Top Volume Leaders Thursday – All REITs

We noticed after market close today that the preferred issues with the highest volume compared to their average daily volumes were all REITs.  Likely today we are seeing reshuffling in a REIT Preferred Stock Fund–we had not seen much volume in the REIT issues lately so it will be interesting to see what the next couple of days bring from this sector.  Fortunately, while the volumes were high, the prices were not disrupted too much.

Site Centers 6.375% (SITC-A) traded 19 times the average daily volume.  Stag Industrial 6.875% (STAG-C) traded 15 times normal volume, while City Office REIT 6.625%  (CIO-A) and Urstadt Biddle 7.125% (UBP-G) traded 10 times normal volume.

The volume study page is here.

32 thoughts on “Top Volume Leaders Thursday – All REITs”

  1. Nomad

    I understand that most, if not all, financial firms have their fleas about them. The 3% money market will be a loss leader in the hopes of garnering more deposits so that they can eventually be bought by another PE or public firm. It will be interesting to watch how long RH can maintain the 3% rate and if the public (and government) will eventually figure out what is really going on and if they decide to regulate them.

    1. Marc, thank you for your reply and thoughts. I’m sure the “big boys” of the financial service industry are watching very very closely what Robinhood does to their good old boy network (JP Morgan, Goldman Sachs, BofA, Fidelity, TD etc) of high fees and poor results. The entire financial services industry is built on high fees and Robinhood is attacking them by taking these charges and billions of account dollars away. Also, Robinhood has a low age demographic, these “younger people” are learning that they do not have to pay fees or need a self serving broker or brokerage firm to manage their portfolios just invest in an index fund. Robinhood is on the lips and thoughts of many in the industry because they interrupting their narrative and will impact earnings of these large financial “service” companies. Wishing you profitable investing, Nomad

  2. As to Robinhood, have they changed their approach to selling info to HFT, like Citadel? While a 3% MM is great, Robinhood is negatively affecting the industry in other ways by selling flow info. Very subjective issue. Not really a rant, just some other data to consider.

    1. Marc, every company that is large and in the financial service industry has had their issues and detractors. A 3% money market with no fees from Robinhood is a SIPC gift that is hard to pass up. I electronically transferred them a large amount last evening and will report back if there are any “problems”; as of now all is well. Time flies over us but leaves it’s shadow behind, Nomad

  3. Hi all!
    New to this site and while I’ve been an investor for decades also totally a NOOB at Baby Bonds and Preferreds. Tim, looks like you have done a fine job here and I look forward to educating myself. My goals would be 6%+, sleep well at night (SWAN) issues since at 75 I’m looking for cash income. Anyone have tips for avoiding noob mistakes?

    1. Hi Mikeo–you have to determine how much of your net asset value you can lose (as prices swing up and down)–the CEF preferreds are mostly the best quality–and now they are closing in on the 6% area. They are extremely safe, but also prone to move lower in price IF interest rates move higher. You can find the list here–

      https://innovativeincomeinvestor.com/preferred-stocks-of-closed-end-funds/

      Also if you are new to preferreds and baby bonds you should start small–100 or 200 shares per buy–that way when you make a mistake you won’t be crushed.

      Glad to have you here.

  4. It disappeared $ 46 billion from US equity funds and traded funds, ETFs, over the past week, which is a new record. It shows data from Lipper, writes Reuters.
    Outflows from bond funds of $ 13 billion were close to record levels.
    The funds that had a good week were money market funds whose risk is low. These funds took $ 81 billion, which corresponds to the largest recorded inflow so far, according to Lipper, which compiles data since 1992.
    Thus, investors have chosen to take caution over what has been a roller coaster in the US stock markets this year.
    The vision of the future is also not bright and the most pessimistic is private investors. 49 percent of them believe the markets will fall over the next six months, which is the highest percentage of five years. This survey was compiled by the American Association of Individual Investors, which Finwire reported on yesterday.

    ETF flows are the drivers of the market

    1. Using Tim’s spreadsheet, I added a column (52 week high) – (52 week low) / 52 week high; then sorted by that. This should me 52 week percentage.

