AY, BNL, BRT, BTMD, CTO, FCVSX, FSCO, GLAD, KRG, NTB, NWN, PFG, REYN, TGNA

Economy: 

Personal Income and Outlays, January 2024: 

Annual PCE Price Index: 2.4%, down from 2.6% for the 12 month period ending in December 2023.

Annual Core PCE Price Index: 2.8%, down from 2.9% "

Month-to-Month Core PCE Prices: .4%  

PCE report January 2023: Key inflation measure rose 0.4%

Shelter "expense" was up 6.1% Y-O-Y in January, down from 6.3% through December. Excluding that category, the core annual PCE price increase was 1.8%. 

Pending Home Sales Receded 4.9% in January

+++++

Allocation Shifts Discussed in this Post: 

Treasury Bills Purchased at Auction: $15,000

Treasury Notes Purchased at Auction (2 YR): $1,000

Corporate Bonds: $10,000 in Principal Amount 

Outflow Individual Common Stocks: -$797.49

(consisting of $2,017 in proceeds minus $1,219.51 in purchases)

Realized Gains Common Stocks: +$274.88

Stock Mutual Fund: +$50

Outflow Stocks/Stock Funds: -$747.49

Leveraged Senior Loan CEF = $28.35

2024 Outflow Common Stocks: -$16,896.21

The reduction in my common stock allocation is primarily due to the risk free returns available from treasury bills, taking into account my investment objectives and no financial reason to take risks. 

++++

Putin and Orwellian Terrorist State: 

Losses ∙ Russia ∙ WarSpotting — documented material losses in Russo-Ukrainian war

Putin Ally Threatens to 'Destroy' Poland: 'We Won't Even Think Twice'

Russia will protect itself with nuclear weapons, warns Putin - YouTube

Two years of war has been a disaster for Russia with no end in sight  

Nighttime blaze engulfs Novolipetsk metallurgical plant in Russia - Euromaidan Press  

A breakaway region in Europe is asking Russia for protection. Here’s what to know This region is part of Moldova's internationally recognized territory that Putin wants to absorb into the Russian Federation. The Russian financed separatists will do what Russia wants. What do the Transnistrians think of the pro-Russian separatists' appeal to Moscow? | DW News - YouTube 

The eastern Ukrainian separatists requested Russia's protection in 2014. This is generally viewed as the first step in Russia's absorption of another country or a portion thereof. If western nations do not like it, then we can all die in a Russian initiated nuclear war. 

In the coming years, Russian financed and controlled persons in other countries will try to create separatist regions and then call for Russia's protection. An "election" Russian style will be held where over 95% of the voters elect to join the Russian Federation. Russia's next targets will be all or part of the 3 Baltic nations.  

Russians "saying the country is moving in the right direction is the highest in decades, 71% last month". Russia’s Brutal War Calculus-The New York Times Support among Russians for Putin's genocidal war in Ukraine remains strong and higher than 71%. 

Most Russians, based on polling, support their Dear Leader's Orwellian and totalitarian state organized with Putin as the Don and a few others as underbosses or Capos who can share in the spoils of Putin's Kleptocracy. 

A few crumbs are tossed to the remaining 140M or so Russians to keep them from rebelling and improving their circumstances by removing Putin and a few thousand loyalist that control key sectors and choke points in Russia.  

Russian spy plane shot down in suspected friendly fire incident - YouTube

My video: GOP's Return to Isolationism with a Pro Putin Result - YouTube

++++

Trump and His Party: 

RealClearPolitics-Election-2024 Republican Presidential Nomination

RealClearPolitics - Election 2024 - General Election: Trump vs. Biden

The Supreme Court has decided to review the D.C. Circuit Court's decision that Trump did not have absolute immunity from criminal prosecution after leaving office for committing allegedly unlawful acts to subvert the election results and to remain in Office. Appellate Court Decision.pdf I discussed this matter in a video: Supreme Court will decide whether Trump has absolute immunity from criminal prosecutions-YouTube 

The end result, which may have been desired by the Republican Justices, is that the trial will be delayed until after the election. 

If the Republican Justices wanted a trial before the election, they could have accepted a direct appeal from the district court, bypassing the court of appeals altogether, which the Justices refused to do, or could have acted with haste in granting the petition for review and to expedite the briefing and oral arguments with a decision no later than early April, and they refused to do that as well. 

