Giant REIT Colony Capital (CLNY) has redeemed 2 of their high yield perpetual preferreds.
A number of folks have discussed this a bit on the Reader Initiated Alerts page. Barbara posted this redemption at 7:16 this morning and other have chimed in.
The issues called (for Jan 10th) are the CLNY-E 8.75% issue and the CLNY-B 8.25% issue.
In addition to these issues there remains 4 outstanding perpetual preferreds that popped just a bit (1%) on the redemption news.
These 4 issues are all trading below $25 and have coupons ranging from 7.125% to 7.50%. Only the CLNY-G 7.50% is currently redeemable
Given the lack of yield in the market maybe some investors with a bit of risk appetite should look at these 4 issues?
Colony Capital has been a poorly run REIT and has been through trying times–their common stock trades at $4.xx, but recently they are coming under pressure to right the ship and with over $22 billion in assets (a total of $53 billion under management) you can be certain there is plenty of room for improvement. They have just sold a $5 billion portfolio of industrial properties to Blackstone so they are moving to get the house in order.
The 4 outstanding issues can be seen here.
This, of course, is not a recommendation, but a suggestion that maybe there is opportunity here for some investors.
Update–the company released an investor update yesterday which can be seen here.
