Good morning, everyone, welcome to the 2026 REITweek Presentation for UMH Properties. I am John Massocca, a senior research analyst at B. Riley Securities, and I will be moderating the presentation this morning. With me, I have Sam Landy, President and CEO of UMH, COO Brett Taft, as well as CFO Kevin Miller. As a quick background, UMH owns 145 manufactured housing communities, largely in the Eastern U.S., with over 27,000 developed home sites at these properties. To tell us more about those communities and the UMH business model, I will now hand the floor over to Sam. Thank you. Thank you for having us here today. Our chairman and founder, Eugene Landy, is watching this from home on television today. He has always believed deeply in the REIT industry and the power of common shares in REITs to deliver returns through longevity and compounding. What he's most excited about at this moment is the changes in the Rural Opportunity Zone law, which will allow us to create a subsidiary, a Rural Opportunity Zone fund, where we could do development and redevelopment. The importance of that is building communities or rehabilitating communities takes a couple of years, 3 to 5 years, during which we can lose money that could affect FFO per share. If you do it in an OZ fund, an opportunity zone fund, as a separate subsidiary, that's fee income to UMH. The potential for this is great because you won't have the zoning barriers that you have in most areas when you're working in opportunity zones. This could potentially give us the opportunity to do $100 million in projects per year, about 1,000 sites per year, and over 10 years, $1 billion, that we'd be earning 3% fee income for UMH shareholders or $30 million. That's what our chairman is most excited about at this moment. I'm proud to now introduce Brett Taft, our Chief Operating Officer, and Kevin Miller, our new CFO. Many of you know Kevin Miller from the exemplary job he did as CFO of Monmouth, one of the two New York Stock Exchange REITs founded by Eugene Landy. As you know, industrial REITs and manufactured housing have been the two best areas in the REIT industry, and that's what our REITs did. Our business is the creation and operation of communities of factory-built homes for sale and rent. We take the efficiency of factory-built homes, great housing that costs us about $80 per square foot, and place those homes in great, professionally managed communities. We earn income renting lots, renting homes, selling homes, financing homes, brokering home sales, from self-storage revenue, and even now, $1 million per year in oil and gas royalties. Our annual report, investor presentation, and website clearly tell our story. We have a phenomenal group of shareholders, and some of our UMH employee shareholders are here today, and it's great that employees have confidence and own stock in the company, a fantastic board, and a strong, experienced management team. I believe as great as our last 5 year accomplishments were, and that accomplishment over 10 years, it's 157% total return over 10 years. I believe as great as our last 5 year accomplishments were, our next 5 years will be even better because we have built and acquired expansion lots, turned around communities, and purchased new communities in growth locations that currently cannot possibly earn enough money because we need 80% occupancy to become efficient. We have $200 million or more in assets that will produce 7% returns over the next 5 years but are not earning money today. The Marcellus and Utica Shale areas will grow in value and importance, which will increase the value of our drilling rights royalties and further improve the demographics of our communities. Our southern strategy is also performing very well, with the communities in the south being the leading revenue growth communities. I believe that home sales will grow to be a larger part of our income. It will grow because of current changes in the finance laws happening at this moment, as well as government policy today that will improve the prospects for our existing residents who rent homes, will be more able to purchase the homes they're renting in the future. When we increase community operating income 9%, as we did in 2025, it means the value of our communities went up 9%. If the value of our communities was $2 billion, 9% is $180 million. Subtract out the $80 million in rentals we added and the $20 million in capital improvements, and that $80 million is roughly $1 per share in capital appreciation. Add the $0.90 dividend, and the internal rate of return is $1.90. That is how we achieved 157% return for shareholders over the past 10 years, and why we will do even better the next 10 years. Now Brett Taft will provide more details on operations. Sure. Thank you, Sam. Our mission at UMH Properties is to provide quality, affordable housing to America's workforce by building and managing sustainable communities for both renters and buyers. We're the sixth largest owner and operator of manufactured housing communities in the country. As John mentioned earlier, we own 145 communities containing 27,100 developed home sites. We've acquired many communities since 2010. We've acquired 112 communities containing over 19,000 home sites. Over the past 15 or 16 years, we've really experienced a ton of growth. We're predominantly buying value-add communities with lower occupancy levels when we purchase them. Those communities I mentioned were 74% occupied at the time of acquisition, and now our same property occupancy rate is about 89%. We buy these