If the Republican Justices rule that Trump has immunity from prosecution for the acts detailed in the Indictment, that would mark the beginning of the end of America's democracy. 

United States v. Donald J. Trump - Indictment

Republicans do not read the indictments against Trump. If one did, and I have seen no indication yet that one has, they would have to offer rebuttal evidence that would be admissible in a court which is something that they cannot do. It is much easier to resort to name calling and schoolyard taunts, or just to make conclusory statements without providing any factual support (e.g. Biden is behind the indictment, which in TrumpWorld has no factual basis, in an effort to keep Trump from becoming President).  

Nicolle Wallace: ‘SCOTUS willing to listen to the argument that America has a king’ - YouTube 

Donald Trump Tried to Corrupt Attorney in Classified Docs Case—Prosecutor

Prosecutors in hush money case plan to use quotes from Trump's books against him at trial, filing says - ABC News

No. 2 Senate Republican John Thurne endorses Trump for president Thurne knows everything that there is to know about Trump. None of the republican politicians who have endorsed Trump, and most have, can claim that they were unaware of what Trump has done and said in the past. By endorsing Trump, republicans have declared who and what they are to anyone paying attention. Senior Republican who called Trump ‘inexcusable’ endorses him for president-The Guardian

Donald Trump is the Republican Party. 

Zelensky "can't understand how Donald Trump can be on the side of Putin". Zelensky says Trump doesn’t understand Putin because he has never fought him 

Trump won't say if he wants Russia or Ukraine to win the war. See Zelensky's reaction - YouTube

Fact check: Trump delivers another lie-filled CPAC speech;  Trump: I Am A 'Political Dissident';  CPAC 2024 in 120 Seconds - YouTube

Trump suggests his mug shot and indictments appeal to Black voters 

Trump: "My mug shot, we've all seen the mug shot. And you know who embraced it more than anybody else: the Black population." He thinks he's Biggie Smalls?': Capehart torches Trump's 'unbelievably racist' remarks - YouTube; Trump Says His Indictments Are Helping Him Attract Black Voters - The New York Times

My video: Trump Appeals to Black Voters - YouTube

Here’s what South Carolina GOP voters say if Trump is convicted of a crime - YouTube

Former CIA Director explains how Russia is using 'Republican lawmakers as tools’ - YouTube

NRA, former CEO Wayne LaPierre found liable in civil corruption trial | full coverage - YouTube

"Dobbs and Democracy", 137 Harvard Law Review 728.pdf

Pro-Trump CPAC speaker pledges 'end of democracy' - YouTube

Trump Sneakers - SNL - YouTube 

Key figure in fake electors plot concealed damning posts on secret Twitter account from investigators 

'It would be a disaster for everyone': Should Biden debate Trump?  - YouTube Trump will constantly interrupt Biden and will make one false claim right after another interspersed with outrageous reality creations. 

Retired 4 Star Marine General John Kelly: “The depths of his dishonesty is just astounding to me. The dishonesty, the transactional nature of every relationship, though it’s more pathetic than anything else. He is the most flawed person I have ever met in my life.” Former White House chief of staff tells friends that Trump ‘is the most flawed person’ he’s ever met  

++++++

1. Small Ball Purchases: 

I am discussing in this blog and a few other recent ones the purchase of utility stocks. 

Utility stock purchases are characterized by me as "bond substitutes". That characterization only defines the investment objective which is the dividend yield plus 2%+ in an annual realized gain on the shares. 

With starting dividend yields generally in the 4% to 5.5%, the goal is a modest 6% to 7.5% annual total return with each purchase classified as a bond substitute.  

A common stock dividend can be reduced or eliminated which is not the case for a bond. And, unlike a fixed coupon bond, a utility may raise its payout. 

The 2+% annualized realized gain on the shares is a minimum risk premium associated with stock risks that I want over and above the dividend paid by the bond substitute stock. 

A. Started GLAD - Bought 10 at $10.09:

Quote: Gladstone Capital Corp. (GLAD) - Externally Managed BDC

Cost: $100.86

Investment Strategy: Monthly Income Generation. 

