VEREIT Comes Calling Again

Large triple net lease REIT VEREIT (VER) has again called 4 million shares of their 6.70% perpetual preferred (VER-F).

This has been about a quarterly event this year–they called in 6/20, 9/20 and now in December (effective 1/21).

Many of you are already aware of this redemption–but for those maybe thinking about buying some shares it is good to know the history. If you click the link above you can see what has happened over the last 18 months or so.

This issue was originally over 42 million shares and after this call there will be around 14.9 million shares outstanding. Given the history it would seem logical that by this time next year there will be NO shares outstanding.

I see shares have popped today to $25.36/share. Dividends are about 13.9 cents/share monthly so one might be wise to buy only a little lower–unless they call all shares in the next 90 days one will make money–but you can’t always tell what they might do. I am guessing they will make 3 more calls over the next 9 months–meaning 9 dividends left to be paid–but that is simply a wild guess.

Disclosure–I own a little of this issue bought at lower levels, but will buy more if it sets back into the $25.15 area.

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