Credit Rating For The Unrated REITs (Part 1): Saul Centers, Inc.

(7min)

Summary

  • Saul Centers, Inc.'s preferred shares offer attractive yields (7.46% and 7.07%) but lack credit ratings from major agencies.
  • Our credit analysis, using Moody's methodology, results in a weak adjusted credit score of B1 for Saul Centers.
  • Given the weak credit profile, I do not recommend buying BFS preferreds; better-yielding, lower-risk alternatives exist in the market.

REIT, Real Estate Investment Trust Financial Concept. Businessman using laptop with REIT investment icons. property, finance charts, growth, mutual fund, investor, return, and income strategy.

We continue our articles on unrated REITs and their preferred stocks with the company Saul Centers, Inc. (NYSE:BFS) and its preferred shares: (NYSE:BFS.PR.D) and (NYSE:BFS.PR.E).

Company Overview

BFS was founded in 1993 and is headquartered in Bethesda, Maryland. Its total assets at

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This article was written by

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Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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BFS
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