Annual Report for the 2023 F/Y Ending on 9/30/23 Summary of risk factors starts on page 21 and ends at page 43. 

GLAD SEC Filings 

10-Q for the Q/E 12/31/23 Summary of investments starts at page 6. An investment with a (P) indicates that the loan is on nonaccrual. Scrolling through the investment list, I found one loan on nonaccrual and that was a $6.14M loan to Edge Adhesives Holdings (page 9) that had been marked down to $2.829M as of 12/31/23. 

Investments by Security Type: 

P. 27, 10-Q

Dividend: Monthly at $.0825 per share ($.99 annually)

GLAD Dividend History | Nasdaq

Yield at $10.09: 9.61% 

Next Ex Dividend: 3/20/24

Net Asset value per share history: Sourced from 10-Q filings. 

12/31/23:  $9.61

12/31/22:  $9.06

12/31/21:  $9.44

12/31/20: $7.61 (bad year for BDCs)

12/31/19:  $8.08 

12/31/18:  $7.98 

12/31/17:  $8.48

12/31/16:  $8.36

12/31/15:  $8.38

12/31/14:  $9.31

12/31/13: $10.1

12/31/12: $9.19

12/31/11: $9.9  (taking hit from Near Depression period fallout)

12/31/10: $11.74

12/31/09: $11.92

12/31/08: $12.04

12/31/07: $15.08

12/31/06: $13.75

IPO: 2001 at $15 with proceeds to GLAD at $13.95 before deducting about $1M in internal expenses. Prospectus 

Last Earnings Report (First Fiscal Quarter Ending 12/31/23): SEC Filed Earnings Press Release 

Net investment income per share: $.27, which covers the quarterly dividend of $.2475 paid in monthly installments. 

Net Asset value per share: $9.61

Exchange Traded Bond: I have a small ball position in a GLAD exchange traded senior unsecured bond. Gladstone Capital Corporation 7.75% Notes due 2028 (GLADZ) Par value is $25.  

Last Elimination: Item # 5.A Eliminated GLAD - Sold 50 at $9.11 (12/2/2018 Post)(profit snapshot = $1.38)-Item # 1.A. Bought 50 GLAD at $9.09-Used Commission Free Trade  (6/7/18 POST)

Goal: A total return in excess of the dividend payments before any ROC adjustment to the tax cost basis (avoids double counting).  

B. Added to FSCO - Bought 5 at $5.67: 

Quote: FS Credit Opportunities Corp. Overview - Leveraged CEF

Cost: $28.35

Investment Category: Monthly Income Generation

Sponsor's website: FSCO-FS Investments

FSCO SEC Filings

SEC Filing - Investments as of 9/30/23

SEC Filed Shareholder Semiannual Report for the period ending 6/30/23

Average cost per share: $5.77 (55 shares)

Dividend: Monthly at $.057 per share ($.684 annually), last raised from $.04945 effective for the July 2023 payment. With the rise in short term rates, the fund earns more net income that allowed it to raise the dividend payment rate. A cut in the dividend would naturally follow when short term rates decline sufficiently that NII per share no longer covers the current monthly dividend. 

The coupons for loans that float at spreads to short term rates like the 3 month SOFR will be extremely sensitive to changes in the FF rate. 

FSCO Dividend History | Nasdaq

Yield at AC : 11.85%

Last Ex Dividend: 2/21/24 (owned 50 as of) 

Data Date of 2/22/24 Trade: 

Closing Net Asset Value per share: $6.98

Closing Market Price: $5.68

Discount: -18.62%

Sourced: FSCO-CEF Connect  (Click "Pricing Information" tab)

I have nothing further to add to my recent discussion: Item # 2.E. Started FSCO - Bought 50 at $5.78  (2/2/24 Post) 

C. Added to BRT - Bought 5 at $15.95; 5 at $15.58: 

Quote: BRT Apartments Corp.  (BRT)- Apartment REIT

Cost: $157.63

Management: Internal 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Website: BRT Apartments Corp. 

