Real Estate Investment Trust (REIT) is the sector where UMH Properties Inc (UMH) runs. After the Second World War, the firm commenced operations and gradually managed to become a leading player in its sector. UMH presently maintains and manages a portfolio of 124 residential developments situated in the Northeast and Midwest in 8 states.
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As a REIT, UMH has gained as an inexpensive choice in the housing market from the design of prefabricated houses (manufactured in a factory). UMH is active in both the selling of homes and the leasing of plots of land. Compared to the same period last year, the company’s profit from selling real estate, which is a key metric, rose by 8.6 percent in the third quarter.
UMH has posted sales growth of 16 percent in the third quarter relative to the same time last year, with the result hitting $43.1 million. Another primary metric in the REIT market, Funds from Operations (FFO), was $0.11 per share, compared to $0.14 in the third quarter of 2019. The decrease was due to a $2.9 million repurchase of preferred shares of Class “B.”
REITs are expected to return shareholder revenue, and UMH satisfies this obligation with a stable dividend, the yield of which is 4.7%. Payments of $0.18 per common share are made on a quarterly basis and have been constant for more than a decade.
The company is in good condition and willing to be beneficial to both households and customers, Compass Point analyst Merrill Ross claims.
“UMH has proven that it can provide attractive and affordable housing to both tenants and homeowners, and more efficiently than before. The company has a strong competitive advantage and can consolidate private ownership over the next few years to use its potential to create profit,” Ross said.
The analyst advises investing, and his $20 price goal indicates a 39 percent growth rate for one year.
Overall, five Wall Street analysts recommended buying. The $17.67 average price goal suggests that the stock has the ability to rise from current prices by 23 percent.
