UMH PROPERTIES, INC. ANNOUNCES SALE OF $80.2 MILLION OF UNSECURED BONDS IN ISRAEL

Rhea-AI Summary

UMH Properties (NYSE: UMH) has successfully completed the sale of $80.2 million of 5.85% Series B Bonds in Israel, due in 2030. The bonds are unsecured obligations denominated in Israeli shekels (NIS) and will pay interest semi-annually, with the first payment scheduled for December 31, 2025.

The bonds' principal and interest are linked to the U.S. Dollar, and the proceeds will be used for working capital and general corporate purposes. UMH Properties, established in 1968, is a public equity REIT that owns and operates 143 manufactured home communities with approximately 26,700 developed homesites, including 10,600 rental homes and over 1,000 self-storage units across multiple U.S. states.

Positive

• Secured $80.2 million in bond financing at 5.85% interest rate
• Diversified funding source through international bond market
• Company maintains strong asset base with 143 communities and 26,700 homesites
• Dollar-linked principal and interest protects against currency risk

Negative

• Additional debt obligation could increase company's financial leverage
• Unsecured bonds rank equal with other unsecured debt, offering no asset protection
• Subject to covenant restrictions including minimum equity requirements

Insights

Corporate Finance Specialist

UMH secured $80.2M in Israeli bond financing at 5.85% interest, strengthening its capital structure while managing interest rate exposure.

UMH Properties has successfully raised $80.2 million through the issuance of 5.85% Series B Bonds in the Israeli market, maturing in 2030. This financing move is notable for several reasons. First, by tapping international capital markets, UMH has diversified its funding sources beyond traditional U.S. debt markets, potentially accessing more favorable terms than might be available domestically.

The 5.85% interest rate is particularly significant in the current rate environment. While higher than historical lows seen in previous years, this rate appears competitive for a REIT in today's market. The bond's dollar-linkage mechanism protects Israeli investors from currency fluctuations while giving UMH certainty on its dollar-denominated obligations.

As an unsecured obligation, these bonds don't encumber specific assets, maintaining UMH's flexibility with its property portfolio. However, this typically comes at the cost of a higher interest rate compared to secured debt. The five-year maturity creates a balanced debt ladder, avoiding concentration of refinancing risk.

For context, UMH operates 143 manufactured home communities with approximately 26,700 homesites across 12 states. This bond issuance strengthens UMH's capital structure and provides working capital that could potentially fund community improvements, acquisitions, or development of existing properties - all essential for a REIT focused on manufactured housing communities with significant rental operations.

FREEHOLD, NJ, July 22, 2025 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE: UMH; TASE: UMH) (the “Company”), announced today that it has completed the sale to investors in Israel of approximately $80.2 million of its 5.85% Series B Bonds due 2030 (the “2030 Bonds”). The 2030 Bonds are unsecured obligations of the Company denominated in Israeli shekels (NIS) and were issued pursuant to a deed of trust between the Company and Reznik Paz Nevo Trusts Ltd., as trustee. The net proceeds of the offering will be used for working capital and general corporate purposes.

The principal amount of the 2030 Bonds will be payable on June 30, 2030. The 2030 Bonds will pay interest at a rate of 5.85% per year, subject to adjustment in certain circumstances. Interest on the 2030 Bonds will be payable semi-annually on June 30 and December 31, commencing December 31, 2025, until the final maturity date. The principal and interest will be linked to the U.S. Dollar.

The 2030 Bonds are general unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness. The deed of trust governing the 2030 Bonds includes certain customary covenants, including minimum equity requirements, and events of default.

The 2030 Bonds have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States or to or for the account or benefit of U.S. Persons (as defined in Regulation S under the Securities Act) absent registration under the Securities Act or an applicable exemption from registration requirements. The 2030 Bonds were offered solely to investors outside the United States in accordance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

ABOUT UMH PROPERTIES, INC.

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 143 manufactured home communities, containing approximately 26,700 developed homesites, of which approximately 10,600 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 143 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.

FORWARD-LOOKING STATEMENTS

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. Such forward-looking statements include statements about the potential outcome or effect of the sale of the 2030 Bonds or the use of proceeds therefrom. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company’s annual report on Form 10-K and described from time to time in the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact: Nelli Madden
732-577-9997

FAQ

What is the size and interest rate of UMH Properties' new bond offering in Israel?

UMH Properties issued $80.2 million of Series B Bonds with a 5.85% interest rate, due in 2030.

When will UMH Properties' 2030 bonds mature and pay interest?

The bonds will mature on June 30, 2030, with semi-annual interest payments on June 30 and December 31, starting December 31, 2025.

How many manufactured home communities does UMH Properties currently own?

UMH Properties owns and operates 143 manufactured home communities with approximately 26,700 developed homesites across 12 U.S. states.

What will UMH Properties use the bond proceeds for?

The net proceeds from the bond offering will be used for working capital and general corporate purposes.

Are UMH's 2030 bonds available to U.S. investors?

No, the bonds were offered solely to investors outside the United States in accordance with Regulation S and have not been registered under the Securities Act.