Seeking Alpha

Michael Terry's  Instablog

Michael Terry has been a fixed income and preferred/hybrid portfolio manager (currently independent) with an eye toward open markets and Darwinian capitalism.
  • Another REIT Taps the Debt Market 0 comments
    Aug 10, 2009 09:00 AM | about stocks: FRT, CLI, DRE, SPG
    REIT euphoria is not limited to the equity market.  The REITs have found a new willing participant (not new really, but noticably absent for a while) - the senior unsecured market.

    Federal Realty announced a debt issue this morning, doing $150MM of a 5 yr (talked at +350/5y).

    Simon did $50MM of a 5yr reopen at +275 on Thursday, now trades +260/50

    Mack Cali did $250MM of a 10yr on Wednesday priced at +411.5, now trades 25bps tighter.
    Duke did $250MM of a 5yr at +480 and $250MM of a 10yr at +463 (yes, inverted spread), now trading 40bp and 20bp tighter.

    Excluding FRT, we have seen nine REIT deals totaling $3.8 billion. Spreads have continued to come in (see chart below) as equities have rallied (long live the high beta, high vol rally).  This has been picking up as we have seen an increase in negative stories surrounding the CRE market, adverse developments in GGP and continued weakness in rent rolls.  The next step to freeing the market (we have equity and debt now) will be DDR hitting the TALF.



    Disclosure:  Long debt of spg, cli, and frt
    Themes: REIT Stocks: FRT, CLI, DRE, SPG
Back To Michael Terry's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers

StockTalks

  • Looking at CLF to benefit from higher ore prices. Think the response to the Freewest increased offer is overdone.
    2 days ago
  • Looking at SLV to ride the coattails of gold and a compression of the gold-silver ratio.
    Nov 23, 2009
More »
Posts by Ticker
AHR, AIB, AIG, AKS, BAC, BBT, BHP, BPO, BPOP, C, CIT, CLI, CNB, CPB, DDR, DRE, ESS, F, FIF, FNM, FRE, FRT, GMGMQ.PK, GS, HCP, HIG, JPM, K, MCO, MHP, MNI, MS, MT, MTLQQ.PK, NUE, O, PBCT, PKX, PLD, SPG, TC, TSO, UDR, VNO, WRI, X, YRCW

Latest Comments


Most Commented
  1. UAW = U Are Whole (3 Comments)
  2. Popular But Not Wealthy (1 Comment)
  3. The UAW Picks Creditors Pockets (1 Comment)
Posts by Themes
auto, Auto, autos, banking, banks, Banks, CDS, cftc, chrysler, Chrysler, corporate bonds, CRE, credit, distressed, economy, FDIC, fdic, general motors, high yield, Housing, income, jobs, metals, Mortgage, politics, rating agencies, regulation, reit, REIT, steel, TARP, UAW, union
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.