UMH PROPERTIES, INC. ANNOUNCES ADDITION TO FANNIE MAE CREDIT FACILITY

Rhea-AI Summary

UMH Properties (NYSE: UMH) has completed the addition of 10 manufactured home communities with 2,001 sites to its Fannie Mae credit facility through Wells Fargo Bank. The transaction secured $101.4 million in proceeds through a 10-year, fixed-rate interest-only loan at 5.855%. The certified appraisal valued these communities at $163.5 million ($82,000 per site), representing a 146% increase from UMH's initial investment of $66.6 million.

The proceeds will fund acquisitions, expansions, rental homes, and temporarily repay higher-interest debt. UMH currently owns and operates 141 manufactured home communities with approximately 26,500 developed homesites across 12 states, including 10,400 rental homes and over 1,000 self-storage units.

Positive

• Secured $101.4 million in financing at a fixed rate of 5.855%
• Properties appreciated 146% from $66.6M investment to $163.5M appraised value
• Interest-only loan structure provides improved cash flow
• Funds will support growth through acquisitions and expansions

Negative

• None.

Insights

Real Estate Investment Analyst

UMH secures $101.4M in financing at 5.855% fixed rate, unlocking significant value with properties appraised 146% above cost basis.

UMH Properties has strategically enhanced its financial position by adding ten manufactured home communities (2,001 sites) to its Fannie Mae credit facility through Wells Fargo for $101.4 million. This interest-only loan comes with favorable terms - a fixed 5.855% rate and a 10-year maturity - providing stable, long-term financing.

The transaction reveals substantial embedded value in UMH's portfolio. The certified appraisal valued these communities at $163.5 million ($82,000 per site), representing a 146% premium over UMH's approximate $66.6 million investment. This valuation gap of $96.9 million demonstrates the effectiveness of UMH's value-add strategy in the manufactured housing sector.

The capital deployment strategy is multi-faceted, targeting additional acquisitions, community expansions, rental home investments, and repayment of higher-interest debt. This balanced approach should simultaneously drive growth while optimizing the company's debt structure.

UMH's overall portfolio now encompasses 141 manufactured home communities with approximately 26,500 developed homesites across 12 states, including 10,400 rental homes and over 1,000 self-storage units. The company also maintains a joint venture with Nuveen Real Estate for two Florida communities.

This financing validates UMH's business model of acquiring underperforming communities, implementing improvements, and increasing occupancy through varied housing options, creating significant value while addressing the critical need for affordable housing.

FREEHOLD, NJ, May 16, 2025 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE: UMH) (TASE: UMH) announced that on May 15, 2025 it completed the addition of ten communities containing 2,001 sites, to its Fannie Mae credit facility through Wells Fargo Bank, N.A., for total proceeds of approximately $101.4 million. This interest only loan is at a fixed rate of 5.855% with a 10-year term. The proceeds will be used to invest in additional acquisitions, expansions, rental homes and repay higher interest rate debt on a short-term basis.

Samuel A. Landy, President and Chief Executive Officer, commented “We are proud to complete another addition to our Fannie Mae credit facility. This refinancing further demonstrates the value created through our business plan. As part of the refinancing process, a certified appraisal was conducted and concluded that these ten communities appraised for $163.5 million, or $82,000 per site. Our total investment in these communities is approximately $66.6 million. The communities have increased in value $96.9 million, or 146% from our cost basis. Our ability to acquire value-add communities, complete necessary improvements and increase occupancy through our sales and rental programs generates meaningful property level value.

“We are proud of our team and our lending partners at Wells Fargo and Fannie Mae for completing this transaction. We look forward to deploying this capital into our business which will allow us to provide our Nation with additional affordable housing while generating significant long-term results for our shareholders.”

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 141 manufactured home communities, containing approximately 26,500 developed homesites, of which 10,400 contain rental homes, and over 1,000 self-storage units. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, Florida and Georgia. Included in the 141 communities are two communities in Florida, containing 363 sites, that UMH has an ownership interest in and operates through its joint venture with Nuveen Real Estate.

Contact: Nelli Madden
732-577-4062

FAQ

What is the size and terms of UMH Properties' new Fannie Mae credit facility addition?

UMH secured $101.4 million through a 10-year, fixed-rate interest-only loan at 5.855%, backed by 10 communities containing 2,001 sites.

How much have the 10 UMH Properties communities appreciated in value?

The communities have appreciated 146% from UMH's initial $66.6 million investment to an appraised value of $163.5 million ($82,000 per site).

How will UMH Properties (UMH) use the proceeds from the Fannie Mae facility?

The proceeds will be used for additional acquisitions, expansions, rental homes, and to temporarily repay higher interest rate debt.

How many manufactured home communities does UMH Properties currently own?

UMH owns and operates 141 manufactured home communities with approximately 26,500 developed homesites across 12 states, including 10,400 rental homes.