Economy:
I will discuss the PCE price inflation for February, which will be released tomorrow, in a comment.
4th Quarter Real GDP +3.4% (Third Estimate)
Note that the PCE price indexes are within the FED's desired range.
Personal Consumption Expenditures: +3.3%
Fed's Waller still sees 'no rush' to cut rates amid sticky inflation data
Oil prices rise as Ukraine strikes Russian refineries
Russia Economy: Foreign Companies Lose Over $100B Leaving the Market And that is a good reason never to go back.
Treasury Yield Curve - March 2024
10 year TIP breakeven inflation rate as of 3/27/24: 2.32%, the annual average CPI over the next 10 years for the buyer of the 10 year TIP to breakeven with the buyer of the 10 year non-inflation protected treasury note. This is viewed by many as the market's current forecast for the annual average CPI.
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Allocation Shifts Discussed in this Post:
Treasury Bills Purchased at Auction: $15,000 in principal amount
Treasury Notes Purchased Secondary Market: $2,000 in principal amount
Corporate Bonds: $6,000 in principal amount
CDs - FDIC Insured: $3,000
Individual U.S. Common Stocks: +$1,593.98
(consisting of $1,739.5 in purchases minus $145.56 in proceeds)
Canadian REIT: +US$942, converted from C$1,273 for allocation amount purposes only.
Stock CEFs: $64.9
Inflow Common Stocks: +$2,600.84
Outflow Canadian Reset Equity Preferred Stock: -C$2,356
Realized Gain Canadian Reset Preferred Stock: +$C$717
2024 Net Outflow Common Stocks/Stock Funds: -$20,980.34
++++
Trump and His Orwellian Party:
RealClearPolitics - Election 2024 - General Election: Trump vs. Biden
Judge sets April 15 trial date in Trump "hush money" case, rejecting request for a delay - CBS News I discussed that criminal case in this video: NY Criminal Trial Against Trump - YouTube Word is that Donald will be tried as an adult rather than a juvenile.
Trump is the first U.S. President to go on trial for felony charges.
Trump suggested that a felony conviction could make him more popular in America. Trump suggests conviction in hush money case could make him more popular | The Hill Sadly, that may be true for 30% to 40% of the voters.
This is an effective anti-Trump ad released by the Lincoln Project. In Your Face - YouTube
Lisa Murkowski, done with Trump, won’t rule out leaving GOP
Psychiatrists warn Trump's psychosis will grow-Salon.com; Psychologist: Trump More of a Psychopath Than Hitler; The Psychology of Donald Trump | Psychology Today
There is no daylight between Trump and the Republican party. They are one and the same. Anyone who criticizes Trump using facts is suffering from Trump Derangement Syndrome in Trump's Orwellian world. I was recently accused by a Trumpster of TDS for mentioning facts found in an SEC filing regarding DJT's revenues, losses and interest expenses. The current price to sales ratio is bouncing around at 2,000 to 2,300, compared to 6.74 for Meta Platforms using 2023 year end data.
Republicans who are opposed to Trump's takeover just need to leave as many true conservative have already done and/or vote for democrats in 2024, even if they oppose the candidate's policies, as the only way to send a message to republican politicians who continue to support and enable Trump. Almost all republican politicians fall into that category. The only way to return to the GOP to a conservative and rational party is to decisively beat Trump and his minions in the election.
So far this election season, I have not seen a single comment from a Trump supporter that accurately describes the current U.S. economy.
The Trump Asset Most Likely To Go Bankrupt - Forbes YouTube I have discussed this property, 40 Wall Street, in a prior video. Trump valued this property at $735.4M in 2015. Page 2.pdf Forbes values the property at $47M. There may be no equity left at all when the ground lease payments surge in 2033, as discussed in the Forbes video lined above.
CNN poll indicates Donald Trump leading in electoral votes - YouTube The poll of Michigan voters had Trump leading Biden 50% to 42%. Trump was never leading Biden in the Michigan polls for the 2020 election. 44% of those polled replied no when the pollsters asked this question: "if true, charges against Trump regarding his efforts to overturn the election" would that disqualify him from being President again." 44%, mostly republicans, said no.
Appellate Court Reduces Bond to $175M in the NY Civil Fraud Case - YouTube
Nicolle Wallace on Trump: He lied about his wealth, he lied about his sex life - YouTube
Marco Rubio's Own Words About Donald Trump Used Against Him
Re-reading George Orwell’s ‘1984’ - YouTube
Why Trump Won’t Stop Suing the Media and Losing - The Atlantic Trump uses the lawsuits to raise money from his supporters. According to the author, Trump's attorneys fees in several defamation actions have been paid by Trump aligned PACs and they "further his narrative of being prosecuted by the radical left media".
Even before he filed a lawsuit against CNN, Trump was soliciting donations saying "I am SUING the Corrupt News Network (CNN) for DEFAMING and SLANDERING my name". Adding the following: They’ve called me a LIAR, and so far, I’ve been proven RIGHT about EVERYTHING. Remember, when they come after ME, they are really coming after YOU … I’m calling on YOU to rush in a donation of ANY AMOUNT RIGHT NOW to make a statement that you PROUDLY stand with me."
Trump's lawsuit against CNN was dismissed by a federal judge appointed by Trump. I do not know whether Trump's PACs or other affiliated organizations are paying the attorneys fees incurred by defendants sued by Trump that have recently been ordered by judges.
