FREEHOLD, NJ - UMH Properties, Inc. (NYSE: NYSE:UMH) announced an expansion of its unsecured revolving credit facility, increasing available borrowings from $180 million to $260 million. The facility is in partnership with BMO Capital Markets, JPMorgan Chase (NYSE:JPM) Bank, and Wells Fargo Bank, with the Bank of Montreal serving as the administrative agent.
Samuel A. Landy, President and CEO of UMH Properties, stated that this expansion enhances the company's liquidity, strengthens its financial flexibility, and supports the execution of its growth strategy. Landy expressed gratitude for the continued support from BMO and JPMorgan and welcomed Wells Fargo to the facility.
UMH Properties, founded in 1968, is a real estate investment trust (REIT) that owns and operates 135 manufactured home communities with around 25,800 developed homesites across several states, including New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, and Georgia. The company also co-owns and manages two communities in Florida through a joint venture with Nuveen Real Estate.
The press release also contained forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations. These statements, which are not historical facts, are based on current expectations and involve various risks and uncertainties.
The company's annual report on Form 10-K and other filings with the SEC detail these risks. UMH Properties has stated it has no obligation to publicly update or revise any forward-looking statements due to new information, future events, or otherwise.
This news is based on a press release statement from UMH Properties, Inc.
InvestingPro Insights
In light of UMH Properties' announcement regarding the expansion of its credit facility, a glance at the company's financial health through InvestingPro data and tips may offer investors additional context. UMH Properties, which has seen a steady increase in market capitalization, currently stands at $1.11 billion. This growth is accompanied by a notable revenue increase over the last twelve months as of Q4 2023, with a revenue growth of 12.82%.
While the company's commitment to growth is evident, its profitability metrics tell a more nuanced story. The P/E ratio, an indicator of market expectations about the company's earnings, is deeply negative at -79.06 for the last twelve months as of Q4 2023.
This suggests that investors are expecting future growth or that the current price includes a premium for other attributes of the company. Adding to this, the company has a negative PEG ratio of -1.64, which may raise concerns about the company's future earnings growth relative to its current P/E ratio.
Despite these profitability concerns, UMH Properties has demonstrated a commitment to shareholder returns, maintaining dividend payments for an impressive 35 consecutive years. The dividend yield as of the latest data stands at 5.12%, which is attractive for income-focused investors. This is supported by one of the InvestingPro Tips, which highlights that the company has raised its dividend for 3 consecutive years.
Investors considering UMH Properties should be aware that the company is not expected to be profitable this year, as indicated by another InvestingPro Tip. However, the net income is expected to grow, which could signal a turnaround in the future. For those looking to delve deeper into the company's financials and future prospects, InvestingPro offers additional tips. There are 7 more InvestingPro Tips available for UMH Properties, which can be accessed by visiting the dedicated page at https://www.investing.com/pro/UMH. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24.
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