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Erez Asset Management has called on shareholders of UMH Properties to vote against board director Matthew Hirsch at the company’s upcoming shareholder meeting. The investor, which holds nearly 4% stake in the real estate investment trust, said the company needs leadership changes and blamed the board for weak shareholder confidence and poor capital allocation decisions. The move comes as UMH’s stock has declined nearly 10% over the past year, underperforming some industry peers. Proxy advisory firm ISS has also recommended withholding support for Hirsch while backing the company’s other directors.
A major investor in UMH Properties has pushed for changes in the company’s board leadership ahead of its shareholder vote scheduled for May 27, signalling growing investor dissatisfaction with the firm’s performance and governance. Advertisement
Erez Asset Management, which owns around 4% of the Freehold, New Jersey-based real estate investment trust focused on manufactured housing and mobile home parks, informed shareholders that it plans to vote against director Matthew Hirsch. The investment firm also urged other shareholders to withhold their support for him during the upcoming election.
In a letter reviewed by Reuters, Erez Chairman and Chief Investment Officer Bruce Schanzer stated that the company requires meaningful changes beginning with stronger and more independent board leadership that is more responsive to shareholders. He said shareholders could use the vote to signal their dissatisfaction with the current direction of the company and support the appointment of new board members.
The campaign, however, is not a full proxy battle. Erez has not proposed alternative directors but is instead pursuing a “Vote-No” campaign, an increasingly common strategy used by activist investors to pressure companies without engaging in a more expensive proxy contest. Legal and governance experts have noted that such campaigns have gained traction in recent years as shareholders seek board accountability with lower costs and fewer procedural hurdles.
The pressure on UMH also comes amid weaker stock performance. The company, which currently has a market valuation of nearly USD 1.3 billion, has seen its share price fall close to 10% over the past year. In comparison, rival Sun Communities, with a market valuation of around USD 15.2 billion, has recorded largely flat stock performance during the same period. Another peer, Equity Lifestyle Properties, valued at nearly USD 12.2 billion, has seen its stock decline around 3.6%.
Schanzer blamed UMH’s underperformance on what he described as weak board oversight and questionable capital allocation decisions that, according to him, affected investor confidence and the company’s overall business performance. He particularly criticised Hirsch, who has served on the board since 2013 and currently holds the position of presiding director.
The latest criticism is not the first sign of shareholder concern around Hirsch’s role. During his previous election cycle, nearly 40% of votes cast reportedly withheld support for him, indicating longstanding governance concerns among investors.
Proxy advisory firm Institutional Shareholder Services (ISS), whose recommendations are closely followed by institutional investors, has recommended that shareholders re-elect the company’s three other directors but withhold support for Hirsch.
Representatives for UMH and Hirsch had not responded to requests for comment at the time the report was published.
Source Reuters
5th Jun, 2025
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