Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Homebuilder/Developer Green Brick Partners to Sell New Preferred

Texas homebuilder and land developer Green Brick Partners (GRBK) has announced they are selling a new perpetual preferred stock issue.

The $25/share issue will be cumulative .

There will be an optional early redemption starting in 2026.

Egan Jones rates the issue A.

The preliminary prospectus is here.

EarlyBird was on top of this one and posits a potential yield in the 5.50% to 5.75% area.

9 thoughts on “Homebuilder/Developer Green Brick Partners to Sell New Preferred”

  1. I looked at this preferred a couple weeks ago because the yield seemed really good, but I got distracted. In the meantime, the price has skyrocketed: it’s gone from $18.15 to $21.00 in the last week. Yield is still ~7.2%, which is pretty high for QDI, but quite a bit down from the 8% it was last week. Any ideas why this happened? Just random fluctuations, or did something happen that makes people think it is more likely to be redeemed early?

    1. Nathan – I see nothing new with them–but you are right volume was heavy and share price straight up. My guess is that a lot like others that have lagged the market someone goosed it — by the way there was a seeking alpha article on this preferred on 1/16. I would be shocked if these were redeemed in 2026–5.375% is a pretty decent rate for a homebuilder–but who knows for sure what will happen in 2 years.


  2. The last several preferred and bbs are definitely not my cup of tea including this one. Here is to hoping patience pays off and we get something decent that I can work with personally.

  3. With Partners in the name I assume this is a K-1 generator, right? I didn’t bother to look, particularly due to my adversity to perpetuals…I own a few, but not many.

    1. C-corporation. pays dividends and has significant retained earnings, so no chance of return of capital.

    2. They are not a partnership. They are a corporation, so no K-1. The prospectus filed with the SEC names them as “Green Brick Partners, Inc. ” and says they were incorporated in Delaware. (In the Exec Summary: “Green Brick Partners, Inc. was incorporated under the laws of the State of Delaware on April 11, 2006.”)

      The divvies are ordinary income if earned (or ROC if not) and are qualified, according to the tax information item in the 12/15 Prospectus update at S26.

      In any event, a confusing name. At first, I thought they were a cannabis seller.

Leave a Reply

Your email address will not be published. Required fields are marked *