Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How is the acquisition pipeline today and the overall transaction environment versus a quarter or two ago? A: Samuel Landy, President and CEO, stated that while there are no new deals in the pipeline at the moment, he is optimistic that more communities will become available with less competition to buy them. The pending deals in Maryland are still progressing, with a potential closing in the first quarter of 2025.
Q: Are there synergies in owning self-storage units adjacent to your communities? A: Samuel Landy explained that self-storage units are a natural fit as they directly adjoin existing communities, often coming with the communities when acquired. They are managed by the same staff, making operations more efficient, and they fulfill a need for residents.
Q: What are you paying today for new rental units, and how much cost pressure is there from manufacturers? A: Brett Taft, Executive Vice President and COO, mentioned that prices have increased slightly, with single-wide units costing $70,000 to $75,000 fully set up, and double-wides being more expensive. UMH buys high-quality rental homes, which are more costly but result in lower turnover costs.
Q: Can you provide more details on the New Jersey joint venture with home builders? A: Samuel Landy noted that it would take at least a year for the home builder to get approvals and another year to build, so any financial benefits are at least three years away. The project involves potentially 150 homes selling for around $1 million each, with UMH potentially receiving 20% of the proceeds.
Q: What is the plan for adding 800 rental homes next year, and how does it compare to this year's additions? A: Brett Taft explained that 443 new homes have been converted to revenue-producing rental homes this year, with a net increase of 284 units after selling older homes. They have 300 homes in various stages of setup and plan to order 800 homes for 2025, continuing strong demand and inventory management.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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