communities, we work with the tenants to improve their existing homes, we remove any dilapidated homes, we fix the water and sewer lines, we pave the streets, we add amenities, and then we install brand new homes for sale and for rent. We now have a portfolio of 11,200 rental units, which maintain an occupancy rate of about 95%. Through those acquisitions I previously mentioned, we have 3,300 existing vacant sites that we can go continue to put these rental homes on and continue to generate occupancy and revenue growth for the foreseeable future. On top of that, we have 2,300 vacant acres that predominantly adjoin our existing communities that we can continue to develop and expand, which would result in additional sales profits and additional lot rent. Some of those we've already started, as Sam pointed out, in the capital we've deployed that aren't yet excuse me, returning on the investment the way that they will. We're pretty far along in that process. We've, over the past 5 years, developed over 1,000 expansion sites. We still have about 485 of those sites to fill. We expect to make a $30,000 per sale profit on those and then generate lot rent in the $700 or $800 a month range. We've done very well over the past few years. We have a lot of room to continue to grow internally, but we also continue to look for external acquisitions. Last year, we acquired five communities containing 587 sites for a total of $41.8 million. Two of those communities were located in New Jersey, two of them were located in Maryland, and one of them was in Alabama. Great opportunities that fit in nicely with our portfolio. Some of them were stabilized in New Jersey where we can increase sales profits and bring rents to market when those homes turn over, and some of them have the typical vacancy upside that we see at most of our acquisitions. We've performed well over the past few years. I did want to point out that we always have phenomenal same property NOI growth. The first quarter of this year, it was 7.1%. It was impacted by higher expenses related to the winter. Payroll was up, water and sewer costs were up. Real estate taxes are always up. Overtime is up. That was largely a result of the winter. We expect our expenses to come down from the 8.2% we experienced in the first quarter, somewhere in the 5%-7% range going forward. Wanted to point out, though, that over the past 5 years, we've had an average same property NOI increase of about 11%. Same property NOI 5 years ago was $79 million. At the end of last year, it was $135 million. That's a $56 million improvement in same property NOI over a 5 year period. Again, given the vacancy we have within the existing portfolio, the opportunity to expand our communities and generate additional sales profits, we believe that we can produce similar results over the next 5 years. It's really an exciting time to be at UMH. We've got a great team, we've got great leadership, and we really look forward to providing more quality, affordable housing for the nation's workforce. All right. With that, we'll turn it over to Q&A. As a reminder, if you would like to ask a question, either use the mic or I will repeat your question for the webcast. I'll kick things off just to kind of get started here. Can you talk about the broader regulatory environment for the manufactured housing space, and specifically, how could changes to the FHA Title I manufactured home loan program impact your business? Well, MHI and the federal government are working on reducing the barriers to building manufactured home communities. The Rural Opportunity Zone law is one of those things that will help us build more communities in rural opportunity zones. In 2011, the greatest difficulty in the industry was financing the retail customer, which is why we turned to rentals and rented out 11,000 homes from 2011 to date. Many things are coming into play to make it much easier to get the customer finance. No tax on tips. You can report one person, 25,000 in tip income, two people, 50,000. 50,000 is $200,000 in buying power for a couple. $25,000 is $100,000 in buying power. These people who previously rented a house from us but did not qualify to buy it based on income, will now qualify. Additionally, the Title I program we were talking about, it had a very low loan limit. Now they're going to up that to approximately $100,000. It's even more than that. In addition to that, small loans, let's say $60,000 loans, have a high cost to originate. When you have a high origination cost for a small loan, that triggers all sorts of regulatory effect. People just left the business of doing small manufactured home loans. That's going to change now because they're changing those definitions. Many more lenders are going to come in to do small loans. They'll be profitable. All of this means the current situation is we buy 800 rental units and need about $64 million in cash to do that. As we start selling those 15-year-old rental units for cash, it will reduce the amount of cash we need to buy the new units. It's difficult to predict how quick or how many homes we'll sell, but we imagine eventually it will be substantial. We'll go from needing $64 million in cash to needing a lower number, and those home sales will generate approximately $20,000 per sale in profits. After the home was rented for 15 years, we expect to sell it for $20,000 more than we paid it for. In 2011, we bought them and set them up for $40,000. We have to sell them for $60,000 today. Every 100 homes will make an extra $2 million in sales. On the regulatory