FREEHOLD, NJ – October 1, 2025 – UMH Properties, Inc. (NYSE: UMH; TASE: UMH), a leading real estate investment trust (REIT) specializing in manufactured home communities, has once again affirmed its commitment to shareholder value by declaring a quarterly cash dividend of $0.225 per share. This latest announcement maintains an annualized rate of $0.90 per share, reinforcing the company's robust financial health and its strategic position within the burgeoning manufactured housing sector. The dividend, payable on December 15, 2025, to shareholders of record as of November 17, 2025, signals management's unwavering confidence in its operational performance and future cash flow generation, offering an attractive yield of approximately 6.06% to 6.11%.

This consistent payout from UMH Properties, which encompasses 144 manufactured home communities across 12 states with approximately 26,900 developed homesites, arrives at a time when the broader housing market continues to grapple with affordability challenges. The stability of UMH's dividend not only provides a reliable income stream for investors but also highlights the enduring appeal and counter-cyclical nature of the manufactured housing asset class, which continues to serve as a vital solution to the nation's affordable housing crisis.

UMH's Dividend Strategy: A Beacon of Consistency in the Manufactured Housing Sector

On October 1, 2025, UMH Properties' Board of Directors formalized the quarterly cash dividend, extending a remarkable 36-year streak of uninterrupted dividend payments. This latest declaration, at $0.225 per common share, builds upon a strategic path of consistent increases, with the annualized rate of $0.90 per share having been solidified earlier in the year. Specifically, on April 1, 2025, the Board approved a 4.7% increase in the quarterly common stock dividend, raising it from $0.215 per share to the current $0.225 per share, following a similar 4.9% hike in April 2024. This consistent upward trajectory underscores UMH's disciplined financial management and its ability to generate sustainable cash flow.

Key players in this ongoing narrative include UMH Properties, Inc. itself, a public equity REIT founded in 1968, whose management and Board of Directors are directly responsible for these declarations. Samuel A. Landy, President and Chief Executive Officer, has consistently expressed satisfaction with the company's ability to achieve consecutive dividend increases, attributing it to robust revenue growth, strategic community expansions, new community construction, and a strong balance sheet. For investors, both common and preferred shareholders, these dividends represent a tangible return on investment, reinforcing confidence in UMH as a stable income-generating asset. The broader manufactured housing market serves as the bedrock for UMH's operations, a sector characterized by high demand for affordable housing, limited new supply, and favorable demographic trends.

Despite the positive implications of a consistent dividend, UMH Properties' stock has experienced some market headwinds, reaching a 52-week low of $14.57 on September 29, 2025, reflecting broader challenges within the real estate sector. However, analysts maintain a "Moderate Buy" consensus rating with an average price target of $20.25, suggesting a significant potential upside. While the current trailing dividend payout ratio appears high (over 400%), analysts anticipate future earnings per share (EPS) of $1.00 for the next year, which would result in a more sustainable payout ratio of 90.0%. This forward-looking perspective, coupled with UMH's strong liquidity and its strategic position to capitalize on the accelerating growth in the manufactured housing sector, provides a nuanced view of its market standing.

Corporate Ripples: Winners and Losers in the Wake of UMH's Dividend Stability

UMH Properties' steadfast commitment to its $0.90 annual dividend sends a clear signal across the manufactured housing REIT sector, creating both opportunities and pressures for various stakeholders. For UMH Properties itself, maintaining this dividend rate reinforces its image as a stable, income-producing investment. This consistency, especially with a history of increases, enhances investor confidence and can attract capital from income-focused investors drawn to the approximately 6.06% yield. While the current high payout ratio raises questions about dividend coverage from earnings alone, analysts' projections of future EPS suggest a more sustainable coverage, alleviating long-term concerns and supporting the company's financial narrative. Strategically, this dividend reflects management's belief in the long-term strength of its 144 communities and its ability to generate robust cash flows, even as it balances growth initiatives with shareholder returns.

