UMH Upsizes Preferred Stock Reopening

Yesterday REIT UMH Properties (NYSE:UMH) announced a reopening of the 6.75% perpetual preferred issue (UNH-C) with the intention to sell 2 million new shares.

Today we see the SEC final prospectus document shows they upsized the issuance to 3.6 million shares (with 400,000 additional available for over allotment). The filing is here.

This increase in supply no doubt will delay shares price recovery somewhat as the underwriter got the shares at $24.2125–so they will be shoveling them out the door quickly.

Shares thus far are taking the news in stride at the $24.90/share area on heavy volume.

The stock chart is here.

5 thoughts on “UMH Upsizes Preferred Stock Reopening”

  1. There is also an earnings announcement after the close on 5/2, which could have some affect upon preferred pricing. But I would think they would be in very dangerous territory if they close this issue on 4/30, and then make a dramatically negative earnings announcement.

    1. Roger–that would kind of suck and it certainly has happened before with other companies.

      1. Thanks Eugene. I missed that. I think that means the smart money has absorbed the news. And thanks to both of you for not pointing out that my “affect” should have been “effect”

    2. …In addition, the Company has $100mm of marketable securities and $30mm of loan receivables in its asset portfolio as of December 31, 2018.
      Recent Investor Presentation
      I re-entered here too. Old pros, low interest rates, growing, assets already owned to yet be developed…

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