UMH Properties Declares $0.90 Annual Dividend, Solidifying Position in Resilient Manufactured Housing Market

Princeton, NJ – October 1, 2025 – UMH Properties, Inc. (NYSE: UMH), a leading real estate investment trust (REIT) specializing in manufactured home communities, today announced its quarterly cash dividend, maintaining an annual rate of $0.90 per share for its common stock. This declaration, alongside a similar payout for its preferred stock, underscores the company’s robust financial health and unwavering commitment to shareholder returns, even as the broader housing market navigates affordability challenges.

The consistent dividend payout, which translates to $0.225 per common share for the quarter, is payable on December 15, 2025, to shareholders of record as of November 17, 2025. This move reinforces UMH’s attractive dividend yield of approximately 6.06% and extends its impressive 36-year history of uninterrupted dividend payments, including five consecutive years of increases. Operating across 144 communities with approximately 26,900 homesites, UMH Properties continues to leverage the growing demand for affordable housing solutions across 12 states.

Detailed Coverage: A Dividend Reflecting Sector Strength

UMH Properties’ dividend announcement on October 1, 2025, is more than a routine corporate action; it’s a testament to the enduring strength and strategic importance of the manufactured housing sector. The $0.90 annual dividend, paid quarterly at $0.225 per common share, signals management’s confidence in the company’s operational performance and future cash flow generation. The company also declared a quarterly dividend of $0.3984375 per share for its 6.375% Series D Cumulative Redeemable Preferred Stock, payable on the same date.

UMH’s dividend history is particularly noteworthy. The company has consistently paid dividends for 36 consecutive years, demonstrating remarkable resilience through various economic cycles. The most recent increase, a 4.7% hike to $0.225 per share, was approved on April 1, 2025, following a 4.9% increase in April 2024. This consistent growth trajectory highlights UMH’s disciplined financial management and its ability to generate sustainable income for its investors. Key players involved in these decisions include the UMH Properties Board of Directors and its executive leadership, particularly Samuel A. Landy, President and Chief Executive Officer, who has consistently expressed optimism about the company’s revenue growth and strategic positioning.

Initial market reactions to such consistent dividend declarations are generally positive, bolstering investor confidence and enhancing the company’s appeal, especially for those seeking stable income. UMH’s strong operational performance, with its second-quarter 2025 results showing a 9% increase in total income and an 8% rise in rental and related income year-over-year, provides a solid foundation for these payouts. Same-property occupancy increased to 87.5% from 85.7% in the prior year, further demonstrating the health of its portfolio.

The broader context of the manufactured housing market is crucial to understanding the significance of UMH’s announcement. This sector is experiencing robust growth, driven by the persistent demand for affordable housing. Manufactured homes, often priced 30% lower than site-built homes, are becoming a go-to solution for millions of Americans. The global manufactured housing market is projected to grow steadily, with increased production and shipments underscoring its vital role. Factors such as rising traditional home prices, limited inventory, and demographic shifts (including an aging population) are all contributing to the sector’s strength. UMH, with its extensive portfolio of communities, is well-positioned to capitalize on these favorable market dynamics.

Companies That Might Win or Lose from the Event

UMH Properties’ consistent dividend policy and operational strength position it as a potential winner in the current financial landscape, particularly for income-seeking investors. The $0.90 annual dividend, offering a yield of over 6%, makes UMH an attractive option compared to many other REITs and fixed-income investments. This commitment to shareholder returns, backed by strong Funds From Operations (FFO) coverage (an 86% payout ratio based on management’s FFO guidance), signals financial stability and management’s confidence in future growth. For UMH, maintaining this dividend reinforces its brand as a reliable income provider and can attract further capital inflows.

When comparing UMH Properties (NYSE: UMH) to its larger peers in the manufactured housing REIT sector, Equity LifeStyle Properties (NYSE: ELS) and Sun Communities (NYSE: SUI), distinct characteristics emerge. While UMH boasts the highest dividend yield among the three, ELS and SUI offer lower yields (around 3.3-3.4%) but present longer track records of consecutive dividend increases (ELS for 19 years, SUI for 9 years) and generally lower FFO payout ratios (SUI around 39-65%, ELS around 61%). This suggests greater financial flexibility and potentially more room for future dividend growth for the larger players. However, UMH’s same-store Net Operating Income (NOI) growth has been notably higher than its larger peers, approximately doubling their rates in recent periods, indicating strong organic growth within its portfolio.

