UMH Properties, Inc. (NYSE: NYSE:UMH), a real estate investment trust, has initiated an equity distribution agreement to potentially sell up to $150 million of its common stock, the company disclosed Monday. The arrangement involves several financial institutions, including BMO Capital Markets Corp. and J.P. Morgan Securities LLC, acting as distribution agents.
The sales of UMH's common stock will be conducted through "at the market offerings," which may occur on the New York Stock Exchange or through other permitted methods such as negotiated transactions. While there is no obligation for the distribution agents to sell a set amount of securities, they will aim to sell the shares in accordance with their standard practices and agreed-upon terms with UMH Properties.
This new equity distribution agreement replaces a previous offering, which concluded with approximately $17.8 million of unsold stock. The company plans to use the net proceeds from the new sales for general corporate activities, which could include the expansion of existing communities, acquisitions of new properties, and repayment of short-term debt, including borrowing under its revolving credit facility.
UMH Properties has agreed to customary terms with the distribution agents, including indemnification against certain liabilities and the payment of a commission of up to 2% on the gross proceeds from the stock sales. The offering will conclude once all the shares are sold or if the agreement is terminated by either the distribution agents or UMH Properties.
Investors should note that this information is based on the latest SEC filing by UMH Properties.
InvestingPro Insights
UMH Properties, Inc. (NYSE: UMH) has shown a strong commitment to its shareholders through its consistent dividend payments. The company has not only maintained dividend payments for an impressive 35 consecutive years but has also raised its dividend for the last three years. This could be particularly attractive for income-focused investors considering the current equity distribution agreement and the potential for reinvestment into the company's growth initiatives.
In terms of financial health, UMH Properties' liquid assets have been reported to exceed their short-term obligations, which suggests a solid financial position for handling imminent liabilities. This could provide a degree of reassurance to investors as the company engages in "at the market offerings" to raise capital.
While UMH Properties has not been profitable over the last twelve months, analysts are optimistic about the company's future, predicting profitability for the current year. This outlook is supported by the company's revenue growth, which has been robust over the last quarter of 2023, reaching 17.28%.
InvestingPro Data metrics for UMH Properties include a market capitalization of 1130M USD, a Price/Book ratio of 2.71 as of the last twelve months ending Q4 2023, and a notable dividend yield of 5.05%, as of the latest data.
For more detailed analysis and additional InvestingPro Tips, which include metrics such as the company's trading near its 52-week high and its strong return over the last month, investors can explore the full suite of insights on InvestingPro. Currently, there are 9 additional tips available to help investors make more informed decisions.
Interested investors can take advantage of a special offer for a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24 to receive an additional 10% off. These resources may provide valuable context as UMH Properties navigates through its current equity distribution and future growth strategies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.