UMH PROPERTIES, INC.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
UMH$14.92-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001493152-26-020513
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001493152-26-036177
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 55 previous paragraphs and 60 current paragraphs.
25 unchanged; 26 reworded; 6 added; 3 removed; 1 previous and 3 current paragraphs rearranged.
Tables are not compared: 30 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
The primary focus of our business is the operation of our manufactured home communities, leasing of manufactured homesites and manufactured homes in our communities to residents. The sales of homes are integrated with the leasing of these manufactured homes and homesites. The Company reports segment information in accordance with ASC Topic 280, Segment Information (“ASC 280”). ASC 280 requires companies to report financial and descriptive information for each identified operating segment based on management’s internal organizational decision-making structure. Management has determined that the Company has one single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. The primary focus of our business is the ownership and operation of our manufactured home communities, leasing of manufactured homesites and manufactured homes in our communities to residents. The sales of homes are integrated with the leasing of these manufactured homes and homesites. Sales of homes are necessary to maintain and increase occupancy at our communities. These leasing activities generate rental revenues and incur operating expenses. As each of the Company’s assets has similar economic characteristics, the assets have been aggregated into one reportable segment. The accounting policies for the reportable segment are the same as those described in Note 2 – Summary of Significant Accounting Policies included in our annual report on Form 10-K for the year ended December 31, 2025. Our Chief Executive Officer, with the assistance of our Chief Operating Officer, is the Company’s Chief Operating Decision Maker (“CODM”). The CODM is provided with consolidated financial statements to assess segment performance and decide how to allocate resources based on consolidated net income, which is reported on the Consolidated Statements of Income (Loss). The measure of segment assets is reported on the Consolidated Balance Sheets as Total Assets. Total expenditures for additions to segment long-lived assets are consistent with the amounts presented in the accompanying Consolidated Statements of Cash Flows. The CODM reviews net income on an individual asset level and on a consolidated level and uses this information to monitor actual results, evaluate returns on assets and determine how to reinvest profits. The revenue, costs and expenses, and net income for the reportable segment are the same as those presented on the Consolidated Statements of Income (Loss). We report our results of operations consistent with the manner in which the CODM reviews the business to assess performance and allocate resources.
Current report
Including sales from our Joint Ventures with Nuveen Real Estate, which includes sales at our Honey Ridge community, sales of manufactured homes increased 10% from $10.5 million for the three months ended June 30, 2025 to $11.5 million for the three months ended June 30, 2026 and increased 8% from $17.1 million for the six months ended June 30, 2025 to $18.6 million for the six months ended June 30, 2026.
Current report
Dividend income remained relatively stable for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025.
Current report
Mortgages payable, net of unamortized debt issuance costs, decreased 2% or $10.8 million during the six months ended June 30, 2026, due to mortgage payoffs of approximately $6.7 million and principal payments.
Current report
Loans payable, net of unamortized debt issuance costs, increased 137% or $38.1 million during the six months ended June 30, 2026. This increase was due to $40 million being drawn down on our unsecured line of credit, plus an increase due to the amortization of debt issuance costs of $622,000, offset by the paydown of $617,000 on our revolving lines of credit used to purchase home inventory and $1.9 million of debt issuance costs incurred to expand and extend our existing unsecured line of credit.
Current report
On May 7, 2026, we entered into a Third Amended and Restated Credit Agreement (the “Amendment”) to expand and extend our existing unsecured revolving credit facility (the “Facility”). The Facility is syndicated with three banks, BMO Capital Markets Corp. (“BMO”), JPMorgan Chase Bank, N.A. (“JPMorgan”) and Wells Fargo Bank, N.A. (“Wells Fargo”) as joint lead arrangers and joint book runners, with BMO Bank, N.A. as administrative agent. The Facility provides for $260 million in available borrowings with a $340 million accordion feature, bringing the total potential availability up to $600 million, subject to certain conditions including obtaining commitments from additional lenders. The Amendment also extends the maturity date of the Facility from November 7, 2026 to May 7, 2030, with a further one-year extension available at our option, subject to certain conditions including payment of an extension fee. Availability under the amended Facility is limited to 60% of the value of a pool of unencumbered communities owned 100% by us. The value of these unencumbered communities increased through the reduction of the capitalization rate from 6.5% to now 6.0% applied to the Net Operating Income (“NOI”) generated by these unencumbered communities. Interest is based on the Company’s overall leverage ratio and has been reduced by approximately 35 to 40 basis points, depending on the Company’s overall leverage ratio, and is now equal to the Secured Overnight Financing Rate (“SOFR”) plus 1.30% to 1.90%, or BMO’s prime lending rate plus 0.30% to 0.90%.
