UMH Properties, Inc. (NYSE: UMH) today announced that on August 28, it secured a new Fannie Mae mortgage for one of its communities containing 267 sites, through Wells Fargo Bank, N.A., for total proceeds of approximately $10.2 million.
This interest-only loan is at a fixed rate of 6.03% with a 10-year term. Earlier this year, the company paid off the existing $2.8-million mortgage on this community, generating $7.4 million in additional proceeds. The proceeds will be used to invest in additional acquisitions, expansions, rental homes and repay higher interest rate debt on a short-term basis.
CEO Samuel A. Landy commented “We are proud to complete another successful financing with Fannie Mae and Wells Fargo. Our long-term value-added business plan generates substantial increases in community value which we can realize through refinancing and investing the additional proceeds in new rental homes, expansions, acquisitions and other accretive uses. This community was acquired in 2014. At the time of the acquisition, the community was only 69% occupied.
“During our time of ownership, we have substantially renovated the community and through the implementation of our rental home program, increased occupancy to 95%. Additionally, we are planning an expansion at this community which will further increase its value.”
UMH shares ditched six cents to $16.43.
