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Triple Net Lease REIT VEREIT to Redeem More Preferred Shares

Many of us have held the preferred shares in triple net lease REIT VEREIT (VER) for quite some time. I have a few shares now, but just a taste.

The company has a 6.70% perpetual preferred (VER-F) outstanding which was a giant issue–originally around 43 million shares. Since the issue became redeemable in 2019 the company has called for redemption at least twice for 12 million shares–last I calculated there were still around 30 million shares outstanding.

Shares are now trading around $25.09. The shares pay a monthly 13.9 cent dividend. I expect shares will trade around the same level for the next year or so based upon the expectation that shares will all be called when the company is able to garner enough money to make it happen.

The company is selling more debt to redeem another chunk of the Series F preferred

For those that don’t own any of the VER-F issue it is a reasonable spot to garner 6.70% from a large REIT.

Potential investors should do their due diligence to understand the history behind VEREIT. Any one buying at this moment will have a portion of their shares called away in the next month (i.e. if you buy 100 shares today you may have around 20 shares called–just guessing).

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