UMH Properties' Results Signal Winning Strategy For Manufactured Home CommunitiesQuarter 2 Numbers Defy Early Critics of Company's Business Plan
By: Lifestyle Factory Homes, LLC But the latest numbers, presented in a conference call that included UMH management, board members, and industry-savvy analysts, advisors and investors, suggest the company has reason to be optimistic about its decision to focus its expansion on areas where energy development has created high demand for affordable housing. UMH's aggressive acquisition of manufactured home communities (MHCs) in energy drilling regions has raised some eyebrows among analysts who cite falling oil prices and environmental concerns about fracking as possible pitfalls for investors. However, these factors did not interfere with the company's expansion plans. And the second quarter results just released suggest UMH's purchase and updating of MHCs with low occupancy in areas that serve energy sector workers and their families has yielded impressive results. The second-quarter ending June 30, 2016 showed increased earnings and decreased expenses compared to the same period last year. Highlights of the report include: · Rental and related income up 25 percent · Community net operating income up 33 percent · Home sales up 72.4 percent Company officials say the general performance of UMH's Communities, specifically its rental home program, was a catalyst for the company's progressive momentum. Several key factors were also credited for the firm's current rally. Gains in occupancy rates, REIT securities investments and several other factors rounded out an optimistic forecast not only for UMH, but the industry overall. Tim Williams, executive director for the Ohio Manufactured Homes Association (OMHA), notes that with overall home ownership rates at the lowest level in decades, along with a difficult lending environment, manufactured housing and MH Real Estate Investment Trusts (REITs) are uniquely positioned to prosper in the coming years. "Our affordability, whether owning [a manufactured home] or renting, is unmatched and will continue to increasingly fill this gap in declining site-built home ownership rates." Find MHProNews' full report on UMH's Q2 results, and access a transcript to the entire conference call here. Contact L. A. "Tony" Kovach Publisher – MHLivingNews.com, MHProNews.com ***@mhmsm.com Photo: https://www.prlog.org/ End
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