Properties | BRT Apartments | REIT

BRT SEC Filings

Last Discussed: Item # 1.C. Started BRT - Bought 10 at $16.4; 5 at $16.25  (2/15/24 Post) I discussed the 2023 third quarter report in that post. SEC Filed Press Release and Supplemental

New Average Cost per share: $16.11 (25 shares)

Dividend: Quarterly at $.25 per share

Yield at New AC = 6.207%

Last Ex Dividend: 12/18/23

The next earnings report is scheduled for release on 3/13/24. 

D. Started NWN - Bought 5 at $35.75: 

Quote: Northwest Natural Holding Co. (NWN) 

NWN SEC Filings 

2023 SEC Filed Annual Report 

On the day of purchase, the stock closed at $35.85, down $3.93 or 9.83% in response to the 2023 4th quarter earnings report that missed expectations. 

Cost: $178.73 

This is my first purchase. 

NWN is primarily a natural gas distributor headquartered in Portland, Or. "It owns NW Natural Gas Company (NW Natural), NW Natural Water Company (NW Natural Water), NW Natural Renewables Holdings (NW Natural Renewables), and other business interests."  

The distribution business provides natural gas to approximately 2M in Oregon and southwest Washington. 

The water business is not material. There are about 73,000 meters. The customers are scattered in Pacific Northwest, Arizona and Texas. NWN closed on 4 acquisitions last year.  

NWN Analyst Estimates | MarketWatch

Dividend: Quarterly at $.4875 per share ($1.95 annually), last increased from $.485 effective for the 2023 4th quarter payment. 

The dividend has been increased for 68 consecutive years. The increases have been so miniscule that I would not call them increases. 

NWN Dividend History | Nasdaq

In 2014, the quarterly rate was $.46 per share. I would only call this dividend history as a positive only because the rate has not been cut and the yield at 5.45% at my cost is okay. 

Yield at $35.75: 5.45%

Last Ex Dividend: 1/30/24

Last Earnings Report (Q/E 12/31/23): SEC Filed Press Release 

2023 Net Income of $93.9M or $2.58 per share, up from $2.54 in 2022. 

2023 4th quarter E.P.S.  = $1.21, down from $1.36

Affirmed long term earnings per share growth rate target of 4% to 6%, compounded annually, from 2022 through 2027. 

Guides 2024 to $2.20 to $2.4, down from 2023 "primarily because of regulatory lag". For utility companies, capital expenditures are made before a regulatory commission approves adding the costs to the rate base.  

The company has increased its dividend for 68 consecutive years. 

E. Added 5 AY at $18.25; 5 at $17.9: 

Quote: Atlantica Sustainable Infrastructure PLC (AY) 

Cost: $180.76

Website: Atlantica- Sustainable Infrastructure

AY SEC Filings (foreign issuer forms)

Corporate Presentation Nov-2023.pdf

Credit Profile-Atlantica

Last Discussed: Item # 1.B. Added to AY - Bought 5 at $19; 5 at $18.53 (2/9/24 Post) 

Last Substantive Discussion: Item # 1.C. Started AY - Bought 10 at $20; 5 at $19.55 (12/16/23 Post) I discussed the 2023 third quarter report in that post. SEC Filing 

New Average cost per share: $19.03 (35 Shares)

Dividend: Quarterly at US$.445 per share ($1.78 annually) 

AY Dividend History | Nasdaq

Yield at AC = 9.35%

Last Ex Dividend: 11/29/23

Last Earnings Report (Q/E 12/31/24): Released on 3/1/24. So far today, there is almost no response to this report, up or down.  

SEC Filed Earnings Release and SEC Filed Slide Investor Presentation  

Depreciation is a major noncash expense

2023 Revenues: $1.099+B

Net Income: $43.38M or $.37 per diluted share, up from a loss of  9 cents per share in 2022. 

2023 Cash Available for Distribution ("CAD"): $235.74M or $2.03 per share, which exceeds the annual dividend payment per share.  

2023 4th Quarter CAD: $51.576M or $.44 per share. 

Maximum Position: 100 shares

F. Restarted WEC - Bought 2 at $78.99; 1 at $77.31; 1 at $76.59:

Shows Prior Sale This Account at $97.04

Quote: WEC Energy Group Inc. - Utility Holding Company

Cost: $311.88

WEC Analyst Estimates | MarketWatch

WEC SEC Filings

Investor | WEC

SEC Filed Investor Update February 2024 4.7M retail customers in Wisconsin, Minnesota and Michigan.  

