Headlines of Interest

13 thoughts on “Headlines of Interest”

1. GNL common pros and cons
   Con – 2025 debt maturities
   Pro – cutting 2024 debt via asset sales, sold cold storage
   Con – less diversified. Legacy office leases still on the books
   Con -less cash flow after asset sales
   Pro – high dividend yield, 15%.
   Con – dividend cutter. Stock down 25% YTD
   Pro – now internally managed, external mgmt buyout
   Con – same execs, now in house
   Pro – investment grade portfolio
   Con – odd way of defining investment grade, (“implied investment-grade tenants”)

   Preferreds available with a high yield, though lower than common. JMO. DYODD.

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   1. GNL has a bond (cusip 37892AAA8) with a 12/15/27 maturity and current YTM of about 7.7%. It’s rated BB+, downgraded from BBB- on 3/6/24. The preferreds are unrated, but this implies a rating for them of about BB. I’m hanging in there with my preferreds but not planning on buying any more.

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      1. GNL preferreds are part of my legacy yield hogging days, held on the theory that GNL will muddle through. My allocation to “great yield for a comfortable retirement” speculative commons run by execs with spotty track records is 0%. Done the moth-flame thing enough already. JMO. DYODD.

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2. Just took a starter position in AGNC. Anyone have any insights on this MREIT? I already own PMT and NLY which have been good payers for me having bought them last year after rates already rose.

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   1. AGNC invests primarily in MBS. I suggest reviewing the entire dividend history. You will see that from time to time the dividend in lowered.

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   2. I trade their preferred stocks only because the dividends are not as volatile except in the case of a default, If you buy their common you’re betting that the high dividends will outweigh the inevitable dividend cuts over the years, or that you can trade it wisely.. Different gamble,
      AGNC is considered above average in safety and so the preferred payouts are a little below average. NLY was once considered the premier mREIT maybe not so any more but still looks good. PMT has some controversy but still considered at least average maybe better.

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3. Bot a little AXS.E about a 6.55% yield in the RothIRA, again shifting some cash for a more yield here in a solid issue. They have been working for a few years now to derisk the reinsurance biz w solid results. Way past call but at 5.5% and a large issue that is not on the radar. S&P BBB rating. Bea https://innovativeincomeinvestor.com/security/axis-capital-holdings-ltd-5-50-dep-shares-non-cumul-series-e/

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   1. Bea, I thought you said having been in the business before you retired that knowing what you do that insurance is one of the fields you don’t invest heavily in? Here is Fidelity’s synopsis: I find the first part ok, the last paragraph seems risky the way the world is going.
      The Insurance segment offers professional insurance products that cover directors’ and officers’ liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.
      http://www.axiscapital.com

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      1. Had AXS on watch a long time and been following it, when I was in Trapping Value’s service (a guest..) he was positive and did well w reinsurers, AXS on occasion w options. It is my only issue in ins space. Hopefully Apollo doesnt buy them! I want no unlisted names in my portfolio, that was my only concern here AXS is smallish as size goes. Many companies I have no interest in like Manulife, Lincoln, Principal, Athene (was Aviva US) others can have those.

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         1. Bea, how about Maiden Holdings? Just joking. 😁

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            1. Actually I wouldn’t mind some commentary on if Maiden can continue paying interest on their baby bonds.

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      2. How about ALL.PRB?

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4. ARR… On June 24 they gave “guidance” (whatever that means) that they would pay a July dividend, and today July 1 (about 1 week later) they “confirmed” this guidance? Seems like a very strange way to communicate monthly dividends to me.

   Perhaps it’s time to sharpen the pencil on ARR?

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