Colony Capital Redeems High Yield Preferreds

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.

One thought on “Colony Capital Redeems High Yield Preferreds”

  1. Nooooooooooooooooooooooooooo!!!! Ma Babies. WElp, guess i’ll just keep it risky, and drop down to the G’s or H’s?…whichever one is or was at 24$ a couple weeks ago

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