Tiny REIT Presidio Property Trust (SQFT) has a presentation on a potential new preferred stock offering.
This is just a ‘heads up’ as no SEC filling on the new issue has been made as of this moment.
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4/19/2024
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(Enterprise Value less Market Cap)/ Market Cap should be a quick and dirty way to estimate Debt to Equity. Lots of high dividend payors these days. GLOP-A, B, C for example. I missed HROWL after seeing lots of negative comments on this WEBSITE, the Best IMHO. Then my Dallas investing friend posted a POSITIVE post on the old Doug Le Du cdx3 investor.com. I looked at Schwab.com which rated the issuer HROW as A. With my own glaucoma and my wife’s eyes mid-diagnosed by one Top Retina surgeon with incredible credentials, I started to study Age Related Macular Degeneration disease. There are lots of companies producing injections, which are supposed to be a hell Mary way to delay total blindness. Each injection was $2000 then and if I recall correctly at least 4 shots per year all covered by MEDICARE. They also recommend OCT test which is around $150+ if patient has MEDICARE or it gets very expensive. Glaucoma eye drops not so expensive. The one which is, is readily available through Canadian pharmacies. I bought some shares above par. HROWL with its very high couple is no longer a bargain. It could slid after ex dividend. something like $25.7 still a good deal IMHO.
Right before COVID I picked up LOAN, a Manhattan Bridge loan, seeing how much unrealized loss I had. Today, I see some unrealized gain. LOAN was suggested by Rubicon Associates, which is supposedly to have some credit evaluation capabilities. He then worked for Brad Thomas. I believe that he is now off SA or retired. I still like Safe Bulkers, Inc. preferreds, C (less float) and D. Same 8% coupon, trading now slightly above par. IMHO, SB C or D should be safer than GLOP A, B or C, of course lower net QDI yield. Richard LeJeune seems to give his nod to SB. His DLNG-B, once upon a time looked God awful is doing fine with presumably very LONG engagement on most of its ships. Biggest potential shipping threat: CNN reported Putin is trying to occupy the Artic land, now not so frozen. If it succeeds, it could ship all its oil directly to Europe and beyond.
I picked up some of LBRDP, GridBird’s great find, after I sold off my OPPA with no net loss except so called opportunity cost. IMHO, Gridbird is substantially more knowledgeable than Rubicon Associates. However, I do intend to hold my LOAN. Yield matters these days. The debt to equity ratio for LOAN does not look frightening. Then its yield is okay but not outstanding. BTW, I still keep on nibbling on Gridbird’s WCC-A. Any call risk although the QOL seems to suggest a decent long call protection.
Thank you, Tim and Grid.
Wow…. Reading through the material in your link makes me realize that me potentially buying a couple hundred shares is no big deal in comparison to what these folks are gambling with! If I got burned it is small enough I would kick myself for being so dang greedy and move on. Let’s see, the dividend on 700,000 shares is way above last year’s FFO, which means they better have something lined up quickly to purchase and produce income, and their liabilities are more than the stated value of the assets. Oh, and they have suspended dividends twice in the last few years, each for a year or longer. Shareholder equity is also in a decline and the presentation shows NOI falling also. I am sure there are other things buried in the document, but that is enough for me. But 9.375%! Is it worth a few spins of the Roulette wheel?
Don’t forget that if they issue all shares, total outstanding will be the equivalent of nearly 90% of last year’s total revenues…. That’s comforting too, don’t you think?
Yep…. If I get any more comfortable I will give up and put all my retirement assets in a money market account! Wish somebody would issue something around 7% that did not immediately take off for the moon in value before I got a chance to buy some. Oh, and they need to have better financials than these folks! Might as well go to the casino. Very frustrating to chase things, which I seem to be doing more and more of lately.
After reading all the comments and in particular DJ’s I say to myself does this industry no longer have any regulators?? Guess not.
Tiny REIT looks like declining NOI unknown underwriters what’s not to like?
In a business where cost or capital is paramount the company can raise preferred equity at just 9.375%. If you read their materials they go after properties where the big boys won’t compete.
https://www.sec.gov/Archives/edgar/data/1080657/000143774921013780/sqft20210525_s11a.htm