Triple net lease REIT American Finance Trust (AFIN) has announced they will be selling a new issue of cumulative preferred stock.
The company has 1 other outstanding preferred with a coupon of 7.50% which can be seen here.
The issue will be unrated and ‘yield talk’ is in the 7.375% area.
The preliminary prospectus can be read here.
J was on this early with EarlyBird some ‘yield talk’.
Just read up on AFIN recently. Going from memory:
Looks like they have pushed maturities on bonds out for many years with some good, low interest rates as well as a good report on rent collections and occupancy. I had put AFINP on my watchlist since there is still decent call coverage and near par. I’m kind of liking these shorter term, first in line to call issues like AFINP as opposed to this new issue.
They are in some far flung markets. I have lived in, and still visit on my compulsive travels, some ‘far flung markets’ over years. Sometimes, these freestanding, single outlet locations are the best and ‘only-classy’ game in town for things like chain restaurants, outpatient facilities and retail stores. Seems they are acquiring too.
My impression was that it seems they have done a decent job managing over a very broad range and scope and now repositioned as well as a REIT can in this environment. Obviously going for a somewhat expensive liquidity position of how much?? I always wonder about the thrust of management who “always grow” in lieu of building strength and waiting opportunistically like a Buffet-type.