Removed paragraphs (3)
Previous report
The primary focus of our business is the operation of our manufactured home communities - leasing of manufactured homesites and manufactured homes in our communities to residents. The sales of homes are integrated with the leasing of these manufactured homes and homesites. Management views the Company’s business as a single segment based on its method of internal reporting in addition to its allocation of capital and resources. Capital and resources are allocated to further the goal of maintaining and increasing occupancy and net operating income in our communities. Our chief executive officer, with the assistance of our chief operating officer, is the principal decision-maker regarding allocation of resources. These decisions are based on the occupancy of the communities and community net operating income, not based on the performance of home sales. Sales of homes are necessary to maintain and increase occupancy at our communities. We primarily order homes to fill vacant sites in the communities. These homes are either rented or sold, based on the needs of the potential residents. Although certain components of the sales operation are tracked (sales, cost of sales, etc.), separate discrete financial information for the entire sales operation is not available. Most of the personnel costs, office expenses, maintenance and other expenses are borne by the community and cannot be allocated. The components of the sales operation play no material role in decisions about resources to be allocated. Resources are allocated to maintaining and increasing occupancy and net operating income in our communities.
Previous report
Mortgages payable, net of unamortized debt issuance costs, remained relatively stable during the three months ended March 31, 2026.
Previous report
Loans payable, net of unamortized debt issuance costs, remained relatively stable during the three months ended March 31, 2026.
Reworded paragraphs (26)
Previous wording
As of March 31, 2026, the Company operated a portfolio of 145 manufactured home communities, of which 142 are majority owned and are included in our consolidated operations with the remaining three owned through our joint ventures with Nuveen Real Estate in which the Company has a 40% interest. One of these joint ventures owns two communities in Florida (Sebring Square and Rum Runner) and one joint venture owns one community in Pennsylvania (Honey Ridge). Of the 142 majority owned communities, 140 are owned 100% by the Company with the remaining two owned by the Company’s Opportunity Zone Fund, in which the Company has a 77% interest. The Company’s portfolio of 145 communities contain a total of approximately 27,100 developed homesites, of which 11,200 contain rental homes that are leased to residents. These 145 communities are located in twelve states consisting of New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia. In addition, the Company has over 1,000 self-storage units that are available for leasing by residents. UMH has continued to execute our growth strategy of purchasing well-located communities in our target markets, including the energy-rich Marcellus and Utica Shale regions.
Current wording
As of June 30, 2026, the Company operated a portfolio of 145 manufactured home communities, of which 142 are majority owned and are included in our consolidated operations with the remaining three owned through our joint ventures with Nuveen Real Estate in which the Company has a 40% interest. One of these joint ventures owns two communities in Florida (Sebring Square and Rum Runner) and one joint venture owns one community in Pennsylvania (Honey Ridge). Of the 142 majority owned communities, 140 are owned 100% by the Company with the remaining two owned by the Company’s Opportunity Zone Fund, in which the Company has a 77% interest. The Company’s portfolio of 145 communities contains approximately 27,100 developed homesites, of which 11,200 contain rental homes that are leased to residents. These 145 communities are located in twelve states consisting of New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia. In addition, the Company has over 1,000 self-storage units that are available for leasing by residents. UMH has continued to execute our growth strategy of purchasing well-located communities in our target markets, including the energy-rich Marcellus and Utica Shale regions.
Previous wording
The Company intends to continue to increase its real estate investments and investments in expansions. Our business plan includes acquiring communities that over time are expected to yield in excess of our cost of funds and then investing in physical improvements, including adding rental homes onto otherwise vacant sites. This has resulted in increased occupancy rates and improved operating results. For the three months ended March 31, 2026, rental and related income increased 9% from the prior year period and Community Net Operating Income (“NOI”), as defined below, increased 8%. Same property NOI, which includes communities owned and operated as of January 1, 2025 (excluding Memphis Blues, Duck River Estates and River Bluff Estates), increased 7% for the three months ended March 31, 2026 over the prior year period driven by a 110 basis point increase in occupancy, to 89.0%, and rental rate increases of 5.0%. We have been positioning ourselves for future growth and will continue to seek opportunistic investments. In addition, on behalf of our joint venture arrangements with Nuveen Real Estate, we will seek opportunities to acquire manufactured home communities that are under development and/or newly developed and meet certain other investment guidelines. We will also seek additional opportunities, through our opportunity zone fund, to acquire communities that require substantial capital investment and are located in qualified opportunity zones.
