Another potential REIT pfd convertible win is RPTpD. The $50 par value preferred is convertible into 3.47 common shares (or $14.41 per share). The common closed on Friday at $15.69, so the pfd is aleady "in the money." The pfd's intrinsic value is $54.44, and it closed on Friday at $59.80. Thus there is a 9.8% premium in the pfd (although it's really less than that, if one takes the accrued dividend into account. It will go ex-dividend near the middle of this month.)The yield gap favors the pfd. Its current yield is 6.1% (not including the accrued interest) vs. 4.3% for the common. And the company cannot force a conversion until April 2018, over five years away - and then only if the common stock price exceeds 130% of the conversion price for a period of 20 of 30 consecutive trading days. I still prefer the preferred to the common for safety reasons and better current yield - albeit with much less liquidity, and with less upside if the common rises (that premium will eventually melt away). RPT has been a great performer over the past couple of years under the new management team. Those who bought it at or below par are doing very well; I was lucky enough to have done so, and added when the pfd traded well below par for a period of time. I think it's a strong "hold" at the present time.Ralph
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