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Author: Reitnut Big red star, 1000 posts Top Favorite Fools Feste Award Nominee! Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77107  
Subject: New GGP Pfd Date: 2/6/2013 9:39 PM
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I read today that GGP, a huge mall REIT, priced a new pfd (GGPpA) at a yield of 6.375%. The yield is pretty good relative to other new REIT pfds, but I think it's probably in line with fair pricing (no bargain, but no steal either).

One big negative is GGP's leverage ratio, which is about 55% of estimated total asset value; that's quite a bit of leverage.

But the big positive is the company's sector (malls) and its property quality (very good, on a par with SPG and MAC). Malls have been very stable properties, providing predictable cash flow, and the most productive malls have performed well in the wake of the Great Recession.

I haven't yet decided whether to try to buy at par in the pink sheets, for what that may be worth to any of you. It may begin trading tomorrow or Friday in the pinks, but certainly next week.

Another note...on its Q4 conference call today, there was a hint that PLD may redeem all of its callable pfds some time this year. The market seems to be taking this into account, as these pfds are trading at very close to par value, when the accrued dividends are factored in.

Finally...BMR was asked on today's conf call about redeeming its BMRpA. Management was non-committal, saying it looks at this, but only in the context of its total balance sheet management. This one DOES trade at a premium, and it wouldn't surprise me if they call it some time this year. So I would not buy it at the present price.

Ralph
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Author: JimLuckett Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 73621 of 77107
Subject: Re: New GGP Pfd Date: 2/6/2013 10:52 PM
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Two years and 3 months since exiting bankruptcy, still highly leveraged, and it can issue preferred stock at 6.375% AND get REITNUT's seal of approval for that rate. It's a fast-moving world.

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Author: BrentMilgrom Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 73624 of 77107
Subject: Re: New GGP Pfd Date: 2/7/2013 5:45 PM
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Jim, Their management and balance sheet were broken, but their properties were generally well leased and located. I agree with you on the speed though. It only seemed like yesterday that we were a capitalist nation.

Brent

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Author: nittanyfan One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 73625 of 77107
Subject: Re: New GGP Pfd Date: 2/7/2013 6:34 PM
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<<<It only seemed like yesterday that we were a capitalist nation.>>>

I think that's the way it's supposed to work under capitalism! Beats the Russian way of selling to some cronies at pennies on the dollars. As the saying goes, capitalism stinks, unless you compare it to the alternatives.

On this subject, looks like the pink sheet symbol came out today - GGPYP. Not sure if this one at this rate (6.375%) will experience the NYSE listing pop to the $26 handle. I think the Saul (BFS) C pfd issue (6.875) has more potential "pop" in it. Still haven't seen an OTC symbol yet though.

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Author: nittanyfan One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 73638 of 77107
Subject: Re: New GGP Pfd Date: 2/8/2013 2:44 PM
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Looks like this new pfd is trading around the $24.80 level under symbol GGPYP.

Not looking for a big pop on this but it should trade over par once it is listed on the NYSE.

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