UMH PROPERTIES, INC. 8-K

What Happened
UMH PROPERTIES, INC. announced on May 7, 2026 that it entered into a Third Amended and Restated Credit Agreement to amend and extend its unsecured revolving credit facility. The amended facility provides $260 million of available borrowings, a $340 million accordion to potentially increase commitments up to $600 million (subject to lender commitments), and extends the maturity from November 7, 2026 to May 7, 2030 (with a one‑year extension option). The facility is syndicated and led by BMO Capital Markets, JPMorgan Chase and Wells Fargo, with BMO Bank N.A. as administrative agent. As of May 8, 2026, UMH had $10 million outstanding and approximately $250 million available.

Key Details

• Available borrowings: $260 million; accordion feature: additional $340 million (total potential up to $600 million, subject to conditions).
• Maturity: extended to May 7, 2030, with a one‑year extension option (subject to conditions and extension fee).
• Pricing: interest reduced ~35–40 basis points; now SOFR + 1.30%–1.90% or BMO prime + 0.30%–0.90%, based on UMH’s leverage; commitment fee on unused portion: 0.15% or 0.25% per annum depending on average unused commitments.
• Availability is limited to 60% of the value of a pool of unencumbered, wholly owned communities; that pool’s value increased after the capitalization rate used to value NOI was lowered from 6.5% to 6.0%.
• Covenants and defaults: contains customary financial and reporting covenants (REIT maintenance, leverage and coverage ratios, minimum unencumbered asset value, occupancy requirements) and standard events of default and remedies.

Why It Matters
This amendment improves UMH’s near‑ and medium‑term liquidity by extending the borrowing runway and reducing borrowing costs, while giving the company capacity to increase commitments up to $600M if additional lenders join. The facility’s availability is tied to the value of unencumbered communities and subject to multiple covenants—so the effective borrowing capacity and flexibility depend on asset values and the company’s compliance with financial tests. With only $10M currently drawn, the company has substantial unused capacity under the amended facility, which can support operations, investments or refinancing needs but also introduces renewal and covenant monitoring considerations for investors.