Trump and Elon Musk share many of same personality characteristics that produce opinions unconnected to what is real in my opinion.
Some of the comments made by Musk in the past, summarized in a recent Vanity Fair article, are the kind routinely hatched in Donald's mush. Elon Musk, Notorious Man-Child, Outdoes Himself Yet Again | Vanity Fair
(See also, Elon Musk has boosted the 'pizzagate' conspiracy theory five times in the last two weeks; Elon Musk keeps tweeting conspiracy theories despite Twitter advertiser worries - Vox; Elon Musk Pushes a Vile, Toxic Hate Video—and Exposes His Own Scam | The New Republic; Rightwing personalities use X to bring antisemitic theories to light in US | X | The Guardian No wonder Trumpsters adore him, a topic that I discussed in my last post. Maybe more people who find the constant stream of Musk's disgusting comments will decide to get off "X" and to avoid buying a Tesla. The U.S. government needs to find an alternative to Musk's Starlink.
Federal judge tosses Elon Musk’s case against hate speech watchdog CCDH The judge excoriated Musk in a 52 page order. Order: X Corp v. Center for Countering Digital Hate, Inc., et al, Docket Item 75 The lawyers that bring these kind of suits need to be sued for malicious prosecution seeking a few million in punitive damages after their cases are dismissed by the courts. Maybe the smarter ones will think twice thereafter about representing Trump or Musk in a defamation suit.
Trump appears to blame Israel for antisemitism, says Israel 'made a very big mistake' and is 'losing a lot of support' - ABC News (When asked how he would deal with the wave of antisemitism resulting from the war with Hamas, Trump replied "Well, that's because you fought back. And I think Israel made a very big mistake.") I view Trump's statements made during this interview as a political gambit to peel away democrat voters, primarily in Michigan which he needs to win, who voted for Biden in 2020.
Fact check: Trump tells ‘mind-bogglingly nonsensical’ story about the New York Stock Exchange Trump is not aware that the Nasdaq exchange is located in NYC.
Trump Suggests He's Like Jesus Over Porn Star Payment; Donald Trump Shares Jesus Comparison While in Court
Miss USA Contestants Describe Trump Watching Them Change - YouTube
Trump certainly know how to milk his True Believers. Trump now selling "God Bless the USA Bible" for $59.99; Trump Celebrates Easter By Selling Bibles with Lee Greenwood; Trump's favorite Bible passage is 'an eye for an eye,'-The Week; Charlie Sykes: Trump is commodifying the Bible during Holy Week - YouTube; Jordan Klepper on Trump's Bible Grift The Daily Show - YouTube
My Video: Trump's Latest Grift Hawking Bibles- Trump as a Modern Day Elmer Gantry - YouTube; Elmer Gantry (1960) - IMDb; Elmer Gantry - Wikipedia
Congrats Donald: Notorious golf cheater, brags he won two tournaments at his own club - YouTube
The Trumpster Kari Lake has legally admitted to defaming a republican Arizona election official.
The only issue remaining is the amount of damages to be awarded against her. Kari Lake won’t defend her statements about Arizona election official - The Washington Post;Kari Lake declines to defend her statements in a defamation case; Kari Lake declines to defend her statements in defamation suit filed by Arizona election official
Lake agreed to have a default judgment on liability entered against her. Nonetheless she claims in true Trumpster fashion that the defamation lawsuit brought by a republican official is a "political witch hunt".
Lake further claims that the defamation suit brought by a republican is part of an election interference effort by the democrats who "know they can’t beat either of us fair and square, so they hit us with lawsuits to keep us tied up and off the campaign trail” and to “try to stop me and bleed me dry." She was beaten by a Democrat in the 2022 Governor's race. The Democrats are hoping that the republicans nominate her for the Senate election this year.
My video: Kari Lake Legally Admits to Defaming a Republican Election Official - YouTube
Both Trump and Lake embody what it means to be a republican now.
Trump unleashes rant aimed at daughter of judge overseeing his hush money case
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Putin and His Orwellian Mafia State:
Losses ∙ Russia ∙ WarSpotting — documented material losses in Russo-Ukrainian war
Ukrainian drone strikes hit Russian power plant in Rostov - YouTube
Ukrainian drones hit an oil plant in the Samara region of Russia - images from the area - YouTube
Moscow terror attacks have ‘no connection’ to Ukraine | Jade McGlynn - YouTube
The ghost of Russia’s past wars comes back to haunt Moscow | CNN
US had warned Russia of possible terror attack on 'large gatherings' • FRANCE 24 English - YouTube
The U.S. warned Russia that ISIS-K was planning an attack on a concert venue in Moscow. After the attack, ISIS-K took responsibility.
Putin publicly dismissed the U.S. warning three days before the attack and obviously took no security measures to protect Russian citizens in the concert arena that was attacked. Russia's Dictator Was Warned about Concert Hall Attack by the U.S. and He Dismissed it - YouTube - My Video.
In an article dated 3/7/24, TASS reported that Russia's Federal Security Services foiled an attack by ISIS-K on a Moscow synagogue. What to know about Islamic State and ISIS-K after Moscow concert attack - The Washington Post (contains link to TASS article) ISIS hates Russia and the U.S. equally and view the citizens of both countries as legitimate targets.
