UMH Properties, Inc. (UMH): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine behind a successful, yet often overlooked, real estate niche: affordable manufactured housing. Honestly, the business model for this REIT, operating 144 communities across the US, is a masterclass in disciplined, value-add execution-it's less about flashy development and more about smart infill and rent growth. We're talking about a company targeting America's workforce, generating $66.92 million from leases alone in Q3 2025, with a full-year Funds From Operations (FFO) projection near $84 million for 2025. I've broken down exactly how they structure their key activities, resources, and revenue streams below, so you can see the mechanics of this defensive play.

UMH Properties, Inc. (UMH) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships UMH Properties, Inc. relies on to execute its strategy, especially around capital deployment and asset enhancement. These partnerships are more than just names on a document; they represent tangible financial flows and operational capabilities.

Joint Venture with Nuveen Real Estate for development and acquisitions.

This partnership helps UMH pursue accretive development deals while keeping its own capital needs lower. As of September 30, 2025, UMH Properties, Inc. holds a 40% ownership interest in three communities through the joint venture with Nuveen Real Estate.

• Communities in the JV include Sebring Square, Rum Runner (both in Florida), and Honey Ridge (in Pennsylvania).
• Honey Ridge, a recently opened community, contributed gross home sales revenue of approximately $800,000 during the third quarter of 2025.
• Rental and related charges, including joint ventures, totaled approximately $57.7 million for the third quarter of 2025.

Manufactured home builders (Champion, Ritz-Craft, Cavco) for new inventory.

UMH Properties, Inc. relies on builders to supply the homes it sells to residents or converts to its rental portfolio. A specific, innovative collaboration highlights this link.

The partnership with Champion Homes involved a pilot program for renewable energy integration. Specifically, GAF Energy's Timberline Solar® roofing system was installed on 20 manufactured homes at Champion Homes' Topeka, Indiana, manufacturing facility.

Financial institutions like Fannie Mae for large-scale fixed-rate debt financing.

Securing long-term, fixed-rate debt through partners like Fannie Mae, facilitated by lenders like Wells Fargo Bank, N.A., is central to UMH's capital structure. This allows them to convert asset value into deployable capital at predictable costs. Defintely, this is a key enabler for growth.

Here's the quick math on the latest major facility addition:

This November 2025 transaction followed an earlier 2025 addition where UMH secured approximately $101.4 million at a fixed rate of 5.855% over ten years by adding ten communities comprising about 2,001 sites to the same facility.

GAF Energy for integrated solar shingle roofing systems on new homes.

The collaboration with GAF Energy integrates renewable energy directly into the housing stock. The Timberline Solar® ES 2 energy shingle is the world's first nailable solar shingle.

• The ES 2 model achieves best-in-class solar efficiency, enabling 57 watts per energy shingle.
• This represents a 23% improvement over GAF Energy's first-generation solar shingle.
• The pilot installation involved 20 homes at UMH's Friendly Village community in Perrysburg, Ohio.

Local contractors for property redevelopment and maintenance.

UMH Properties, Inc. utilizes local service providers to execute the value-add component of its business plan, which involves completing necessary improvements and infrastructure upgrades across its portfolio of 145 manufactured home communities containing approximately 27,000 developed homesites.

UMH Properties, Inc. (UMH) - Canvas Business Model: Key Activities

The core of UMH Properties, Inc.'s (UMH) business model revolves around a cycle of acquisition, enhancement, and operational management within the manufactured home community sector. This activity drives both rental income and home sales revenue.

Acquiring and redeveloping value-add manufactured home communities

UMH Properties, Inc. actively seeks out value-add communities, immediately implementing capital improvements to upgrade infrastructure and complete deferred maintenance. This strategy is designed to increase income and community value rapidly. You can see the recent deployment of capital into this area:

• Deployed $45 million into development projects still in lease-up as of Q1 2025.
• Acquired two communities in New Jersey for $24.6 million in Q1 2025, adding 266 developed homesites.
• Acquired two communities in Maryland for approximately $14.6 million in Q3 2025, totaling approximately 191 homesites.
• Subsequent to Q3 2025, acquired one community in Georgia for approximately $2.6 million.
• Year-to-date through Q3 2025, UMH Properties, Inc. acquired four communities totaling 457 sites for $39 million.

