Below are press releases from company’s with preferred stock and baby bonds outstanding–or just news of general interest. News will be slow until early October when the 3rd quarter earnings start to hit.
Scorpio Tankers Announces Vessel Sales Agreements and a New Time Charter-Out Agreement
MAA Announces Regular Quarterly Preferred Dividend
CENTERSPACE ANNOUNCES QUARTERLY DIVIDEND, REDEMPTION OF SERIES C PREFERRED SHARES AND SHARE ISSUANCE UPDATE
Synovus announces quarterly dividends
NFE’s Fast LNG Asset Receives DOE Long-Term Authorization for LNG Export to Non-FTA Countries
Pebblebrook Hotel Trust Schedules Third Quarter 2024 Earnings Release and Conference Call
Looks like several of the folks who posted here are lamenting the redemption of the 6.625% Series C preferred and now have a ton of cash to re-invest. I can kinda feel your pain since I had the same scenario with the three Nustar preferreds I held back in the early summer except I was also raking in a very sizable overall dividend (they were 11% floaters plus I owned 3000 shares) AND I had a sizable capital gain. Fortunately I owned all in my Roth, so no tax implications. Took me a couple of months to re-invest all the cash since I move so slow. Look at this way folks to ease your pain……. Sounds like you made good money on this one! At least that’s what I had to tell myself when dealing with the Nustar ones. Also you should be able to find an equivalent or higher yielding preferred than 6.625%.
I did not own CSR-C going in (I do now as a short term mm alt) but it seems to me that this is not one to necessarily lament for it being called… Afterall, it hasn’t traded over par (liquidation preference) essentially all year long and the company readily admits that the call was not as much for economic purposes but to clean up their balance sheet. In other words, it caught the market by surprise and as an owner you got a slight windfall immediately plus an ability to reinvest in alternative issues of equivalent credit quality without giving up current yield….. not much to complain about…. The NuStar issues were of a different ilk in that when called we holders knew we were going to be giving up alot, however, in that case, we all knew it was coming sooner rather than later…….
Well there goes another one damit..the old IRET now CSR, calling the pfd C. Of course I have a big slug in the Roth w 23.50 basis so div plus call. Only tiny bit in the taxable last thing I need is more taxable gains. So this to me is ‘cash’ now in both portfolios. 6.625% using ATM issued common shares, the common ran up a lot after BX bot AIRC apt REIT.
Thanx to Tim here yet again for another time in the many years he has helped us, in the past he discussed and was part of my comfort level plus the great Midwest portfolio they hold. At least it was under par. Will have to do some 2Whiteroses math when it opens and see how it trades although I will probably just hold till End of Sept payment/redemption. Bea
you forgot to include the details, Bea…… https://ir.centerspacehomes.com/corporate-overview/press-releases/news-details/2024/Centerspace-Announces-Quarterly-Dividend-Redemption-of-Series-C-Preferred-Shares-and-Share-Issuance-Update-2024-RZXFTp1foq/default.aspx
I wonder what their motivation is? Doesn’t seem to be an outstandingly large coupon…….“This is an important strategic step that allows Centerspace to simplify and improve its balance sheet while increasing the Company’s share liquidity in a non-dilutive manner,” noted CFO Bhairav Patel.
Ooops, nevermind.. Didn’t realize you were commenting on one of the Headlines of Interest… Sorry ’bout that, Bea
2WR, maybe a special situation, they couldn’t find any apts in their markets in the Midwest to do a better cap rate than 6.625% with their ATM share money OR any other debt to paydown. It was an eye opener for me only in that I thought a bid would come for the company and takeover/change of control info was more of a concern.
If rates do crash you have to wonder if some like PSA come back to redemptions to make nickels ..or pay off debt they incurred recently. Oh well. A little win in a down day. Bea
Bea – Bummer on this one. I had large holdings in the preferred stock as well. It was one of my favorite apartment REIT preferred stocks. Think I was in around the same cost range as you.
I am loaded up on CIO-A very high quality balance sheet and I feel if rates dip a bit this will get called at par. Still trading at a discount (sub $20) most my other buys have already gone back to normal so this one is on the way.
Thanx I forgot about CIO-A I was in that in my mad ofc REIT trading post bank failures in the swoon. I think that is a KaptLou name too?? yes KaptLou I remember CSR discussions I think we had.
Will take a look. I got some NSA-prA a few weeks ago at 22.25, decent quality to me not sure if I would add to it tho, 6% payer, we’ll see have to sharpen the pencil and pfd hotlist go thru it all. We get a strong job number maybe a stink bid or two will snag something Friday? who knows. Oh well. good problems to have.
I see 3m SOFR is under 5% now.. drifting lower on the short end…Bea
kaptain –
Same here. This was one of the very few apartment REIT preferreds that even exists. Very surprised at this redemption. With CSR-C and O-P I’m getting hit with two very large redemptions on 9/30/24. Damn it.
Did not expect the redemptions to start happening this quickly.
Preferreds from very high quality property REITs like PSA, KIM, DLR are all trading with 5+ yield handles now. Some yield Investors seem to be acting like we are heading back to ZIRP? Not a chance.
Going to be a challenging 4th quarter looking for places to reinvest the proceeds. I already loaded up on LANDP even though I am not a fan of LAND common.