In addition, Russian news services reported that the FSB had neutralized to that "an unknown number of the group’s militants during a raid in the Kaluga region, southwest of the capital." Two of the terrorists were from Kazakhstan And last year, "the Tass news agency reported that the FSB had killed two other Islamic State militants planning to attack a chemical facility in Kaluga." Moscow concert hall attack exposes Putin’s vulnerabilities in Russia - The Washington Post
Putin knew that ISIS recruits from migrant laborers from central Asian countries like Kazakhstan and Tajikistan. 4 Men Showing Signs of Beating Charged With Terrorism After Moscow Attack - The New York Times Russia claimed that the 4 suspects were from Tajikistan and were migrant workers in Russia.
Putin knew that ISIS was operating inside Russia and did nothing to protect the Russian citizens who were attacked in the concert arena.
The Putin propagandist Margarita Simonyan, who channels Goebbels spirit and soul, stated that the American warning before the attack proved that the U.S. was behind the attack.
Putin: "The question that arises is who benefits from this? This atrocity may be just a link in a whole series of attempts by those who have been at war with our country since 2014 by the hands of the neo-Nazi Kyiv regime." Putin acknowledges ‘radical Islamists’ carried out Moscow terror attack – POLITICO
The U.S. needs to rethink its policy about warning Russia of a possible terrorist attack since it will be ignored and then misused by Putin and his propagandists to falsely claim the U.S. was behind the attack.
Kremlin officials claim Ukraine was involved in Moscow concert attack Those officials will say whatever Putin tells them to say.
Russians may ask themselves how the gunmen were able to enter and leave the arena with no effort made to impede their entry or exit. That would be consistent with a false flag operation by Russia.
ISIS posted a photo of the 4 attackers. Moscow Attack Suspects Are Linked by Video and Online Profiles - The New York Times One had his ear cut off and stuffed in his mouth. Suspects in Moscow concert hall attack appear in court as Russia defends security services
Putin now wants to claim that Ukraine may have paid them, a ridiculous assertion designed to justify sending more young Russians to die in Ukraine. Russian Media Intensifies Blame of Ukraine in Moscow Concert Hall Attack - The New York Times
Putin asked why would ISIS attack Russia who is trying to bring peace to the Middle East. How stupid and uninformed would a Russian have to be to accept that argument meant to draw attention away from ISIS as the instigator. ISIS hates Russians even more than Americans. Perhaps Putin needs to be reminded of what the Russian army did to the Islamic State in Syria. Maybe a few Russians remember or can connect the dots.
US embassy warns of imminent terrorist attack in Moscow after ISIS Attaack on a Synagogue Thwarted (3/8/24)
ISIS Issues Fresh Threat To Putin: Reports
'Largest ever' missile attack on Ukraine: Russia hits dam and power plants with 100 munitions - YouTube Russia has hydroelectric plants too.
Big Russian Attack That Destroyed Neighborhood Included Inaccurate Carrier Killers
War in Ukraine: Russia launches 57 airstrikes on Kyiv and Lviv as Ukraine targets Crimea - YouTube
Ukraine rejects claims of Western pressure over attacks on Russian oil facilities - POLITICO
Russian missiles violate Nato airspace - YouTube
We Went To 'Putin's Yacht' In Italy And Got Chased By Drones - YouTube
+++
Portfolio Management:
I have recently discussed here and in my YT videos that I will be slowly increasing my allocation to dividend paying stocks. The initial focus will be to add dividend growth stocks that have current dividend yields in excess of 4% and to increase my allocation to equity REIT stocks.
The reason is that I am responding to a possible scenario where the FED cuts the FF rate several times over the next 18 months. Each 25 basis point cut will result in lower yields on treasury bills and money market funds.
No one can be certain when the FED will start to cut, the timing of the cuts and how much the current 5.25% to 5.5% range will be lowered. So I am playing the possible scenario of several cuts by increasing income production from dividend paying stocks.
The dividend yields of equity REITs that I am buying will look more enticing with Fed rate cuts and borrowing costs at spreads to short term rates will decline which improves cash flow.
+++++
1. Eliminated CVEPRC:CA - Sold 100 at C$23.56 (C$1 Interactive Brokers Commission):
Quote: CVE-PC.TO
This reset equity preferred stock was originally issued by Husky Energy that was acquired by Cenovus Energy Inc. (CVE).
Website: Home
CVE SEC Filed Earnings Press Release for the Q/E 12/31/23
Profit Snapshot: +C$717
Purchase Discussions: Item # 3.A. Added to HSEPRC-Bought 50 at C$16.15 (12/11/19 Post); Item # 4.A. Bought 50 HSEPRC at C$16.57 (12/7/19 Post)
Coupon: 3.125% spread to the five year Canadian government bond
Resets: Every 5 years.
Next Reset: December 2024.
Last Reset Coupon: 4.636%
The next reset will be at a higher coupon. The question is how much higher. Canada 5 Year Government Bond Overview | MarketWatch The yield hit a top of around 4.32% last October and is now hovering close to 3.5%.
Dividends: Paid quarterly and cumulative
Last Ex Dividend: 3/14/24 (owned as of)
I have now realized C$18,539.5 in profits from Canadian reset equity preferred stocks, which excludes the profit from one that was priced in USDs. I have not yet realized a loss. For classification purposes, I group the Canadian Resets with the U.S. floating rate and fixed-to-floating rate equity preferred stocks. (Profit Snapshots at Advantages and Disadvantages of Equity Preferred Floating Rate Securities)
2. Bought 100 DIR.UN:CA at C$12.72 (C$1 IB Commission):
Quote: Dream Industrial Real Estate Investment Trust (DIR-UN.TO)
As of 12/31/24, Dream Industrial owned, managed and operated a portfolio of 327 industrial properties totalling about 71.4 million square feet of leasable areas.
