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Landmark Infrastructure Preferred Fixed-To-Floating Offers 7%+ Yield And Upside


  • Preferred stocks typically have perpetual maturities and are only retired at the behest of the issuer.
  • Landmark is a unique MLP/REIT hybrid security with a very stable business model and barriers to entry.
  • The common shares yield over 9% currently but a new preferred issue has a 7%+ yield plus upside from higher rates.
  • We added the preferred security to our Strategic Income Portfolio.

Landmark Infrastructure Partners (NASDAQ:LMRK)


Short Summary: This is an interesting small cap speculative infrastructure REIT play that investors should consider investing from the preferred stock angle while waiting for a large margin of safety on the common. A recent short-focused article on the common shares has created a near-term opportunity across their capital structure.

We recently wrote on Ares Corp. (ARES), which was converting from a C-corp publicly traded limited partnership to a corporation. The switch was due to the recently passed tax reform bill that the Trump administration pushed. With the lower tax rate, there is an incentive to make that switch and we are likely to see many publicly traded LPs make a similar move.

LMRK is a niche MLP/REIT - and as such, issues a K-1 (dun dun dunnnnn). But hold on, we will detail some more moves that management has made in the last year to simplify their tax package including placing the partnership's assets into a REIT subsidiary.

They bill themselves as a "growth-oriented" real estate and infrastructure company formed to acquire and manage a portfolio of real property assets. These are interests in wireless communication, outdoor advertising, and land underneath solar panels and wind turbines. The assets are the core backbone of their tenants' operations and businesses.

The market cap is not large, at just ~$370 million. The shares trade with a beta of 0.52 to the S&P 500. The forward dividend yield is now at 10.0% based on a $1.47 annual payout.

Since inception, the shares have traded in a channel between $14 and $18. We are now back to the low-end of that range.

ChartLMRK data by YCharts

On the most recent conference call in February, CEO Tim Brazy noted:

2017 was our third full year since our IPO, and we continue

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This article was written by

Alpha Gen Capital profile picture
Targeting 8+% Income Stream using CEFs, ETFs, Munis, Preferreds and REITs
Yield Hunting: Alternative Income Opportunities is a premium service dedicated to income investors who are searching for yield without the high risk of the equity market. We are one of the top experts in closed-end funds ("CEFs") in the country having spoken at many national conferences on how to incorporate CEFs into client portfolios. We manage four portfolios that investors can follow:

- YH Core Income Portfolio: yield ~8%
- YH Flexible Income Portfolio: yield 7.53%
- YH Taxable Core Portfolio: yield 5.24% (some tax free)
- YH Financial Advisor Model

Plus: Muni CEF Shopping List.

Our team includes:

1) Alpha Gen Capital - I am a former financial advisor and investor. Not someone from another career doing this on the side. My analysis is meant to provide safe and actionable insight without the fluff or risky ideas of most other letters. My goal is to provide a relatively safer income stream with CEFs and mutual funds. We also help investors learn about investing and how to properly construct a portfolio.

2) George Spritzer - Another career financial guru who runs a registered investment advisor with a specialization in closed-end funds for individuals. George uses the following investment strategies:1) Opportunistic Closed-end fund investing: Buy CEFs at larger than normal discounts to NAV and sell them when the discounts narrow. 2) Exploit special situations: tender offers, fund terminations, fund activism, rights offerings etc.

3) Landlord Investor- spent his career as a management consultant for public sector clients at a multinational consulting firm in the DC area. He has transitioned to a new career as a full time landlord. His investment portfolio is comprised of two parts -- broad-based index funds and income plays such as preferred stock, CEFs, and REITs. He also owns individual/baby bonds which he buys on margin to boost total return. Landlord is our 'individual preferred stock' expert analyst.


Analyst’s Disclosure: I am/we are long LMRKN, LMRK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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