Below are press releases from companys with preferred stock and baby bonds outstanding–as well as just news of a general interest.
Global Net Lease Reports Fourth Quarter 2023 Results
Ready Capital Corporation Reports Fourth Quarter 2023 Results
SLR Investment Corp. Announces Quarter and Year Ended December 31, 2023 Financial Results
Assured Guaranty Ltd. Reports Results for Fourth Quarter 2023 and Full Year 2023
Global Medical REIT Announces Fourth Quarter and Year-End 2023 Financial Results
Chatham Lodging Trust Announces Fourth Quarter 2023 Results
Has the rest of C-J the now floating preferred been called? Where does one find such info (tried to search but found only older info)
It is trading $25.5x , so less than the next ex-divd 3/18 ($25+0.62) and call date 3/29
Yesterday I bought some RCB at $23.80 (YTM > 8.20%)
Ready Capital Corp., 6.20% Senior Notes due 7/30/2026
https://seekingalpha.com/article/4666438-saratoga-investment-down-big-40-plus-big-yield-bdcs-compared
I also want to thank ChrisW for this link and I am re-posting it here on what also to consider for BDC and the type of investments they make.
https://www.urbankaoboy.com/p/re-investing-private-credit-and-the?utm_campaign=email-half-post&r=79ypg&utm_source=substack&utm_medium=email
Tim, One company of interest that I think you missed out posting was the recent earnings release for EFC and the dividend cut they announced.
A Tale of Two Globals. Global Medical GMRE actually cut debt ratio by ~10%. Global Net Lease GNL has a plan to cut debt: cut the dividend.
Global Net Lease – GNL
“Reduced annual dividend to $1.10 per share of common stock starting with the dividend expected to be declared in April 2024…”
GNL common off 26% YTD
GNL dividend history 1.60 –> 1.42 post-merger –> 1.10
Sentiment: I am okay with the GNL preferreds but that common (and the “back of the refrigerator” leftover management team I though departed after the external mgmt contract was terminated) : Gonna need an ocean of calamine lotion.
“She comes on like a rose
but everybody knows
She’ll get you in dutch
You can look but you better not touch”
— “Poison Ivy” – The Coasters
JMO. DYODD
Bear:
Actually, the GNL common dividend had been reduced to $.354/quarter after the merger with AFIN closed last October. But with 230M shares outstanding, this cut to $1.10/year saves the company $73M annually. It was a smart move, but it would have been better if they cut it even more.
For 2023, they did roughly $96M in free cash flow. From this they pay out about $44M annually in the preferred dividends from $600M in preferred stock (GNL A+B+D+E). So the preferred payments were well covered from FCF in 2023, and GNL should obviously produce much more free cash flow from the AFIN shopping center properties now that they are fully consolidated for the full year 2024.
GNL claimed to have produced $72M in “AFFO” during 4Q 2023, but this number does not subtract any cap-ex, which for them is likely to be at least $10M/quarter.
But at $1.10 share they will still be paying out $253M/year in common dividends. Big number. Like you said, I get itchy hives just thinking about owning the common. But the preferred coverage should be very solid going forward. I still have small positions in GNL+D and GNL+E when they were AFIN preferred securities.
And very nice to see you say something positive about GMRE….I get my weekly dose of FUD (Fear, Uncertainly, and Doubt) from your bearish posts.
@KT, Bear
I dumped my GNL-E today based on Bear and other III’ers.
I originally bought it for the retail, but after the merger it seems like a mutual fund now. I dunno, I am happy for the divvys and getting my principal back + a penny. My CY was in the 8.halfs%, but you can gets notes for that now.
Easier to sit back and let the new hq issues come in and cherry pick?
I pared down my GNL-E when the price went up. Still holding some because there are some opportunities to swap between D and E, thus boosting the return. Makes it worth the risk for a small amount. Maybe.
I liked the emphases on debt reduction in the conference call. Also no expectation of using cash for stock buy back. Cash flow seems ok for the preferred . GNL-D is callable in March and GNL-B in Nov but looking at their low pricing seems most don’t expect them to be called. If they have success selling some assets they may have the cash as the year goes on.
GNL-E is callable in late 2025. Paying 8.5% I’m holding some of E and less of B.