Infilling vacant homesites with new rental or for-sale homes

A major activity is converting owned inventory into revenue-generating rental homes or selling them to residents. This directly addresses the vacant sites within the existing portfolio. Here's the progress toward their 2025 rental home goal:

Professional property management, including rent collection and maintenance

Effective management is key to maximizing Net Operating Income (NOI) from the existing sites. UMH Properties, Inc. implements portfolio-wide rent increases and focuses on expense control. You see the results of this management focus:

• Same Property Community NOI increased by 12% for the quarter ended September 30, 2025.
• Same Property Community NOI increased by 10.1% year-to-date September 30, 2025.
• Rental and Related Income increased by 11% for the quarter ended September 30, 2025.
• Same Property Occupancy reached 88.5% as of Q3 2025, an increase of 110 basis points year-over-year.
• Implemented a 5% annual rent increase portfolio-wide in Q1 2025.
• Same Property expense ratio improved to 39.7% at Q3 2025 end, down from 41.1% in Q3 2024.

Securing capital through debt (e.g., $101.4 million Fannie Mae loan) and equity issuance

UMH Properties, Inc. consistently secures capital to fund growth through both debt refinancing and equity sales, often using At-the-Market (ATM) programs. Here are the recent financing activities:

Operating a taxable REIT subsidiary for manufactured home sales

The wholly-owned taxable REIT subsidiary, UMH Sales and Finance, Inc., is responsible for selling homes to residents, which contributes significantly to overall revenue and gross margin. The sales performance for the latest reported periods shows growth:

• Gross Home Sales Revenue for Q3 2025 was $9.1 million, a 5% increase over the prior year quarter.
• Gross Home Sales Revenue for Q2 2025 was $10.3 million, representing a 17% year-over-year increase.
• Gross Margin remained strong at 37% for the quarter ended September 30, 2025.
• 366 homes were sold over the past 12 months (as of December 2025 presentation).
• In 2024, the subsidiary sold 394 homes, generating gross revenue of $33.5 million.

UMH Properties, Inc. (UMH) - Canvas Business Model: Key Resources

You're looking at the core assets that power UMH Properties, Inc.'s operations, the things they own and control that make the business run. Honestly, for a REIT like UMH Properties, Inc., the real estate itself is the primary resource, but the financial scaffolding supporting that real estate is just as critical, especially now.

The physical portfolio forms the foundation. As of late 2025, UMH Properties, Inc. operates a robust portfolio of manufactured home communities. This scale is a major competitive advantage in securing financing and attracting talent.

Here's a breakdown of the physical assets underpinning the business model:

• Portfolio size: 145 manufactured home communities.
• Geographic footprint: Communities are located across 12 states, including New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida, and Georgia.
• Developed capacity: Approximately 27,000 developed homesites across the portfolio.
• Rental Home Inventory: The rental portfolio is expanding, reaching approximately 10,800 units as of September 30, 2025, an increase of 500 homes in the prior 12 months.

Beyond the occupied sites, UMH Properties, Inc. has significant capacity for organic growth built right into its existing holdings. This pipeline of ready-to-develop land is a key differentiator.

The development pipeline includes:

• Existing vacant lots ready for infill: 3,500 lots.
• Undeveloped land bank: Over 2,300 vacant acres.
• Future site potential: This vacant acreage is projected to support the construction of approximately 9,200 future lots.