Current wording
The Company intends to continue to increase its real estate investments and investments in expansions. Our business plan includes acquiring communities that over time are expected to yield in excess of our cost of funds and then investing in physical improvements, including adding rental homes onto otherwise vacant sites. This has resulted in increased occupancy rates and improved operating results. For the three and six months ended June 30, 2026, rental and related income increased 9% from the prior year period and Community Net Operating Income (“NOI”), as defined below, increased 8%. Same property NOI, which includes communities owned and operated as of January 1, 2025 (excluding River Bluff Estates), increased 9% and 8% for the three and six months ended June 30, 2026, respectively, over the prior year period driven by a 110 basis point increase in occupancy, to 89.4%, and rental rate increases of 5.3%. We have been positioning ourselves for future growth and will continue to seek opportunistic investments. In addition, on behalf of our joint venture arrangements with Nuveen Real Estate, we will seek opportunities to acquire manufactured home communities that are under development and/or newly developed and meet certain other investment guidelines. We will also seek additional opportunities, through our opportunity zone fund, to acquire communities that require substantial capital investment and are located in qualified opportunity zones.
Previous wording
The macro-economic environment and current housing fundamentals continue to favor home rentals. Although 30-year fixed rate mortgage rates have shown signs of stabilizing, they are still approximately 6%. Housing inventory has improved but affordability remains a challenge for many prospective buyers, especially lower and middle-income households. We believe rental homes in a manufactured home community allow the resident to obtain the efficiencies of factory-built housing and the amenities of community living for less than the cost of other forms of affordable housing. We continue to see strong demand for rental homes. During the three months ended March 31, 2026, our portfolio of rental homes increased by 121 homes, net of rental home sales. Occupied rental homes represent approximately 44.2% of total occupied sites. Occupancy in rental homes continues to be strong and registered at 94.6% as of March 31, 2026. Our manufactured home communities compare favorably with other types of rental housing, including apartments, and we will continue to allocate capital to rental home purchases, as demand dictates.
Current wording
The macro-economic environment and current housing fundamentals continue to favor home rentals. Although 30-year fixed rate mortgage rates have shown signs of stabilizing, they are still approximately 6.6%. Housing inventory has improved but affordability remains a challenge for many prospective buyers, especially lower and middle-income households. We believe rental homes in a manufactured home community allow the resident to obtain the efficiencies of factory-built housing and the amenities of community living for less than the cost of other forms of affordable housing. We continue to see strong demand for rental homes. During the six months ended June 30, 2026, our portfolio of rental homes, including the joint venture entities, increased by 192 homes, net of rental home sales. Occupied rental homes represent approximately 44.8% of total occupied sites. Occupancy in rental homes continues to be strong and registered at 95.3% as of June 30, 2026. Our manufactured home communities compare favorably with other types of rental housing, including apartments, and we will continue to allocate capital to rental home purchases, as demand dictates.
Previous wording
The Company’s Community NOI for the three months ended March 31, 2026 and 2025 is calculated as follows*(in thousands)*:
Current wording
The Company’s Community NOI for the three and six months ended June 30, 2026 and 2025 consists of*(in thousands)*:
Previous wording
The Company’s FFO and Normalized FFO attributable to common shareholders for the three months ended March 31, 2026 and 2025 are calculated as follows*(in thousands)*:
Current wording
A reconciliation of Net Income Attributable to Common Shareholders to The Company’s FFO and Normalized FFO, attributable to common shareholders for the three and six months ended June 30, 2026 and 2025 are calculated as follows*(in thousands)*:
Previous wording
The following are the cash flows provided by (used in) operating, investing and financing activities for the three months ended March 31, 2026 and 2025*(in thousands)*:
Current wording
The following are the cash flows provided by (used in) operating, investing and financing activities for the six months ended June 30, 2026 and 2025*(in thousands)*:
Previous wording
Net Income (Loss) Attributable to Common Shareholders increased $2.9 million from a net loss of $271,000 for the three months ended March 31, 2025, to net income of $2.6 million for the three months ended March 31, 2026. This increase was due to an increase in Community NOI and a net gain on our securities portfolio partially offset by increases in interest expense and depreciation expense.
Current wording
Net Income Attributable to Common Shareholders increased $1.9 million from net income of $2.5 million for the three months ended June 30, 2025, to net income of $4.4 million for the three months ended June 30, 2026. Net Income Attributable to Common Shareholders increased $4.7 million from net income of $2.3 million for the six months ended June 30, 2025, to net income of $7.0 million for the six months ended June 30, 2026. The increases for both the three and six months ended from June 30, 2025 to June 30, 2026, were due to an increase in Community NOI and a net gain on our securities portfolio, partially offset by increases in interest expense and depreciation expense.