Current Position: 200 Units
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Last Purchase: Item # 1. Bought Back 100 DIR-UN:CA at C$12.87 (12/9/23 Post) I discussed the third quarter report in that post.
Website: Dream Industrial REIT
Externally Managed by DREAM Unlimited Corp. (Toronto)
Average cost per share: C$12.8 (200 units)
Dividend: Monthly at C$.05833 (C$.70 annually)
Yield at C$12.8: 5.47%
Next Ex Dividend: 3/27/24
Properties as of 12/31/23: 327
Occupancy rate in-place as of 12/31/23: 96%
Financing and Capital Information:
Last Earnings Report (Q/E 12/31/23):
Dream Industrial REIT Reports Strong Q4 2023 and Year-End Financial Results
All amounts are in Canadian dollars.
Net Loss of $8.817M
Funds from Operations: $69.286M
FFO per share = $.24
Many of the Canadian REITs, including Dream Industrial, do not deduct the noncash depreciation expense when arriving at the net income number. So there is no depreciation expense add back when calculating funds from operations which is what U.S. REITs will do when applying GAAP.
Instead of using depreciation, which is a precise number, the Canadian REITs can add or delete to net income fair value adjustments to investment properties, which is an inherently mushy number, and fair value adjustments to financing instruments. IFRS vs. GAAP: What's the Difference?
Last Elimination: Item # 1 - Eliminated DIR.UN:CA - Sold 200 at C$13.815 (1/30/23 Post)(profit snapshot +C$653) In that post I also discussed a trade in the CAD priced units that netted a C$686 profit but a tax reportable loss in USDs of $6.88, providing snapshots of the purchases. For a U.S. citizen and for tax reporting purposes, profits and losses are not measured and reported in a tax return using a foreign currency. The profit or loss is measured by converting the CAD cost into USDs when the security is bought and then again when it is sold. The decline in CAD/USD exchange rate during my period of ownership explains how the trade generated a C$643 profit but a USD loss. This occurs when there is a decline in CAD/USD exchange rate between the date of purchase and the date when sold.
Other Sell Discussions: Item # 3.A. Sold 100 DIR.UN:CA at $11.92 (4/27/19 Post)(profit snapshot = C$219); Item # 3.B. Sold 300 DIR.UN:CA at C$9.48 (4/2/2018 Post)(profit snapshot = +C$389)
DIR-UN:CA Realized Gains to Date: +C$1,947
3. Small Ball Purchases:
A. Added 55 BNL at $15.09:
Cost: $679.27
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
New Average cost per share: $15.03 (100+ shares)
 |
| Snapshot Intraday on 3/22/24 after add |
Dividend: Quarterly at $.285 (annually at $1.14)
BNL Dividend History | Seeking Alpha
Yield at New AC = 7.585%
Last Ex Dividend: 3/27/24 (owned all as of)
Last Discussed: Item # 1.I. Added to BNL - Bought 2 at $14.86 (3/1/24 Post) I discussed the 2024 4th quarter report in that post. SEC Filed Press Release and Supplemental As discussed in that post, BNL is selling healthcare properties, and there will be a short term hit to funds available for distribution due to the lag in using the proceeds to acquire other properties.
B. Added 3 EVRG at $51.44:
Quote: Evergy Inc. (EVRG) - Utility Holding Company
Cost: $154.31
Subsidiaries:
About 1.7M customers in Kansas and Missouri.
EVRG Analyst Estimates | MarketWatch
Investor Overview | Evergy, Inc.
SEC Filed 2023 Annual Report (a list of generation resources starts at page 30; )
2023 Compared to 2022:
 |
| P. 40 Annual Report |
The noncash depreciation expense increased by $147.1M in 2023 compared to 2022 driven in significant part by changes in depreciation rates (page 47-48) There are a lot of moving parts that change significantly, as discussed at pages 47-48, that impact both GAAP and non-GAAP earnings which is one reason why I tend to go really slow in buying shares.
Last Discussed: Item # 1.E. Restarted EVRG - Bought 2 at $47.48 (10/21/23 Post) I discussed the 2023 second quarter earnings report in that post.
Last Elimination: Item # 2.C. Eliminated EVRG - Sold 2 at $64.62; 8 at $64.5; 5 at $70.33 (4/14/22 Post)(profit snapshot = $262.91)
New Average cost per share: $51.47 (5 shares)
Dividend: $.6425 per share ($2.57 annually), last raised from $.6125 effective for the 2023 4th quarter payment.
EVRG Dividend History | Seeking Alpha
Yield at AC = 4.99%
Last Ex Dividend: 3/8/24 (owned 2 as of).
Last Earnings Report (Q/E 12/31/23):
SEC Filed Earnings Press Release
GAAP E.P.S. = $.24
Non-GAAP E.P.S. $.27
The 4th quarter earnings will generally be the lowest due to the weather in Kansas and Missouri.
2023 Non-GAAP E.P.S. by quarter:
1st: $.59
2nd: $.81
3rd: $1.88
4th: $.27
Guidance for 2024:
GAAP and Adjusted E.P.S. of $3.73 to $3.93.
