Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Disproportionate Sell-Off Of REIT Preferreds Creates Substantial Opportunity

The Creation of Opportunity

Fixed coupon investments should trade down uniformly in a marginally higher interest rate environment, but the low trading volumes of many REIT preferreds made the sell-off disproportionate. As it stands today, certain preferreds are overvalued while others sold off far more than they should have. This is a temporary condition as fixed income instruments will usually return to equilibrant pricing. This article will demonstrate the Northstar Realty Finance preferreds to be mispriced and show how to obtain capital gains in the return to normalized pricing.

The Opportunity

I posit that the Northstar Realty Finance (NRF) series of preferreds A, B, C and D are vastly superior investments compared to other REIT preferreds. In fact, I would...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details