Tuesday, November 4, 2008


In a recent post, I predicted that CB & L Properties would cut its common stock dividend and this was why I was going to buy its preferred issue. A 300 Point Misunderstanding  After the close, CB & L announced that it would reduce the common stock dividend from $.55 to $.37 a quarter, which will save it 80 million on an annual basis Yahoo! Finance.   The preferred dividend can not be cut as long as any cash is paid for a common dividend, and CB & L declared the regular preferred dividend of $.484375 per share.  The company reported after the close FFO of $.83 on revenue of  294.3 million versus the estimate of $.82 on 303 million.  Net income was however lower than expected but I am not aware of anyone who values REITS based on net income as opposed to funds from operations . MarketWatch  

Given its debt load and exposure to retailers, I thought that CBLPRC was one of my riskier preferred buys. I have bought several recently as yields spiked to over 15% for many of them and over 30% for one.   I also discussed and compared preferred and common stocks from REITS in these 2  posts-Late Friday Buys: LNC and GXP   and Notable News 10 30 2008  
See also, this post for more information:REITS: FIRST INDUSTRIAL AND COUSINS PROPERTIES and the next to last paragraph of this one on why I bought FRPRJ at 8 -Hard to Get Excited  I need to do a better job of grouping my discussions by topics and using better titles.

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