The company's access to capital markets is a vital, non-physical resource. This access allows UMH Properties, Inc. to fund acquisitions, expansions, and the purchase of new rental homes. They maintain a significant unsecured revolving credit facility, which was expanded to $260 million in available borrowings. Furthermore, in Q3 2025, they raised an additional $80.2 million through bonds due in 2030 at a 5.85% rate. A separate, specific credit facility of $35 million is also noted, secured by eligible notes receivable.

UMH Properties, Inc. also utilizes specialized financial vehicles to target specific investment opportunities, like the UMH OZ Fund, LLC. This fund is designed for tax-advantaged property redevelopment in Qualified Opportunity Zones. For instance, the company previously noted an $8 million investment into this fund.

The operational scale and the underlying value of the real estate allow UMH Properties, Inc. to secure debt against its assets, crystallizing value. For example, in November 2025, adding seven communities to a Fannie Mae credit facility secured proceeds of approximately $91.8 million against an appraised value of $145.1 million for those sites.

You can see the core resource metrics summarized here:

Also, don't forget the strategic partnerships that reduce capital strain. UMH Properties, Inc. uses joint ventures with Nuveen Real Estate to pursue accretive development deals, specifically holding an ownership interest in two communities in Florida and one in Pennsylvania.

UMH Properties, Inc. (UMH) - Canvas Business Model: Value Propositions

UMH Properties, Inc. (UMH) provides a clear value proposition centered on delivering quality affordable housing to America's workforce through manufactured home communities for both renters and buyers. This is grounded in the fundamental need for housing where traditional costs are becoming prohibitive for many households.

The core offering is an attainable housing solution designed specifically for low-to-middle-income residents, directly addressing the widening gap between wages and site-built home prices. This is evidenced by the relative cost structure of their product.

The significantly lower home cost is a major differentiator. For instance, the average new home sale price for UMH Properties, Inc. was reported around $140,000 as of September 30, 2025, which contrasts sharply with the market average for a site-built home, reported at $413,000 in the same period. Even the resale market shows value, with average used home prices around $60,000 in Q1 2025.

UMH Properties, Inc. offers a complete community lifestyle, not just a dwelling. This is supported by a robust physical footprint managed professionally on-site. As of late 2025, the portfolio included:

• 144 manufactured home communities.
• Approximately 27,000 developed homesites.
• A commitment to upgrading infrastructure and adding essential amenities upon acquisition.

The business model supports flexible housing options, catering to different resident needs and financial situations. You can choose to be a homeowner or a renter within the same community structure. This flexibility is visible in the portfolio breakdown:

• Total Developed Homesites: Approximately 27,000.
• Rental Homes Owned by UMH: Approximately 10,800 units (as of December 2025).
• Rental Portfolio Occupancy (Q2 2025): 94.4% across 10,600 rental homes.

The final value proposition centers on the product itself: new, energy-efficient manufactured homes with modern designs. The company's stated mission is to provide quality affordable housing by building and managing sustainable, contemporary manufactured home communities. This focus on quality and sustainability is intended to ensure residents receive a high-quality product that conserves energy and natural resources.

UMH Properties, Inc. (UMH) - Canvas Business Model: Customer Relationships

You're managing a portfolio of manufactured home communities, which means your relationship with residents is intensely local and hands-on. UMH Properties, Inc. focuses on direct, on-site community management to support residents and ensure compliance across its large footprint.

As of late 2025, UMH Properties, Inc. operates 145 manufactured home communities across twelve states, encompassing approximately 27,000 developed homesites. The company maintains a substantial rental portfolio, which stood at approximately 10,800 units as of the third quarter of 2025. This direct management approach is crucial for maintaining high occupancy, which for the rental homes was reported around 94.1% in Q3 2025. Same property site occupancy showed improvement, edging up to 88.5% in the third quarter of 2025.