Previous wording
Rental and related income increased 9% from $54.6 million for the three months ended March 31, 2025 to $59.5 million for the three months ended March 31, 2026. This increase was due to acquisitions made in 2025, increases in rental rates and same property occupancy and additional rental homes. Same property occupancy has increased 110 basis points from 87.9% as of March 31, 2025 to 89.0% at March 31, 2026. Occupied rental homes increased 6% from approximately 9,900 homes at March 31, 2025 to 10,400 homes at March 31, 2026.
Current wording
Rental and related income increased 9% from $56.2 million for the three months ended June 30, 2025 to $61.1 million for the three months ended June 30, 2026. Rental and related income increased 9% from $110.7 million for the six months ended June 30, 2025 to $120.6 million for the six months ended June 30, 2026. These increases were due to acquisitions in 2025, increases in rental rates and same property occupancy and additional rental homes. Same property occupancy has increased 110 basis points from 88.3% as of June 30, 2025 to 89.4% at June 30, 2026. Occupied rental homes increased 7% from approximately 10,000 homes at June 30, 2025 to 10,700 homes at June 30, 2026.
Previous wording
Community operating expenses increased 10% from $23.0 million for the three months ended March 31, 2025 to $25.3 million for the three months ended March 31, 2026. These increases were due to acquisitions made in 2025 and an increase in payroll and related costs, real estate taxes and water and sewer costs.
Current wording
Community operating expenses increased 10% from $23.0 million for the three months ended June 30, 2025 to $25.3 million for the three months ended June 30, 2026. Community operating expenses increased 10% from $46.1 million for the six months ended June 30, 2025 to $50.6 million for the six months ended June 30, 2026. These increases were due to acquisitions made in 2025 and an increase in payroll and related costs, real estate taxes, insurance and water and sewer costs.
Previous wording
Community NOI increased 8% from $31.5 million for the three months ended March 31, 2025 to $34.2 million for the three months ended March 31, 2026. These increases were primarily due to increases in rental rates, occupancy and rental homes. The Company’s operating expense ratio (defined as community operating expenses divided by rental and related income) was 42.2% and 42.6% for the three months ended March 31, 2025 and 2026, respectively. Many recently acquired communities have deferred maintenance requiring higher than normal expenditures in the first few years of ownership. Since most of the community expenses consist of fixed costs, as occupancy rates increase, these expense ratios are expected to continue to improve. Due to the Company’s ability to increase its rental rates annually (subject to limitations on rent increases in certain jurisdictions), increasing costs due to inflation and changing prices have generally not had a material effect on revenue and income from continuing operations.
Current wording
Community NOI increased 8% from $33.1 million for the three months ended June 30, 2025 to $35.8 million for the three months ended June 30, 2026. Community NOI increased 8% from $64.7 million for the six months ended June 30, 2025 to $70.0 million for the six months ended June 30, 2026. These increases were primarily due to increases in rental rates, occupancy and rental homes. The Company’s operating expense ratio (defined as community operating expenses divided by rental and related income) was 41.3% and 41.9% for the three and six months ended June 30, 2026, respectively, and 41.0% and 41.6% for the three and six months ended June 30, 2025, respectively. Many recently acquired communities have deferred maintenance requiring higher than normal expenditures in the first few years of ownership. Since most of the community expenses consist of fixed costs, as occupancy rates increase, these expense ratios are expected to continue to improve. Due to the Company’s ability to increase its rental rates annually (subject to limitations on rent increases in certain jurisdictions), increasing costs due to inflation and changing prices have generally not had a material effect on revenue and income from continuing operations.
Previous wording
Sales of manufactured homes decreased 4% from $6.7 million, or 71 homes, for the three months ended March 31, 2025 to $6.4 million, or 73 homes, for the three months ended March 31, 2026. The average sales price was $87,000 and $94,000 for the three months ended March 31, 2026 and 2025, respectively. Cost of sales of manufactured homes amounted to $4.1 million and $4.3 million for the three months ended March 31, 2026 and 2025, respectively. The gross profit percentage was 36% and 35% for the three months ended March 31, 2026 and 2025, respectively. Selling expenses, which includes salaries, commissions, advertising and other miscellaneous expenses, amounted to $1.9 and $1.6 million million for the three months ended March 31, 2026 and 2025, respectively. Gain from the sales operations (defined as sales of manufactured homes, less cost of sales of manufactured homes, less selling expenses), excluding interest on the financing of inventory, amounted to $426,000 or 7% of total sales and $691,000 or 10% of total sales for the three months ended March 31, 2026 and 2025, respectively. Many of the costs associated with sales, such as salaries, and to an extent, advertising and promotion, are fixed.