For income-seeking investors, UMH Properties offers a compelling proposition due to its high current yield and consistent payout history. The stable cash flows inherent in manufactured housing communities, driven by long-term leases and high occupancy rates, provide a predictable income stream. However, investors should carefully consider UMH’s FFO payout ratio to ensure long-term sustainability, although 86% is generally considered acceptable for a REIT. While UMH’s market capitalization ($1.25 billion) is smaller than ELS ($11.7 billion) and SUI ($16 billion), its focused strategy on pure-play manufactured housing and active expansion into high-growth regions could offer higher growth potential for a more concentrated investment.

Competitors like ELS and SUI, while offering lower yields, provide greater diversification across property types (including RV resorts and marinas) and broader geographic reach. Their lower payout ratios suggest a more conservative dividend policy with potentially greater capital available for reinvestment or buffer during economic downturns. Ultimately, the “winner” depends on an investor’s specific objectives: UMH for higher current income and strong organic growth, or ELS and SUI for broader diversification and a longer history of dividend growth at a more moderate yield.

Wider Significance: A Beacon in the Affordable Housing Crisis

UMH Properties’ continued commitment to its dividend, particularly in the current economic climate, holds wider significance for the manufactured housing and broader REIT sectors. This event is not just about a single company’s financial policy; it underscores critical industry trends and the evolving role of manufactured housing in addressing the pervasive affordable housing crisis.

The manufactured housing sector’s resilience and growth are undeniable. Manufactured homes offer a vital, cost-effective alternative to traditional site-built homes, with significantly lower price points. This inherent affordability is a primary driver of demand, leading to high occupancy rates and stable rental income for communities like those owned by UMH. The company’s success validates manufactured housing as a crucial component of the affordable housing solution, potentially encouraging policymakers to address restrictive zoning laws and negative stigmas that have historically hindered the sector’s growth.

The ripple effects extend to competitors and partners. UMH’s strong, consistent dividend and operational performance set a positive benchmark for peers like Sun Communities (NYSE: SUI) and Equity LifeStyle Properties (NYSE: ELS). A healthy UMH signals a thriving sector, potentially attracting increased investor interest and capital inflows to the entire manufactured housing REIT industry. For partners, such as Nuveen Real Estate, UMH’s financial stability enhances credibility and attractiveness for future joint ventures and developments.

Regulatory and policy implications are also at play. The continued profitability and expansion of manufactured housing REITs could prompt governments to explore incentives or partnerships that encourage further private investment in affordable housing initiatives. With 22 million Americans residing in manufactured homes and a significant national shortage of affordable housing, the growth of this sector directly contributes to alleviating housing scarcity for low- and middle-income families. Furthermore, REITs, by their very nature, are mandated to distribute at least 90% of their taxable income, making them attractive for income-seeking investors and highlighting their role in capital allocation within the housing market.

Historically, REITs have been known for their strong dividend yields and their ability to deliver positive real returns, with dividend growth often outpacing inflation. UMH’s fifth consecutive annual dividend increase reinforces this historical precedent, signaling management’s confidence in sustained growth from community expansions, new construction, and potential future acquisitions. Manufactured housing REITs, in particular, have shown “bond-like” stability and recession resilience, often outperforming broader REIT indices. This historical context provides a strong foundation for the continued significance of UMH’s dividend, highlighting the sector’s role as a stable income provider and a crucial player in the evolving housing landscape.

What Comes Next: Navigating Growth and Opportunity

Looking ahead, UMH Properties is strategically positioned for continued growth within the dynamic manufactured housing sector. In the short term, the consistent dividend declaration is expected to reinforce investor confidence, signaling the company’s long-term viability as a stable income provider. UMH’s strong operational performance, with robust rental and related income growth and high occupancy rates, provides a solid foundation for these payouts. Analysts generally hold a “Moderate Buy” consensus, with an average price target indicating significant potential upside.

