UMH (UMH) Q4 2025 Earnings Call Transcript

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DATE

Thursday, February 26, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Founder and Chairman — Eugene W. Landy
• President and Chief Executive Officer — Samuel A. Landy
• Executive Vice President and Chief Financial Officer — Anna T. Chew
• Executive Vice President and Chief Operating Officer — Brett Taft
• Vice President of Capital Markets — Jim Lykins
• Executive Vice President — Daniel Andy

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TAKEAWAYS

• Normalized FFO per diluted share -- $0.95 for the year, up 2% compared to $0.93 in the prior year.
• Normalized FFO (quarter) -- $0.24 per diluted share, flat compared to the same period last year.
• FFO guidance (2026) -- Introduced at a range of $0.97 to $1.05 per share, an expected increase of approximately 2%-10%.
• Gross normalized FFO -- Up 7% for the quarter and 15% for the year; year-end total $80,100,000, rising from $69,500,000 last year.
• Total revenue -- $261,800,000 for the year, reflecting 9% growth.
• Rental and related income -- $226,700,000 for the year, up 10%.
• Same property revenue growth -- 8.2% ($16,900,000).
• Same property NOI growth -- 9% ($11,100,000).
• Site rent increase -- 5% year over year, coupled with occupancy growth of 354 net units.
• New rental homes added -- 717 across the portfolio, including joint ventures; total inventory now approximately 11,000 rental homes, 93.8% occupied.
• Gross home sales revenue -- $36,400,000 for the year, an increase from $33,500,000.
• Rental home turnover rate -- Approximately 20%, with $400 expenses per unit per year.
• Acquisitions -- Five communities acquired (587 sites) for $41,800,000; acquired at an average initial occupancy of 78%.
• Debt refinancing -- 17 communities refinanced, total proceeds $193,200,000 at a 5.67% weighted average rate; appraised value of $309,000,000 vs. $140,000,000 original investment (121% value increase).
• Stock repurchase -- 320,000 shares repurchased at an average price of $15.06, for $4,800,000; program allows for up to $100,000,000 in buybacks.
• Series B bond issuance -- $80,200,000 in 5.85% bonds due 2030, sold to foreign investors for general corporate purposes.
• Market capitalization -- approximately $2,400,000,000 at year-end, down from approximately $2,500,000,000.
• Community operating expenses -- Increased 12% for the quarter and 10% for the year, primarily due to acquisitions and higher payroll, taxes, and one-time legal/professional fees of $724,000.
• Cash, liquidity, and undrawn credit -- $72,000,000 in cash/cash equivalents, $260,000,000 available on credit facility (expandable to $500,000,000), $129,000,000 and $55,000,000 on lines for home sales and rental homes, respectively.
• Community-level mortgage debt -- $556,000,000 outstanding with a weighted average rate of 4.73% and average maturity of 6.1 years.
• Debt structure -- 99% of total $761,000,000 debt is fixed rate; total weighted average rate 4.9%.
• Net debt to total market capitalization -- 28.3% at year end.
• Interest coverage and fixed charge coverage -- 3.6x and 2.3x, respectively.
• DRIP and ATM programs -- $9,300,000 received from reinvested dividends; $44,100,000 in common stock proceeds via ATM program (now closed); $2,000,000 in Series G preferred stock proceeds.
• REIT securities portfolio -- $23,800,000 at year end, representing about 1.1% of undepreciated assets, with $5,700,000 of Realty Income Corporation shares sold during the year.
• Expansion and development -- 34 expansion sites completed; entitlement progress could allow 400 or more new sites to be developed in 2026.
• Honey Ridge community -- Sales at the newly opened joint venture greenfield are described as "going very well," with expectations for rapid infill pace.
• Collections and write-offs -- Residential collections remain around 98.5% with rental income write-offs consistently about 1%.
• Preferred equity -- $323,000,000 outstanding at year end.

