🇺🇸 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 (+0%)) 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.