In the long term, UMH’s outlook remains positive, driven by its disciplined acquisition strategy and the development of its extensive land bank. The company plans to add 700-800 homes in the current year and possesses thousands of existing vacant lots and undeveloped acres for future expansion, particularly in energy and economic growth areas like the Marcellus and Utica shale regions and the Southeast. Strategic pivots will likely include continued investment in community upgrades and amenities to enhance resident appeal and drive rent growth. The recent expansion of its $100 million share repurchase authorization also signals management’s confidence in the company’s intrinsic value and commitment to enhancing shareholder returns, though balancing buybacks with growth investments will be crucial.

Emerging market opportunities are significant. The persistent demand for affordable housing remains the primary tailwind for the manufactured housing sector. Demographic shifts, including an aging population and first-time homebuyers, are expanding the target market. Furthermore, advancements in modular construction, smart home technology, and sustainable building materials are enhancing the quality and appeal of manufactured homes. UMH is actively exploring innovative housing solutions, such as duplex houses, to capitalize on these trends.

However, challenges persist. Restrictive zoning laws, local land-use regulations, and lingering public perceptions about manufactured housing continue to be hurdles. Obtaining lower-cost mortgage financing can also be difficult due to how these homes are often initially titled. While UMH considers recent tariff-driven increases in new home costs manageable, broader supply chain issues could pose future obstacles. The interest rate environment also plays a role; while a decline is anticipated, prolonged high rates could impact acquisition costs and development plans.

Potential scenarios range from steady organic growth, driven by infilling vacant lots and modest rent increases, to accelerated expansion if regulatory barriers soften and economic conditions remain favorable. An innovation-driven transformation, with a greater focus on advanced housing solutions, could also differentiate UMH further. Conversely, prolonged economic headwinds or increased regulatory burdens could lead to slower growth or a temporary halt in dividend increases. Investors should monitor UMH’s ability to navigate these opportunities and challenges, ensuring continued operational excellence and strategic execution.

Comprehensive Wrap-up: A Resilient Investment in Affordable Housing

UMH Properties’ recent dividend announcement, affirming a $0.90 annual payout, serves as a powerful testament to the company’s financial stability and its critical role in addressing the nation’s affordable housing crisis. This consistent return to shareholders, backed by 36 years of dividend payments and five consecutive increases, solidifies UMH’s position as a reliable income-generating REIT. The attractive 6.06% dividend yield, coupled with robust operational performance, positions UMH as a compelling investment in a market segment characterized by resilience and strong demand.

Moving forward, the market for UMH Properties (NYSE: UMH) and the broader manufactured housing sector appears promising. UMH’s strategic focus on acquiring and upgrading communities, developing its extensive land bank, and adding rental homes is driving significant organic growth in Net Operating Income and occupancy rates. The company’s expansion into key economic growth regions further enhances its long-term potential. The manufactured housing sector as a whole is experiencing a resurgence, with increasing production, shipments, and market share, driven by the fundamental need for affordable housing and evolving consumer preferences.

The lasting impact of UMH’s continued success and its consistent dividend policy lies in its validation of manufactured housing as a viable, high-quality, and affordable housing solution. This contributes not only to shareholder wealth but also to addressing a critical societal need. The sector’s “bond-like” characteristics, with stable rent growth and resilience during economic downturns, underscore its significance as a foundational component of the real estate market.

Investors should closely watch several key indicators in the coming months. These include UMH’s occupancy rates and rent growth, the progress of its development and acquisition pipeline, and any shifts in the interest rate environment or regulatory landscape. Monitoring Funds From Operations (FFO) per share and the company’s debt management strategies will be crucial for assessing its financial health and long-term sustainability. The ability of UMH to navigate potential challenges related to financing, public perception, and supply chain dynamics will ultimately determine its trajectory and continued success in this vital sector.

This content is intended for informational purposes only and is not financial advice.