Thin cushion on the payout the company reports. UMH does not report AFFO; on the base it does report, Normalized FFO, the $0.225 quarterly dividend takes 90.0% of Q2 2026 Normalized FFO of $0.25 and ~89% of the $0.98–$1.04 full-year guidance midpoint — at the top of the caution band, with Q1 at 93.8%. Same-property occupancy improved to 89.4% and Normalized FFO per share grew 9% year over year, but the quarterly rate has been flat at $0.225 since the January 2025 declaration, and no net debt/EBITDAre figure could be verified.
Key risk: The $0.90 annual dividend takes ~89% of guided Normalized FFO, leaving little room if occupancy gains stall or manufactured-home sales soften, and an activist campaign seeking board changes was launched September 28, 2026.
Changes if: Guided Normalized FFO falls below $0.90 a share, or the quarterly rate is held flat through a second full year.
- !Payout check (proxy base) 89–90% on Normalized FFO is caution (80–90%), and Q1 2025-quarter payout was 93.8%; AFFO is not reported, so the true AFFO payout is unconfirmed and could be higher after recurring capex.
- !Leverage check Net debt/EBITDAre could not be verified from sources found; total debt ~$789m at 4.92% (94% fixed) and interest coverage ~3.1× were reported on the Q2 call, but no EBITDAre ratio was disclosed in material found.
- !Raise history check Quarterly rate flat at $0.225 since the January 2025 declaration ($0.215 → $0.225); graded as paused — no increase in the 2026 quarterly rate.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.