2023 SEC Filed Annual Report 

Last Discussed: Item # 1.D. Eliminated WEC in 2 Taxable Accounts - Sold 7 at $96.45 and 3+ at $97.04 (2/3/22 Post)(profit snapshots = $129.44). I would attribute almost all of the price decline since those sales to an overvaluation reset, an unfavorable rate decision by the Illinois Commission, and the rise in interest rates.   

Average cost per share: $77.97  

Dividend: Quarterly at $.835 per share ($3.34 annually), last raised from $.78 effective for the 2024 first quarter payment. 

Yield at $78.99 = 4.28%

Last Ex Dividend: 2/13/24

Last Earnings Reports (Q/E 12/31/23): SEC Filed Earnings Press Release 

Non-GAAP 2023 E.P.S. $4.63, up 4% from 2022

4th Quarter Non-GAAP E.P.S. $1.1  

Both the 2023 and 4th quarter Non-GAAP E.P.S. excludes a non-cash charge of 41 cents per share relating to the Illinois Commission disallowing certain capital expenditures to be included in the rate base. That decision is discussed in a Fitch bond report. Fitch Affirms WEC Energy Group's IDR; Outlook Stable Illinois represents about 17% of WEC's asset base.  

2023 consolidated revenues: $8.9B, down $704.4M from 2022 (mostly weather related)

Analyst Reports (available to Schwab customers):

Morningstar (2/1/24): 4 stars with a fair value of $96 and a narrow moat

Argus (2/7/24): Buy with a $106 PT. 

S&P (2/7/24): 3 stars with a 12 month PT of $86

G. Added To TGNA - Bought 5 at $14.15; 5 at $13.7: 

Quote: TEGNA Inc. (TGNA)

Cost: $139.2

"With 64 television stations in 51 U.S. markets, TEGNA is the largest owner of top 4 network affiliates in the top 25 markets among independent station groups, reaching approximately 39 percent of all television households nationwide. TEGNA also owns leading multicast networks True Crime Network, Twist and Quest."

TGNA SEC Filings 

2023 SEC Filed Annual Report 

TEGNA Inc. Analyst Estimates | MarketWatch

Investor Relations | TEGNA Inc.

Last Discussed: Item # 1.A. Started TGNA - Bought 10 at $14.52; 10 at $14.32 (2/15/24 Post) I discussed the 2023 third quarter report in that post. TEGNA Inc. Reports Third Quarter 2023 Results and Provides Fourth Quarter Guidance 

New Average cost per share: $14.25 (30 shares) 

Dividend: Quarterly at $.11375 per share ($.455 annually), last raised from $.095 per share effective for the 2023 4th quarter payment. 

TGNA Dividend History | Nasdaq

Yield at New AC = 3.19%

Next Ex Dividend: 3/7/2024

Last Earnings Report (Q/E 12/31/23): Released on 2/29/24 after purchase. 

SEC Filed Press Release 

GAAP E.P.S. = $.40

Non-GAAP E.P.S. = $.43

Revenues: $725.854M, down from $917.13M in the 2022 4th quarter.  

Revenues declined primarily due to the 2022 midterm election cycle advertising boost. There will be a bigger boost in 2024 which includes a Presidential election.   

Subscription revenue declined 9% primarily due to a temporary disruption of service with a distribution partner that was resolved on 1/13/24. Those disputes involve cable carriage fees for local network stations. 

Free cash flow was $130M in the quarter. 

Cash and Cash Equivalents as of 12/31/23: $361M 

The company expects to generate $900M to $1.1B in free cash flow in 2024 and 2025 combined. 

Sale of Interest in BMI: On 2/8/24, Tegna completed the sale of its interest in BMI (Broadcast Music) to a shareholder group led by New Mountain Capital for approximately $153M in pre-tax proceeds (see page 80 of the 2023 Annual Report and Earnings Press Release for the 4th Q.). I do not currently have the net profit number. 

H. Added to KRG  - Bought 5 at $20.9:  

Quote: Kite Realty Group Trust (KRG) - Retail REIT 

Cost: $104.5

KRG "is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets."

