6/13/2025
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Residential mortgage REIT PennyMac Mortgage Investment Trust (PMT) has priced their new senior notes with a coupon of 9%.
This is a large issue with 6 million shares (bonds) being sold with another 900,000 shares available for over allocation.
PMT has a 8.50% senior note issue outstanding (PMTU) which fell around 40 cents on the announcement of this new issue.
Below are press releases from companies with preferred stock and baby bonds outstanding. Additionally, news of a more macro economic importance may be posted.
Midland States Bancorp, Inc. Announces Common Stock and Preferred Stock Dividends
GAMCO Investors, Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2024
Apollo Reports Fourth Quarter and Full Year 2024 Results
Oaktree Specialty Lending Corporation Announces First Fiscal Quarter 2025 Financial Results
Prudential Financial, Inc. Announces 2024 Results
Voya Financial announces fourth-quarter and full-year 2024 results
PennyMac Mortgage Investment Trust Announces Public Offering of Senior Notes
New Mountain Deploys More Than $400 Million in Net Lease Strategy in 2024
U.S. Bank Freight Payment Index: Truck freight market continues to contract
Mortgage REIT PennyMac Mortgage Investment Trust (PMT) has announced they will be selling a new Senior Note offering with maturity in 2030.
PMT has a number of outstanding preferreds and senior notes which can be seen here.
The preliminary prospectus is here.
Thanks to J for being on top of this one and for EarlyBird for chiming in on ‘yield talk’ (in the 9-9.125% area).
In the last couple of weeks we have had a couple of fixed-to-floating rate mREITs move into their floating rate periods.
The New York Mortgage Trust 7.875% (NYMTM) issue is now trading with at 3 month SOFR+.2616% plus a spread of 6.429% for a very juicy +10% yield. Additionally Two Harbors Investment has an issue that just went into the floating period with their 7.25% issue (TWO-C) which will float at 3 month SOFR+.2616% plus a spread of 5.011% for a +9% yield.
I hold a few of the mREIT floating rate preferreds–in the current environment they trade very steady and almost always around $25 as they become redeemable at the same time as they become floating which means there is always a call threat.
Watch all of the floating rate issues here.
Actually I did own this term preferred when it had a yield to maturity in the 8% area, but sold it all for $24.98 on 11/24/2024. The issue I am talking about is the Gladstone Lane 5% Term Preferred (LANDM) issue. Currently slated to be redeemed on 1/31/2026 and trading at $24.80–a less than 6% (more or less) yield to maturity is simply too little from a pretty marginal REIT.
Gladstone Land reported earnings for the quarter ending 9/30/2024 that were poor–a net loss of almost $6 million, although funds from operations of around $3 million. While the company is likely safe the reward of the term preferred is simply inferior to many other term preferred that are available.
If I was going to own a term preferred it would be at a current yield of around 7.75% to 8% of which there are a number available which are likely as safe as Gladstone Land. I do understand some of the attraction of the LAND issue–it is easy to understand versus a CLO owner like Eagle Point Credit Company (ECC). Maybe folks want to hold it as a ‘cash equivalent’?