tjberko’s Activity

Sun Jul 19

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Boards Post

tjberko replied to the Real Estate Inv. Trusts: REITs board. 12:15 PM

Re: CCG Preferred about to get Waldenized?

Preferreds are in a limbo position. They are not protected by fiduciary duty.

To a large extent I agree, but let's keep the riskiness of preferreds in perspective.

Common stocks are certainly a more risky investment. The [more]

Sat Jul 18

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 12:13 PM

Re: CCG Preferred about to get Waldenized?

So I would not assume something happened or not in the past as an indicator of risk.

What better guide is there than history. If you rely on your imagination, rather than history, you can always come up with a catastrophic scenario [more]

Fri Jul 17

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 9:21 PM

Re: CCG Preferred about to get Waldenized?

I do not have the exact prices, but my rough understanding was the Walden preferred traded close to par, ~$25 before the buyout. After the buyout, the issues apparently traded on the pink sheets for “pennies on the dollar.” I don’t know if that [more]

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 3:03 PM

Re: CCG Preferred about to get Waldenized?

THIS MIGHT BE 100% INCORRECT AND PREFERRED SHARES MIGHT BE WORTH ZERO. Like $0.00 dollars. Around here, we have a term for this. It is called “Waldenization” where a REIT gets bought out and preferred share are rendered [more]

Sun Jul 5

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 12:44 PM

Re: Best and Worst Preferreds

There is no hard and fast rule as to what makes a company call a preferred. Often a company will call a preferred if they can issue a new preferred to replace it that will have a yield of at least 1/2 of 1 percent lower. PSA-V was issued with [more]

Tue Jun 30

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 12:40 PM

Re: Best and Worst Preferreds

Great calculator. Just what I was looking for . . . . PSA-V is the series I was most interested. Taking them through the calculator gives a YTM of 8.4%. With the common yield vs PSA-V spread at 4.7 does that seem like a reasonably valued [more]

Sun Jun 28

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 4:33 PM

Re: Best and Worst Preferreds

I simply use a bond yield calculator to get the yield to call of a preferred. Just plug in the call date where it asks for maturity date.
[more]

Thu Jun 25

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 4:55 PM

Re: Best and Worst Preferreds

do you have a threshold yield that makes it palatable to buy CLNY-A or RSO-C as opposed to some of the sells? Or ware the sells opportunistic with the shares above $25?

No threshold. It is a formula that takes into account 1) the [more]

Wed Jun 24

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tjberko replied to the Real Estate Inv. Trusts: REITs board. 3:30 PM

Re: Best and Worst Preferreds

The concern here seems to be that the preferreds will never be called and you will be stuck in perpetuity with shares that keep declining and the loss of capital will be permanent.

That is the big concern with preferreds in general. [more]

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tjberko posted to the Real Estate Inv. Trusts: REITs board. 1:53 PM

Best and Worst Preferreds

It has been a long time since I've posted. I've been quite busy. But here are the latest readings from my model for those who find it useful. Right now it appears that preferreds are generally overpriced. My favorite sells in the REIT preferred space [more]

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Boards Stats & Trivia

Two stars, 250 posts
Board Posts 296
Recs Received 1840
People who have rec'd these posts 169
Recs to Posts Ratio (last 30 days) N/A
Threads Started 55
Threads Started Percentage 18.58 %
Most Frequent Board Real Estate Inv. Trusts: REITs
Very First Post Mispriced Preferred Stock -Screamingly Cheap (7/3/2013)
Percentage of Posts Rec'd 84.46 %
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