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Rubicon Associates

 
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  • American Realty Capital - Enough Already, Thoughts From A Shareholder
    Wed, Nov. 5 ARCP 162 Comments

    Summary

    • The market has brought the hammer down on ARCP shares - AND RIGHTFULLY SO.
    • Between the accounting fraud (yes, I said it) and the RCAP news - there is one common denominator.
    • Nick Schorsch - the builder of the companies - must go.
  • Cliffs Natural Resources: Bonds Support Stock Move
    Editors' Pick • Thu, Oct. 30 CLF 16 Comments

    Summary

    • Cliffs Natural's equity has rebounded in the last few sessions due to optimism coming out of their call.
    • While I am still not sold on their plan, the capital complex was getting cheap.
    • The bonds lend support to the recent equity move and the company's liquidity.
  • Capital One - 6.70% Yield In Your Wallet
    Wed, Oct. 29 COF 28 Comments

    Summary

    • Capital One Financial has issued a new Series D preferred stock.
    • Relative to its existing Series C and P preferreds, it is attractive at 6.70%.
    • The issue is also attractive relative to peers, many of whom investors are exposed to elsewhere.
  • Urstadt Biddle Issues 6.75% Preferred - No Thanks
    Fri, Oct. 24 UBA 2 Comments

    Summary

    • Urstadt Biddle is refinancing their existing Series D preferred with a new Series G preferred.
    • Series G is pricing tight to existing Series F, I don't see value.
    • Investors should look at Kite Realty Series A instead.
  • Should You Buy American Realty Capital Properties Instead Of Realty Income?
    Wed, Aug. 20 ARCP, O 83 Comments

    Summary

    • One must look past their perception and dig into reality to invest wisely.
    • ARCP has rapidly become the largest triple net REIT after pursuing and closing a number of significant acquisitions.
    • While there are better known and older triple net REITs, ARCP's equity is compelling and offers greater value.
  • Western Asset Mortgage Capital Nails The Quarter - Cautious On 18%
    Editors' Pick • Tue, Aug. 12 WMC 27 Comments

    Summary

    • Western Asset Mortgage nailed the quarter, turning in impressive results.
    • At 18%, WMC is one of the - if not the - highest-yield mREITs in the sector.
    • I am holding at current position levels until I have more faith in the quality of dividends.
  • American Realty Capital Properties - The Other Part Of The Capital Structure
    Editors' Pick • Tue, Aug. 5 ARCP 7 Comments

    Summary

    • Most analyses focus on the equity section of American Realty's capital structure, but what of the debt?
    • ARCP's debt is attractive, especially when viewed versus the industry standard Realty Income.
    • There are reasons the debt is cheap, but it seems too cheap on account of a few reasons.
  • Winthrop Realty Waves The White Flag - So Should Investors
    Tue, Aug. 5 FUR 49 Comments

    Summary

    • Winthrop Realty has waved the white flag and asked investors to vote for a liquidation of the REIT.
    • Upside from here - in management's estimates - is limited and could take some time to realize.
    • Investors are better off deploying their capital elsewhere.
  • Mortgage REITs - Like The Yield But Not The Volatility, Here Is An Alternative
    Editors' Pick • Mon, Aug. 4 AGNC, CLNY, NLY 51 Comments

    Summary

    • Many yield starved investors have been buying mortgage REITs in order to produce income.
    • The volatility that comes with mortgage REITs is often inconsistent with portfolio objectives.
    • Preferred stock offers a viable alternative, but the rate environment warrants caution.
  • eBay Issues Debt - You Could Try The Marketplace, But Buy It Now
    Thu, Jul. 24 EBAY 14 Comments

    Summary

    • eBay issued $3.25 billion of debt from three to ten years.
    • While on an absolute level, the yield doesn't seem attractive, relative to peers it is compelling.
    • The 2021 debt has a decent position on the curve and "roll down" potential.
  • QTS Realty Trust - Reduced Risk, Strong Growth, And Bonds To Boot
       • Wed, Jul. 23 QTS 2 Comments

