Debt

6 Months Ended

Mar. 31, 2013

Debt [Abstract]

DEBT

NOTE 6 – DEBT

During the six months ended March 31, 2013, the Company entered into two mortgages originally totaling $27,000,000 in connection with the acquisitions of properties in Livonia, MI and Olive Branch, MS, described in Note 3.

On October 23, 2012, the Company refinanced an existing 5.8% fixed rate mortgage on the Tolleson, AZ property with a balance of $5,169,748, due December 1, 2012. The new $8,000,000 mortgage, which matures on November 1, 2022, is at a fixed interest rate of 3.95%.

During the six months ended March 31, 2013, the Company repaid the mortgages on the Montgomery, IL and Ft. Myers, FL properties totaling $7,233,929.

Pursuant to notice given on October 29, 2012, the Company’s subsidiary redeemed its 2013 and 2015 Debentures outstanding on November 30, 2012 for the full principal amount plus accrued interest to November 30, 2012. Between October 1, 2012 and November 30, 2012, $3,500,000 of the Debentures was converted to 382,091 shares of common stock and $5,115,000 of the Debentures was redeemed.

As of March 31, 2013, total loans payable of $17,200,000 consisted of $12,000,000 outstanding under the Company’s $20,000,000 line of credit, a $2,700,000 loan secured by UMH common stock with the Bank of Princeton and a $2,500,000 loan secured by UMH preferred stock with Two River Bank.