Below are some press releases from companies with preferred stock and/or baby bonds outstanding.
Mortgage Rates Drop for the Fifth Consecutive Week
Safe Bulkers, Inc. Announces a Five Million Shares of Common Stock Repurchase Program
UMH PROPERTIES, INC. EXPANDS JOINT VENTURE PARTNERSHIP WITH NUVEEN REAL ESTATE
Athene Holding Ltd. Declares Fourth Quarter 2023 Preferred Stock Dividends
LuxUrban Hotels to Operate Two New Four-Star Boutique Hotels in New York City
Two Harbors Investment Corp. Announces Conversations Video Series
LuxUrban could be in the right place at the right time, leasing distressed hotels instead of buying them. Travel is up in NYC, so is hotel occupancy. The Other Website suggests there may be some risk in this business model if a recession hits since the master lease rent is still due whether or not the tourists show up. Because it considers Lux a speculative investment, TOW interestingly prefers the common over the high coupon preferred. The preferred is trading close to par.
As far as not paying rent, LuxUrban in its earlier incarnation as CorpHousing Group got into some litigation over unpaid rents. Its latest press release says it has substantially wound down its legacy business.
Black Spruce Sues CorpHousing Group For Nearly $1M In Unpaid Rent On Short-Term Rentals
https://www.bisnow.com/new-york/news/multifamily/black-spruce-sues-corphousing-group-for-17m-in-unpaid-nyc-apartment-rents-116985
“LuxUrban Hotels went public under its former name CorpHousing Group earlier this year…CorpHousing Group was founded in 2017 and amassed a national portfolio of short-term rental units in apartment buildings…
“Before going public, the company had been sued by dozens of plaintiffs in multiple states alleging the company hadn’t paid rent for short-term rental units, entire hotels, furniture it had leased or wages of its own employees, Bisnow previously reported.”
I love high coupons but I prefer the speed of the Pick-5 with the one-dollar Xtra option when I fear a binary outcome. Just my opinion. DYODD.
I am building a position in GRBK-PA, a home builder in Dallas and Florida. Unless the economy gets a lot worse, housing demand will jump if rates drop 100-150 points next year. You get 8%+ to wait and enjoy a large discount. Not much leverage.
Saw something today, can’t remember if it was Yahoo or MSN that housing sales were at a 20yr low in October?
I was talking to a real estate broker today in a waiting room when the housing sale headline came across the news ticker. He said its his impression that it is lack of supply more than lack of demand.
Nobody is selling (at least here) because they want to sit tight with their 3% mortgages rather than trading them in for a current rate ones. One man’s opinion – but from someone better informed than I am (I know, I know, most people are…).
The auto industry used to measure its inventories in days rather than units, a figure regularly reported in the Detroit newspapers back in the day. I understand some realtors similarly speak of “days on the market” or “average time to close ” ( days to get offer + days to close. ) These might provide an insight into whether there is a lack of supply or a lack of buyers.
Here’s one story: https://www.cnbc.com/2023/11/30/pending-home-sales-drop-to-record-low.html
Yes, due to mortgage rate highs. November will be better. Just follow the mortgage rates.