UMH Properties, Inc. (NYSE: UMH) completed a $91.8 million addition to its Fannie Mae credit facility on November 25, 2025. The new tranche covers seven manufactured‑home communities with 1,765 sites and is structured as an interest‑only loan with a fixed rate of 5.46% and a nine‑year term, providing the REIT with a low‑cost, long‑term source of capital.
The proceeds will be deployed to fund acquisitions, expand existing communities, purchase new rental homes, and refinance higher‑interest short‑term debt. The seven communities were appraised at $145.1 million—$82,000 per site—while UMH’s own investment of $73.2 million has already generated $71.9 million in value appreciation, a 98% increase from the cost basis. The financing therefore not only supplies fresh liquidity but also reinforces the company’s track record of turning properties into higher‑value assets.
UMH’s use of Fannie Mae financing aligns with its long‑term strategy of expanding affordable manufactured‑home communities. By securing a low‑interest, interest‑only facility, the REIT can accelerate growth initiatives while keeping debt costs below the market average. The refinancing of short‑term debt also reduces interest expense and improves cash‑flow stability, positioning the company to pursue opportunistic acquisitions without compromising its disciplined capital structure.
This transaction follows a pattern of regular Fannie Mae financing. In May 2025, UMH added ten communities for $101.4 million under a 10‑year, fixed‑rate, interest‑only loan at 5.855%. The November 2025 addition continues that relationship, underscoring the REIT’s ability to secure favorable terms and its reliance on government‑backed financing to support portfolio growth.
"We are proud to complete another addition to our Fannie Mae credit facility. This refinancing further demonstrates the value created through our business plan," said President and CEO Samuel A. Landy. The move signals confidence in the company’s ability to generate value from its properties and to leverage that value into additional capital for expansion.
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