The relationship strategy heavily leans on filling available space through active sales and leasing efforts. UMH Properties, Inc. is well-positioned with 3,500 existing vacant lots ready to be filled, plus over 2,300 vacant acres that could yield approximately 9,200 future lots. The high-touch sales and leasing program is evidenced by the conversion of 433 new homes to revenue-generating rentals in the first nine months of 2025, with management anticipating the addition of another 700-800 rental homes by the end of 2025. The sales division is also active; gross sales of manufactured homes in Q3 2025 reached $9.1 million, and 366 homes were sold over the preceding twelve months.

The nature of the relationship is built on stability, as the primary source of revenue comes from lease agreements for sites and homes. These leases are generally structured for one-year or month-to-month terms, offering flexibility while aiming for long-term residency through mutual agreement and renewal options.

As a public equity REIT, UMH Properties, Inc. also cultivates a distinct relationship with its shareholders. The company is committed to delivering value, projecting total income to surpass $250 million for the full year 2025. Management's guidance for 2025 normalized Funds From Operations (FFO) per share is set between $0.96-$1.04. The commitment to shareholders is also demonstrated through capital returns; the quarterly common stock dividend was increased to $0.225 per share as of Q1 2025. The company's enterprise value was approximately $2.16 billion as of late 2025.

Here are key operational metrics reflecting the scale of these customer relationships as of late 2025:

The focus on direct support and active leasing helps drive the financial results, with Rental and Related Income for Q3 2025 reaching $57.8 million, an increase of 11% year-over-year.

• Direct management covers resident support and compliance across 145 communities.
• Leasing programs target filling 3,500 existing vacant lots.
• Lease terms are typically one-year or month-to-month.
• Investor relations are managed with a 2025 Normalized FFO guidance of $0.96-$1.04 per share.

If onboarding new residents takes longer than expected, churn risk rises, definitely something management watches closely.

UMH Properties, Inc. (UMH) - Canvas Business Model: Channels

You're looking at how UMH Properties, Inc. (UMH) gets its homesites leased and its manufactured homes sold to customers across its portfolio. The channels are a mix of physical presence and digital outreach, which makes sense for a REIT focused on physical real estate assets.

On-site community sales and leasing offices are the primary interface, given UMH Properties, Inc. operates 144 manufactured home communities across 12 states as of late 2025. These offices manage the leasing of sites and the sale/rental of the manufactured homes within those communities. The success of this channel is reflected in the occupancy figures; for instance, rental home occupancy stood at 94.4% in Q2 2025, and Same Property Occupancy reached 88.5% in Q3 2025. The company is actively working to fill vacant sites, having approximately 3,300 vacant sites as of early 2025, with a goal to add 700-800 new rental homes by the end of 2025.

The corporate website and online listings serve as a crucial digital storefront and information hub. The official corporate website, accessible at www.umh.reit, is used to disseminate critical financial information, such as hosting the Third Quarter 2025 Financial Results Webcast and Conference Call on November 4, 2025. While specific online listing volume isn't public, the sales performance suggests active digital engagement, with gross home sales revenue reaching $10.3 million in Q2 2025, a 17% year-over-year increase.

UMH Properties, Inc. also engages in industry events to maintain visibility within the housing and investment sectors. For example, the company presented its Q3 2025 investor presentation on November 4, 2025. Furthermore, the development of the Honey Ridge community in Honey Brook, Pennsylvania, through a joint venture, shows a commitment to growth in key regional markets, which often requires industry networking and showcases.

Direct-to-consumer marketing in regional markets supports the on-site offices, focusing on areas like PA, OH, and IN, where UMH Properties, Inc. has a significant footprint. This targeted approach drives demand for both site leases and home sales. The company's growth strategy includes purchasing well-located communities in target markets, such as the energy-rich Marcellus and Utica Shale regions. The sales division is a key component, evidenced by gross sales for Q3 2025 being $9.1 million, or 14% higher including joint venture sales of $800,000.