Current wording
Sales of manufactured homes increased 1% from $10.5 million, or 102 homes, for the three months ended June 30, 2025 to $10.6 million, or 101 homes, for the three months ended June 30, 2026. The average sales price was $104,000 and $103,000 for the three months ended June 30, 2026 and 2025, respectively. Cost of sales of manufactured homes amounted to $6.8 million and $7.1 million for the three months ended June 30, 2026 and 2025, respectively. The gross profit percentage was 36% and 32% for the three months ended June 30, 2026 and 2025, respectively. Selling expenses, which includes salaries, commissions, advertising and other miscellaneous expenses, amounted to $2.3 million and $1.8 million for the three months ended June 30, 2026 and 2025, respectively. Gain from the sales operations (defined as sales of manufactured homes, less cost of sales of manufactured homes, less selling expenses, less interest on the financing of inventory) amounted to $1.3 million or 13% of total sales for the three months ended June 30, 2026 and 2025. Gain from the sales operations, excluding interest on the financing of inventory, amounted to $1.4 million or 13% of total sales and $1.5 million or 14% of total sales for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Conventional home prices have flattened as sellers begin to outnumber buyers. Although the housing market supply has increased in recent months it remains below the available units that prevailed before the COVID-19 pandemic. The inherent relative affordability of our property type has become more and more apparent, which should result in increased demand. The Company continues to be optimistic about future sales and rental prospects given the fundamental need for affordable housing. The Company believes that sales of new homes produce new rental revenue and represent an investment in the upgrading of our communities.
Current wording
The median price for an existing home in America reached a record high of $440,000 in June 2026, driven by low inventory and high demand. Affordability remains strained as sales slowed down and mortgage rates hover near 6.6%. With approximately 70% of outstanding mortgages having an interest rate below 5%, many homeowners are reluctant to give up their low rate mortgages, resulting in their unwillingness to sell their homes. Therefore, the inherent relative affordability of our property type has become increasingly more apparent, which should result in increased demand. The Company continues to be optimistic about future sales and rental prospects given the fundamental need for affordable housing. The Company believes that sales of new homes produce new rental revenue and represent an investment in the upgrading of our communities.
Previous wording
General and administrative expenses decreased 15% from $6.0 million for the three months ended March 31, 2025 to $5.1 million for the three months ended March 31, 2026. General and administrative expenses as a percentage of gross revenue (total income plus interest, dividend and other income) were 7.4% and 9.4% at March 31, 2026 and 2025, respectively. These decreases were primarily due to a decrease in stock based compensation expense from $1.8 million for the three months ended March 31, 2025 to $1.2 million for the three months ended March 31, 2026.
Current wording
General and administrative expenses decreased 12% from $6.3 million for the three months ended June 30, 2025 to $5.5 million for the three months ended June 30, 2026. General and administrative expenses decreased 13% from $12.3 million for the six months ended June 30, 2025 to $10.6 million for the six months ended June 30, 2026. General and administrative expenses as a percentage of gross revenue (total income plus interest, dividends and other income) was 7.4% for the three and six months ended June 30, 2026, as compared to 9.0% and 9.2% for the three and six months ended June 30, 2025, respectively. These decreases were primarily due to a decrease in stock based compensation expense from $1.9 million and $3.6 million for the three and six months ended June 30, 2025, respectively, to $1.0 million and $2.1 million for the three and six months ended June 30, 2026, respectively.
Previous wording
Depreciation expense increased 8% from $16.7 million for the three months ended March 31, 2025 to $18.0 million for the three months ended March 31, 2026. This increase was primarily due to the increase in rental homes and expansions during 2025 and 2026.
Current wording
Depreciation expense increased 16% from $15.7 million for the three months ended June 30, 2025 to $18.3 million for the three months ended June 30, 2026. Depreciation expense increased 12% from $32.4 million for the six months ended June 30, 2025 to $36.2 million for the six months ended June 30, 2026. This increase was primarily due to the increase in rental homes, acquisitions in 2025 and expansions during 2025 and 2026.
Previous wording
Interest income decreased 4% from $2.3 million for the three months ended March 31, 2025 to $2.2 million for the three months ended March 31, 2026. This decrease was primarily due to the decreased interest earned on our excess cash, partially offset by an increase in the average balance of notes receivable. The average balance of notes receivable was $102.7 and $90.4 million at March 31, 2026 and 2025, respectively.
