#USA #New Rochelle #Erez Asset Management #UMH Properties #Matthew Hirsch

Erez Asset Management’s Challenge to UMH Properties

In a strikingly candid open letter, Erez Asset Management, LLC, which holds around 4% of UMH Properties, Inc.'s outstanding shares, has made its intentions clear regarding the upcoming 2026 Annual Meeting set for May 27, 2026. The firm intends to withhold support for Presiding Independent Director Matthew I. Hirsch, advocating for accountability in governance and management practices. This move has spotlighted the growing discontent among shareholders at UMH, a company that has faced ongoing underperformance despite owning valuable assets in the manufactured housing sector.

Bruce Schanzer, Erez’s Chairman and Chief Investment Officer, highlighted their concerns around the entrenched and conflicted Board of Directors, which has failed to adequately oversee management and hold them responsible for the significant valuation discount at which UMH shares trade. Erez's call for action resonates with recommendations from Institutional Shareholder Services (ISS), which has consistently advised shareholders to withhold votes from Hirsch during previous election cycles.

The crux of Erez’s argument lies in the stark contrast between UMH’s potential and its actual market performance. While the company possesses a robust portfolio of manufactured housing communities—an asset class typically regarded as stable with strong long-term growth potential—its shares are languishing at a discount compared to peers like Equity LifeStyle Properties and Sun Communities. Erez pointed out that UMH continues to underperform against its proxy peers and broader REIT indices, raising serious questions about its governance and management effectiveness.

Erez asserts that the root of this issue is a lack of shareholder trust in the Board, which has not only been slow to implement necessary oversight but has also fostered a governance structure that effectively stifles accountability. With Hirsch still in a leadership position, the Board's composition has remained largely unchanged, despite persistent calls for rejuvenation. The alarm bells were rung even louder when it was reported that nearly 40% of votes cast the last time Hirsch stood for election were withheld, placing him among the least favored directors in U.S. publicly traded companies.

The criticism doesn’t stop there; Erez has highlighted the Board’s staggered structure that allows directors to face elections only once every three years, severely limiting shareholders' ability to enact change in leadership. Schanzer emphasized that this lack of a responsive governance structure contributes directly to the ongoing underperformance of UMH.

Erez carefully outlines its position: shareholders must use their votes strategically to signal that the status quo is unacceptable. By withholding support for Hirsch, they aim to push for a Board refresh aimed at accountability and genuine shareholder alignment. The upcoming Annual Meeting presents a critical juncture for UMH shareholders—not just to express dissatisfaction with the current leadership but to demand a transformative approach that prioritizes shareholder interests and fully leverages UMH’s asset potential.

In their letter, Erez emphasizes, “UMH boasts a valuable portfolio of manufactured housing communities with significant inherent value, yet that opportunity will remain unrealized until the Board prioritizes accountability and aligns its goals with those of the shareholders.” This explicit call to action is a crucial reminder of the power that shareholders hold in guiding corporate strategy and governance.

As the Annual Meeting approaches, the focus will undeniably be on Erez’s campaign to galvanize shareholder dissent against a backdrop of rising expectations for transparency and performance. The question remains whether other shareholders will rally around Erez’s message to effect meaningful governance change at UMH Properties, propelling the company toward a more prosperous and accountable future.