UMH PROPERTIES, INC. ANNOUNCES NEW CREDIT FACILITY

Rhea-AI Summary

UMH Properties, Inc. (NYSE: UMH) announced the successful financing of 28 unencumbered communities, totaling approximately 4,100 sites, with Wells Fargo Bank for about $106 million. This Fannie Mae credit facility has a 10-year maturity and a fixed interest rate of 2.62%. The funds will be used to redeem 8% Series B Perpetual Preferred Stock and to enhance investments in additional acquisitions and rental homes. CEO Samuel A. Landy highlighted the significance of this financing in improving funds from operations by over $5 million annually.

Positive

• Secured $106 million financing to enhance operations.
• Fixed interest rate of 2.62% on a 10-year credit facility.
• Ability to improve funds from operations by over $5 million annually by redeeming 8% Series B Preferred Stock.

Negative

• None.

FREEHOLD, NJ, Aug. 20, 2020 (GLOBE NEWSWIRE) -- UMH Properties, Inc. (NYSE: UMH) today announced that it has successfully completed the financing of 28 of its unencumbered communities, containing approximately 4,100 sites, through Wells Fargo Bank, N. A. for total proceeds of approximately $106 million. This Federal National Mortgage Association (Fannie Mae) credit facility has a 10-year maturity with a 30-year amortization schedule. Interest is at a fixed rate of 2.62%. The proceeds will be used to redeem our 8% Series B Perpetual Preferred Stock and to also invest in additional acquisitions, expansions and rental homes further enhancing our ability to provide quality affordable housing in the markets that we serve.

Samuel A. Landy, President and Chief Executive Officer commented, "We are very pleased to continue our strong relationship with Fannie Mae and Wells Fargo who have done an exceptional job of providing low cost debt that will allow us to continue on our mission of providing quality affordable housing. We will have the ability to borrow up as we generate increased occupancy and NOI. The acceptance of rental homes and the access to debt through Fannie Mae is a major transformative milestone for our industry.”

“This credit facility will allow us to call our 8% Series B Perpetual Preferred Stock which is expected to improve our funds from operations by over $5 million per year. We intend to further restructure our capital stack and reduce our cost of capital by recapitalizing our other outstanding preferred issues which are callable in 2022 and 2023.”

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 123 manufactured home communities with approximately 23,200 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland.

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Contact: Nelli Madden
732-577-9997

UMH PROPERTIES, INC.
Juniper Business Plaza
3499 Route 9 North, Suite 3-C
Freehold, NJ 07728
(732) 577-9997
Fax: (732) 577-9980

FAQ

What is the financing amount announced by UMH Properties on August 20, 2020?

UMH Properties announced a financing amount of approximately $106 million.

What is the interest rate for UMH Properties' new credit facility?

The interest rate for UMH Properties' new credit facility is fixed at 2.62%.

How will UMH Properties use the proceeds from the financing?

The proceeds will be used to redeem 8% Series B Perpetual Preferred Stock and invest in acquisitions and rental homes.

What impact will the financing have on UMH Properties' funds from operations?

The financing is expected to improve UMH Properties' funds from operations by over $5 million per year.

Which bank provided the financing for UMH Properties?

The financing for UMH Properties was provided by Wells Fargo Bank.