SUMMARY

Management claimed pricing and supply chain conditions for homes were "favorable," noting no dramatic price increases, and said factory backlogs have normalized to a six- to eight-week range. The company expects the majority of new rental home installations and related occupancy gains to occur in the spring and summer months, influenced by seasonal weather. Joint ventures and the Opportunity Zone Fund were specifically cited as channels that can "expand what we have done in new community construction," allowing for greater development scale with less impact on the parent company’s short-term earnings. Portfolio growth potential was highlighted through land holdings—4,000 acres in shale regions and 2,300 acres of vacant land—which management stated "carried substantial value" and could be monetized through various uses, including single-family, apartments, or data centers. Demand for affordable housing remains high and was flagged as a tailwind, with management expressing that rental homes create buyers and that the Title I finance law changes could "dramatically increase" sales conversion from rent to ownership, suggesting long-term upside for both occupancy and sales revenues.

• There was no reported deterioration in delinquency rates, and collections stayed at 98.5%, with bad debt write-offs steady at less than 1% of rental income.
• The company committed to reducing its REIT securities portfolio and emphasized that while "we like having $26,000,000 available for any of the acquisitions or other reason we would need capital," their own property investments are viewed as superior.
• Home sales remain difficult to predict, but management suggested a potential to "get beyond $40,000,000 in a year" if conditions allow for more mature expansions and available inventory.
• The acquisition market was described as competitive, with most stabilized assets trading below 5% cap rates, while UMH continues to search for portfolio and one-off deals in the 5%-6% cap rate area.
• Stock repurchases will remain opportunistic, as the CFO reiterated that "we will continue to monitor the market to determine the appropriate time" to use the $100,000,000 buyback authorization.
• Management noted that expenses for the quarter were elevated mainly due to snow removal, real estate taxes, and insurance, but anticipate future expense growth to be managed within a 5%-7% range.
• Portfolio expansion, rental home turnover rates, and entitlement progress for new sites all set the stage for further internal growth in 2026, regardless of external market conditions.

INDUSTRY GLOSSARY

• Normalized FFO: Funds from operations adjusted to exclude amortization and nonrecurring items, used to measure REIT operating performance.
• NOI: Net Operating Income, defined as property-level earnings before interest and depreciation.
• ATM program: At-the-market offering, a means of issuing new equity incrementally at prevailing market prices rather than via a large single transaction.
• DRIP: Dividend reinvestment plan, allowing shareholders to reinvest dividends into additional company shares automatically.
• Cap rate: Capitalization rate; the yield of a property investment, calculated as net operating income divided by property value or purchase price.

Full Conference Call Transcript

Craig Koster: Thank you very much, operator. In addition to the 10-K that we filed with the SEC yesterday, we have filed an unaudited fourth quarter and year end supplemental information presentation. This supplemental information presentation along with our 10-K are available on the company's website at umh.reit. We would like to remind everyone that certain statements made during this conference call are not historical facts, and 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 fourth quarter and year end 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. Reconciliations of these non-GAAP financial metrics to the comparable GAAP financial metrics as well as the explanatory and cautioning language 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 W. Landy, Founder and Chairman; Samuel A. Landy, President and Chief Executive Officer; Anna T. Chew, Executive Vice President and Chief Financial Officer; Brett Taft, Executive Vice President and Chief Operating Officer; Jim Lykins, Vice President of Capital Markets; and Daniel Andy, Executive Vice President. It is now my pleasure to turn the call over to UMH Properties, Inc.'s President and Chief Executive Officer, Samuel A. Landy.

Samuel A. Landy: 2025 was another strong year for UMH Properties, Inc., marked by continued operational excellence, strategic growth, and solid financial performance. We made significant progress in increasing the value of our portfolio, driving occupancy gains, breaking our sales record, growing the company through external acquisitions, and positioning the company for sustained future growth. The affordable housing crisis has gained national attention. Factory-built homes for sale or rent in communities is a solution to that crisis. Normalized FFO was $0.24 per share in the 2025, compared to $0.24 in the prior year. Normalized FFO for 2025 was $0.95 per share compared to $0.93 in the prior year, representing an increase of 2%.

Gross normalized FFO increased 7% for the quarter and increased 15% for the year. We strive for per share earnings growth and anticipate strong earnings growth in 2026. At this time, we are announcing 2026 guidance of $0.97 to $1.05 per share representing an increase of approximately 2% to 10%. During the year, we strengthened our balance sheet through prudent capital management. We refinanced 17 communities for $193,200,000 in total proceeds at a weighted average interest rate of 5.67%, using the proceeds to repay existing debt, fund our rental home program, support capital improvements, pursue acquisitions, and repurchase stock.

