Erez Asset Management Criticizes UMH Properties Over Dividend Funding Practices
Erez Asset Management, a significant shareholder in UMH Properties (NYSE: UMH), has released the fourth installment of its activist campaign titled "Right Horse, Wrong Jockey." The firm alleges that for the past 20 years, UMH Properties has engaged in a pattern of issuing new equity to fund dividends that exceed available funds and are not required under REIT rules. Erez claims this practice dilutes existing shareholders and destroys long-term value. The activist campaign also targets historical governance failures involving the Landy family and unsuccessful investments by UMH into other REITs that subsequently filed for bankruptcy. Erez, led by Bruce Schanzer, intends to seek changes to the Board of Directors at the 2027 annual meeting of shareholders to address these perceived operational and strategic deficiencies.
Topics: corporate governance dividend policy equity dilution shareholder activism