Hi Jim,
I see that DBRG.I is now trading at around 24 per share, which seems like the best of the HIJ preferred triplets at this point.
Also note that INDT, which you touted a year ago is up ~20%. Any thoughts on its current prospects?
Thanks,
Vince
Those DBRG preferreds keep plumbing the depths of $24 from day to day. Any one could be the low price at any moment. The Js were low man today. I picked some of those up.
I guess one could argue that at equivalent discounted prices, the Series H is the best of the lot because they’re the most likely to be repurchased first, and therefore go to $25. Anyway, at this point, we’re poised to get a full dividend on the next payday in mid-April. So I don’t suspect we’ll see any redemptions now for at least a month or two after that. If they’re redeemed in mid-May, say, then they’re worth a total of about $25.60 ($25 + ~$0.45 + ~$0.15) then vs a price of $24.25 today. If in mid-June, then they’d be worth $25.75, etc.
INDT has done alright even amid the carnage and the rising rates that have (predictably) spooked investors in REITs, as always happens. I’m happy to see DuGan involved there and am optimistic as long as he is.
Speaking of REITs, CTRE is down substantially from its high. Some of that is related to rates and some is related to fundamental issues at the company, as they’re working on repurposing and retenanting some of their properties. The dividend hike there is nice, however. As I’ve said at other times, I’d love to pick up this REIT at 10x AFFO, but it may not reach it soon. Still, it’s a pretty decent discount to prior values today.
And while the small win in INDT is nice, let’s not forget the stinker that was EHTH. That was a complete and total whiff on my part.
In other preferreds, QRTEP has been hammered of late. I sold around $103 or so. It’s now yielding about 9.7% – pretty meaty, for sure, and the potential for appreciation, too. But how stable is QRTEA? It’s important to remember this is not a REIT preferred, with the backing of recurring, rent-based revenue.
Jim
From what I read, QRTEP payout ~$100MM per year and has FCF of $600MM (now). Previously had FCF closer to $800-900MM/year.
I would say though that any funds invested in the preferred should be matched in some meaningful way with investment into QRTEA if one makes the choice.
The upside for QRTEP is ~25% ($80 to $100 and it’s paying close to 10% annually right now). But QRTEA is trading at 1/3 its prior valuation, so it’s likely a triple in any timespan where the preferred returns to $100.
You showed us that link to yetanothervalueblog or something like that with the ComScore preferred that is held inside QRTEA… that seems to match up really nicely with what Discovery/HBO will be doing/needing in the near future, potentially.
“Video Metrix that delivers measurement of digital video consumption; Plan Metrix, which offers understanding of consumer lifestyle; TV Essentials that combines TV viewing information with marketing segmentation and consumer databases; and StationView Essentials to understand consumer viewing patterns and characteristics.”
from the Comscore Overview: https://seekingalpha.com/symbol/SCOR/overview
Those DBRG preferreds keep plumbing the depths of $24 from day to day. Any one could be the low price at any moment. The Js were low man today. I picked some of those up.
INDT has done alright even amid the carnage and the rising rates that have (predictably) spooked investors in REITs, as always happens. I’m happy to see DuGan involved there and am optimistic as long as he is.
And while the small win in INDT is nice, let’s not forget the stinker that was EHTH. That was a complete and total whiff on my part.<<<
Well, I see I fat-fingered the DBRG - I meant to type J. Those are squarely in my sights.
Good to hear on INDT - thanks.
I feel your pain on EHTH - literally - but, last time I checked, it was me who pressed ‘buy’.
Thanks again for suffering this Fool gladly.
Vince