UMH Properties (NYSE: UMH) extends $600M unsecured revolving credit line
Rhea-AI Filing Summary
UMH Properties, Inc. amended and extended its unsecured revolving credit facility through a Third Amended and Restated Credit Agreement. The facility now provides $260 million in available borrowings plus a $340 million accordion feature, bringing total potential availability up to $600 million, subject to additional lender commitments.
The amendment extends the maturity from November 7, 2026 to May 7, 2030, with a further one-year extension option. As of May 8, 2026, $10 million was outstanding with $250 million available. Pricing was reduced by about 35–40 basis points to SOFR plus 1.30%–1.90% or BMO’s prime plus 0.30%–0.90%, and availability is limited to 60% of the value of qualifying unencumbered communities.
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Insights
UMH refinances and upsizes its main credit line while cutting pricing.
UMH Properties has amended its unsecured revolving credit facility to provide $260 million in borrowings plus a $340 million accordion, for total potential availability of $600 million. The facility is syndicated with BMO, JPMorgan and Wells Fargo and remains unsecured, which is typical for an investment‑grade style REIT bank line.
The maturity has been pushed from November 7, 2026 to May 7, 2030, with a one‑year extension option, lengthening the company’s liquidity runway. As of May 8, 2026, only $10 million was drawn, leaving $250 million available, so the line currently serves more as a liquidity backstop than as core funding.
Pricing improves by about 35–40% basis points, now set at SOFR plus 1.30%–1.90% or BMO’s prime plus 0.30%–0.90%, depending on leverage. Availability is capped at 60% of a pool of unencumbered communities valued using a reduced capitalization rate of 6.0%, which increases borrowing capacity tied to those assets. Standard REIT covenants and default provisions apply, so actual impact will depend on future borrowing needs and covenant headroom.
8-K Event Classification
Key Figures
Key Terms
accordion feature financial
Secured Overnight Financing Rate financial
Net Operating Income financial
cumulative redeemable preferred stock financial
real estate investment trust financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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FORM
CURRENT REPORT
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| Item 1.01 | Entry into a Material Definitive Agreement |
On May 7, 2026, UMH Properties, Inc. (“UMH” or the “Company”) entered into a Third Amended and Restated Credit Agreement (the Amendment” or the “Amended Facility”) to amend and extend its existing unsecured revolving credit facility (the “Facility”). The Facility is syndicated with three banks led by BMO Capital Markets Corp. (“BMO”), JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. as joint lead arrangers and joint book runners with BMO Bank N.A. as administrative agent.
The Amendment provides for $260 million in available borrowings with a $340 million accordion feature, bringing the total potential availability up to $600 million, subject to certain conditions including obtaining commitments from additional lenders. The Amendment also extends the maturity date of the Facility from November 7, 2026 to May 7, 2030, with a further one-year extension available at the Company’s option, subject to certain conditions including payment of an extension fee. As of May 8, 2026, the principal amount outstanding under the Amended Facility is $10 million with $250 million available.
Availability under the Amended Facility is limited to 60% of the value of a pool of unencumbered communities owned 100% by the Company. The value of these unencumbered communities increased through the reduction of the capitalization rate from 6.5% to now 6.0% applied to the Net Operating Income (“NOI”) generated by these unencumbered communities. Interest is based on the Company’s overall leverage ratio and has been reduced by approximately 35 to 40 basis points, depending on the Company’s overall leverage ratio, and is now equal to the Secured Overnight Financing Rate (“SOFR”) plus 1.30% to 1.90%, or BMO’s prime lending rate plus 0.30% to 0.90%.
In addition, the Company will pay a commitment fee on the average daily unadvanced portion of the total amount committed under the Facility at a rate of 0.15% per annum, if the average daily unused commitments under the Facility are less than 50% of the commitments then in effect, or 0.25% per annum, if the average daily unused commitments under the Facility are greater than or equal to 50% of the commitments then in effect, which fee will be payable quarterly based on outstanding borrowings during the applicable quarter.
The Amended Facility contains representations and financial and other affirmative and negative covenants usual and customary for this type of agreement. During the term of the Facility, the Company must satisfy certain covenants including information reporting requirements, maintenance of REIT status, maximum total indebtedness to total asset value ratio, minimum EBITDA to fixed charges ratio, maximum unsecured leverage ratio, minimum unsecured interest coverage ratio, maximum secured leverage ratio, minimum unencumbered asset value, maintenance of net worth and minimum occupancy rate.
