Fortress Biotech (FBIO) has suspended the cumulative dividend on their 9.375% preferred issue. This issue was originally sold in 11/2017. Friday shares closed at $16.31 with a current yield of 14.4% (before suspension). Common shares closed at $1.80/share.
The press release is here and was released after market hours Friday. We should expect to see a substantial drop in the share price on Monday.
People keep bashing on REIT preferreds. But all of my defaults were other crap. If I stick to what works I make good money.
No I didn’t own this one but it brings back bad memories.
Hi Martin – this is a micro cap money losing firm that invests in early stage biotech. Yes this is a preferred stock, but I would not put it in a retirement portfolio. Biotech has been absolutely pounded in this market.
Not comparable to a REIT at all. There is a REIT ARE which focuses in on
Biotech/lifesicences facilities. Interesting but too focused for me.