REIT American Finance Trust Reopens Perpetual Preferred

Diversified REIT American Finance Trust (NASDAQ:AFIN) has announced a reopening of a previous perpetual preferred offering.

The company has reopened the 7.50% perpetual. They had previously sold 1.2 million shares and it trades under the ticker AFINP. Previous to the announcement of the reopening it was trading around $26, but fell to $25.10 at todays opening.

The company has not yet announced how many more shares they will be selling.

Info on the issue can be seen here.

4 thoughts on “REIT American Finance Trust Reopens Perpetual Preferred”

  1. is this a common way to issue more shares? I haven’t really seen this before but it looks like a good opportunity to buy it relatively cheaply.

    1. kapil–not it is not normal–but on the other hand we see a couple of these every year.

  2. well, it looks like they finished it in one pop today.
    Volume today was 450,000, (so you guys can quit bellyaching about thinly traded issues) /s
    this was in today’s 8K filing, which indicates they sold it in a block, and it hit the market today from the broker that bought the lot and they paid $200,000 in trading commissions.

    “Subsequent to June 30, 2019, and through August 28, 2019, the Company sold 423,086 shares of 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), through the Company’s “at-the-market” equity offering program for Series A Preferred Stock for gross proceeds of $10.8 million and paid commissions of approximately $0.2 million.”

  3. Thanks Tim. I’m a fan of the preferred stock at current prices and like the diversification of their properties, although I would not own the common because I fear there could be a dividend cut. Their #1 tenant is SunTrust, who is merging with BB&T, but most of those properties have long term leases and I know they are in the process of selling off some of those properties.

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