Here's a quick look at how the output from these channels translated into core operational metrics for the first three quarters of 2025:

The rental income stream is robust, with same-property rental and related charges increasing by approximately 9.2% in July 2025 over July 2024. The sales channel is also accelerating, with Q2 2025 gross home sales revenue up 17% year-over-year. The company uses its S&F subsidiary to sell and finance manufactured homes through a third-party lending program with Triad Financial Services, directly supporting the on-site sales channel.

• On-site offices manage leasing for approximately 26,800 homesites.
• The corporate website, www.umh.reit, is the hub for investor communications.
• The company actively fills its inventory of approximately 3,300 vacant sites.
• Regional focus includes markets in Pennsylvania, Ohio, and Indiana.
• Sales channel generated $9.1 million in Q3 2025 gross sales.

Finance: draft 13-week cash view by Friday.

UMH Properties, Inc. (UMH) - Canvas Business Model: Customer Segments

UMH Properties, Inc. serves a distinct set of customers whose primary need is access to quality, affordable housing, a segment that remains critically underserved by conventional real estate markets.

Low-to-middle-income families and individuals seeking affordable homeownership.

This segment is targeted with housing solutions designed to keep monthly costs low, often aligning with federal affordability standards. UMH Properties, Inc. has stated a commitment to providing housing affordable for someone with an income around $37,000. The goal is for residents to pay no more than 30% of their household income for housing, which is particularly crucial for individuals earning between 50-80% of their Area Median Income. The company is actively working to convert renters to owners, supported by external funding. For example, UMH Properties, Inc. proposed using $7.5 million in grant funds to create an estimated 1,025 resident homeowners through 2030, including renters buying homes at prices of $30,000 and lower. This assistance is structured so that 100% of the down payment grants accrue as home equity for resident homebuyers, unlike typical programs requiring repayment. UMH Properties, Inc. reported a Total Income of $66.9 million for the quarter ended September 30, 2025.

America's workforce needing attainable housing near employment centers.

The core offering of UMH Properties, Inc. is situated in locations intended to support employment centers, providing a necessary housing alternative as conventional home prices rise. The overall portfolio as of late 2025 includes approximately 26,800 developed homesites across 144 communities in 12 states. The company's same-property occupancy rate for Q2 2025 stood at 88.2%, indicating strong, sustained demand from this essential customer base. The company is focused on increasing its rental base, converting 305 new homes from inventory to revenue-generating rental homes year-to-date in 2025.

The following table summarizes key portfolio metrics relevant to these customer segments as of mid-to-late 2025:

Residents of age-restricted manufactured home communities.

A specific subset of the customer base seeks housing within communities tailored for older residents. UMH Properties, Inc. actively grows this segment through strategic acquisitions. For instance, in Q1 2025, the company acquired two fully occupied, age-restricted communities in New Jersey for a total of $24.6 million, which accounted for 266 sites. These acquisitions were made at an in-place capitalization rate of 5%, with projections for stabilization up to 6.5%-7% through rent turnover.

Existing manufactured home owners who rent the land site.

This group represents the core land-lease model customers. They own their manufactured home but pay UMH Properties, Inc. for the right to occupy the land site. The rental portfolio is substantial, comprising 10,600 owned rental homes within the communities as of Q2 2025. The pricing power for this segment is evident, as UMH Properties, Inc. implemented a 5% rent increase portfolio-wide in Q1 2025 with no reported resistance. The growth in this revenue stream is strong:

• Rental and Related Income increased by 11% for the quarter ended September 30, 2025.
• Rental home occupancy reached 94.4% at the end of Q2 2025.
• Same-property rental and related income increased by 8% year-to-date Q1 2025.
• The company aimed to add 700 to 800 new rental homes by the end of 2025.

Finance: draft 13-week cash view by Friday.

UMH Properties, Inc. (UMH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive UMH Properties, Inc.'s operations, which are heavily weighted toward real estate ownership and financing. Honestly, for a REIT like UMH Properties, Inc., the cost structure is dominated by debt servicing and keeping those 144 communities running smoothly.

