UMH PROPERTIES, INC. ANNOUNCES ACQUISITION OF A SOUTH CAROLINA COMMUNITY THROUGH ITS NEWLY-FORMED QUALIFIED OPPORTUNITY ZONE FUND

Rhea-AI Summary

UMH Properties, Inc. (NYSE: UMH) has announced the acquisition of a manufactured home community in Orangeburg, South Carolina, for $5,200,000. The community consists of 186 homesites, with an occupancy rate of approximately 42%. This acquisition was made through UMH's new qualified opportunity zone fund (QOZF), benefiting from tax deferral options until December 31, 2026. The company aims to enhance affordable housing in opportunity zones, leveraging past capital gains from the sale of Monmouth Real Estate Investment Corp.

Positive

• Acquisition of a community in an opportunity zone could enhance long-term asset value.
• Potential tax deferral on capital gains until December 31, 2026, offers financial advantages.
• The acquisition expands UMH's footprint and reinforces its growth strategy in affordable housing.

Negative

• Current occupancy rate of 42% indicates potential challenges in revenue generation.
• -

FREEHOLD, NJ, Aug. 10, 2022 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE: UMH) today announced that it closed on the acquisition of a manufactured home community located in Orangeburg, South Carolina for a purchase price of $5,200,000 through UMH’s newly formed qualified opportunity zone fund (“QOZF”). This community contains 186 developed homesites, of which approximately 42% are occupied. It is situated on approximately 39 acres in a qualified opportunity zone.

Samuel A. Landy, President and Chief Executive Officer, commented, “We are pleased to announce the acquisition of our second South Carolina community. This community is well-located and will benefit from our proven business plan. The community has been acquired through the QOZF, in which UMH invested a portion of the capital gains realized earlier this year from the sale of Monmouth Real Estate Investment Corp. UMH will also earn fees for sourcing acquisitions and managing the QOZF. In addition to seeking other opportunities to acquire existing communities requiring substantial capital investment that are located in qualified opportunity zones, the QOZF will also look to acquire development opportunities in qualified opportunity zones. The QOZF was designed to allow for deferral of tax on recently realized capital gains reinvested in the QOZF until December 31, 2026 and to potentially obtain certain other tax benefits. By providing quality affordable housing in opportunity zones, we will help make these areas even more attractive to employers who need housing for their employees. We look forward to further growth of the QOZF through acquisitions and development opportunities.”

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 132 manufactured home communities with approximately 25,000 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, and South Carolina. UMH also has an ownership interest in and operates one community in Florida, containing 219 sites, through its joint venture with Nuveen Real Estate.

# # # #

Contact: Nelli Madden
732-577-9997

FAQ

What did UMH Properties acquire in August 2022?

UMH Properties acquired a manufactured home community in Orangeburg, South Carolina, for $5,200,000.

How many homesites are in the acquired community by UMH?

The acquired community consists of 186 developed homesites.

What is the occupancy rate of the newly acquired community?

The occupancy rate of the community is approximately 42%.

What are the tax benefits associated with UMH's acquisition?

UMH's acquisition was made through a qualified opportunity zone fund, allowing for tax deferral on capital gains until December 31, 2026.

How does UMH plan to utilize the qualified opportunity zone fund?

UMH aims to seek further opportunities for acquiring existing communities and development projects in qualified opportunity zones.