In the competitive landscape, UMH's dividend policy sets a benchmark for other manufactured housing REITs, such as Equity LifeStyle Properties (NYSE: ELS) and Sun Communities, Inc. (NYSE: SUI). These larger players, while having their own established dividend policies, may face increased scrutiny regarding their payout sustainability and yields. If UMH's stability is perceived as a reflection of the overall sector's strength, it could positively influence investor perception across the board, potentially lowering the cost of capital for other well-managed REITs in the space. Conversely, REITs with less consistent dividend histories or weaker financial performance might find it more challenging to attract investors, as UMH effectively raises the bar for shareholder returns.

The ripple effects extend to capital allocation strategies. Competitor REITs might re-evaluate their own approaches, potentially prioritizing dividend consistency, exploring organic growth avenues to support future payouts, or even considering mergers and acquisitions to achieve greater scale and improve cash flow generation. The winners in this scenario are undoubtedly UMH Properties shareholders, who benefit from continued income, and the broader manufactured housing REIT sector, which gains increased investor interest due to UMH's demonstrated stability. Underperforming REITs or those with significant reinvestment needs that struggle to maintain competitive dividend payouts might be seen as "losers," potentially facing challenges in attracting capital or keeping pace with sector leaders.

Broader Implications: Manufactured Housing at the Forefront of Affordable Solutions

UMH Properties' consistent $0.90 annual dividend is more than just a corporate announcement; it's a testament to the wider significance of the manufactured housing sector within the broader real estate investment trust (REIT) landscape. This event underscores several key industry trends, particularly the escalating demand for affordable housing in the U.S. Manufactured homes, costing significantly less than traditional site-built homes, are increasingly recognized as a crucial, high-quality solution for diverse demographics, including young families, middle-income earners, and retirees.

The manufactured housing sector continues to exhibit robust fundamentals, marked by a rebound in production and shipments, high occupancy rates (often near 95%), and healthy rent growth. A critical factor contributing to this strength is the limited new supply of manufactured housing communities, largely due to restrictive zoning laws and community resistance. This creates high barriers to entry, benefiting existing operators like UMH, which owns a substantial portfolio of 144 communities. The sector is increasingly viewed as a defensive and countercyclical asset class, offering insulation from broader economic downturns and providing long-term income stability, a characteristic that UMH's dividend consistency perfectly embodies.

For the broader REIT sector, dividend consistency is paramount. REITs are mandated to distribute at least 90% of their taxable income, making them attractive to income-focused investors. UMH's yield of approximately 6.06% places it among the top quartile of dividend-paying stocks, showcasing its operational strength. While its trailing payout ratio based on earnings per share (EPS) has been high, forward EPS estimates suggest a more sustainable payout ratio of around 90% for the coming year, aligning with typical REIT distribution practices. This performance, coupled with UMH's Q1 and Q2 2025 financial results showing increased total income and Funds From Operations (FFO), further bolsters the sustainability of its dividend.

The ripple effects extend to competitors, who may face pressure to maintain strong dividend policies, and partners, whose ventures with UMH are reinforced by its demonstrated stability. Regulatory and policy implications are also significant. While restrictive zoning limits new supply, policy shifts aimed at easing these restrictions or providing incentives for MH communities could profoundly impact the sector's growth trajectory. The ongoing political landscape in 2025, including potential tax law changes and regulatory discussions, will be crucial for UMH and the sector to navigate. Historically, UMH's 36-year dividend streak places it in an elite category of resilient dividend payers, much like Realty Income (NYSE: O) or Federal Realty (NYSE: FRT), reinforcing the perception of manufactured housing as a stable and robust investment niche within the broader real estate market.