front, nationally, state, and even local, people recognize the incredible need for affordable housing. UMH, once we're in a location and the mayor and council see what we do, improving the existing community in their town, when we ask to expand, we get the approvals to expand because they know us. Our great difficulty is the places we're not located, but we found a solution to that problem, too, by getting outside developers, and we did the joint venture with Nuveen, and we built three brand-new communities. The greatest problem is everything's local. You got to get local approvals to build communities. We have even the ability to do that, and the regulatory climate is getting much more favorable. Okay. Maybe sticking with regulations for just a little bit. Can you maybe explain the recent changes in chassis requirements for manufactured homes, and how does that impact your business model, if at all? Yeah. Removing the chassis does a lot. 55 and older people don't like walking up steps. We have a saying in manufactured housing, "Leave it low and watch it go." Now, if you look at a manufactured home and you see the vinyl skirting, that's kind of a negative to our product. It can chip away. It's not the same as a conventional house. Now you're going to put that house flat on the concrete slab. No steps, no skirting, fantastic improvement. Additionally, you're going to be able to do two-story houses. Take our most valuable lots in the most densely populated places. Those are places where people are going to want us to buy a 1970 home, junk it, remove it, and now we can put a two-story house. You could sell 2,000 sq ft, it could be 4,000 sq ft, for more money than the one-story house. The lot rent, what they're willing to pay for rent for a bigger house is a higher number. It increases the value of every lot in our community, increases the amount of gross income we could get in sales profit. We've already experienced this, not with two-story homes, but with duplex homes where we could take 1,000 sq ft box and turn it into two 500 sq ft, one bedroom units. We have to do more of that, but we've done it and it's very successful and it works. Maybe kind of focusing more on UMH specifically, what's the outlook for growth within the UMH portfolio as it stands today? Can you walk us through how you kind of envision growth with your existing tenants versus kind of adding new units to the portfolio, and even the potential to maybe fill vacancy within the portfolio today? The first thing to look at is the simplicity of hitting our goals, right? 5% rent increase, $10 million. Add 800 rental units, $10 million. That $20 million is almost 10% increased revenue, and we're on track to do that. The next objective is increase sales, increase other income. We have the self-storage, we have the drilling rights, but Brett will go into that in more detail. Yeah, absolutely. To Sam's point about the oil and gas rights, we own about 4,000 acres in the Marcellus and Utica Shale areas. We do see the phone ringing with landmen that would like to lease these lots. It's property dependent. They put a unit together, they look at our assets, they make an offer on one individual property at a time. We've been seeing rates of about $3,000-$5,000 an acre, and then 18% gross royalties on top of that. That's been going very well. As Sam mentioned, the best thing we can do, though, is to continue to operate our existing business. The quality of our communities, the locations of our communities, the demand for affordable housing in the market make it, I don't want to say easy, but we get our 5% rent increases, and we don't get too much pushback from our tenants, and we maintain 98.5% collections on our rent. That tells us we're doing a good job. On top of that, we believe that we will install and rent 800 new homes this year. We did 166 new rental homes in the first quarter. We have over 600 homes on order. We've got about 300 of them on site that are all being set up right now. That is our pipeline to grow occupancy into the second and third quarters. We feel we're very much on track to do that. Sales last year, and I do want to point it out again, I actually didn't mention it earlier, but In 2020, sales were only $20 million a year. At the end of last year, we did $36 million in sales and made about $5.5 million on that sales operation. Again, we believe with the expansions we're opening and the location of our communities, we've got the potential to grow sales considerably on top of that $36 million we did last year. That's how we view the business and where the growth is going to go. I'll just mention quickly, in our presentation, we show page 17, which shows you the new communities and expansions we've built in the past. New communities built, 1,017 lots. Expansions, 1,396 lots. Before the year 2000, many people became incredibly wealthy in this business building communities, and they would sell the home for enough of a profit to even pay for 100% of the lot. If a lot costs us $100,000 to build, the ultimate goal, a home run, would be you sold that house at $100,000 profit to 100% pay for the lot from the sale of the home. Then you're going to collect lot rent of about $800 per month. A perfect community operates at 30% expenses. Of that $800, approximately $500 would be net income on a lot that you have no money in. The rents go up 5% a year from there. That's why people who built communities in the 1970s, 1980s, and 1990s became incredibly wealthy. We're doing that for our shareholders. We've been fighting a battle in Coxsackie, New York