These refinanced communities were appraised at $309,000,000 representing a 121% increase over our original $140,000,000 investment, underscoring the significant value we’ve created. Additionally, we issued $80,200,000 in 5.85% Series B bonds due 2030 to foreign investors, providing flexible capital for general corporate purposes. Further, in the fourth quarter, we repurchased 320,000 shares of our common stock at an average price of $15.06 per share for an aggregate cost of $4,800,000 reflecting our confidence in the company's undervaluation. We also realized $5,700,000 in gross proceeds from the sale of 100,000 shares of Realty Income Corporation from our securities portfolio.

Rental and related income, a core driver of our business, grew to $226,700,000 for the year representing a 10% increase over last year. Our total revenue, including home sales, was $261,800,000 for the year, representing an increase of 9% over last year. Our same property results continue to demonstrate the effectiveness of our long-term business plan. We generally purchase properties where we believe we can improve results through increased home rentals, sales income, and finance income. Our team and our platform have proven time and time again that we can preserve and increase the supply of affordable housing while delivering solid and sustainable operating results.

In 2025, we delivered same property revenue growth of 8.2%, or $16,900,000, and same property NOI growth of 9%, or $11,100,000. This growth in same property revenue and same property NOI was driven by site rent increases of 5% and an increase in occupancy of 354 net units. Our occupancy gains continue to be driven by the successful implementation of our rental home program. During the year, we added and rented 717 new homes across our portfolio including those in our joint venture communities, bringing our total rental home inventory to approximately 11,000 units with a 93.8% occupancy rate. Our rental home program continues to operate efficiently with a turnover rate of approximately 20%.

Our expenses per unit per year are approximately $400. Our capitalized turnover costs vary but we are generally able to increase rents that earn 10% on any additional investments in the rental homes. Our home sales business also performed well, generating gross revenue of $36,400,000 for the year, including contributions from our new Honey Ridge community in our joint venture with Nuveen Real Estate, representing a 9% increase from $33,500,000 in 2024. In the fourth quarter, gross home sales reached $9,300,000, up 8% from the prior year period, including sales from Honey Ridge. We have acquired and developed communities in strong locations which should allow us to further increase our gross sales and sales profitability in the coming quarters.

On the acquisition front, we completed the acquisition of five communities during the year, adding 587 developed home sites for a total purchase price of $41,800,000. The average occupancy in these five communities was 78% at acquisition, providing immediate upside through the infill of vacant sites which should result in value creation through our proven turnaround strategy. On the expansion and development front, we officially opened Honey Ridge, our one hundred thirteenth site greenfield development in Honeybrook, Pennsylvania. Sales at this community are going very well, and we anticipate a rapid infill pace. Additionally, we completed the development of 34 expansion sites and made progress obtaining entitlements which should allow us to develop 400 or more sites in 2026.

Over the past four years, we have developed an average of approximately 200 sites per year. Expansions greatly increase the value of our existing communities. A large asset generally operates with better margins as a result of economies of scale. Additionally, these expansive sites are well located and have the potential to greatly increase our sales and sales profits. As we fill our recently developed sites our earnings will grow. Expansions and development require patient capital but lead to strong returns over time. UMH Properties, Inc. continues to deliver solid results while growing the company through the infill of our existing communities, acquisitions, and development. We have built a best-in-class operating platform that continues to produce results year after year.

We invested significant additional funds for long-term growth which will result in stronger improvements in our operating results over the years to come. Our long-term business plan allows us to acquire communities at a discount to their stabilized value, complete improvements, and over time, realize the increase in value through refinancing. Our quality income stream is derived from our 24,000 families that have chosen to make UMH Properties, Inc. communities their home. This income stream has proven resilient through all economic cycles. Overall, these accomplishments demonstrate the resilience and growth potential of our business model. I will now turn the call over to Anna, our CFO, to review our financial results in more detail.

