Category: Preferred Stock Call

Large mREIT Two Harbors Investment (TWO) has announced the redemption of 2 issue of preferred stock.

They are redeeming their TWO-D 7.75% issue and their TWO-E 7.50% issue on 3/15/2021. Both of these issues were originally issued by CYS prior to TWO acquiring the company.

Holders of shares will make out nicely since TWO-D closed today at $24.05 and TWO-E closed at $24.55.

Redemption should be around $25.30 for each of the issues–as they will have about 2/3rds of a dividend payment accrued at redemption.

The company press release is here.

jalen picked up on this call early.

Banker Truist (TFC) has announced that they will be calling 2 issues of perpetual preferred stock.

They will be calling the TFC-G 5.20% issue and the TFC-F 5.20% issue on 3/1/2021. There are a total of 38 million shares outstanding.

The company press release can be found here.

mREIT Dynex Capital (DX) has announced a redemption of their 7.625% perpetual preferred (DX-B)

The announcement can be found here. Redemption will occur on 2/15/2021.

No loss will accrue to holders as shares are trading at $25.12 now.

Ron Ramsey mentioned this earlier today.

National General Holdings (NGHC) has announced the redemption of the 2 outstanding issues of preferred stock. This call has been anticipated since the company was bought by Allstate–although this is quicker than I personally thought since they just closed the purchase late late week.

The company which is now owned by Allstate (ALL) has 3 issues of preferreds outstanding and 1 issue of baby bonds.

They will redeem the Series B 7.50% preferred (NGHCO), the Series A 7.50% preferred (NGHCP) and the 7.625% Subordinated Notes (NGHCZ) all on 2/3/2021.

They are not calling, at this time, the Series C 7.50% preferred (NGHCN) issue–they intend to delist the issue prior to a call in July (when they become redeemable).

The press release is here.

ken was right on this one, with LarryL right behind.

Large triple net lease REIT VEREIT (VER) has again called 4 million shares of their 6.70% perpetual preferred (VER-F).

This has been about a quarterly event this year–they called in 6/20, 9/20 and now in December (effective 1/21).

Many of you are already aware of this redemption–but for those maybe thinking about buying some shares it is good to know the history. If you click the link above you can see what has happened over the last 18 months or so.

This issue was originally over 42 million shares and after this call there will be around 14.9 million shares outstanding. Given the history it would seem logical that by this time next year there will be NO shares outstanding.

I see shares have popped today to $25.36/share. Dividends are about 13.9 cents/share monthly so one might be wise to buy only a little lower–unless they call all shares in the next 90 days one will make money–but you can’t always tell what they might do. I am guessing they will make 3 more calls over the next 9 months–meaning 9 dividends left to be paid–but that is simply a wild guess.

Disclosure–I own a little of this issue bought at lower levels, but will buy more if it sets back into the $25.15 area.