Significant capital expenditures are a constant for UMH Properties, Inc., especially as they focus on growing their rental portfolio. They are actively investing in infrastructure upgrades and new home inventory to meet demand. For instance, UMH Properties, Inc. anticipates adding between 700 to 800 new rental homes by the end of 2025. This requires substantial upfront capital for setting up new homes; year-to-date through Q2 2025, they had already converted 305 new homes from inventory to revenue-generating rental units.

Interest expense is a major line item, reflecting the leverage used to acquire and develop these assets. You saw a large financing event in Q2 2025 where UMH Properties, Inc. added ten communities to its Fannie Mae credit facility, securing $101.4 million at a 5.855% fixed interest rate over a 10-year term. More recently, in November 2025, they secured another $91.8 million at a fixed rate of 5.46% for nine years, partly to pay down higher-interest short-term debt. To be fair, the overall debt profile is managed to be mostly fixed-rate, which helps with near-term interest rate volatility.

Here's a quick look at the debt structure as of the Q2 2025 quarter end, which gives you a sense of the overall interest burden:

Community operating expenses are directly tied to the scale of the portfolio, which includes managing 144 communities. For the second quarter of 2025, total community operating expenses increased by 7% compared to the prior year. This increase was attributed to several factors you'd expect:

• The inclusion of two communities purchased late in the first quarter of 2025.
• An increase in payroll costs.
• Higher real estate taxes.
• Increased snow removal expenses.
• Rising water and sewer expenses.

Still, UMH Properties, Inc. is managing costs effectively at the property level. The same property operating expense ratio for Q2 2025 fell to 38.2%, an improvement from 39.4% in the second quarter of 2024. This suggests that while overall expenses rose due to acquisitions, the existing portfolio is showing better cost control relative to its income growth.

General and administrative costs, which cover corporate overhead, are part of the overall operating expenses, though specific G&A dollar amounts aren't broken out separately from the community operating expense figures in the immediate reports. However, the fact that same property community NOI increased by 10% for the quarter, while same property community operating expenses only rose by 5%, shows that the core operations are managing fixed costs well relative to revenue gains. Finance: draft 13-week cash view by Friday.

UMH Properties, Inc. (UMH) - Canvas Business Model: Revenue Streams

You're looking at the core ways UMH Properties, Inc. (UMH) brings in cash, which is crucial for understanding its valuation and future moves. As a seasoned analyst, I can tell you that for a REIT like UMH, the stability of rental income versus the volatility of sales is the key dynamic here. Here are the hard numbers we have for the revenue streams as of late 2025.

The primary engine remains the rental side of the business. You see this reflected clearly in the third quarter results:

• Rental and related charges from site and home leases (Q3 2025): $66.92 million.

That's the recurring base, but the sales division through the taxable REIT subsidiary is a significant contributor, especially when the housing market is active. The second quarter provided a strong benchmark for that activity:

• Gross sales of manufactured homes through the taxable REIT subsidiary (Q2 2025): $10.3 million.

UMH Properties, Inc. also generates revenue through strategic partnerships. The joint venture with Nuveen Real Estate is designed to pursue accretive development deals while minimizing the short-term impact on Funds from Operations (FFO) during construction and lease-up. For UMH, this translates into several fee-based income sources:

Also, don't forget the smaller, but necessary, charges that keep the communities running smoothly. These are the day-to-day operational receipts that support the core rental stream. If onboarding takes 14+ days, churn risk rises, but these fees help cover immediate service costs.

• Utility and other ancillary fees charged to residents.

When you look at the full-year picture, the expected performance of the entire operation gives you the clearest view of shareholder value generation. Here's the quick math on the expected total operational cash flow for the year:

Normalized Funds from Operations (FFO) expected to be about $84 million for 2025.

To be fair, the sales component can fluctuate more than the rental income, but the JV structure helps UMH participate in growth without tying up all its own capital immediately. Finance: draft 13-week cash view by Friday.