for 20 years, and we think finally this summer we'll get approvals to build 360 lots 18 miles south of Albany. We've built other expansions and new communities in places where a $100,000 markup is possible. I know it's kind of early days, are you seeing any impact to your tenants from recent macro uncertainty and specifically the impact of conflicts in the Middle East on gas prices, especially given UMH's hallmark for tenants is kind of the affordability of the offering? I'm very aware that short funds who believe that our tenants, wage-earning people, there is a high likelihood that they're going to be affected by high gas prices and high interest rates. We become a short target. Our short interest is the highest it's ever been. I polled our managers. Is anybody seeing any negative impact from the high gas prices and high interest rates? They are busier than ever out in the field. It could be a combination of factors. It could be people choosing to downsize. We have our incredible low turnover, Brett will give you details on this, our great collections, and our great home sales, and it's all continuing. Go ahead, Brett. Yeah. Our rental homes are turning over about 20% annually, which is fantastic. Our R&M on those rental homes is only about $400 a month. We do have some capital improvements on turn that we generally are able to mark up the new rent 10% to earn whatever we put into that house. We're very happy there. I do also want to point out that in 2022, when inflation was 8% or 9%, our tenants also did very well. We maintained that 98.5% collection rate. We actually rented about 900 new homes that year. We've been growing occupancy ever since. We monitor these numbers on a daily basis. Collections are right in line with where they always have been. Occupancy is growing. There could be an impact to home prices here at some point. We have not seen it yet. Home prices are within 5% of where they were a year ago. There's some rumblings from manufacturers they may have to start pushing, but they're also looking to grow their volume. I don't really anticipate any major increases coming from manufacturers, but if there are, we believe our rents are at a point where we can still price to earn a net 10% on whatever investment we make in rental homes. I just wanted to add something to what everyone was saying. Housing, it's not a luxury. It's not something you just want. It's something you need. When prices go up for everything else, like Walmart is reporting that they're seeing less sales. When people need to cut back, they'll cut back on things that they don't have to get. For housing, they have to make sure that they could afford to live somewhere. When they know there's no other option that is more cost-effective and such a nice house to live in, they're going to make sure that they pay their rent because they don't want the alternative to get kicked out and go somewhere else where it's going to be more expensive and not as nice a house. Okay. Just as a reminder, if there are any questions from the audience, please. Oh, right there. I can repeat your question if you just want to say it. Yeah. When I listen to this, you have some great opportunities ahead of you in terms of developing further lots. The problem I see is kind of your cost of capital, because given where your share price is, historically, you've issued shares to fund yourself to raise capital. Also where interest rates are, because your interest expense is going up. I'm just trying to understand where this, given all your growth opportunities and historically how you've raised capital, how are you going to do it now given where the share price is, higher interest rates? I think you touched on it with regards to selling homes. Can you address that issue in terms of your capital needs? Yeah. Just the question was kind of, there's a great opportunity for further growth and development, but potentially an issue with kind of cost of capital, both on the equity side and with interest rates going up? First, in the new mortgages we did. They were at a lower cost debt, and then they went to a higher cost debt. We absorbed that during the past year. The increased interest rate was absorbed and income rose. Additionally, we need new capital to buy the rentals, to grow the company, et cetera. Whatever interest rates are, if they were 3% or if they were 8%, it's not physically possible for us to earn that return immediately. We take the money today, or we took it last year, and it's more than $100 million, which costs more than $6 million. The minute an expansion is complete, you have to start expensing the interest. Well, when the expansion's complete, there's zero income. You haven't filled a single lot. You get the interest expense before you get the income. The second half of last year, and I guess maybe even the first quarter of this year, interest expense is up. Some people object to us issuing shares because they view additional shares as dilutive. Again, we need that money to grow, and physically impossible for that money to make money in 6 months. 