No. of Recommendations: 4
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.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.