because UMH has completely paid off the expensive financing it used to obtain the homes and is now in a position for 5% rent increases next year, and will add another 1,000 homes based on just-in-time inventory.
Landy also commented on the potential benefits to UMH from its 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 the REIT’s stock price was negatively impacted by its efforts to raise equity throughout the year. He pointed out, however, that such moves strengthen the company’s balance sheet so that it can continue to grow. “We’ve proven that these factory-built homes, for rent at $1,000 a month, are profitable and in high demand…this is a business that we can and will grow.”