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UMH Properties has added seven manufactured-home communities, totaling 1,765 sites, to its Fannie Mae credit facility through Wells Fargo Bank, raising approximately USD 91.8 million via a fixed rate, interest only loan at 5.46% for nine years. A certified appraisal valued these communities at USD 145.1 million, nearly double UMH's original investment of USD 73.2 million. The funds will be used to acquire new properties, expand rental homes, and repay higher interest short term debt. This move strengthens UMH's liquidity, supports ongoing growth, and continues its strategy of leveraging asset value to fund expansion.
UMH Properties, Inc. has expanded its Fannie Mae credit facility by adding seven manufactured?home communities comprising 1,765 sites. The financing was arranged through Wells Fargo Bank, N.A., with the company securing approximately USD?91.8?million under a fixed-rate, interest-only loan at 5.46% for a nine-year term. Advertisement
A certified appraisal placed the value of these communities at USD 145.1 million, which is about USD?82,000 per site, compared with UMH's initial investment of USD 73.2 million. This marks a 98% increase over the company's original cost basis, demonstrating significant appreciation of the properties.
The company plans to use the proceeds to fund further acquisitions, expand rental homes within its communities, and repay higher-cost short-term debt. UMH Properties has consistently used such financing strategies to convert asset value into capital, enhancing both liquidity and financial flexibility.
Founded in 1968, UMH Properties now operates 145 manufactured?home communities across multiple U.S. states, with roughly 27,000 developed homesites. The company has a track record of leveraging Fannie Mae credit facilities to support growth. Earlier this year, UMH added ten communities comprising 2,001 sites to the facility, raising around USD 101.4 million through a fixed-rate, interest-only loan at 5.855% over ten years. Those properties, acquired for USD 66.6 million, were appraised at USD?163.5?million, reflecting a 146% increase over cost.
With the addition of these seven communities, UMH continues to strengthen its financial position while expanding its footprint in the manufactured-home segment. The approach allows the company to reinvest capital efficiently, support ongoing development, and manage debt strategically, sustaining a foundation for steady growth.
Source Reuters
5th Jun, 2025
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