1/4/2025
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Ptrader has posted that Deutsche Bank is calling a 8.05% trust preferred (DKT) which should not be a real surprise.
The issue is trading at $25.70 right now–it has been callable since 6/30/2018.
Looks like a busy week for more higher yielding issues getting called–we hate it–but we simply have to deal with it.
UPDATE–This will be just a partial redemption of the issue–amount yet to be determined.
REIT VEREIT (VER) has announced a new senior note offering with the intent to call the 6.70% perpetual VER-F, monthly paying preferred.
This has been a favorite of mine–another one gone. It looks like a small loss of capital this morning as the shares are trading at $25.48–the monthly dividend is about 14 cents. This is a case where I have held a small position knowing the call risk was there–but which I chose to incur for the 6.70% coupon–I have held it for a fairly long time.
Morgan Stanley has priced their previously announced new fixed rate preferred.
The issue is non-cumulative, qualified, NON investment grade and 20 million shares priced at 4.875%.
With all the substandard coupons we have seen I should be used to being disappointed in these meager coupons–but I’m not!! If it was investment grade–then maybe 4.875% would be right–but they fall short of investment grade.
Oh well–it is what it is and my simple answer is –NO I won’t buy any.
The pricing term sheet is here.
Thanks SteveA for being on top of this one.
Reader JDubs has just pointed out the trading halt and subsequent confirmation that numerous Gabelli CEF preferreds are being redeemed.
This is hopefully not a big surprise to readers as we covered this a month ago—here. Everyone had ample time to review their holdings and unload them.
Here’s is the scoop–
Gabelli Dividend and Income 6% (GDV-D) will be redeemed on 12/26/2019.
Gabelli Equity Trust 5.875% (GAB-D) will be redeemed on 12/26/2019.
Gabelli Multimedia Fund 6% (GGT-B) will be redeemed on 12/26/2019.
Since the announcement came at the end of the day there will be some blood letting in these issues tomorrow morning–assuming they trade. If they do not trade holders will have to wait 5 weeks to be spanked.
Giant equipment rental firm Amerco (UHAL) released their earnings about a week ago.
We mention this because of our personal investment in the UHAUL Investors Club and because I know many readers also participate in the Investors Club.
We had written almost exactly 1 year ago on the club–you can see that (and the comments) here.
The earnings for the quarter ending 9/30/2019 are pretty decent–as has been the norm in recent years. On revenue of $1.15 billion the company brought $156 million to the bottom line. Revenues grew 4% over the year ago quarter, but earnings were off 6%.
We do note that depreciation, a non cash charge, is always the one of the companies largest expenses, but unlike real estate companies the assets of the company do in fact depreciate and the company spends dramatic amounts of capital on replacement equipment. During the 1st 6 months of the fiscal year the company spent $1.6 billion on new equipment–obviously there are plenty of new UHAUL trucks running around the country.
Taking a look at the Amerco balance sheet should always bring comfort to investors. The company currently holds about $3.2 billion in cash and securities–nothing like cold, hard cash to make a lender (investors in the Investors Club) feel secure.
The companies common stock now trades at $366 giving the company a market cap of about $7 billion.