12 months, I think will do it. Whatever interest rates are, we need to charge enough markup to make an adequate return above the cost of funds. When you go to people's objection, 1 year ago right now, they were very upset we were issuing stock at $15 through the ATM. Our point is we earn a $1.50 on that money. It's accretive, but nothing is accretive in 30 days, 60 days, 90 days. It takes longer. I'm saying to you right now, I believe you're going to receive those results in the next two or three quarters from raising that capital at $15, which people objected to, but it's going to earn a $1.50. We heard their objections, and we 100% stopped issuing stock from the ATM so that over the past year, zero new common shares have been issued. We're relying on preferred stock, which with interest rates what they are today is expensive, and debt, which interest rates are high. Again, we are the lowest cost producer of quality, affordable housing, and interest is just one component of those costs. Everybody doesn't matter if you're building a condo, you're building apartments, townhouses, conventional homes, you have to pay those rates. It's just one of our costs that we have to mark up over. Again, it can't be done in a 6 month timeframe. It takes longer. That money will earn the adequate return. People will be deeply satisfied with what we do as we do it. Yeah, I just wanted to point out that the refinancings we did last year really do demonstrate the value created by our business plan. We refinanced 17 communities. We had invested a total of about $140 million in those communities. They appraised for about $300 million. We paid off the existing $115 million in principal balances and took out a total of $190 million. We were able to free up some capital through those refinancings to go and invest in the rental homes. As much as expansions in some of the value-add communities take a longer time to start generating returns, the rental homes are fairly quick. As soon as we get a home, we get it set up within 2 to 3 months. It's generally rented within 4 months. Again, we're earning about 10% on that rental home investment. That does help in the shorter term. To Sam's point, the expansions and the value-add acquisitions do have a 3 to 5 year time horizon. I'll just add, sorry. W e're talking about how we're going to sell rental units to generate cash. B, we're going to sell oil and gas leases to generate cash. C, we were working on the 134 acres in Vineland, New Jersey, but home builders just are not buying new projects right now. When they do, we have 134 acres that adjoins the Tiger Woods Mike Trout Golf Course. We'll sell that for cash, which are additional sources of cash. On top of that, Fannie and Freddie were lending us money directly on the rental homes until approximately 3 years ago. We're working on reinstating that, which is going to be another major source of cash. It's debt plus money. It's not free, but it's an alternative to common stock. Just to add another source of capitals, we just refinanced our line of credit. It's a $260 million line with an accordion feature that can bring it up to $600 million if we need to. We've actually refinanced it at a lower rate than our previous line, about 40 basis points less, depending on our current leverage ratio. Until the stock price comes up and we think it's high enough to issue equity, we have all these sources of raising money. We have time for one more question. I'd prefer to favor the floor if anyone wants to, but I have one. All right. There's one back there. Oh, sorry. Go ahead. The question is about the renting model. I saw here the margin growth, the gross margin is like 65%. Which are the main expenses in the 35% monthly expenses? The question was about the renting model. Margins were about 65%. What's causing 35% of expenses, essentially? Yeah, our largest expense items are going to be payroll, real estate taxes, water, and sewer. Every year, that's where it's going to shake out. Any other questions from the floor? I guess maybe just one last one on my end. If you could correct one kind of misconception about the manufactured housing industry or UMH, what would it be? Rentals solved an incredible problem for us. There were so many people in the world who just never thought of living in a manufactured home, in a manufactured home community. When they wouldn't think about that, if you were buying the house, the commitment you had to make was 10% down, which today could be $20,000, and a 25-year loan. That's a big commitment for anybody for a product that they're questioning. If you can rent them that house, it's one month rent, one month security, $2,000. They could come in the community, try it out on a one-year lease. If they like it, they could stay. If they like it, their family members could move in. That's why those 11,000 rentals rented out. When we began doing the rentals, we didn't know that we were ever going to increase sales. Sales were terrible in 2009. $4 million was all we were doing in sales. Today, sales are up to about $36 million because rentals attract customers who bring us buyers, and that will continue. The misconception still out there is just municipalities who don't understand the new product. The fact that those old homes lasted from the 1970s today proved their value, right? They lasted this long. They served their purpose. They were quality, affordable housing that people lived in. That's what's in people's mind as manufactured housing in many towns, and the new houses of today are nothing like that. Energy efficient, vinyl sided, shingle roof, phenomenal kitchens, bathrooms, lots of space. Once we get people in the house, they always love the house. The manufacturers do a phenomenal job for us, and we have to get them in the door, and that's the perception issue of both federal, state, municipal government, and even investors. We have to get investors to understand how great the product is and what a value it is. Okay. With that, thank you very much for your time, and thank you everyone for attending.