Current wording
Interest income decreased 5% from $2.1 million for the three months ended June 30, 2025 to $2.0 million for the three months ended June 30, 2026. Interest income decreased 4% from $4.3 million for the six months ended June 30, 2025 to $4.1 million for the six months ended June 30, 2026. This decrease was primarily due to the decreased interest earned on our excess cash, partially offset by an increase in the average balance of notes receivable. The average balance of notes receivable was $102.7 million and $92.3 million at June 30, 2026 and 2025, respectively.
Previous wording
For the three months ended March 31, 2026, the Company had a net gain of $2.7 million on our securities portfolio consisting of an increase in fair value of marketable securities of $39.1 million partially offset by a loss on marketable securities of $36.4 million. The Company had a decrease in the fair value of marketable securities of $1.6 million for the three months ended March 31, 2025. As of March 31, 2026, the Company had total net unrealized losses of $1.7 million in its REIT securities portfolio.
Current wording
For the three months ended June 30, 2026, the Company had a net gain of $3.2 million on our securities portfolio. For the six months ended June 30, 2026, the Company had a net gain of $5.9 million on our securities portfolio consisting of an increase in fair value of marketable securities of $42.3 million partially offset by a loss on sales of marketable securities of $36.4 million. The Company had a decrease in the fair value of marketable securities of $175,000 and $1.7 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, the Company had total net unrealized gains of $1.5 million in its REIT securities portfolio.
Previous wording
Interest expense, including amortization of financing costs, increased 53% from $5.9 million for the three months ended March 31, 2025 to $9.1 million for the three months ended March 31, 2026. The average balance of our total debt increased from $610.5 million at March 31, 2025 to $760.5 million at March 31, 2026. The weighted average interest rate on our total debt increased from 4.4% at March 31, 2025 to 4.9% at March 31, 2026, respectively.
Current wording
Interest expense, including amortization of financing costs, increased 31% from $7.4 million for the three months ended June 30, 2025 to $9.7 million for the three months ended June 30, 2026. Interest expense, including amortization of financing costs, increased 41% from $13.3 million for the six months ended June 30, 2025 to $18.8 million for the six months ended June 30, 2026. The average balance of our total debt increased from $636.9 million at June 30, 2025 to $775.4 million at June 30, 2026. The weighted average interest rate on our total debt increased from 4.5% at June 30, 2025 to 4.9% at June 30, 2026, respectively.
Previous wording
Total investment property increased 1% or $21.4 million during the three months ended March 31, 2026. In addition to adding 121 rental homes, net of 40 rental homes sold, to its communities during the most recent quarter, the Company is preparing sites for additional homes to be added during the year. Occupied rentals increased by 203 rental homes from December 31, 2025 to March 31, 2026. The Company’s occupancy rate on its rental homes portfolio increased 80 basis points and was 94.6% at March 31, 2026 as compared to 93.8% at December 31, 2025.
Current wording
Total investment property increased 3% or $51.8 million during the six months ended June 30, 2026. In addition to adding 180 rental homes, net of 84 rental homes sold to its communities during the six months ended June 30, 2026, the Company is preparing sites for additional homes to be added during the year. Occupied rentals increased by 481 rental homes from December 31, 2025 to June 30, 2026. The Company’s occupancy rate on its rental homes portfolio increased 150 basis points and was 95.3% at June 30, 2026 as compared to 93.8% at December 31, 2025.
Previous wording
Marketable securities increased 11% or $2.7 million during the three months ended March 31, 2026 due to the net increase in the fair value.
Current wording
Marketable securities increased 25% or $5.9 million during the six months ended June 30, 2026 due to the net increase in the fair value.
Previous wording
Land development costs increased 25% or $9.8 million during the three months ended March 31, 2026 due to an increase in expansion projects. Since 2018, the Company has built 1,056 expansion sites in 16 communities. Occupancy levels at these sites are at approximately 54%. Once fully occupied, these sites will contribute to increased community operating income. The Company currently has approximately 1,044 expansion sites in the approval process, including one greenfield development in Coxsackie, NY for approximately 360 sites.
Current wording
Land development costs increased 59% or $23.5 million during the six months ended June 30, 2026 due to an increase in expansion projects. Since 2018, the Company has built 1,056 expansion sites in 16 communities. Occupancy levels at these sites are at approximately 55%. Once fully occupied, these sites will contribute to increased community operating income. The Company currently has approximately 1,044 expansion sites in the approval process, including one greenfield development in Coxsackie, NY for approximately 360 sites.
