Mid Day Action In Preferreds

While the $25 preferreds remain fairly steady–off a penny–there is plenty of action in various individual issues today.

The biggest standouts are the 5 preferreds from American Homes 4 Rent – the issues went ex-dividend today.  While the shares were ‘marked down’ for the ex-dividend date they have fallen plenty past the normal markdown.  For instance the AMH-H issue which has a coupon of 6.25% would be marked down by 39 cents for the ex–but has fallen another 50 cents beyond the normal markdown.

Readers are cautioned that the Google Quotes DO NOT show the markdown for the ex dividend–instead for 1 day it shows the ex dividend date plus the further decline–for instance on AMH-H it shows the issue down 87 right now.

The American Homes 4 Rent preferreds have now all fallen into the range where they have current yields above 7%.  We made a small purchase of the AMH-D 6.50% coupon issue with a current yield of 7.17% for a long term hold.

The Farmland Partners Participating preferred (FPI-B) is being slapped down mightly–down $1.05.  We wouldn’t touch this one as FPI management is highly suspect (in my opinion).

Some quality perpetual issues are again being marked down–Digital Realty 6.35% (DLR-I) down 77 cents, First Republic Bank 5.625% (FRC-D) down 75 cents, and First Republic Bank 5.70% is off 72 cent.  The FRC  and DLR issues are ex dividend today–but have fallen beyond the ex amount by a goodly sum.

Abnormally high volume is seen in the Gabelli Utility Trust 5.375% perpetual (GUT-C) at 4.4 times normal volume, and the Bank of America 3% minimum floater (BML-H) is seeing volume 5 times normal–this issue is now trading with a current yield of 4.03% at $18.65%.

We also note that the KIMCO 5.25% perpetual (KIM-M) is trading higher by 12 cents on almost 3 times normal volume.  As we had exchanged comments with some readers on the KIMCO issues seem to being bought the last 2 days on higher volume.  Current yield are getting to the 6.50% area for investment grade perpetuals of KIMCO.

25 thoughts on “Mid Day Action In Preferreds”

    1. Hi Hang–I am not a fan of anything LTS. Their financials are just a bit funky for me. Their common trades around 2.69 which is the marketplace opinion on the company.

      I had owned the LTS-A monthly pay preferred at one time–maybe for a year and did ok–but after studying the financials closer I decided to exit the company.

  1. Twinjet/Tim – There was an announcement last month that Gaslog Ltd (GLOG) and Gaslog Partners (GLOP) had modified their arrangement to eliminate IDRs. Since that time GLOG has seen an increase in price of .5% while GLOP has dropped about 6%. I haven’t studied this closely but the market seems to be interpreting this as a negative for GLOP. During this time HMLP has also held up well so it will be interesting to see how this plays out in the coming weeks.

    1. Hi 2chinooks–yes I saw that and it is a positive for GasLog Partners–it will save some millions each quarter. I think the marketplace isn’t in tune with GasLog at all–but it is what it is.

      Yes Hoegh and Golar have held up well–the next few days will be fun–hope we see a bounce in all the shippers.

  2. Hi Tim, I always take your advice and a few weeks ago you mentioned CHSCN, well today I picked up 400 shares at $24.84, just before it goes x-dividend Hope I made a good choice.
    I love your site, been following you for years.

    1. Hi Jeffrey–good for you (I hope). Remember I don’t recommend buys/sells, but I do disclose what I am doing personally.

      Glad to have you here.

  3. All the Seaspan preferreds are getting hit hard today as well for no particular reason that I can see.

    1. Yes Gary–at this moment all shippers are hated–I hope this will reverse soon.

    2. Looks like another lousy day shaping up for income and high yield issues.
      Maybe it’s tax loss selling in full force?
      Whatever the reason, things sure don’t look great now; can only hope that conditions will improve in 2019.

      Perhaps the statement and dot plots issued after the next FOMC meeting will provide some relief – if it is more dovish. If not, then we might be in a world of hurt for a while yet.

      1. Traditionally, mid-December is when tax loss selling hits its peak. If you haven’t yet sold losers you might want to hang on to them. Next year, sell in November. But great time for bargain hunting.

      2. I agree with Inspbudget.

        My portfolio continues to hurt. Only saving grace are those reliable dividends coming in.

    3. Given their balance sheet whenever it’s a risk-off day they will be hurting.

    1. Twinjett50–there is no good answer–just selling by folks wanting to rearrange the portfolio before the end of the year–there is no new news.

      I have GLOP-C and it has been plenty painful.

    2. I added a few days ago to my position thinking I was getting a deal. Apparently, all I did was catch a falling knife. I see no news on the parent company.

      1. Retired–there is no news. If the current yield hit 10% I am adding. 9.66% right now.

  4. On my system, the page entitled “$25 Preferred Stock Sorted by Share Price Loss/Gain” seems to be loading alphabetically instead of by price drop. When I click on the “change” column, it still doesn’t sort. Is the page loading differently, or am I doing something wrong? (I don’t mean to complain. This is a free service that is worth a premium for your time. But wondering if I can fix it on my end.)

    1. Hi Roger–sorry about that–I must have changed a setting without even knowing it–should be working ok now.

  5. Picked up FRT-C in keeping with my theme of buying more quality issues. Near 6% yield on a solid IG issue with an ex dividend date at month end. This issue trading down 1.6% today but the ex divi date is not until 12/31

  6. Hi Tim, the pfd loss/gain list does not appear to be sorting to show largest losses 1st?

    (There was an article on SA about KIM-I by AlphaGen perhaps that is adding to the volume. Bea)

    1. Hi Bea–sorry for the page error–some one (me) must had inadvertently changed a setting.

        1. You’re welcome–sometimes I ‘tinker’ and then mess something up.

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