18 thoughts on “VEREIT Preferred On Sale”

  1. They are projecting $0.64 AFFO for full year 2020 of which they are paying out $0.55 on the common. The $1.68 they are paying out on the pref is coming from where?

    1. Richard, you are not doing the math correctly I believe. Im using your numbers, but .64 AFFO equals 711.1 million from 1.1 billion shares outstanding. Common divi using your numbers is 611.1 million. That leaves a $100 million. Preferred is 31 million shares at $1.68 so that is $52 million.. So the money is there.

  2. RILYZ was under par at one time today and dividend coming up. Also first option to call coming in May so you can collect div. And par value

  3. NGLS_pa below par again. Monthly payer. Common now at $27.90 and bonds @ 4-5% yields, but energy, so it’s hated. Added more. This pfd was $27.50 in fall.

  4. Thanks Tim! I picked up 1/2 position at $25.07 on 2/28. If it hits below that I will double up.

  5. What is the risk to REIT preferred stock dividends if the 10 Year TBill rate goes to zero or negative, and the spreads are compressed to nothing? I am just a little concerned that REIT incomes could suffer significantly. In a normal rate spread environment, VER-F at par would be great. I would look for this to drop before considering.

  6. Is it on sale or just falling with the tide? Seems to be in line with other REIT preferreds also falling.

    1. wedgehead–we know they will be calling more–but given the market situation it is a decent deal.

      1. Indeed Tim. Love the risk profile on this one:
        very limited downside and rock solid upside.

  7. Thanks Tim, nice monthly payer with a solid credit profile IMO, excellent 67% market cap / EV ratio, common pays a 5.93% dividend, the Pref distribution is well protected, hope they don’t call these for a while.

  8. I see it is partially callable. Never owned one that was a partial call. How does this work? Is it like options when in the money they are callable before expiry at broker’s whim? I have held short PUTs and have had a part of them assigned in one account way before expiry and none in the other…

    I do understand that this would be attractive yield at a good price in low $25s if NOT called.

    1. mSquare–it is a massive old issue that they have been calling from time to time–still 30 million shares outstanding. I expect them to continue to call–BUT as long as you can get it around 25.15 you have no monetary ‘call risk’ as they pay monthly (14 cents).

      The company will give around 30 days notice of any call. The company (not this issue) is investment grade.

      1. Appreciate the quick answer and this site very much.

        But, any experience (even if anecdotal) of who decides if it is your shares that get called – the company or the broker where you own them?

        1. In my experience it’s always been pro-rated. For example, if they call 25% of the shares outstanding, 25% of my shares got redeemed.

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