UMH Properties’ (UMH) Rising Revenue and Falling Profit Might Change the Case for Investing

• UMH Properties, Inc. reported third quarter 2025 earnings, with revenue rising to US$66.92 million from US$60.67 million a year earlier, while net income fell to US$9.34 million from US$12.96 million.
• Though year-to-date net income and revenue increased versus the prior period, the quarter’s lower profit despite higher sales offers a mixed view of operational performance.
• We'll examine how UMH’s declining quarterly net income, despite revenue growth, may influence its investment narrative moving forward.

AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

UMH Properties Investment Narrative Recap

To be a shareholder in UMH Properties, you are likely betting on its ability to capture growth in the manufactured housing sector, driven by persistent demand for affordable homes and regulatory support. The recent third quarter results, a drop in net income to US$9.34 million despite revenues climbing to US$66.92 million, do not materially change the most important short-term catalyst: the stabilization of rental income and unlocking of new development opportunities. However, the company's ongoing reliance on debt financing, especially in a higher interest rate environment, remains a significant risk as margin compression could limit near-term gains.

Among the latest corporate actions, UMH's October acquisition of a manufactured home community in Albany, Georgia stands out as relevant. This move shows management's continued focus on expanding its footprint, even while grappling with acquisition pipeline uncertainties and the need to balance capital allocation for both growth and debt service. How these expansion efforts feed through to net operating income, especially as margins fluctuate, will be important for understanding future performance.

Yet, in stark contrast to these expansion ambitions, pressure from rising borrowing costs is a factor investors should be acutely aware of, as...

Read the full narrative on UMH Properties (it's free!)

UMH Properties' narrative projects $327.1 million revenue and $32.3 million earnings by 2028. This requires 9.4% yearly revenue growth and a $21.8 million earnings increase from $10.5 million today.

Uncover how UMH Properties' forecasts yield a $19.25 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Six private investors in the Simply Wall St Community have shared fair value estimates for UMH Properties ranging from US$9.11 to US$4,999.73. While many see significant growth potential, recent profitability headwinds in quarterly results point to risks around margins and debt management, prompting you to consider multiple viewpoints before forming an opinion.

Explore 6 other fair value estimates on UMH Properties - why the stock might be a potential multi-bagger!

Build Your Own UMH Properties Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your UMH Properties research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free UMH Properties research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate UMH Properties' overall financial health at a glance.

Contemplating Other Strategies?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• We've found 15 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Rare earth metals are the new gold rush. Find out which 37 stocks are leading the charge.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com