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  • NorthStar Realty - The Value Creation Continues - 10% Upside At Least
    Fri, Feb. 27 NRF 21 Comments

    Summary

    • NRF will be spinning out European Properties to investors.
    • The new REIT will be one of the only European focused REITs listed in the US.
    • Demand for the diversification and available opportunities will drive the share price higher.
  • Digital Realty - If Not The Stock, How About The Bonds?
    Fri, Feb. 20 DLR 11 Comments

    Summary

    • While Digital Realty's stock may be a non-starter, the bonds are appealing.
    • The 5.875% notes due 2020 appear to be the most compelling.
    • Capital structure investors will note that the preferred and the stock have higher yields than the debt.
  • Digital Realty - 5% Yield But Little Upside
    Mon, Feb. 16 DLR 5 Comments

    Summary

    • The largest of the datacenter REITs continues it slow growth, as recent earnings and guidance evidence.
    • There are alternatives within the datacenter REIT space that should provide an investor with greater growth and, therefore, upside.
    • The 5% yield available from DLR might work for income focused investors.
  • Sell Apple And Google Bonds, Buy Microsoft Bonds
    Wed, Feb. 11 MSFT 46 Comments

    Summary

    • Microsoft issued $10 billion in bonds from 5-40 years.
    • Pricing was mildly attractive to existing issues, although there are exceptions.
    • Generally speaking, pricing was fair to peers and there are trades that can be done using the new issue.
  • DuPont Fabros: Cheaper - For A Reason
    Sat, Feb. 7 DFT 7 Comments

    Summary

    • Earnings and guidance announced today were disappointing.
    • Negatives outweigh positives at this time.
    • Despite the lower share price, I believe there are more attractive opportunities within the space.
  • Apple: New Debt Deal Priced On The Screws
    Tue, Feb. 3 AAPL 15 Comments

    Summary

    • Apple came with another jumbo deal today, pricing $6.5 billion in bonds.
    • Their weight within the index grows, and begins to fill the AA slice of the index.
    • The deal priced with a miniscule concession to outstanding bonds and offer little in the way of upside.
  • ARCP - Noteholder Agreement In Place, On The Sidelines For The Bonds
    Tue, Jan. 27 ARCP 18 Comments

    Summary

    • An agreement with noteholders for no notice of default due to the lack of financials. The convertible noteholders have, however, notified the company of the default.
    • The agreement buys them until March 3, 2015 to release financials. This should be manageable.
    • While the bonds are reasonably attractive, I am on the sidelines until there is more clarity on the financials and Corvex's strategy.
  • Bank Of America - New Preferred Stock Issuance
    Wed, Jan. 21 BAC 55 Comments

    Summary

    • Bank of America is in the market with a new preferred stock.
    • The Series Y is a non-cumulative, perpetual preferred issue.
    • At less than 6.60% I see no value in the issue.
  • Pencil Pushing - A Look At Office REITs
    Mon, Jan. 5 BDN, BXP, CLI 4 Comments

    Summary

    • The office REIT sector continues to be bifurcated, creating "haves" and "have nots".
    • While many metrics may look like value territory, investors must be careful of value traps.
    • Value is hard to come by in this sector, I am neutral overall.
  • Associated Estates - Fairly Valued, Forget The Noise
       • Dec. 31, 2014 AEC 5 Comments

    Summary

    • Land & Buildings continues their activist campaign against AEC, but is it warranted?
    • The data I have collected shows a REIT that has performed at least as well as peers.
    • I see limited upside as a result of the activist campaign.
  • NorthStar - A Preferred Alternative
    Dec. 16, 2014 NRF 15 Comments

    Summary

    • NorthStar Realty Finance has been transitioning from a mortgage REIT to an equity REIT.
    • The market and investors have not assigned the value to this REIT that its pieces would imply.
    • If investors are wary of the name, there is another option they might prefer which still provides them with the yield they require.
  • Cliffs Natural Resources - The Best Laid Plans Of Mice And Men
    Nov. 29, 2014 CLF 20 Comments

    Summary

    • Cliffs continues to test ideas to put a floor under the stock, none of which has worked to date.
    • Recently the company has announced a debt tender offer, a new proposed financing and a change to the revolving credit line.
    • All of these ideas serve to provide no long-term fix and, in fact, are harmful to the company and its chances of survival.
  • American Realty Capital - Enough Already, Thoughts From A Shareholder
    Nov. 5, 2014 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 • Oct. 30, 2014 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
    Oct. 29, 2014 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
    Oct. 24, 2014 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?
    Aug. 20, 2014 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 • Aug. 12, 2014 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 • Aug. 5, 2014 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
    Aug. 5, 2014 FUR 53 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 • Aug. 4, 2014 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
    Jul. 24, 2014 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
       • Jul. 23, 2014 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?
    Jul. 15, 2014 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 • Jul. 1, 2014 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
    Jun. 25, 2014 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
    Jun. 13, 2014 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
    May. 29, 2014 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 • May. 16, 2014 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
    May. 12, 2014 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
    May. 5, 2014 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
    Apr. 23, 2014 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.