Anna T. Chew: Thank you, Sam. Normalized FFO, which excludes amortization and nonrecurring items, was $20,500,000 or $0.24 per diluted share for the 2025 compared to $19,200,000 or $0.24 per diluted share for 2024. For the full year 2025, normalized FFO was $80,100,000 or $0.95 per diluted share for 2025 compared to $69,500,000 or $0.93 per diluted share for 2024, resulting in a 2% per share increase. We were able to obtain this increase in annual normalized FFO despite our operating results being impacted by our investments in growing the company through value-add acquisitions and developments and increased expenses. Rental and related income for the quarter was $58,200,000 compared to $53,300,000 a year ago, representing an increase of 9%.

For the full year, rental and related income increased from $207,000,000 in 2024 to $226,700,000 in 2025, an increase of 10%. This increase was primarily due to acquisitions, increases in rental rates, same property occupancy, and additional rental homes. Community operating expenses increased 12% during the quarter and 10% for the year. This increase was mainly due to acquisitions and an increase in payroll costs, real estate taxes, snow removal, and water and sewer costs. This increase also includes one-time legal and professional fees of $724,000 for 2025.

Despite the increase in community operating expenses, community NOI increased by 7% for the quarter from $31,100,000 in 2024 to $33,300,000 in 2025 and increased by 9% for the full year from $119,700,000 in 2024 to $130,700,000 in 2025. Same property income increased by 8% for both the quarter and for the year, generating same property NOI growth of 6% for the quarter and 9% for the year. From a liquidity standpoint, we ended the year with $72,000,000 in cash and cash equivalents and $260,000,000 available on our credit facility, with a potential total availability of up to $500,000,000 pursuant to an accordion feature.

We also had $129,000,000 available on our revolving lines of credit for the financing of home sales and the purchase of inventory, and $55,000,000 available on our lines of credit secured by rental homes and rental home leases. During the year, we issued $80,200,000 in 5.85% Series B bonds due 2030 to foreign investors, providing flexible capital for general corporate purposes. As we turn to our capital structure, at year end, we had approximately $761,000,000 in debt, of which $556,000,000 was community-level mortgage debt, $28,000,000 was loans payable, and $177,000,000 was our 4.72% Series A bonds and 5.85% Series B bonds. 99% of our total debt is fixed rate.

The weighted average interest rate on our mortgage debt was 4.73% at year end compared to 4.18% at year end last year. The weighted average maturity on our mortgage debt was 6.1 years at year end and 4.4 years at year end last year. The weighted average interest rate on our short-term borrowings was 6.38% as compared to 6.54% last year. In total, the weighted average interest rate on our total debt was 4.9% at year end compared to 4.38% at year end last year. In 2025, we successfully refinanced 17 communities generating total proceeds of $193,200,000 at a weighted average rate of 5.67%.

This capital was used to repay existing debt, invest in our rental home program, capital improvements, acquire new communities, and buy back our common stock. The appraisals conducted for the refinancing demonstrate the value created by our business plan. Our total investment in these communities was approximately $140,000,000 or $37,000 per site, and they were valued at approximately $309,000,000 or $82,000 per site, generating an increase in value of $169,000,000, representing an increase of 121% in value, which, as Sam mentioned, underscores the significant value we have created. During 2026, we have six mortgages maturing totaling $38,200,000 and expect to have the same success in refinancing these communities.

At year end, UMH Properties, Inc. had a total of $323,000,000 in perpetual preferred equity. Our preferred stock combined with an equity market capitalization of over $1,300,000,000 and our $761,000,000 in debt, results in total market capitalization of approximately $2,400,000,000 at year end as compared to $2,500,000,000 last year. In the 2025, we repurchased 320,000 shares of our common stock at a weighted average price of $15.06 per share for a total of $4,800,000 reflecting our confidence in the company's undervaluation. Our common stock repurchase program allows us to repurchase up to $100,000,000 of our common stock and we will continue to monitor the market to determine the appropriate time to continue using the program.