      Many were the shorter term preferred issues that Tim has been investing. The one long dated issue that was showed very little change was ARGD. It is low investment grade by S&P, paying 6.5%. I have no immediate interest just passing along what seems to be things that stand out

      1. Be careful SteveA – you will turn into a spreadsheet nerd. With all the data I now have available sometimes I am getting overwhelmed with ‘data’–it is somewhat addicting.

        1. It has been very good for me. When I look at the average percentage drop (eliminating the MH, Rait so as not to skew averages), the high-low drops in Met-E, All-G, and PRS looks quite reasonable compared not only to averages but to other individual issues. I still want to sell them when the opportunity presents itself and move up the coupon latter while holding a good quality (don’t we all ). They are actually holding up decently – so when market stabilizes and I recover some of the drop then I can plan other moves likely into some more of the term preferred’s with very short duration’s. It keeps me from doing something dumb, like selling at the wrong price

          Look forward to how you are positioning your portfolio’s particularly as you move to longer dated issues.

    2. Thanks for the data Mauro–some days recently money markets have looked pretty darned good.

      1. Tim, I have been looking at the very few baby bonds that are rated. I was wondering if you know why BSA, rated Baa2/BBB-, matures 8/1/2031, is so discounted. Current price is about $20.10 giving a YTM of about 7.7%. Thanks!

        1. Hi Alan–you would’t think it would trade this low–but again 13 years is a fair amount of time to maturity. Certainly their financials look solid. I see no reason for it to be trading at this lower price.

          I am going to watch it for myself–although I can’t say whether it is good for you or not.

        2. Hi Alan–I looked again and am certain it is trading down here because of the 5.125% coupon for a current yield of 6.33%. All of the issues (of course perpetual preferreds the most) with these low coupons have traded down hard–I think it is as simple as that.

          1. Thanks Tim. If I calculated it correctly, it has a YTM of over 7% which seems good to me even with a relatively low coupon. I haven’t looked at the issuing company yet, but will.

    1. Yes Nomad – I saw some dude on CNBC yesterday (or was it Wednesday) and thought it looked interesting.

      1. apparently that Robinhood offering is under scrutiny now, SIPC not FDIC insured and SIPC has issues w it.. I guess a big picture take on this imo is there is a lot of competition for cash like investments at this time which is fine w me as I am very liquid at this time.

  5. I know I posted all of this at various points during the day but I initiated several positions today. Several were REIT preferred issues.

    FRT-C
    NNN-F
    KIM-I
    NLY-D

    Also added

    PRE-G
    OAK-B (added to position)

    Not sure if anyone would be interested in these other than me. I was after higher quality issues today that have sold off substantially or near 52 week lows.

    1. Retired–I think you are playing with issues that a lot of folks are looking at–I know the KIM issues have seen some demand lately on high volumes.

    2. Thanks retired, quality is good. Just put a bid in for the NNN-F at $20.60. I’ll let you know how it turns out. Picked up KIM-L and ENBA earlier this week. Also have had SPKEP and TGP-B for a while now, so good to balance with some better quality preferreds. Thanks for the list…

      1. NNN-F hit at $20.60. I’ll take 6.3% from triple B NNN. Now going to sit back and see how things unfold as we end the year – wild ride every day!

        1. timdman–yes everyday is wild–one of my accounts is off 3/10% today–my biggest daily loss this year. On the other had I have plenty of dry powder and just nibble here and there.

          1. My account is an IRA and down .47 today. I raised some cash prior to October but not enough. I have some but I m going to sit on my hands til at least the new year. Seems like reits and utilities have at least given some stability to my portfolio. Most equity is in CEFs and ETFs, dividends make it a little less painful

        2. I stepped and bought two more quality issues today and now I’m done until the last week of January.

          NEE-I
          NCZ-A

          Not quite that yield but high quality.

  6. Tim, any of these high volume preferreds that you are interested in adding to your portfolio? Wishing you profitable investing, Nomad

    1. Hi Nomad–I mentioned yesterday that I started a small position in AMH-D as the current yield is now 7.2% (6.5% coupon) and 7% is enticing to me.

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