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
Tuesday, November 4, 2008
CB & L PROPERTIES: COMMON STOCK DIVIDEND CUT.
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