During the year, we issued and sold 2,600,000 shares of common stock through our common ATM program generating net proceeds of approximately $44,100,000. Currently, the common ATM program remains closed. The company also received $9,300,000 including dividends reinvested through the DRIP. In addition, we issued and sold 93,000 shares of our Series G preferred stock during 2025 through the preferred ATM program, generating net proceeds of approximately $2,000,000. Subsequent to year end, we issued 66,000 shares of our Series C preferred stock through our preferred ATM program generating net proceeds of approximately $1,500,000.

From a credit standpoint, we ended the year with net debt to total market capitalization of 28.3%, net debt less securities to total market capitalization of 27.3%, net debt to adjusted EBITDA of 5.4 times and net debt less securities to adjusted EBITDA of 5.2 times. Interest coverage was 3.6 times and fixed charge coverage was 2.3 times. Additionally, we had $23,800,000 in our REIT securities portfolio, most of which is unencumbered. The portfolio represents only approximately 1.1% of our undepreciated assets. We are committed to not increasing our investments in our REIT securities portfolio aside from dividend reinvestment and have, in fact, continued to sell certain positions.

During 2025, we realized $5,700,000 in gross proceeds from the sale of 100,000 shares of Realty Income Corporation from our securities portfolio. We are well positioned to continue to grow the company internally and externally, and are introducing 2026 normalized FFO guidance in a range of $0.97 to $1.05 per share. And now let me turn it over to Gene before we open it up for questions.

Eugene W. Landy: Thank you, Anna. UMH Properties, Inc. is well positioned as a leader in the manufactured housing industry. We now own 145 communities containing 27,100 developed home sites, approximately 11,000 rental homes on those sites. Every year, we make a considerable amount of progress building an irreplaceable company and best-in-class operating platform. Our business plan has resulted in outstanding operating results, growing earnings per share, and an overall larger, more profitable company. We intend to continue growing the company through compelling acquisitions when they are available, developing our vacant land, the investment in rental homes, and further increasing the profitability of our sales company.

We accomplished all of this while executing on our mission of providing the nation with much needed high-quality affordable housing. Our portfolio of communities has materially grown over the years. We have selectively acquired well located communities that have benefited from our capital improvements and rental home program. I am proud to say that every community we own is in better condition today than the day we bought it. Our investments in our communities provide the highest quality of living at the most affordable price in just about any market we operate in. These investments generate strong demand which results in waiting lists for rental homes and increased home sales.

I have 4,000 acres of land in the Marcellus, Hudson, Utica Shale areas, have considerable unrecognized value that will become more apparent as we continue generating revenue through the lease signing bonus and royalty income. At 2,300 acres of vacant land also carried substantial value as we explore the expansion of our communities or other uses such as single-family home developments, apartments, or data centers. In addition, the recent announcement to build a new natural gas generation facility in Portsmouth, Ohio, which will be the largest natural gas generation facility in history generating 9.2 gigawatts of power, further supports the untapped potential value we have in the 4,000 acres we own within the Marcellus and Utica Shale regions.

Our country needs an affordable housing solution. We are working diligently to do more to help provide this housing and position manufactured housing as the preferred solution to the problem. Housing is a bipartisan issue and we believe that new legislation will encourage new development of manufactured housing communities. Additionally, two-story and duplex homes increase the viability of manufactured housing in urban areas and areas with higher land costs. Changes to finance laws could result in lower cost loans for our tenants which will further improve the fundamentals of our business. We are well positioned to benefit from these legislative changes and are excited about the prospects of each of them.

Looking ahead to 2026, we anticipate strong growth prospects supported by positive industry fundamentals. Demand for affordable housing remains high, our sector benefits from limited new supply and favorable demographics. Our recent acquisitions and ongoing community improvements will further contribute to organic growth while our joint venture and opportunity zone fund provide additional avenues for long-term growth while limiting the impact on our short-term earnings. We expect these factors to drive continued FFO growth in 2026. Our team is focused on executing our strategy to deliver long-term value for shareholders. Thank you again for joining us today. Operator, we are now ready to take questions.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to then two. At this time, we will pause momentarily to assemble our roster. And the first question will come from Rich Anderson with Cantor Fitzgerald. Please go ahead.

