mREIT Dynex Capital to Sell FTF Preferred In a Refi Transaction

mREIT Dynex Capital (DX) will be selling a new issue of fixed-to-floating rate preferred.

The company says they have already issued a call announcement for older issue DX-A, a 8.50% issue which was trading at $26.29 yesterday. Guess someone is going to take a bit of a spanking on this call.

The preliminary prospectus can be read here.

16 thoughts on “mREIT Dynex Capital to Sell FTF Preferred In a Refi Transaction”

  1. It has been postulated by the preferred gurus that Dx will never be called. Well, shucks. I get a spanking!

    1. Jeff–sorry. I think this was said on many issues (in particular mREITs), but I guess things change.

      1. Tim-
        Where was that DX-A call info – in the latest ER or elsewhere? Don’t see any news. Nothing at QO

  2. I sold MITT-B. All of these refi’s are the canary in the coal mine for high rate callables. Sell now so I don’t lose my 4% profit.

    1. MITT-C was just issued at the same 8% coupon in the Fall but given that it’s now at 27, it would indicate that MITT could issue new preferreds around 7.25%. Just shy of the 0.875 spread I think would be required for a MITT-B refi to make sense for them. But they would call MITT-A first since it has a higher coupon.

      If you’re going to play the “dodge a call” game, ANH-C at 25.45 is the better risk/reward.

      I may sell my small position in MITT-B too. But I think the big difference between MITT and DX and why they are issuing preferreds now is that their common stock is at 52 week highs. MITT and ANH common are far from 52 week highs. AGNC also recently issued a preferred and they are at 52 week highs too. I’m guessing NLY will issue something here as well.

  3. mREIT IPOs coming in fast and furious now. Even from the bit players like DX and Orchid.

    1. landlord within the reit world are there a couple of equity plays which you might favor now? would value your thoughts. tia sc

      1. I rarely invest in individual common stocks and when I do, it’s high quality large caps, not high risk small caps.

        That said, in the REIT world, I do own a mid cap equity REIT — Northwest Healthcare traded on the Canadian exchange. They are a global medical office building REIT with high quality properties on long lease terms to high quality tenants in Canada, Europe, Australia, and Brazil. Over 6% yield that is 100% ROC.

        There’s an OTC ticker for them in the US.

  4. Dynex Capital Inc
    Series C Fixed-To-Floating Rate Cumulative Redeemable Preferred
    Expected Size: [2,000,000] shares
    Price Guidance [6.875% – 7%]
    DRD/QDI: Not eligible
    CUSIP 26817Q407 / US26817Q4073.

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