We entered last week chomping at the bit to do some buying, but in the end we sold a little and bought a little in an effort to balance our portfolios.
As we noted we were targeting the preferred shares of American Homes 4 Rent (AMH), CHS, and giant REITs VEREIT (VER) and Brookfield Property REIT (BPR). We already owned starters in the AMH-D issues and the CHSCN issues.
We did purchase starting positions in the 6.70% VEREIT monthly paying perpetual preferred (VER-F) and the Brookfield Property REIT 6.375% perpetual preferred (BPRAP), both of which brought us current yields of over 7%.
We sold quite a few shares of the term preferred of Gladstone Investment 6.375% (GAINL) as we tried to work that position down from a severe overweight position. We continue to hold a somewhat overweight position in GAINL, but it is much more comfortable than the severe overweight position in which we started the week. Additionally we sold a little of the GasLog Partners 8.50% fixed-to-floating preferred (GLOP-C) which brings use to a rather normal weighting. We have NO problem owning these issues-simply was a portfolio management item.
So with the various selling and buying this week we remain with plenty of cash holdings and this week could buy a little BUT are not in any rush. Income issues dropped like a rock–sprang back strongly and could well drop sharply again.
At this point we might consider a modest position in one of the Eagle Point Credit issues (term preferred or baby bond), although we are not totally excited to buy collateralized loan obligations. We will watch the AMH issues and the CHS issues.
Another item mentioned during the week by one of the commentors (don’t remember who) was that the Invesco 2024 Target Trust CEF (IHTA) fell all the way down into the $8.90’s. It was a nice tip which we did not act on, but would have if it would have ticked a little lower–in the end it closed the week at $9.35. This is the type of item that would work well in the “Reader Initiated Alerts” category but it was not set up at that time.