Rich Anderson: Hey, thanks. Good morning and great year and forward-looking perspective. You know, I want to ask about the rental versus home sale strategy. You sort of focus on rentals as the sort of the driver to the growth story. You are breaking records in selling homes. I know the rental business is a byproduct of the Dodd-Frank legislation and so on. But I am curious if you guys have an idea in mind and, you know, what the ultimate breakout in the portfolio might be between rental and owned homes, you know, if there is sort of a sweet spot in your mind?

Samuel A. Landy: Rich, Sam here. We will always use the rentals because there are so many people just looking for short-term housing, one year to three years. There are so many people who never lived in a manufactured home community, do not really know what to expect, do not understand the houses. So the renting program creates buyers and fills sites so much quicker than selling homes. So we never will not have rentals, and we have 11,000 of them today. But the new changes to the Title I finance laws right now, there is a limit how much you can finance approximately $70,000. And they might increase that. And those are government guaranteed loans that the customer only needs 3% down.

That could dramatically increase our sale of the older rental units because somebody can switch their home rent portion of their payment. If they are paying $1,000 a month, $500 is lot rent, $500 is the rent for the house, they could convert that $500 rent for the house to a loan payment so that for the future, they were always building equity. It will never increase. Beneficial to them. And then they own the house, which is beneficial to us. So we could be buying brand new homes for $75,000, selling old homes for $60,000, and only needing $15,000 cashes to replace them. So, you know, we are perfectly happy doing Memphis Blues as a 100% rental communities.

Rentals work. We consider it horizontal apartments. We take all the efficiencies of factory-built housing and that efficiency is cumulative. Even people in the business do not really understand how much better and more cost effective our houses get year after year. If you look at a 1970s home, and you look at the house of today, there is nothing in common. They are complete different houses. And yet the affordability component is better than ever in comparison to any other type of housing. So we take that fantastic efficiency of the factory-built home plus the efficiency of managing 250 lots on approximately 40 acres and pass that on to the customer.

And, you know, how many people have household income of only $40,000 and they can rent the house from us for $1,000 per month, which is 30% of income? There is nothing else they could have as good in such a high-quality community. So it works every time and then generates sales because as people live in our communities, as they think they might want a bigger house, a multisection house, they feel comfortable buying it.

Rich Anderson: Would you say, like, the sweet spot rental versus home owned is just for a lack of a better number, fifty. Is it as an efficient frontier for—

Samuel A. Landy: I am going to say yes, and I just want to, you know, every community is different. So some communities could be 100% rental. You get to New Jersey, you almost have zero rentals. So every community is different. But as a company, do I think we will have 50% rentals? Yes.

Rich Anderson: On the same store performance, you know, you had some elevated expenses in the fourth quarter. I assume that was snow removal, weather related. What would it have been without that? You know, if you were to normalize, you know, a normal quarter’s worth of expenses? Would it have been approaching a 10% ish type number, same store NOI?

Brett Taft: Exactly, Rich. And this is Brett here. And just looking at the numbers for the year, we were very happy with the 8.2% revenue growth, the 7% community operating expense number, and the overall 9% community NOI. So, you know, that is pretty close to where we expect it to be. We are always out there saying we anticipate expenses to rise 5% to 7%. We did have elevated snow removal costs. We did have overtime related to snow removal. Also had additional tree removal related to snow removal in the fourth quarter. And then you have got some real estate tax increases and some insurance expenses that also increase that overall number.

So, you know, looking at a normal quarter without the bad winter we have had, we do expect that we would have been in that 10% range. But looking forward, we anticipate being able to get our 800 new rentals installed and rented. We anticipate to get our annual rent increases, and we should be able to control our expenses in that 5% to 7% range, which again, should result in high single-digit or low double-digit NOI growth, which is where we have been over the past few years.

Rich Anderson: And last for me, any meaningful change to home prices, supply chain issues, tariffs, blah? You know, like, how is that changing what the wholesale cost is for your homes, you know, when you, you know, kind of bring them into the community and then either rent or sell them. What is the dynamic been there lately? Thanks.

Samuel A. Landy: Yes. Sam here, Brett will elaborate. But everything I see is favorable. No dramatic waits for houses. Prices actually, in some cases, coming down.

