Nearly 3 years after the initial launch (in 1/2018) Gladstone Land (LAND) has listed their 6% perpetual preferred stock under ticker LANDO.
The issue began to trade today and closed the day at $23.99. After trading in the $25/share area at the open today a big ‘dump’ came midday and large orders throughout the afternoon continued as holders decided it was time to exit. Holders of the shares, which previously had no exchange trading, were able to tender shares back shares previously at $23.50–so of course a premium today looked good to them.
Gladstone Land had initially offered these shares in 1/2018 acting as their own underwriter. When 6 million shares were sold the promise was to list the shares and they had sold near 6 million by 3/9/2020.
These shares will have an optional redemption period starting 6/1/2022. This is a monthly payor–which we always like.
I caution folks to not compare these to LANDP which is a 6.375% TERM preferred with a mandatory redemption on 9/30/2021. Being a term preferred the share price has a floor and is not likely to trade under $25/share prior to redemption.
Folks have been discussing this issue on the reader alerts page today if you want some opinions on the issue you can get them here.
The detail on the issue is here.
The initial prospectus can be read here.