Previous wording
In addition to cash generated through operations, the Company uses a variety of sources to fund its cash needs, including acquisitions. The Company may sell marketable securities from its investment portfolio, borrow on its unsecured credit facility or lines of credit, incur other indebtedness, finance and refinance its properties, and/or raise capital through the DRIP and capital markets, including through the Company’s ATM Programs. In order to provide financial flexibility to opportunistically access the capital markets, the Company implemented a September 2024 Common ATM Program which allows the Company to offer and sell shares of the Company’s common stock, having an aggregate sales price of up to $150 million, from time to time through the Distribution Agents. As of March 31, 2026, $44.6 million of common stock remained eligible for sale under the September 2024 Common ATM Program. Additionally, the Company implemented a 2025 Preferred ATM Program which allows the Company to offer and sell shares of the Company’s Series D Preferred Stock having an aggregate sales price of up to $100 million from time to time through B. Riley, as Distribution Agent. As of March 31, 2026, $97.5 million of Series D Preferred Stock remained eligible for sale under the 2025 Preferred ATM Program.
Current wording
In addition to cash generated through operations, the Company uses a variety of sources to fund its cash needs, including acquisitions. The Company may sell marketable securities from its investment portfolio, borrow on its unsecured credit facility or lines of credit, incur other indebtedness, finance and refinance its properties, and/or raise capital through the DRIP and capital markets, including through the Company’s ATM Programs. In order to provide financial flexibility to opportunistically access the capital markets, the Company implemented a September 2024 Common ATM Program which allows the Company to offer and sell shares of the Company’s common stock, having an aggregate sales price of up to $150 million, from time to time through the Distribution Agents. As of June 30, 2026, $44.6 million of common stock remained eligible for sale under the September 2024 Common ATM Program. Additionally, the Company implemented a 2025 Preferred ATM Program which allows the Company to offer and sell shares of the Company’s Series D Preferred Stock having an aggregate sales price of up to $100 million from time to time through B. Riley, as Distribution Agent. On May 11, 2026, the Company amended and restated its existing at-market issuance sale agreement for the 2025 Preferred ATM Program with B. Riley Securities, Inc. to add Cantor Fitzgerald & Co. and Maxim Group LLC (each, a “Distribution Agent” and, collectively with B. Riley Securities, Inc., the “Distribution Agents”). The Distribution Agents are not required to sell any specific number or dollar amount of securities, but will use their commercially reasonable efforts consistent with their normal trading and sales practices, on mutually agreed terms between the Distribution Agents and the Company.
Previous wording
The Company continues to strengthen its capital and liquidity positions. During the three months ended March 31, 2026, the Company issued and sold 66,000 shares of Series D Preferred Stock through our 2025 Preferred ATM Program, at a weighted average price of $22.51 per share, generating gross proceeds and net proceeds, after offering expenses, of $1.5 million. During the three months ended March 31, 2026, the Company did not sell any shares of common stock under our September 2024 Common ATM Program.
Current wording
The Company continues to strengthen its capital and liquidity positions. During the six months ended June 30, 2026, the Company issued and sold 419,000 shares of Series D Preferred Stock through our 2025 Preferred ATM Program, at a weighted average price of $21.75 per share, generating gross proceeds of $9.1 million and net proceeds of $8.6 million, after offering expenses. During the six months ended June 30, 2026, the Company did not sell any shares of common stock under our September 2024 Common ATM Program. Furthermore, the Company has not sold any shares under the September 2024 Common ATM Program since September 2025.
Previous wording
The Company also raised $2.4 million from the issuance of common stock in the DRIP during the three months ended March 31, 2026, which included dividend reinvestments of $1.1 million. Dividends paid on the common stock for the three months ended March 31, 2026 were $19.1 million, including the $1.1 million reinvested. Dividends paid on the Series D Preferred Stock for the three months ended March 31, 2026 totaled $5.2 million.
Current wording
The Company also raised $4.6 million from the issuance of common stock in the DRIP during the six months ended June 30, 2026, which included dividend reinvestments of $2.0 million. Dividends paid on the common stock for the six months ended June 30, 2026 were $38.3 million, including $2.0 million reinvested. Dividends paid on the Series D Preferred Stock for the six months ended June 30, 2026 totaled $10.4 million.