Brett Taft: Yeah. No. Prices are in a very similar position to where they were of this year and last year. We will keep an eye on that going forward. But we are still able to get our rental homes in the $75,000 to $80,000 range, which, you know, positions us well to rent homes at $1,000, $1,200 to $1,400 a month depending the market. Factory backlogs for the most part are in good shape, the six- to eight-week range. There are a few factories that are a little bit further out than that, but we are working with those manufacturers to try and either get homes or find a comparable home from another factory.

So we do not anticipate any problems getting homes, getting them set up, with the one caveat being that it has been a very snowy winter in most of our locations. So that does slow down sets a little bit. But demand is strong for both sales and rentals. We have homes either on-site or being delivered to the sites. They are being set up in a timely manner. And we anticipate similar occupancy gains in 2026.

Rich Anderson: Great. Thanks very much.

Operator: The next question will come from Barry Oxford with Colliers. Please go ahead.

Barry Oxford: Hi, guys. Hey, Sam. Bruh, real quick, if you could kind of walk me through. I understand some of the headwinds that existed in 2025. But then when I look at what you are doing on a same store NOI internal growth, very strong numbers, no reason to think at least at this particular juncture, that you will not be able to put up similar numbers. But yet when I look at the low end of your guidance at $0.97, that is only two more cents than what you did this year. Can you help me kind of walk through what is holding back the FFO per share?

Samuel A. Landy: I think you are better suited asking Jim to answer on the guidance. Go ahead, Jim.

Jim Lykins: That could be any number of things, Barry. You know, home sales could be worse than what we are anticipating. We could potentially raise capital that we are not anticipating right now, but, you know, sitting here right now, we would expect to come in right in the middle of that range. That is kind of a sitting here right now, worst case and best case scenario. We do not consider that number to be either conservative or overly optimistic. We think it is straight down the fairway.

Samuel A. Landy: And the only thing I will, you know, add to that, we really do not know what sales will be. Two communities in 2024 between the two of them had approximately $8,000,000 in sales. Correct. Yep. That were full in twenty May we could not have any sales from them in 2025. They will have available lots in 2026. So there is a potential of all the sales in 2025 plus $6,000,000 just from those locations. Additionally, there are other expansions just built, places where you are getting to as expansions or new communities become more mature, the sales get easier. So there is a lot of reason to be even more optimistic on sales.

You just never know because there are so many factors that come into it. But if everything goes right, sales can really get beyond $40,000,000 in a year.

Barry Oxford: Okay. Great. Thanks for the color.

Operator: The next question will come from Gaurav Mehta with Alliance Global Partners. Please go ahead.

Gaurav Mehta: Yeah. Thank you. Good morning. I wanted to ask you on the rental homes outlook of seven to 800 homes this year. What is the timing of that? Do you expect that to be evenly split during four quarters?

Brett Taft: Probably not evenly spread as we are seasonal and, you know, as I just mentioned, the first quarter, we are experiencing some challenges with incredibly cold temperatures and snow, which, you know, unfortunately, does slow things down on the home side and in some cases, the move in. But I am happy to say that sitting here now, we are happy with where sales are. We are happy with the occupancy gains we have seen so far this year. We do have 100 homes in inventory that are fully set up, ready for occupancy at the moment. We have got another 380 homes being set up. So, you know, we should see some occupancy growth in the first quarter.

The second and third quarter is where the majority of that occupancy growth will come in. And the fourth quarter does tail off a little bit. But we do expect it to be heavily weighted to the spring and summer months. And, you know, it is pretty consistent with previous years as well.

Gaurav Mehta: Okay. Thanks for that color. Second question maybe on the acquisition opportunities, what are you guys seeing in the market as far as acquiring new properties?

Brett Taft: You know, acquisition market remains competitive. High-quality assets that are well located and stabilized are trading in, you know, sub-5% area in most cases, in some cases, sub-4%. We are looking at several smaller portfolio opportunities and one-off acquisitions that could trade in the 5% to 6% range, but we are out there analyzing the opportunities, doing our detailed underwriting, and, you know, making sure that we fully account for any capital items that may be needed and get the right deals in the right locations to continue our growth and try and put together deals that are accretive to earnings. So nothing to report on the pipeline at the moment.