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The Amended Facility includes usual and customary events of default and remedies for facilities of this nature (with customary notice, grace and cure periods, as applicable), including, without limitation, nonpayment, breach of covenants, material inaccuracy of representations and warranties, cross-default to other major indebtedness, change of control and bankruptcy, and provides that if an event of default is continuing, payment of the principal amount of all borrowings and all other outstanding amounts payable under the Facility may be accelerated and/or the lenders’ commitments may be terminated. In addition, upon the occurrence of certain insolvency or bankruptcy-related events of default, all borrowings and all other outstanding amounts under the Facility will automatically become immediately due and payable and the lenders’ commitments will automatically terminate.
The description of the Amended Facility is qualified by reference to the complete Credit Agreement, dated May 7, 2026, that is attached hereto as Exhibit 10.1, which is incorporated herein by reference. A copy of the press release announcing the above transaction is attached as Exhibit 99 hereto and incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
| Item 7.01 | Regulation FD Disclosure. |
On May 7, 2026, the Company issued a press release announcing that it amended and extended its existing unsecured revolving credit facility.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| 10.1 | Third Amended and Restated Credit Agreement | |
| 99 | Press Release dated May 7, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UMH Properties, Inc. | ||
| Date: May 11, 2026 | By: | /s/ Anna T. Chew |
| Name: | Anna T. Chew | |
| Executive Vice President and Chief Financial Officer | ||
| 4 |
Exhibit 99
UMH PROPERTIES, INC.
Juniper Business Plaza
3499 Route 9 North, Suite 3-C Freehold, NJ 07728
(732) 577-9997
Fax: (732) 577-9980
| FOR IMMEDIATE RELEASE | May 7, 2026 |
| Contact: Nelli Madden | |
| 732-577-9997 |
UMH PROPERTIES, INC. AMENDS AND EXTENDS ITS EXISTING UNSECURED REVOLVING CREDIT AGREEMENT
FREEHOLD, NJ, May 7, 2026.......... UMH Properties, Inc. (NYSE: UMH) (TASE: UMH), a real estate investment trust (REIT) specializing in the ownership and operation of manufactured home communities, today announced that it has entered into a Third Amended and Restated Credit Agreement to amend and extend its existing unsecured revolving credit facility (the “Facility”). The Facility is syndicated with three banks – BMO Capital Markets Corp. (“BMO”), JPMorgan Chase Bank, N.A. (“JPMorgan”) and Wells Fargo Bank, N.A. (“Wells Fargo”) as joint lead arrangers and joint book runners, with BMO Bank, N.A. as administrative agent.
The amendment provides for $260 million in available borrowings with a $340 million accordion feature, bringing the total potential availability up to $600 million, subject to certain conditions including obtaining commitments from additional lenders. The Third Amended and Restated Credit Agreement also extends the maturity date of the Facility from November 7, 2026 to May 7, 2030, with a further one-year extension available at the Company’s option, subject to certain conditions including payment of an extension fee. Availability under the amended Facility is limited to 60% of the value of a pool of unencumbered communities owned 100% by the Company. The value of these unencumbered communities increased through the reduction of the capitalization rate from 6.5% to now 6.0% applied to the Net Operating Income (“NOI”) generated by these unencumbered communities. Interest is based on the Company’s overall leverage ratio and has been reduced by approximately 35 to 40 basis points, depending on the Company’s overall leverage ratio, and is now equal to the Secured Overnight Financing Rate (“SOFR”) plus 1.30% to 1.90%, or BMO’s prime lending rate plus 0.30% to 0.90%.
Samuel A. Landy, President and Chief Executive Officer commented, “The expansion and extension of our Facility will further enhance our liquidity and strengthen the financial flexibility and balance sheet of our Company as we continue to execute our growth strategy. We are pleased to continue our long-term relationship with BMO, JPMorgan and Wells Fargo. We look forward to continued success with our partners.”
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 145 manufactured home communities, containing approximately 27,100 developed homesites, of which 11,200 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 145 communities are two communities in Florida, containing 363 sites, and one community in Pennsylvania, containing 113 sites, that UMH has an ownership interest in and operates through its joint ventures with Nuveen Real Estate.
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. 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.
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A NYSE Company: Symbol - UMH
since 1968