SU Bonds: I own 10 Evergy 2.45% SU bonds that mature on 9/15/24. Bond Page | FINRA.org (rated at Baa2/BBB+) Based on the current pricing of that bond, the YTM is higher than the dividend yield of the common shares. The SU bonds issued by the holding company will have a lower credit rating than first mortgage bonds issued by its operating subsidiaries.
Mortgage Bonds: The operating subsidiaries of EVRG issue first mortgage bonds. In March 2023, Evergy Kansas Central sold $400M of 5.7% first mortgage bonds that mature in 2053. Prospectus; Bond Page | FINRA.org
In April 2023, Evergy Metro issued $300M of 4.95% first mortgage bonds that mature in April 2033. Prospectus; Bond Page | FINRA.org This company was previously known as Kansas City Power & Light.
The Evergy Central FM bonds are rated at A2/A. There are two maturities outstanding.
Evergy Metro FM bonds are rated A2/A+. There are 8 outstanding.
C. Bought 5 BKH at $52.2:
Quote: Black Hills Corp. (BKH) - A Utility Holding Company
Cost: $261
"Based in Rapid City, South Dakota, the company serves 1.33 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming."
The operating electric utilities are Colorado Electric, South Dakota Electric and Wyoming Electric. There are six operating gas utilities owned by the holding company.
Last Discussed: Item # 1.D. Restarted BKH - Bought 2 at $47.91 (10/14/23 Post)
Last Elimination: Item # 2.H. Eliminated BKH in Fidelity Account - Sold 5+ at $70.55 (4/7/22 Post)(profit snapshot = $61.22)
New Average cost per share: $50.97 (7 shares):
 |
| Snapshot Intraday on 3/25/24 after add |
Dividend: Quarterly at $.625 per share ($2.5 annually), last raised from $.595 effective for the 2022 4th quarter payment.
BKH Dividend History | Seeking Alpha
BKH has increased its dividend for 54 consecutive years. BKH is not an S&P 500 component so its record would not qualify it for inclusion in the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which I own. BKH is also not part of the S&P 400 MidCap index, so it is not included in ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) which currently has 50 stocks. BKH is a component of the Russell 2000 index, but there is no dividend aristocrat ETF for that index.
Yield at AC: 4.9%
Most Recent Bond Offering (9/23): Prospectus for $450M of a 6.15% SU maturing in 2034. The proceeds will be used to redeem a $525M 4.25% SU note that matures in 11/23. I currently own 6 Black Hills 3.95% SU bonds that mature on 1/15/26. Bond Page | FINRA.org
Credit Ratings:
Last Earnings Report (Q/E 12/31/23):
E.P.S. $1.17, up from $1.11
2023 E.P.S. = $3.91, down from $3.97
Maintains guidance for 4% to 6% earnings growth
2024 E.P.S. guidance: $3.8 to $4
In 2023, the company sold 2M shares through its ATM raising net proceeds of $118.7M.
D. Added to AHH - Bought 10 at $10.47:
Quote: Armada Hoffler Properties Inc. (AHH) - Internally Managed REIT
Cost: $104.65
 |
| Page 1 Annual Report |
New Average cost per share: $10.68 (38 shares)
 |
| Snapshot Intraday on 3/25/24 after add |
Dividend: Quarterly at $.205 per share ($.82 annually), last increased from
Yield at $10.68: 7.49%
Last Ex Dividend: 3/26/24 (owned all as of)
Last Earnings Report (Q/E 12/31/23):
Normalized FFO per share: $.31
2023 Normalized FFO per share: $1.24
Guides 2024 Normalized FFO per share to $1.21 to 1.27
"Thirty party construction backlog as of December 31, 2023 was $472.2 million and construction gross profit for the fourth quarter was $3.5 million"
"Weighted average stabilized portfolio occupancy was 96.1% as of December 31, 2023. Retail occupancy was 97.4%, office occupancy was 95.3%, and multifamily occupancy was 95.5%"
"During the fourth quarter of 2023, unrealized losses on non-designated interest rate derivatives that negatively affected FFO were $16.2 million. As of December 31, 2023, the value of the Company’s entire interest rate derivative portfolio, net of unrealized losses, was $28.9 million."
GAAP to Normalized FFO Reconciliation:
The Stock Jocks had a negative reaction to this report possibly due to the $16.159M decrease in the fair value of derivatives not designated as cash flow hedges. The report was released on 2/22/24. The stock closed at $11.53 on 2/21 and at $10.82 the next day with an acceleration in volume. Armada Hoffler Properties, Inc. (AHH) Stock Historical Prices & Data - Yahoo Finance
E. Added 20 LXP at $8.79:
Quote: LXP Industrial Trust (LXP) - Internally Managed REIT
Cost: $175.71
As of 12/31/23, LXP "had ownership interests in approximately 115 consolidated real estate properties containing approximately 54.6 million square feet of rentable space, which were approximately 99.8% leased based upon net rentable square feet. All properties in which we have an interest are held through at least one property owner subsidiary."
