4/13/2025
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Pennsylvania Real Estate Trust (PEI) has been notified their 3 preferreds are being delisted from the NYSE. They will likely begin trading on the OTC market soon. Shares of the 3 issues have been trading in the $3/share area.
The mall owner has been liquidating properties and thus paying down some debt. Of course the cumulative dividends on the preferreds are not being paid.
For those that have holdings in the Uhaul Investors Club they have some new rates coming in the next week or two.
The new rates will be –
The new rates are about 1% higher than the current rates.
Further information on this alternative investment can be found here.
Yesterday the 10 year treasury yield rose by 10 basis points from the close last Friday to 3.58% and once again this morning yield is up by 8 basis points to 3.66% This is a significant move if it holds, but of course who knows where we end. Preferreds and baby bonds were off a little yesterday as you would expect, but losses were modest–maybe 1/2%–although that is more than enough.
We just have some housing economic news today with building permits and housing starts on tap shortly–obviously they are expected to be soft, the question is how soft? We’ll know in 10 minutes.
Yesterday I sold some Priority Income Fund 6.625% term preferred (PRIF-F). I had to sell something to redeploy into some other issues. I continue to hold some of the PRIF issue, but had very little cash available and this was my best option as I am diversifying holdings even further. I have holdings of over 50 issues.
I noticed yesterday that the Vornado Realty (VNO) preferreds have really gotten hammered recently. These issues used to be favorites of mine, but I have held any in recent years. Obviously office properties in New York are totally out of favor. The VNO-L 5.40% perpetual is trading at $16.25 for a 8.3% current yield. At the right price these become interesting–but I need to look closer at their financials and see how bad they are before even thinking seriously about a taste of these shares.
Below are some press releases from company’s which have preferred stock or baby bonds outstanding–also of just general interest.
OceanFirst Financial Corp. Schedules Earnings Conference Call
Franchise Group, Inc. Announces Approval of Quarterly Preferred Dividend
Two Harbors Investment Corp. Announces Fourth Quarter 2022 Common and Preferred Stock Dividends
Homebuilder sentiment took a tumble on the most recent reading – a reading of 31 against an expectation of 34 and a previous reading of 33. This is the lowest confidence level since 2012.
My personal observation is we are not seeing much employment effect at this time as builders had quite a level of ‘under construction’ properties ongoing thus employment remains decent. My guess is we will see more effects come February/March–and we will see what the spring season brings us in terms of buyer interest—everything will be interest rate and inflation (and thus pricing) dependent.