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

KRG SEC Filings

2023 SEC Filed Annual Report 

Last Discussed: Item # 1.A. Added to KRG - Bought 5 at $21.25 (1/26/24 Post) 

Last Substantive Discussion: Item # 2.F. Started KRG - Bought 5 at $22.49; 5 at $22.1 (1/6/24 Post) I discussed the 2023 third quarter report in that post. SEC Filed Press Release and Supplemental

New Average cost per share: $21.68 (20 shares)

Dividend: Quarterly at $.25 per share

KRG Dividend History | Nasdaq

Yield at New AC: 4.61%

Last Ex Dividend: 1/4/24 (owned 5 as of) 

Last Earnings Report (Q/E 12/31/23): 

SEC Filed Press Release and Supplemental 

FFO: $111.1M or $.50 per share

Net Income to FFO: 

The noncash depreciation and amortization expense of $103.119M is the major add back to net income when calculating funds from operation. 

Leased Occupancy: 94%

Economic Occupancy at Year End: 91.3%

2024 FFO Guidance: $2-$2.06

Debt Maturities (see pages 10-11 of the Supplemental)  Fixed rate debt was at $2.63+B with floating rate debt at $172M. I own 2 Kite Realty LP 4% SU bonds that mature on 3/15/25. 

Debt Ratings: Baa3/BBB- 

Fitch rates the SU debt at BBB. Fitch Rates Kite Realty's Senior Unsecured Notes 'BBB' (1/16/24)

Last Bond Offering (1/2024): Prospectus for 5.5% SU Note maturing in 2034. 

I. Added to BNL - Bought 2 at $14.86: 

Quote: Broadstone Net Lease Inc. (BNL) - Internally Managed REIT 

Cost: $29.72 

As of 12/31/23, BNL "owned a diversified portfolio of 796 individual net leased commercial properties with 789 properties located in 44 U.S. states and seven properties located in four Canadian provinces, comprising approximately 38.3 million rentable square feet of operational space. As of December 31, 2023, all but two of our properties were subject to a lease, and our properties were occupied by 220 different commercial tenants, with no single tenant accounting for more than 4.1% of ABR. Properties subject to a lease represent 99.4% of our portfolio's rentable square footage. The ABR weighted average lease term and ABR weighted average annual minimum rent increase, pursuant to leases on properties in the portfolio as of December 31, 2023, was 10.5 years and 2.0%, respectively."

Last Discussed:  Item # 1.C. Added to BNL - Bought 5 at $14.08; 5 at $13.08 (11/4/23 Post) I discussed the 2023 third quarter report in that post. SEC Filed Press Release and Supplemental

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

New Average Cost per share: $14.97 (55+ shares)

Dividend: Quarterly at $.285 per share ($1.14 annually)

BNL Dividend History | Seeking Alpha

Yield at New AC = 7.615%

Next Ex Dividend: 3/27/24 

Last Earnings Report (Q/E 12/31/23): 

SEC Filed Press Release and Supplemental (debt and interest rate swaps discussed at pages 11, 13-17)

GAAP E.P.S. = $.03

FFO per share: $.39

AFFO per share: $.36 

2023 AFFO per share: $1.41, up from $1.4 in 2022

2024 AFFO per share Guidance = $1.41  

The flat AFFO guidance reflects selling 75 healthcare properties, which is ongoing as discussed below. There will be a lag between receiving the proceeds and reinvesting into newly acquired properties that generate rental income. 

Reconciliation Net Income to AFFO: 

The impairment charge of $26.4M is discussed in these sentences: "As part of our healthcare portfolio simplification strategy, we made the decision to sell Green Valley Medical Center after the tenant failed to pay rent since October 2023 as the result of not meeting certain operational thresholds, and we are actively marketing the property through the date of this release. The decision resulted in us recognizing approximately $26.4 million of impairment during the quarter, and the tenant’s unpaid rents represent the only outstanding rents of our 99.2% quarterly rent collections. The tenant is responsible for all ongoing property costs under the terms of the lease."

The REIT is in the process of selling its clinically oriented healthcare properties. The company has identified 75 healthcare properties that it wants to sell representing approximately 11% of its annualized base rent. 