Website: LXP Industrial Trust - Preeminent single-tenant U.S. industrial REIT
Properties | LXP Industrial Trust
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy (contains snapshots of round trip trades, profits and losses)
Last Buy Discussions: Item # 1.B. Added to LXP - Bought 5 at $7.98; 5 at $7.8 (11/4/23 Post); Item # 1.L. Added to LXP - Bought 5 at $8.43; 5 at $8.2 (10/21/23 Post); Item # 1.D. Added to LXP - Bought 5 at $9.1; 5 at $8.6 (10/7/23 Post)
Last Elimination: Item # 1.D. Eliminated LXP - Sold 20+ at $11.57 (2/13/23 Post)(profit snapshot = $33.37)
New Average cost per share: $8.67 (70 shares)
 |
| Snapshot Intraday on 3/26/24 after add |
Dividend: Quarterly at $.13 per share ($.52 annually)
LXP Industrial Trust (LXP) Dividend History | Seeking Alpha
Yield at $8.67: 6%
Last Ex Dividend: 3/27/24 (owned all as of)
Last Earnings Report (Q/E 12/31/23):
SEC Filed Press Release and SEC Filed Supplemental
GAAP E.P.S. = $.04
Adjusted FFO per share: $.17
GAAP to FFO Reconciliation:
The main add back to GAAP is the noncash depreciation expense. The main deduction is the total gain from property sales.
Revenue: $82.956M
Projects in Development:
"As of December 31, 2023, LXP ended the quarter with net debt to Adjusted EBITDA at 6.0x. LXP's total consolidated debt was $1.8 billion at quarter end with 92.8% at fixed rates. The total consolidated debt had a weighted-average term to maturity of 5.8 years and a weighted-average interest rate of 3.9% as of December 31, 2023."
In November 2023, LXP sold "$300.0 million aggregate principal amount of 6.75% Senior Notes due 2028 at an issuance price of 99.423% of the principal amount in November. LXP used the net proceeds and cash on hand to repay amounts outstanding on its unsecured revolving credit facility. The remaining proceeds were invested and will be used to repay the Senior Notes due 2024 before or at maturity, fund development and for general corporate purposes." Prospectus
I own 5 of the 4.4% SU notes that mature on 6/15/24.
Other Sell Discussions: Item # 1.C. Sold 137+ LXP at $9.08 and 53 at $9.06 In 2 Separate Roth IRA Accounts (9/12/18 Post)(profit snapshot = $914.11); Sold 100 LXP in Fidelity Roth IRA at $11.15 (1/6/17 comment- profit of $271.9 referenced with no snapshot)(snapshot in Gateway Post for Equity REITs); Item # 2 Sold 250 LXP on Ex-Dividend Date in Two Taxable Accounts-Update For Equity REIT Basket Strategy As Of 4/6/16 - South Gent | Seeking Alpha (profit snapshot = $224.65); Item # 1.B. Eliminated LXP - Sold 155+ at $9.46 (6/26/19 Post)(profit snapshot = $6.37); Item # 1.B. Sold 108+ LXP at $9.45-Used Commission Free Trade (2/6/19 Post)(profit snapshot = $79.9);; Item # 1 Sold 150 LXP in Vanguard Roth IRA-Update For Equity REIT Basket Strategy As Of 6/24/16 - South Gent | Seeking Alpha (profit snapshot = $80.19); Item # 1. Sold 54 LXP at $11.44 Vanguard Roth IRA (1/27/15 Post)(profit snapshot = $64.4); Item # 1 Sold 101+ LXP at $10.65 (10/28/14)(profit snapshot = $51.76)
LXP Realized Gains to Date: $1,957.69
E. Added 5 FTS at $39.07:
Quotes:
USDs: Fortis Inc.
CADs: Fortis Inc. (Canada: Toronto)
Canadian Dollar to US Dollar Exchange Rate Chart | Xe
Cost: $195.34
"Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2023 revenue of $12 billion and total assets of $66 billion as at December 31, 2023"
Website: Home
Last Discussed: Item # 1.C. Added to FTS - Bought 1 at $39.38; 1 at $38.38, (2/23/24 Post) I discussed the 2023 4th quarter report in that post. Press Release
New Average cost per share: $39.32 (15 shares)
Dividend: Quarterly at C$.59 per share, last raised from C$.565 effective for the 2023 4th quarter payment.
Fortis Announces 4.4% Increase in 4th Quarter Dividend Marking 50 Years of Dividend Increases (9/19/23)
Yield at US$39.32: The yield can not be computed without knowing what the CAD/US exchange rate will be for each dividend payment. The last 4 dividends as converted into USDs was $1.7. Using that annual number and an AC of $39.32, the yield would be about 4.32%. The yield will go up or down based on the CAD/USD exchange rate.
Next Ex Dividend: 5/16/24
Last Elimination: Item # 2.J. Eliminated FTS - Sold 10 at $45.16 (3/10/22 Post)(profit snapshot = $61.85)
Fortis Reset Equity Preferred Stocks: I own 150 shares of the Fortis reset equity preferred stock FTS-PM.TO. Item # 2.B. Bought 50 FTS.PRM at C$12.4 (5/23/20 Post); Item # 3.A. Bought 50 FTS.PRM at C$16.28 (3/14/20 Post); Item # 2. A. Bought 50 FTS.PRM at C$17.55 (11/23/19 Post) That preferred stock will reset its coupon in December 2024 at a 2.48% spread to the 5 year Canadian government bond yield. Par value is C$25 and dividends are cumulative. The coupon is currently 3.91%.
F. Added to KW - Bought 6 at $8.1:
Quote: Kennedy-Wilson Holdings Inc.
Cost = $48.6
Investment Category: Contrarian Value
The rise in interest rates has negatively impacted the share price, as has valuation impairments of assets. I am making a small bet that a decline in interest rates will result in better operating results and possibly no cut in the dividend, which is currently anticipated in the stock price.
KW Stock Historical Prices & Data
Website: Home | Kennedy Wilson
KW SEC Filed 2023 Annual Report
Businesses:
Pages 1 and 2, 2023 Annual Report.
