Preferred Stock | Innovative Income Investor

Cash Machine REIT Public Storage Announces New Preferred

Storage REIT Public Storage (PSA) has announced the issuance of a perpetual preferred.

Previously the company had announced the redemption of the 5.875% PSA-A issue which became redeemable on 12/2. The redemption date is 12/30/2019.

The company had sold a preferred issue on 9/5/2019 with a coupon of 4.875%, PSA-I, and a 4.70% issue PSA-J on 11/5/2019 so we know this will be a darned low coupon.

All of their outstanding issues can be seen here.

The issue will be investment grade.

The preliminary prospectus can be found here

Thanks to mcg, EarlyBird and if you prefer–all right on top of the announcement.

Gabelli Equity Trust Prices New Preferred

The Gabelli Equity Trust (GAB), a closed end fund, has announced the pricing of their new issue of perpetual preferred stock.

As the SEC paperwork has not been filed many details are unknown–we will post details when they are released.

The issue prices at 5%. 4 million shares are being sold.

The company press release can be found here.

CEF Gabelli Equity Trust to Sell New Preferred

Gabelli Equity Trust (GAB) has announced the sale of a new issue of perpetual preferred stock.

The CEF had already announced the redemption of the GAB-D 5.875% issue for 12/26/2019. With the new issue the company will have 4 issues outstanding–none of which have coupons above 5.45% and this one is not redeemable until 2021.

Outstanding issues can be seen here.

Of course being a CEF and needing to have at least 200% asset coverage ratio this will be a high quality issue.

When we could last accurately calculate the leverage GAB was at 465% (6/30/2019). Being that their assets are level 1 (directly observable prices–i.e. common stocks) investors should feel fairly secure here.

The issue will likely be unrated–they were last rated by Moodys at A1, but now they are unrated. I will need to update lists etc for this change (as well as check other Gabelli CEFs).

The preliminary prospectus can be read here.

EarlyBird and mcg were right on this new issue.

Allstate Calls ALL-A

Thanks to Zwei, who posted in the Reader Initiated Alerts page, we have now seen the official notice of redemption of the ALL-A, 5.625% perpetual preferred being called.

The issue is being called 1/15/2020 which is the next dividend payment date (Allstate preferreds can only be redeemed on a dividend payment date).

It is always amazing that even after the company signaled that they might redeem the ALL-A issue investors kept trading the shares with little caution as it had closed last week right at about $26. Yesterday it fell to $25.77. Only 2 months ago it traded around $26.70.

It is fine to own some potential call candidates, I certainly do, but giving away 1-2% or even more, at this stage is probably a bit silly–I mean ALL sold their last preferred issue with a 4.75% coupon.

The official notice is here.

Healthcare Trust Inc, Prices Perpetual

Untraded healthcare REIT Healthcare Trust Inc. priced their previously announced perpetual preferred late Friday.

The issue priced at a fixed rate coupon of 7.375% and is cumulative, but non qualified. This is a rather small issue so it will be interesting to see how much demand there is for a high yield issue, since we have seen so many low coupon issues recently.

The issue should trade today (Monday) on the OTC Grey Market under ticker HLTCP.

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The final prospectus can be seen here.