Headlines of Interest for Holders of Preferred Stock and Baby Bonds

11 thoughts on “Headlines of Interest for Holders of Preferred Stock and Baby Bonds”

1. Sold the CTO-A for nice gain off low base cost, 6.5% is not enough cushion for me for the risk, despite the company being well run and managed for decades including through the transition from C corp to REIT. They are obviously on a growth tear issuing common/pfds ATM (At The Market sales off a Shelf Registration filed previously )…using these a lot and debt. my Cash is back up to 57%, SPAXX and SGOV mostly, 18.43% ytd total gain, if I get 4% on portfolio for the next 2yrs being ‘safer’ that is over 8% over 3yrs (’24-25-26). Obviously I will take advantage of opportunities that arise of course. Most of my gains came from gold mining/royalty stock sales, pfds/bb’s and div/interest.

   have 4% in WTFCP 3% in SR-A 1% in GAM-B; holding off on selling the MGR and BFS-D where I have 15% gains but in taxable due to heavy short term cap gain ‘problem’ lol this year,,, if those gains evaporate am ok w holding on those for income to reinvest in 2025. 3% in HOVNP is the ‘risky’ one to me.

   Put this here in light of the CTO quarterly update if anyone wants to review that detail. Heavy REIT or any company ATM program sales w giant shelf registrations always concern me, stealth dilution in the name of ‘growth’ or to avoid market reaction to money raises.
   Thanx Tim for sharing in full disclosure always what you do, adds even more credibility to your stellar resume. Bea

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   1. Bea, been waiting to hear from you. I can’t resist asking about your avatar. That is one Fat Cat !

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      1. it has been a rough week for Mom, microwave went so I am helping ‘durable goods’ buying my new one..I couldnt get the Linda Ronstadt photo w cat to size to the avatar space over at hell I mean SA so I found a stock fat cat, probably go back to my Gimlet Cocktail photo-which is my fav photo..still on moderation over there so limited posting, site is a true waste anymore anyway. So that is just a stock cat pix. I did add a little Haverty Furniture, Surge Energy and Cenovus this week trading wise. Took a LOT of profits in gold stocks Monday…but still am ‘ FallingKnivesBea’

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         1. Sorry to hear that Bea, Still holding the FRHLF but may lighten up a little. Natural gas and LNG related companies bother me a little. Keep watching but nothing I read says we are going to have a cold winter. More like a wet one. Then just my feeling that there is an abundance of NG and a little long in the tooth this market cycle. Maybe a quick in and out trade on a few but no long term holds.

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   2. Bea – I have you to thank (thank you!) for the heads up on CTO-A and BFS-D. I did sell CTO-A last week – just too much gain to pass up. I am continuing to hold BFS-D but will monitor.

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   3. Bea –

      What about HVT? Are you buying more and lowering your average cost on this one?

      Bea says:
      10/11/2024 at 10:07 am
      In the ‘what the heck are you buying now Bea, you nut’ category, I started a position in Haverty Furniture, HVT (2 classes, voting is HVT/A, went w the liquid HVT) about a 5% yield on 25ish price .32/q, ‘better’ furniture store w no debt about 115mil cash on a small mkt cap, CEO owns about 5% or so, of course that is discretionary spending of ‘durable’ goods like sofas, chairs, bedding. They have tossed a $1 or $2 year end ‘extra’ div on top of the quarterlies if you look at the div hx. Not sure this year, I guess it just depends on year end sales 4th q usually the strongest.

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      1. Papa Doc, yes added tiny amt to Haverty as noted, HVT..slow build. They report Wed 10/30, guess we’ll see how it has been going, any extra yr end div etc. Charles I flipped Freehold not in that (in Roth) have other energy names tho. Again mostly cash very conservative portfolio now w little nibs here and there. DYODD. Bea

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2. Valley announced the sale of 800 million of commercial real estate. Valley was known for its construction lending. Atlantic Union is selling 2.0 billion of commercial real estate as part of its merger. Random dots or a trend?

   I thought the commercial real estate crisis was over. (Office stocks are way up YTD. One office REIT pumper is using “fantastic” in his headlines.) I now wonder if there is regulatory pressure on the banks to remove commercial real estate from their balance sheets? The trade press suggests a still-weak big city office market. Regulators are finally noticing “extend and pretend” loans.

   “Office Market Near Bottom, But Recovery Could Take Years. Moody’s reports that the office market may be approaching a bottom, with higher deal volumes and more sales at large losses.” – CRE Daily.

   NY Fed says banks obscuring commercial real estate risks by extending loan terms
   https://www.reuters.com/markets/us/ny-fed-says-banks-obscuring-commercial-real-estate-risks-by-extending-loan-terms-2024-10-23/
   NY Fed warns stressed banks obscuring commercial real estate issues
   NY Fed: Troubled banks extending commercial real estate terms
   NY Fed: Extended troubled CRE loans could quickly become broader problem

   New real estate buzzword from Reuters: “manageable trouble.” Appears above “price discovery” (aka selling at a big loss) in the real estate dictionary,
   JMO, DYODD.

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   1. Bear, Hard to say, CEO Robbins said the 800 million was “performing loans” what about the non-performing? they were up only by about 1/2%
      Now AUB that is quite a big sale 2 Billion. I had been eyeing AUB PA on and off this year as it was their only preferred but I was full up on bank preferred this past year.

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      1. Looked to me like AUB was just being proactive and anticipating conditions of regulators for the approval of their merger by selling off CRE and also doing a big -350 million. capital raise. Regulators seem to like capital raises as merger conditions. I am long AUB preferred and happy with it but not looking to add banks at this time. JMO, DYODD.

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         1. Bear, sold 1/2 of my position in one account and all in another of the CUBI F I have kept everything else and added some RF and PNFP preferred in the last 3 or 4 months. I will not be buying anything else in banking right now as I don’t see any deals.

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