Last Elimination: Item # 2.G. Eliminated KW - Sold 10 at $18.68 (3/11/23 Post)(profit snapshot = $58.67)
Last Discussed: Item # 1.B. Restarted KW - Bought 10 at $11.57; 5 at $11.3 (11/25/23 Post) I discussed the third quarter report in that post.
Average cost per share: $10.15 (25 shares)
 |
| Snapshot Intraday on 3/26/24 after add |
Dividend: Quarterly at $.24 per share ($.96 annually), last raised from $.22 effective for the 2022 first quarter payment.
Dividend Information | Kennedy Wilson
I view a dividend cut as more likely than not based on recent financial reports.
Yield at $10.15: 9.46%
Last Ex Dividend: 3/27/24 (owned all as of)
Last Earnings Report (Q/E 12/31/23): Ugly.
GAAP Loss per share: $1.78
"Includes significant non-cash items, such as depreciation expense, amortization expense, and fair-value adjustments, totaling $214 million or $1.54 per share in Q4-23 (vs $18 million or $0.13 per share in Q4-22), and totaling $439 million or $3.15 per share in FY-23 or $3.16 per share (vs. $78 million or $0.56 per share in FY-22)."
Debt: "Kennedy Wilson's share of debt had a weighted average effective interest rate of 4.4% per annum and a weighted-average maturity of 5.3 years as of December 31, 2023. Approximately 99% of the Company's share of debt is either fixed (73%) or hedged with interest rate derivatives (26%)."
Subsequent Event:
"The Company sold a wholly-owned retail asset in the UK and is under separate contracts to sell one wholly-owned Irish hotel asset, one wholly-owned office asset in the Pacific Northwest, and one wholly-owned retail asset in the UK, for a total sale price of approximately $340 million. If completed, these sales will generate cash to KW of $240 million (after debt repayments of $90 million) and total expected GAAP gains on sale in excess of $100 million."
Debt: Net debt at $7.61+B, see page 30
Properties and AUM:
G. Added to GLQ - Bought 10 at $6.49:
Quote: Clough Global Equity Fund Overview - Leveraged Stock CEF
Investment Category: Monthly Income Generation
Clough Global Equity (GLQ) Portfolio | Morningstar (lists top 25 holdings)
Sponsor's Website: Clough Global - Home
Top 10 Holdings as of 1/31/24:
SEC Filed Annual Report for the F/Y ending 10/31/23 (Leverage is at a .8% spread to the Overnight Banking Fund Rate, see page 49)
Last Discussed: Item # 3.A. Added to GLQ - Bought 5 at $5.2 (11/4/23 Post)
New Average cost per share: $6.4 (117+ shares)
Dividend: Monthly at $.0603 per share ($.7236 annually), last raised from $.0599 effective for the January 2024 payment.
GLQ Dividend History | Seeking Alpha
ROC SUPPORTED. The only way to cover the dividend is for the fund to harvest capital gains.
Yield at AC = 11.31%
Last Ex Dividend: 3/14/24
Data Date of 3/27/23 Trade:
Closing Net Asset Value per share: $7.83
Closing Market Price: $6.5
Discount: -16.99%
Average 3 year discount: -7.94%
Sourced: GLQ - CEF Connect (Click "Pricing Information" Tab)
H. Added to BMY - Bought 1 at $51.71:
Quote: Bristol Myers Squibb Co.
BMY Analyst Estimates | MarketWatch
Pharmaceutical Research & Development Pipeline
Last Discussed: Item # 1.E. Added to BMY - Bought 1 at $48.56; 1 at $48.32; 1 at $48.15 (2/9/24 Post). I discussed the last earnings report in that post. SEC Filed Earnings Press Release for the Q/E 12/31/23
Item # 1.G. Added to BMY in Schwab Account - Bought 1 at $53.34; 1 at $51.76; 1 at $51.1; 1 at $50.2 (11/4/23 Post)(I discussed several problems in that post. The main one is the loss of patent exclusivity for Revlimid)
Investment Categories: Contrarian Value/Dividend Growth
Average cost per share:
Dividend: Quarterly at $.60 per share, last raised from $.57 effective for the 2024 first quarter payment.
Dividend History - Bristol Myers Squibb
Yield at New AC:
Next Ex Dividend: 4/4/24
Last Elimination: Item # 1.A. Eliminated BMY in Fidelty Account - Sold 14 at $74.64 (2/13/23 Post)(profit snapshot = $206.75); Item # 2. Eliminated BMY in Vanguard Taxable Account - Sold 15+ at $77.56 (5/5/22 Post)(profit snapshot = $279.11)
I. Added to LGND - Bought 1 at $69:
Quote: Ligand Pharmaceuticals Inc. (LGND)
LGND Analyst Estimates | MarketWatch
Average cost per share: $75.43 (8+ shares)
Dividend: None and none expected.