    Summary

    • QTS is a small but growing datacenter REIT.
    • Due to their non-investment grade ratings, the new bonds have a yield advantage to peers.
    • QTS is in the process of mitigating their greatest risk - "megacenter concentration", which should reduce risk and improve consistency. This will help create a durable datacenter REIT.
  • Cliffs Natural - Do The Bonds Present Opportunity?
    Tue, Jul. 15 CLF 11 Comments

    Summary

    • Cliffs continues to be buffeted by the price of met coal and iron ore, as well as activist investors - affecting both its stock and debt prices.
    • Reductions in capacity and the resultant lower capex spending have helped, but the horizon remains cloudy and somewhat bleak.
    • Bank lines have been extended, but there is still the "activist issue" burning on the stove.
  • Realty Income Might Be Tight, But Here Is An Alternative
    Editors' Pick • Tue, Jul. 1 EPR 9 Comments

    Summary

    • I recently wrote an article stating that Realty Income bonds were tight and investors might want to look elsewhere, here is an attractive alternative.
    • EPR is an attractive triple net lease REIT whose bonds offer a compelling opportunity.
    • The 5.75% of 2022 are compelling and should be considered.
  • Realty Income - Strong Name, Tight Bonds
    Wed, Jun. 25 O 4 Comments

    Summary

    • Realty Income recently issued 3.875% noted due 2024.
    • While the pricing is consistent with where outstanding bonds trade, there are potentially better issues available.
    • Other triple-net REIT bonds might have better value as well.
  • Colony Financial: 7.50% Is Nice, But I Like Series-A More
    Fri, Jun. 13 CLNY 11 Comments

    Summary

    • Colony Financial issued a new 7.50% series B preferred stock.
    • Colony's existing 8.50% is, in my opinion, a better value.
    • While having a decent business profile, investors have other more attractive options.
  • Public Storage - 6% Is Nice, But Not Quite Nice Enough
    Thu, May. 29 PSA 3 Comments

    Summary

    • Highly rated REIT Public Storage issued a new Series Z cumulative perpetual preferred stock with a 6% rate.
    • While 6% is attractive, there are higher yielding choices within the Public Storage preferred complex.
    • Higher rate Series P and Y offer better yield and more interest rate change protection.
  • American Capital Mortgage: 8.125% Has Value
    Editors' Pick • Fri, May. 16 MTGE 18 Comments

    Summary

    • American Capital Mortgage has joined the ranks of mREITs with preferred stock in their capital structure.
    • The mREIT has issued an 8.125% cumulative perpetual preferred.
    • At 8.125%, the preferred represents decent value versus the peer group.
  • NorthStar Finance - 8.75% Is Nice, But Here Is An Option
    Mon, May. 12 NRF 10 Comments

    Summary

    • NorthStar Realty Finance has issued a new Series E cumulative perpetual preferred.
    • The yield, at 8.75%, is attractive, but there is an alternative.
    • The NorthStar Series C preferred offers the same yield but has a marginally shorter duration and therefore warrants consideration.
  • American Capital Agency - At 7.875%, The New Preferred Looks Okay
    Mon, May. 5 AGNC 14 Comments

    Summary

    • AGNC is issuing $100mm of a new Series B perpetual preferred stock.
    • Dividend rate range is 7.75% to 7.875%.
    • Dividend rate at 7.875% is acceptable, below this doesn't make sense.
  • Morgan Stanley - Better Than Goldman But Fixed Forever
    Wed, Apr. 23 MS 3 Comments

    Summary

    • A day after Goldman issued their 6.375% fixed to float, Morgan Stanley tapped the market with a 6.625% fixed perpetual.
    • If you require a cumulative preferred, you can stop reading as these are non-cumulative preferreds.
    • An investor can invest based on his/her rate view by looking at the new fixed Series G or the outstanding fixed > float Series F.
  • Anworth Mortgage Asset Corp. And The Point Of Javelin
    Editors' Pick • Tue, Apr. 22 ANH 6 Comments

