UMH Properties Re-opens Preferred Issue

As noted by Eugene in reader alerts REIT UMH Properties (NYSE:UMH) has re-opened the 6.75% perpetual preferred issue with the selling of 2 million new shares.

The issue can be seen here. The issue has taken quite a little tumble with the reopening–around 3%.

The company SEC filing can be seen here.

Disclosure–we did take a position on this drop at $24.91. I am looking to hold for 1-2% gain when investors come to their senses.

7 thoughts on “UMH Properties Re-opens Preferred Issue”

  1. I am buying UMH-B shares. It has a 8% coupon and trades around $26 with a call date of 10/20/2020, which results in a 8.44% total return to call date (annualized 5.67% return)

  2. I’m not surprised they’re flooding the mkt with this. With negative EPS, FCF, Net Margin, ROA and ROE for the last 6 years, they need to re-float their boat.

  3. Tim- Curious if you actually put a sell order in at a certain price for something like this, say $25.50 or $25.75?

    1. skg, Keep in mind there’s an ex-date in 20 days providing a bit of an after-burner to the trade. Balance sheet is a mess but $28M/year in common divvys provides some buffer and apparently the common holder’s pain meds have kicked in as after the news of more debt the issue is trading up today at a 3 week high.

      1. Alpha, I had my fun trade of the day. Hit IPWLO at $88 today. An old grey market Indianapolis Power preferred. Hadnt traded since last October at $96 so I figured there could be 100 shares for sale at lower price. Only traded 2000 shares all of last year between $94-$96.50. A low yield but these low illiquid ones have been the ones I have been doing well on occasionally when I buy. No real plans for this one since its only 100 shares. I should have tried $84again, but failed in the past when low balling it.

        1. Grid, Finding these can be as infrequent as a score in a slow hockey game but in the language of the SL Blues “Score!!”. Your shots on goal are impressive. Yes a low yield but ute with QDI.

          And looking at rates around the increasingly connected world, there’s every possibility we could be looking back in a few years and say, “remember those 4.5%-6% pfds, wow those were the days.” For now, happy to hold and value the lower yield, high quality issues with QDI.

    2. skg–sometimes I do, but normally not until we move closer to my target. My target could be 1%, but if it were to move sharply higher I would leave some coins on the table–that is why I wait. As alpha8 mentioned below with an ex date coming up I would be happy to hold right on through the ex date–pick up 1 dividend and look to get out on any subsequent bounce.

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