We were very happy to find five communities to acquire last year. That was 587 sites for $41,800,000 in markets that we like and think we will do well in for the future. So, you know, we are out there looking for those similar opportunities in 2026.

Samuel A. Landy: And I will just mention the joint venture with Nuveen for newly built communities as well as the Opportunity Zone Fund create incredible opportunity to expand what we have done in new community construction. You know, the parent company can only develop so many new sites per year because it is a loss business for three to five years. But doing it in a joint venture or doing it in the Opportunity Zone Fund, there is almost no limit to how much we can do. And that has incredible potential to allow us to build new communities throughout the country.

Gaurav Mehta: Alright. Thank you. That is all I have.

Operator: The next question will come from John James Massocca with B. Riley. Please go ahead.

John James Massocca: Yep. Good morning. Hi. Yes. Good to hear you. No. So apologies if I missed this earlier in the call, but been hopping around between a couple of different earnings calls. But with regards to the guidance provided, any color on what you are expecting in terms of the contribution from new home sales? And just the kind of scale of, you know, potential new home sales in 2026?

Jim Lykins: John, we have not disclosed what the amount will be in anticipated home sales this year or the number. I would just tell you that we assume an improvement. Sam mentioned earlier that we could get to $40,000,000. So, you know, I would keep that in mind, but we have not disclosed an actual dollar amount for where we anticipate sales coming in.

Samuel A. Landy: Sales are very difficult to predict, but we have more available expansion sites than we have ever had in the past. We have the turnaround communities such as Oaktree in New Jersey. We have a lot of locations that could potentially increase sales more than, you know, conservative people would expect.

John James Massocca: In terms of the in-place portfolio, any changes are you seeing in terms of delinquency or the bad debt outlook?

Brett Taft: No. Collections remain incredibly strong, in that 98.5% range. It really has not fluctuated too much. Every around the holidays, it goes down a little bit, but then picks up right up at sort of the January. So rent continues to be paid. We have not had any issues passing through our annual rent increases and do not anticipate any changes coming here shortly, but constantly moderate. And if anything changes, everybody will know.

Anna T. Chew: And write-off of approximately 1% or a little less of our rental and related income, and that has been consistent for the last I do not know how many years.

John James Massocca: And then with the apologies if this is already addressed in the call, but you sold some shares out of the marketable securities portfolio. Is that something you think you could continue doing going into 2026? Or was that kind of one-off in nature?

Eugene W. Landy: No. We have announced that we have a $100,000,000 buyback. And, of course, the timing of buying back shares depends on whether we have any acquisitions, whether we invest in new greenfield developments more than we have originally planned. And the whole purpose of the securities program is always to keep liquidity. And we, so we have about $26,000,000 in liquidity there. But we also have unused bank lines of $260,000,000. We have been conservative, and we plan to keep being conservative. But we do eventually intend to carry less cash because it puts a drag on our earnings, and we do plan to eventually take down the securities program to zero.

But at the present time, we like having $26,000,000 available for any of the acquisitions or other reason we would need capital. We are a very conservative company, and we intend to continue to do that. But we will be reducing the securities program.

John James Massocca: Okay. And I guess, was the reason for tapping that due to the buyback you had in place? You thought your stock was more tracked than maybe the valuation on some of the assets in the marketable securities portfolio?

Eugene W. Landy: No. The securities portfolio at a present low level, we are very pleased with the securities portfolio. Have nothing but admiration for the three basic companies that are in it. And we think they are great investments. We just think our own properties are a better investment.

John James Massocca: I appreciate that color. That is it for me. Thank you.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Samuel A. Landy for any closing remarks.

Samuel A. Landy: Thank you, operator. I would like to thank the participants on this call for continued support and interest in our company. As always, Gene, Anna, Brett, and I are available for any follow-up questions. We look forward to reporting back to you in early May with our first quarter 2026 results. Thank you.

Operator: The conference has now concluded. Thank you for attending today's presentation. The teleconference replay will be available in approximately one hour. To access this replay, please dial the U.S. toll free 703-447-7529 or 412-317-0088. The conference access code is 1500004518. Thank you, and please disconnect your lines.

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