Previous wording
Net cash provided by operating activities amounted to $20.8 million and $12.8 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the Company had cash and cash equivalents of $37.4 million, marketable securities of $26.4 million and $260 million available on our credit facility, with a potential total availability of up to $500 million pursuant to an accordion feature. We also had approximately $128 million available on our revolving lines of credit for the financing of home sales and purchases of inventory and $55 million available on our line of credit secured by rental homes and rental homes leases.
Current wording
Net cash provided by operating activities amounted to $45.6 million and $37.2 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the Company had cash and cash equivalents of $28.6 million, marketable securities of $29.7 million and $220 million available on our credit facility, with a potential total availability of up to $600 million pursuant to an accordion feature. We also had approximately $129 million available on our revolving lines of credit for the financing of home sales and purchases of inventory and $55 million available on our lines of credit secured by rental homes and rental homes leases.
Previous wording
The Company owns a portfolio of 145 manufactured home communities, of which 142 are majority owned and are included in our consolidated operations with the remaining three owned through our joint ventures with Nuveen Real Estate. Of the 142 majority owned communities, 60 are unencumbered. Except for communities in the borrowing base for our unsecured credit facility, these unencumbered communities can be used to raise additional funds. Our marketable securities, unencumbered properties, and lines of credit provide the Company with additional liquidity. The Company holds a 40% equity interest in the entities formed under its joint ventures with Nuveen, which owns three newly developed communities that are unencumbered.
Current wording
The Company owns a portfolio of 145 manufactured home communities, of which 142 are majority owned and are included in our consolidated operations with the remaining three owned through our joint ventures with Nuveen Real Estate. Of the 142 majority owned communities, 140 are owned 100% by the Company, of which 60 are unencumbered and are eligible to be included in the unencumbered asset pool under our unsecured revolving credit facility. We may choose to exclude any of these communities from the unencumbered asset pool so that we can raise additional funds by obtaining community level mortgage debt on these communities. Our marketable securities, unencumbered properties, and lines of credit provide the Company with additional liquidity. The Company holds a 40% equity interest in the entities formed under its joint ventures with Nuveen, which owns three newly developed communities that are unencumbered.
Previous wording
As of March 31, 2026, the Company had total assets of $1.7 billion and total liabilities of $791.6 million. The Company’s net debt (net of unamortized debt issuance costs and cash and cash equivalents) to total market capitalization as of March 31, 2026 was approximately 31% and the Company’s net debt, less securities to total market capitalization as of March 31, 2026 was approximately 30%. As of March 31, 2026, the Company had seven mortgages totaling $49.6 million due within the next 12 months. The Company believes that it has the ability to meet its obligations and to generate funds for new investments.
Current wording
As of June 30, 2026, the Company had total assets of $1.7 billion and total liabilities of $821.0 million. The Company’s net debt (net of unamortized debt issuance costs and cash and cash equivalents) to total market capitalization as of June 30, 2026 was approximately 32% and the Company’s net debt, less securities to total market capitalization as of June 30, 2026 was approximately 30%. As of June 30, 2026, the Company had six mortgages totaling $56.3 million due within the next 12 months. The Company believes that it has the ability to meet its obligations and to generate funds for new investments.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
A reconciliation of Net Income Attributable to Common Shareholders to Community NOI for the three and six months ended June 30, 2026 and 2025 is calculated as follows*(in thousands)*:
Current report — wording carried from elsewhere
Sales of manufactured homes decreased 1% from $17.1 million, or 173 homes, for the six months ended June 30, 2025 to $16.9 million, or 174 homes, for the six months ended June 30, 2026. The average sales price was $97,000 and $99,000 for the six months ended June 30, 2026 and 2025, respectively. Cost of sales of manufactured homes amounted to $10.9 million and $11.5 million for the six months ended June 30, 2026 and 2025, respectively. The gross profit percentage was 36% and 33% for the six months ended June 30, 2026 and 2025, respectively. Selling expenses amounted to $4.2 million and $3.5 million for the six months ended June 30, 2026 and 2025, respectively. Gain from the sales operations amounted to $1.7 million or 10% of total sales and $2.0 million or 11% of total sales for the six months ended June 30, 2026 and 2025, respectively. Gain from the sales operations, excluding interest on the financing of inventory, amounted to $1.8 million or 11% of total sales and $2.2 million or 13% of total sales for the six months ended June 30, 2026 and 2025, respectively. Many of the costs associated with sales, such as salaries, and to an extent, advertising and promotion, are fixed.
Current report — wording carried from elsewhere
As of June 30, 2026, $89.9 million of Series D Preferred Stock remained eligible for sale under the 2025 Preferred ATM Program.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Item 2.** Management’s Discussion and Analysis of Financial Condition and Results of Operations