    Summary

    • Activists have once again circled an mREIT trading below book value, namely Anworth Mortgage, hoping for a Javelin-type pay day.
    • Western Investment LLC has filed a proxy to replace the board, and has raised the prospect of liquidating the REIT to realize book value.
    • Javelin Mortgage went through the same process, and subsequently purchased the activist's (Bulldog) shares.
  • Goldman Sachs - 6.375% Is Good, But Peers Are Better
    Tue, Apr. 22 GS 10 Comments

    Summary

    • Goldman Sachs issued a 6.375% Series K Preferred.
    • While the new issue is attractive relative to other Goldman preferreds, better value can be had.
    • Morgan Stanley offers more yield within the broker/dealer space and the "mega banks" offer more yield as well.
  • Chambers Street Properties - 6.5% And Getting Better
    Editors' Pick • Mon, Apr. 21 CSG 7 Comments

    Summary

    • Small/Mid sized triple net REIT with an industrial/office focus helps diversify a REIT portfolio.
    • Diversified tenant/industry/geography as well as a moderate investment grade financial profile, helps create a stable, consistent and safe investment.
    • Dividend payout is over 100% over the past year, but heading for a more sustainable level.
  • RAIT Financial - At 7.625% Their Debt Is Attractive
    Mon, Apr. 14 RAS 20 Comments

    Summary

    • RAIT financial has worked its way back from the precipice during the financial crisis and is in decent shape going forward..
    • New debt issued by RAIT helps the company diversify their funding sources and trades at a lower yield than their preferred and those of its peers..
    • Given the market's faith in the company, and their turnaround, the debt is an attractive alternative for an income investor..
  • Western Asset Mortgage - Is 18% Rational?
    Wed, Apr. 9 WMC 26 Comments

    Summary

    • Recent share issuance drove the shares down over 5%.
    • Western Asset is among the highest yielding mREITs at 18% yield.
    • The dividend is not covered and should move lower.
  • One Liberty: The Little Triple Net Engine That Could (And 6.6% To Boot)
    Editors' Pick • Tue, Apr. 1 OLP 10 Comments

    Summary

    • OLP is a small-cap triple net REIT.
    • Insiders own 20% of the REIT - aligned with investors.
    • Healthy, and well covered, dividend yield of 6.6%.
  • Digital Realty: Despite Turmoil, New Preferred Is Interesting
    Thu, Mar. 20 DLR 11 Comments

    Summary

    • Digital Realty is issuing a new Series H preferred.
    • Timing is interesting given the CEO departure.
    • Series is attractive at 7.375% or greater.
  • Two Harbors: Innovation And 9.8% Yield
    Mon, Mar. 17 TWO 7 Comments

    Summary

    • TWO continues to be one of the more innovative mREITs.
    • GSE reform and mortgage servicing will benefit TWO.
    • 9.8% is an attractive yield for a multifaceted mREIT.
  • Public Storage - Put The New Preferred In Storage, Not In Your Portfolio
    Tue, Mar. 11 PSA 7 Comments

    Summary

    • Public Storage issued a new preferred stock.
    • Better value exists within PSA's preferred complex.
    • Other storage REITs offer more yield.
  • Apartment REITs - Time To Move Out? (Part 1)
    Mon, Mar. 10 AVB, EQR, HIW 11 Comments

    Summary

    • Multifamily REITs are rich despite forward fundamentals.
    • Dividend yields can be attractive.
    • Swap out of large cap multifamily REITs into mid-cap multifamily REITs.
  • Edison International - 5.75% Does Not Spark My Interest
    Thu, Feb. 27 EIX 4 Comments
  • Allstate Preferred - Are You In Good Hands
    Mon, Feb. 24 ALL 13 Comments