As of the date of this earnings press release, the company has "executed contracts on 37 healthcare properties for approximately $253.0 million at a weighted average cash capitalization rate of 7.9%, representing a $0.8 million gain over original purchase price. The properties represent approximately $19.9 million or 5.1% of our December 31, 2023 ABR, 28.7% of our healthcare portfolio, and have a weighted average remaining lease term of 4.7 years. We anticipate the transactions will close during the first quarter of 2024."

Occupancy: 99.4%, page 21 Supplemental 

Properties: 796

Top 20 Tenants: 

J. Added $50 to FCVSX at $32.24: 

Quote: Fidelity Convertible Securities Fund Overview 

Sponsor's website: FCVSX-Fidelity Investments

Expense Ratio: .75%

FCVSX – Morningstar (currently rated 4 stars)

1 Year Ordinary Dividend History: Paid Quarterly 

Capital Gain Distributions - Paid Annually 

K. Added to CTO - Bought 1 at $16.49: 

Quote: CTO Realty Growth Inc. (CTO) - Externally Managed REIT 

CTO SEC Filings

Portfolio Summary: Square feet in thousands.

Leased Occupancy: 93.2%

Occupied: 90.3%

"On February 16, 2024, the Company completed the sale of its remaining subsurface oil, gas, and mineral rights totaling approximately 352,000 acres in 19 counties in the State of Florida (“Subsurface Interests”) for gross proceeds of $5.0 million. As part of the Subsurface Interests sale, the Company entered into a management agreement with the buyer to provide ongoing management services for an annual base management fee of $100,000 and the potential to earn additional incentive fees if certain conditions are met."

2024 Guidance: AFFO per share $1.7 to $1.78

Last Discussed: Item # 1.A. Added to CTO - Bought 15 at $17.2; 5 at $17.1 (12/16/23 Post) 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Stock Split: CTO Realty Growth Announces Three-For-One Stock Split (4/27/22)

New Average Cost per share: $17.7 (112+ shares)

Dividend: $.38 per share ($1.52 annually)

Yield at AC = 8.59%

Next Ex Dividend: 3/13/24 

Last Earnings Report (Q/E 12/31/23): 

SEC Filed Press Release 

Core Diluted FFO per share: $.48

AFFO per share: $.52

Net Income to AFFO per share: 

Sold 6 properties for $64.2M generating a total gain of $3.2M

Repurchased 62,015 common shares at an average cost of $15.72.  

CTO provides management service to another publicly traded REIT called Alpine Income Property Trust Inc. (PINE) and has a significant equity position in PINE. 

2. Small Ball Sells: 

I am using the rally this year to sell a few underperforming stock positions.  

A. Eliminated REYN - Sold 40+ at $29.64: 

Quote: Reynolds Consumer Products Inc. (REYN) 

Proceeds: $1,192.5

The two main product lines are Hefty trash bags and Reynolds aluminum wrap. Some other products are sold using those trade names. 

Brands | Reynolds Consumer Products

REYN Analyst Estimates | MarketWatch

REYN SEC Filings

2023 SEC Filed Annual Report 

Profit Snapshot: +$60.56

Last Discussed: Item # 2.H. Added to REYN - Bought 5 at $25.7 (11/11/23 Post) I discussed the 2023 third quarter report in that post. SEC Filed Press Release

Dividend: Quarterly at $.23, last raised from $.22 effectively for the 2020 4th quarter which I view negatively. 

REYN Dividend History | Nasdaq

Last Ex Dividend: 2/14/24 (owned as of)

Last Earnings Report (Q/E 12/31/23): 

SEC Filed Press Release 

Comparisons are to the 2022 4th quarter. 

E.P.S. $.65, up from $.51

Revenues: $985M, down from $1.065B

2023 E.P.S. $1.42, up from $1.23

Earnings were negatively impacted by input cost inflation in 2022.  

Guidance: 2024 E.P.S $1.57 to $1.65

Last Sell Discussion: Item # 4.F. Eliminated Duplicate REYN in Schwab Taxable Account - Sold 20+ at $32.55 (12/6/22 Post)(profit snapshot = $95.96)

REYN Realized Gains to Date: $173.95

B. Eliminated NTB - Sold 19 at $30.02:

Quote: Bank of Butterfield Ltd. (NTB)

Proceeds: $570.39

Sold on the ex dividend date. 

