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.
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.
kapil–not it is not normal–but on the other hand we see a couple of these every year.
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.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1568162/000114420419043293/tv528846_8k.htm
“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.”
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.