SUI.PR.A is the preferred issued by SUI, a manufactured housing/ RV properties/ site REIT. The 2012 FFO is $3.2 and the estimates for 2013 are $3.5. Debt is roughly equal to Market Cap and the company is selling equity and using the proceeds to pay down debt. Most of the debt is mortgage debt. In the recent years they have been increasing the occupancy levels, and rental rates are going up. Also, the housing recovery should help them in selling their units to existing renters. The stock has $2.52 dividend and yields about $5.85.Yes, I am coming to the preferred part. The preferrds has a coupon of 7.1% and trading at $25.2, at YTC slightly above 7%.The other company in this sector ELS has a preferred C, with coupon of 6.75%, trading at 25.9, with YTC of 5.75%. While ELS may be a better issue than SUI, but the difference in preferrd yield seems excessive.I consider SUI.PR.A at these prices a good buy with solid call protection.
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