Earnings of Interest

A few newer earnings reports the I have interest in have posted. I post these as the companies have preferreds or baby bonds outstanding.

BDC Gladstone Capital (NASDAQ:GLAD) has posted decent earnings.

Lodging REIT Sotherly Hotels (NASDAQ:SOHO) has reported weaker earnings for the quarter.

B Riley has reported record earnings. Of course B Riley has an assortment of baby bonds available, which can be see here.

Special finance REIT Arbor Realty reported solidly good earnings.

15 thoughts on “Earnings of Interest”

  1. From the GLAD conference call on GLADN ; “The flip side of the declining interest rate outlook is that we are optimistic that we are able to refund our existing 6% GLAD and preferred early next quarter at a lower effective cost through some combination of capital market issuance or bank facility borrowings.” With first call being 9/30/19 there’s only .25 left in coupon payments to that date and yet GLADN still trades at 25.49 bid right now….. That means GLADN has to remain outstanding 11/30 just to break even…

      1. Hey, don’t boo me, Tim! LOL! I and Bob Marcotte are just the messengers;) If you want to think positively about the possibilities of GLADN remaining outstanding beyone the firs call, they do go on to say, “This refunding is a prerequisite to clearing the last hurdle to be able to lift the 200% minimum asset coverage limitation. However, given our 242% coverage as of June 30, we are probably several quarters of solid originations away from being in a position to utilize any of this additional leverage capacity.” So you could say they have reason to drag their feet but they sure didn’t drag their feet to adopt SBCAA so it’s not likely they’ll leave outstanding for any longer than necessary the only remaining barrier they have to opportunistically be able to go bigtime into SBCAA leverage at anytime after 9/30 at the drop of a hat.

  2. Would any of you acquire Southerly Hotel cumulative redeemable preferreds?
    They have 3 issues with the 7.875% (SOHOO) trading around $24.97. I don’t like paying above par. Thanks.

    1. I own SOHON after rotating out of SOHOK. No plans to sell it barring a major issue.

  3. Here’s what ended up on my pad this morning as I still feel compulsive to have to do some desk work. Just a transcriptions of scribble notations that I looked into and one new buy/hold: NTRSP. I don’t add color for those who have their own methods: ELJ, ENJ, TCGP, AGCLP, CTBB, PRE-I, BSA. Found these in the pan after another AM sift through.
    Commentary is one thing best left to Mr Tim who does it well. Here are a few bones with various attributes to chew on. JA

    1. Joel – I’ve owned BSA for 2 1/2 years and enjoyed the ride, however, throughout, it’s always appeared to be cheap…. Also you probably know this but BSIG is on negative credit watch by S&P.. It’s stable at Moodys but that’s from Dec and S&Ps negative is from March.

  4. “and magicJack have contributed meaningfully to our results”…

    I take pride in having helped them achieve these record earnings/results. There sure were a lot of naysayers but they seem to be doing what’s necessary to put points on the board.

    1. Affinity…I found this line from the B. Riley consolidated cash flows statement for the six months ending June 30th 2019 to be interesting. Looks like they’re selling off some unwanted pieces of the 2018 acquisition.

      “Proceeds from sale of division of magicJack 6,196 “

      1. It is my belief that they bought into the whole MagicJack idea in the first place to gain control of the patents. But it’s not a bad product at all. They save people a crap ton of money.

    2. A4I, good for you and I hope they continue to grow. No more magicJack wise cracks from me. I still see taxi cab insurance as fair game.

    3. A4I–good for you–I was always skeptical of magicjack–I am sure I was pretty much with the crowd in skeptisism.

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