#United States #Stockholder Rights #New Rochelle #Erez Asset Management #UMH Properties

Erez Asset Management's Latest Findings on UMH Properties

Erez Asset Management, an investment firm holding approximately 5.5% of UMH Properties, Inc.'s outstanding shares, has come out with the fourth installment of their series titled "Right Horse, Wrong Jockey: The Case for Change at UMH Properties." This critical report highlights a pattern of troubling financial practices that have persisted over the last two decades.

The primary allegation revolves around UMH Properties' frequent issuance of new equity aimed at raising capital to pay out dividends. Erez contends that this practice was unnecessary under Real Estate Investment Trust (REIT) regulations and that it far exceeded the actual funds available for distribution annually. This inefficient capital allocation has reportedly diluted shareholder value, leading to significant underperformance when compared to market expectation.

In prior reports, Erez had already pointed out several critical triggers for concern regarding UMH’s long-term investment strategy and governance approach:
1. Chronic Underperformance: Despite a notable appreciation in assets over the decades, UMH's overall performance has not reflected this growth adequately, suggesting mismanagement or misalignment of corporate strategies.
2. High-Risk Investments: Erez has flagged the management’s decisions to invest in multiple publicly traded REITs, including some that have declared bankruptcy since 2015. Such moves raise red flags regarding due diligence and risk management.
3. Governance Failures: The historical missteps attributed to the Landy family's management have led to considerable value destruction, especially as witnessed with Monmouth Real Estate Investment Corporation.

In today's context, Erez is urging current UMH shareholders to reassess their investments and consider the implications of continued poor governance practices and unwarranted capital allocation strategies. The firm has launched a dedicated website, saveUMH.com, where they encourage stakeholders to sign up for updates and engage in dialogues regarding potential changes needed at UMH Properties.

Hailing from a background that includes the successful monetization of Cedar Realty Trust, Bruce Schanzer, Erez's founder, has expressed a clear intent to advocate for improved performance at UMH. He believes that by acquiring significant stakes in REITs and collaborating closely with management, even underperforming assets can be transformed into valuable drivers for both operational improvements and shareholder interest.

Erez calls on all shareholders of UMH Properties to engage meaningfully with these findings and to consider the profound shifts that can occur through unified action. As the next annual meeting approaches, the firm intends to seek changes at the board level, reinforcing the need for more responsible strategies that align with shareholder interests. Unity amongst investors is deemed essential to galvanize the necessary momentum for implementing these reforms at UMH Properties.

Through its comprehensive analysis and push for reform, Erez Asset Management is shedding light on significant hindrances to growth within UMH, setting the stage for what they propose as much-needed corporate revitalization. As stakeholders prepare for the upcoming shareholder meeting, it remains to be seen how UMH will respond to mounting pressure and whether they will embrace the transformative changes proposed by Erez.

All reports, including previous installments of the series, can be accessed through the official Erez website. The firm remains dedicated to sharpening the focus on shareholder rights and advocating for better governance practices.

With financial dynamics constantly evolving, the ramifications of these findings could prove pivotal, not just for UMH, but for the wider REIT market as well.