UMH Properties Boosts Stock Buyback to $100 Million Initiative
UMH Properties Announces New Stock Buyback Authorization
UMH Properties, Inc. has officially announced an increase in its stock repurchase authorization to an impressive $100 million. This update comes as the Board of Directors, driven by confidence in the company's value and operational strength, seeks to bolster its share repurchase program, which had previously set the limit at $25 million.
Background of the Share Repurchase Program
The inception of UMH's share repurchase initiative dates back to 2009, with a focus on purchasing its outstanding common stock. Over the years, the company has successfully repurchased around 194,000 shares at a weighted average price of $10.64 each, culminating in a total expenditure of approximately $2.1 million. Notably, there have been no repurchases since 2020, marking a significant pause in this ongoing commitment to shareholders.
Implementation Strategy for the Increased Repurchase Program
The newly authorized repurchase program will be executed through various avenues, including open market purchases and privately negotiated transactions. Management will determine the size and timing of repurchases based on several factors such as market conditions, regulatory considerations, and the company’s overall financial standing. Importantly, this program does not impose any mandatory stock purchases, allowing UMH the flexibility to adapt as necessary.
Management's Perspective
Samuel A. Landy, the President and CEO of UMH Properties, has emphasized the significance of this decision, noting, "The Board’s decision to increase our share repurchase program capacity to $100 million reflects our strong conviction in the intrinsic value of our stock and the strength of our operations and balance sheet." He reaffirmed the company's commitment to delivering strong returns for shareholders while prudently managing capital.
Current Status of Market Programs
Alongside the new buyback authorization, UMH’s existing September 2024 common stock at-the-market (ATM) sale program remains active. However, the issuance of new common shares through this program is currently paused. The company also retains the option to utilize its Preferred Stock ATM program based on ongoing market conditions. These strategies provide UMH with financial tools to enhance liquidity and shareholder value.
The Company’s Operational Footprint
Founded in 1968, UMH Properties has grown to become a recognized real estate investment trust (REIT), proudly owning and managing 144 manufactured home communities. These communities feature around 26,800 developed homesites, with 10,600 comprising rental homes. Additionally, the company manages over 1,000 self-storage units across various states, solidifying its presence in the manufactured housing market. Notably, their operational regions include states such as New Jersey, New York, Ohio, and Florida.
Contact Information
For further inquiries, Nelli Madden can be reached at 732-577-4062. The company's continued engagement with shareholders and the broader market remains a priority as they proceed with their strategic initiatives.
Frequently Asked Questions
What is the new stock repurchase authorization amount for UMH Properties?
The new stock repurchase authorization amount for UMH Properties is $100 million, increased from the previous $25 million.
When was the original repurchase program established?
The original share repurchase program was established in 2009.
How many shares has UMH Properties repurchased to date?
UMH Properties has repurchased approximately 194,000 shares to date.
What does the company intend to do with the repurchased shares?
The repurchased shares will effectively reduce the outstanding shares in the market, potentially increasing shareholder value through better stock performance.
Who can be contacted for more information about the company’s programs?
Nelli Madden is the contact person for inquiries, available at 732-577-4062.
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