I have nothing to add to my recent discussion. Item # 1.B. Added to LGND - Bought $30 at 77.32; 1 at $76; 1 at $75; 1 at $73; 1 at $71.8 (3/8/24 Post) I discuss the last earnings report in that post. SEC Filed Earnings Press Release
4. Small Ball Sells:
A. Pared RITM - Sold 13 shares at $11.19:
Quote: Rithm Capital Corp. (RITM) - Internally Managed REIT
Proceeds: $145.56
Website: Rithm | Home
Recent Acquisition: Rithm Capital Corp. Completes Acquisition of Sculptor Capital Management (As of 11/30/23, Sculptor had $32.8B of assets under management)
Recent SU Offering: Rithm Capital Corp. Announces Pricing of Offering of Senior Unsecured Notes Sold $775M of a 8% SU note maturing in 2029 and used part of the proceeds to redeem $275M of a 6.25% SU note maturing in 2025 which the company did do. Rithm Capital Corp. Announces Early Tender Results for Its 6.250% Senior Unsecured Notes Due 2025 The amount of that note that remains outstanding is $275M.
I classify RITM as a hybrid REIT in that it owns paper assets and real estate.
Using specific identification, I sold the highest cost lots that could be profitably sold.
Profit Snapshot: $14.95 (3/22/24 sale only)
Last Discussed: Item # 3.G Pared RITM - Sold 12+ at 11 (2/2/24)(profit snapshot +$7.4). I sold all shares purchased with dividends at over $10. This is just another risk reduction technique. I do not want to lose the value of a dividend through share price depreciation.
Last Buy Discussion: Item # 1.L. Added to RITM - Bought 5 at $9.18 (11/4/23 Post); Item # 2.B. Added to RITM - Bought 5 at $10.04; 5 at $9.63 (9/30/23 Post)
Last Elimination: Item # 6.E. Eliminated Duplicate Position in RITM - Sold 30 at $10.3 (8/12/23 Post)(profit snapshot = $2.31)
New Average cost per share: $10.51 (142+ shares)Dividend: Quarterly at $.25 per share
Rithm Capital Corp. (RITM) Stock Dividend History & Date
Yield at New AC = 9.51%
Last Ex Dividend: 3/28/24
Last Earnings Report (Q/E 12/31/23):
GAAP Loss of $87.5M or $.18
Earnings available for Distribution: $274.4M or $.51 per share
Quarterly common share dividend: $120.8M or $.25 per share
The GAAP loss for the quarter appears to have resulted from changes in the fair market value of mortgage servicing rights that does not impact cash available for distribution.
2023 GAAP Diluted E.P.S. = $1.10, down from $1.80 in 2022.
2023 Earnings Available for Distribution per share: $2.06, up from $1.31 in 2022.
This is a complicated financial statement. One rational response is simply to avoid owning shares. I am just attempting to earn a return from the dividends without losing money on the shares.5. Corporate Bond Purchases:
A. Bought 2 Interstate Power & Light 3.25% SU Maturing on 12/1/24 at a Total Cost of 98.47:
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Issuer: Wholly owned subsidiary of the utility holding company Alliant Energy Corp. (LNT)
LNT SEC Filed 2023 Annual Report
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa1/A-
YTM at Total Cost: 5.518%
Current Yield at TC = 3.3%
B. Bought 2 Kimco 3.3% SU Maturing on 2/1/25 at a Total Cost of 98.11:
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Issuer: Kimco Realty Corp. (KIM)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB+
YTM at Total Cost: 5.617%
Current yield at TC = 3.36%
I now own 4 bonds. The other two were purchased on 7/27/23 at a 96.014 total cost. I would attribute the lower price to the normal shrinkage in the YTM as the bond moves closer to maturity.
C. Bought 2 Trimble 4.75% SU Maturing on 12/1/24 at a Total Cost of 99.3:
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Issuer: Trimble Inc. (TRMB)
TRMB Analyst Estimates | MarketWatch
SEC Filed Earnings Press Release for the Q/E 12/31/23
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa3/BBB-
YTM at Total Cost: 5.81%
Current Yield at TC = 4.78%
I now own 4 bonds.
6. Treasury Bills Purchased at Auction: $15,000 in principal amount
I discussed the 3 and 6 month bill purchases in a comment published on 3/25/24, noting once again that the investments rates for those bills are not consistent with a cut in FF range on or before the July meeting.
A. Bought 5 Treasury Bills at the 3/25/24 Auction:
91 Day Bill
Matures on 6/27/24
Interest: $66.1
Investment Rate: 5.374%
B. Bought 5 Treasury Bills at the 3/25/24 Auction:
Matures on 9/26/24
Interest: +$129.04
Investment Rate: 5.313%
C. Bought 5 Treasury Bills at the 3/27/24 Auction:
%207:30:24%20.png){kind=small}
119 Day Bill
Matures on 7/30/24
Interest: $86.03
Investment Rate: 5.37%
7. Treasury Notes Purchased in the Secondary Market: $2,000 in principal amount
I do not pay commissions on treasury purchases in my Schwab, Fidelity and Vanguard accounts. Consequently, I would not use a broker that charges a commission.
A. Bought 1 Treasury 4.25% Note Maturing on 5/25/25:
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Purchased at 99.2656
YTM at Total Cost: 4.812%
B. Bought 1 Treasury 4.25% Note Maturing on 10/15/25:
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Purchased at 99.2236
YTM = 4.773%
8. CD Purchases:
A. Bought 2 Brookline Bank 5.15% CDs Maturing on 6/30/25:
Issuer: Operating bank of the bank holding company Brookline Bancorp Inc. (BRKL)
Interest: Paid Monthly
B. Bought 1 Beal Bank 5.1% CD Maturing on 4/2/25:
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First Income Recognition Shift into 2025 using a CD.
Disclaimer: I am not a financial advisor, but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sale of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals, and situational risks. I can only make that kind of assessment for myself and my family members.