The Road Ahead: Navigating Growth and Challenges for UMH and Manufactured Housing

The consistent $0.90 annual dividend from UMH Properties sets a clear trajectory for the company and the manufactured housing REIT sector. In the short term, UMH's dividend is expected to solidify investor confidence, particularly among income-oriented investors, further enhancing its market appeal. The company's recent Q2 2025 results, showing a 16% year-over-year increase in normalized FFO and strong occupancy rates, provide a solid foundation. However, investors will closely watch the upcoming Q3 2025 financial results, scheduled for release on November 3, 2025, for further validation of these trends. The current high dividend payout ratio, while projected to become more sustainable with anticipated future earnings, remains a point of scrutiny, requiring UMH to carefully balance growth initiatives with its dividend commitment.

Looking long-term, UMH Properties is strategically positioned for continued growth. The company possesses approximately 2,400 acres of land designated for future development, indicating a clear pathway for expansion through new communities and the addition of 800 new rental homes in 2025. This focus on rental home expansion, which yields approximately 10% on invested funds, aligns with the persistent demand for affordable housing. The manufactured housing market itself is projected to grow at a compound annual growth rate (CAGR) of 5.97% from 2025 to 2030, driven by affordability and demographic shifts. UMH is also exploring innovative housing projects, such as duplex-style manufactured homes for the 55+ demographic, to maximize rental revenue.

Strategic pivots will be crucial for UMH. Disciplined capital allocation, especially given its expanded share repurchase program, will be vital to avoid straining cash reserves while pursuing growth. Navigating the evolving interest rate environment, even with anticipated modest cuts, will impact acquisition costs and development plans, requiring strategic debt refinancing and alternative financing options. For the sector as a whole, focusing on enhancing existing communities through improved amenities and infrastructure will be key, particularly given the challenges of developing new communities due to zoning restrictions and high land costs. Emerging opportunities lie in the persistent demand for affordable housing, demographic shifts towards senior living, and technological advancements in manufactured homes. Challenges include ongoing zoning restrictions, high land and construction costs, and the capital demands of aggressive growth.

Wrap-Up: UMH's Enduring Impact on the Income-Focused Investor

UMH Properties' decision to maintain its $0.90 annual dividend is a significant affirmation of its financial stability and strategic resilience within the manufactured housing REIT sector. The key takeaway is UMH's unwavering commitment to shareholder returns, underscored by an impressive 36-year history of uninterrupted dividend payments and five consecutive annual increases. This consistency, coupled with positive operational momentum reflected in robust revenue, FFO growth, and high occupancy rates, positions UMH as a compelling investment for income-focused individuals.

Moving forward, the manufactured housing REIT market remains a beacon of stability amidst broader housing market volatility. The persistent demand for affordable housing, limited new supply, and demographic tailwinds create a favorable environment for continued growth. UMH, with its extensive portfolio of communities, is exceptionally well-placed to capitalize on these trends. The sector's inherent inflation-hedging qualities further enhance its appeal in the current economic climate.

The lasting impact of UMH's dividend consistency lies in its ability to reinforce confidence not only in the company itself but also in the entire manufactured housing asset class. It demonstrates that strategic investments in affordable housing can yield stable and growing returns, making a strong case for the sector's long-term viability. For investors, UMH serves as a prime example of a REIT that effectively balances growth initiatives with a steadfast commitment to returning capital to shareholders.

In the coming months, investors should closely monitor UMH's Q3 2025 financial results for further insights into its performance. Key indicators to watch include continued growth in occupancy and rental rates, the evolution of the interest rate environment, and any shifts in manufactured housing supply dynamics. Crucially, while the current dividend yield is attractive, investors should pay close attention to the company's earnings growth to ensure the long-term sustainability of the dividend, especially as the payout ratio is projected to normalize. Continued institutional interest in the sector will also signal its broader acceptance and potential for further capital appreciation. UMH Properties, with its consistent dividend and strong operational foundation, remains a noteworthy entity for those seeking stable income and exposure to a vital and growing segment of the real estate market.

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