Sam Landy, president and CEO of UMH Properties (NYSE: UMH), participated in a video interview in conjunction with Nareit’s REITweek: Virtual Investor Conference (held June 2-4).
Landy said UMH collected 97% of April rent and 94% of May rent, which was in line with its 2019 collections.
Landy also called the results of UMH’s long-term business plan “predictable,” noting that each of the last two years, UMH has added 800 rentals to generate $7 million while raising rent 4% to generate an additional $5 million. Half of the total $12 million becomes UMH’s operating income, he said.
“That operating income increases the value of the properties,” Landy said. “We have resident-owned homes in land-leased communities. That’s been proven over decades to be an extremely stable income stream.”
Landy added that it’s important for shareholders to look at UMH’s FFO on a year-over-year basis, noting that the REIT raises new capital through preferred stock to make acquisitions.
Landy said the pandemic has imposed hardships on people living in cities and in high rises, but ultimately that could create an opportunity for UMH.
“We see the changes in real estate [as] more people will want quality, affordable housing outside of cities, and we fill that need,” he said.