A real estate investment trust that owns and runs manufactured-home communities across the US, where residents either lease the land under their own home or rent a company-owned home outright. Founded in 1968 in Freehold, New Jersey, it was long known as United Mobile Homes, hence the UMH initials, before shortening the name in 2006. As a hometown touch, the company has held celebrations for residents at the historic Freehold Raceway.
Community NOI rose 8% in Q2 2026 as occupancy hit 89.4%, but a 31% increase in interest expense to $9.7M compressed the bottom line.
is rising faster than property income. rose 8.8% to $61.1 million and Community grew 8% to $35.8 million, but a 31% increase in interest expense to $9.7 million on a higher debt load kept at $9.5 million. The company is adding homes and raising rents, but the cost of its debt is now the main factor limiting earnings growth.
Key takeaways
Community rose 8% to $35.8 million, as a 9% increase in rental income was partially offset by higher payroll, real estate taxes, and insurance costs that pushed the up to 41.3% from 41.0% a year ago.
rose 31% to $9.7 million, reflecting a higher average debt balance of $775.4 million and a weighted average interest rate of 4.9%, up from 4.4% in the prior-year quarter.
Rental income growth was driven by a 110-basis-point improvement in to 89.4%, a 5.3% increase in rental rates, and contributions from 2025 acquisitions.
Section summaries
Management's Discussion and Analysis
Rental income and Community NOI grew 9% and 8% YoY in Q2 2026, driven by higher occupancy and rates, while interest expense rose 31%.
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Rental and related income rose 9% to $61.1M in Q2 2026, driven by 2025 acquisitions, a 110 same-property occupancy increase to 89.4%, and rental rate hikes of 5.3%.
attributable to common shareholders was $4.4 million, up from $2.5 million a year ago, aided by a $3.2 million net gain on the marketable securities portfolio.
The company added 192 net rental homes during the quarter, and rental home occupancy reached 95.3%.
Liquidity was supported by $28.6 million in cash, $29.7 million in marketable securities, and $220 million available on an unsecured that was expanded and now matures in 2030.
What changed
The , flagged last quarter after rising to 42.6%, improved to 41.3% in Q2 2026, though it remains above the 41.0% reported in Q2 2025.
growth accelerated to 31% from 53% in Q1 2026, but the absolute cost of $9.7 million is the highest in the series, and the average debt balance rose further to $775.4 million from $760.5 million.
The marketable securities portfolio produced a $3.2 million net gain, continuing the pattern of quarterly swings that have introduced earnings volatility across multiple periods.
Rental home occupancy reached 95.3%, up from 94.6% in Q1 2026, as the company added 192 net rental homes, putting it on pace toward the ~800 home target for the year.
What to watch
Whether the weighted average interest rate rises above 4.9% as the company carries a $775.4 million average debt balance and draws on its expanded $220 million .
Whether Community growth can re-accelerate above 8% as the 800 rental homes planned for 2026 come online, or if the continues to face pressure from payroll, tax, and insurance costs.
Whether the marketable securities portfolio, which produced a $3.2 million gain this quarter, is reduced or continues to introduce earnings volatility in future periods.
The pace of rental home placements against the ~800 home target for 2026 and whether rental home occupancy can be maintained above 95.3% as new homes are added.
increased 8% to $35.8M, while the operating expense ratio edged up to 41.3% from 41.0% due to higher payroll, real estate taxes, and insurance costs.
attributable to common shareholders rose to $4.4M from $2.5M, helped by a $3.2M net gain on the securities portfolio, partially offset by higher interest and .
jumped 31% to $9.7M as average total debt climbed to $775.4M and the weighted average interest rate increased to 4.9%.
Liquidity remained strong with $28.6M in cash, $29.7M in marketable securities, and $220M available on an expanded unsecured maturing in 2030.
The company added 192 net rental homes across its portfolio and joint ventures, with rental home occupancy reaching 95.3%.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to information required regarding quantitative and qualitative disclosures about market risk from the end of the preceding year to the date of this Quarterly Report on Form 10-Q.
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There
have been no material changes to information required regarding quantitative and qualitative disclosures about market risk from the end
of the preceding year to the date of this Quarterly Report on Form 10-Q.