UMH Properties

📈 REIT Depot Update January '23 📈

Hello everyone 🙋‍♂️. With this post I want to give you a little update on my REITs.

➡️ In total, the REITs in my portfolio have a market value of ~44,815 EUR (as of 07.01.23) and therefore a weighting of 14.64% in the total portfolio 👍.

➡️ Largest value is still $O (+1.22%)
with ~8,239 EUR, smallest the $ONL (+1.65%) with approx. 806 EUR.

➡️ In the last few months I have with from $SKT (-0.63%) separated and took positions with $SRC, $UMH (+2.52%) as well as $STAG (+1.53%) opened.

➡️ On the following pages you will find a (sub)sector overview, the future planned weighting and some notes.

➡️ With -19%, my REITs have performed worse in 2022 than, for example, the S&P 500. Of course, the interest rate increases have had a negative impact on prices, since, among other things, it is automatically assumed that refinancing costs will rise. That may also be the case for one or the other REIT. But in general, REITs with solid financing that have taken advantage of the low-interest-rate phase to obtain long-term financing have the best prospects. And it is precisely such REITs that are very attractive in terms of valuation.

➡️ Therefore, I intend to increase my REIT share to up to 25% in 2023 and focus primarily on apartment REITS, but also on those from the office and industrial sectors. The first candidates are already on the list.

#reit
#immobilien
#dividende
#depot

🇺🇸 Initial purchase #2 in October '22 🇺🇸

Hello everyone 🙋‍♂️. Hope you are enjoying your Sunday! In October there was next to $SRC another, somewhat more speculative, first purchase. And it was again a REIT!

➡️ 100 shares of UMH Properties ($UMH (+2.52%)) were bought at 16.136 USD per share into the portfolio.

➡️ I have had UMH Properties on my watchlist for some time now and decided in October to open a risk-adjusted position (approx. 0.6% weighting).

➡️ UMH is one of three REITs that specialize in manufactured housing. Because people can still afford this type of housing, even more so in the current situation, demand is unabated.

➡️ 2022 UMH has taken a decent hit (YTD -34%). However, FFO is still expected to grow strongly and rent is also higher than in previous years. If the NAV is used as a basis, this results in a discount of >30%.

➡️ Admittedly, my investment case contains a speculative element. Namely, I see UMH as a potential takeover target. There has been quite a bit of M&A activity, particularly among small cap REITs. Moreover, UMH was founded by the Landy family, who have decent skin-in-the-game and have sold a REIT (MNR) before.