NTB Analyst Estimates | MarketWatch

NTB Profile-Reuters

Investor Relations: Butterfield Group

Profit Snapshot: +$111.51

Last Discussed: Item # 4.B. Eliminated Duplicate Position in NTB - Sold 14 at $31.87  (7/29/23 Post)(profit snapshot = $96.14) 

Dividend: Quarterly at $.44 per share ($1.76 annually), last raised from $.38 effective for the 2019 third quarter payment. 

The Bank of N.T. Butterfield & Son Limited (NTB) Dividend History | Seeking Alpha

Last Ex Dividend Date:  2/23/24 (owned as of)

Last Earnings Report (Q/E 12/31/23):  SEC Filed Earnings Press Release and SEC Filed Investor Presentation (slides) 

Comparisons are to the 2022 4th quarter. 

Diluted GAAP E.P.S. = $1.11, down from $1.26

Diluted Non-GAAP E.P.S. = $1.15, down from $1.27 

NIM: 2.73%, down from 2.79%

Core efficiency ratio: 60.5%

NPL Ratio: 1.3%

Charge off ratio: .08%

Core Return on Average Tangible Equity: 25.4% (very good)

Tangible Book Value per share: $19.29, up from $15.92

Repurchased 1.2M shares at an average price of $28.2 per share

Purchased trust assets from Credit Suisse.

Consider to Repurchase: My consider to repurchase price is at less than $25. 

Negatives Outweigh the Positives IMO: NIM has traditionally been lower than other banks, the NPL ratio is elevated, E.P.S. is trending down and the efficiency ratio is a bit too high.

C. Eliminated BTMD - Sold 15 at $6.22: 

Quote: Biote Corp. (BTMD) 

Proceeds: $93.3 

SEC Filings

Investment Category: Blackjack Hand, part of the Lottery Ticket Basket Strategy. 

Profit Snapshot: $18.8

Last Discussed: Item # 3.D. Bought 5 BTMD at $5.07; 5 at $4.76 (1/26/24 Post) 

Dividends: None and none expected. 

Last Earnings Report: I was not pleased with the updated guidance  released after my purchase. I sold into the price pop created by an analyst upgrade. 

SEC Filing (preliminary report)

"management expects 2023 revenue and Adjusted EBITDA to be slightly below prior guidance. The Company had previously forecast that revenue and Adjusted EBITDA would be toward the lower end of the previously announced ranges of $190-$200 million and $56-$60 million, respectively. The Company now expects full year 2023 revenue of $185-$187 million and Adjusted EBITDA of $54-$56 million. . . . Expected revenue of $45-$47 million for the fourth quarter of 2023 includes procedure revenue growth of approximately 7% and dietary supplement revenue decline of approximately 15% compared to same period in 2022. The decline in dietary supplement, or nutraceutical, revenue was primarily driven by one of Biote’s larger distributors recently opting to exit the nutraceutical business."

D. Eliminated PFG - Sold 2 at $80.41: 

Quote: Principal Financial Group Inc. (PFG) 

Proceeds: $160.81

PFG SEC Filings

PFG Analyst Estimates | MarketWatch

PFG Reuters Profile Page

PFG Reuters Key Metrics Page 

Profit Snapshot: +$84.01

Last Discussed: Item # 1.B. Started PFG - Bought 2 at $38,4 (10/21/20 Post) 

Dividend: Quarterly at $.69, last raised from $.67 effective for the 2024 first quarter payment. In the 2014 first quarter, the rate was at $.28 per share. 

PFG Dividend History | Nasdaq

Last Ex Dividend: 11/30/23

Next Ex Dividend: 3/11/24

Last Earnings Report (Q/E 12/31/23): 

SEC Filed Press Release 

GAAP E.P.S. $1.19

Non-GAAP E.P.S. $1.83

PFG SU Bonds: I currently own 2 PFG SU bonds that mature in 2026 which I will hold until maturity.  

The main reason for selling this position is that I only owned 2 shares and did not want to buy more at the current price. I did not want to spend time monitoring the company based on those considerations. I may restart a position when and if the price sinks somewhere south of $60, and I am comfortable buying more shares than just 2. 

3. Corporate Bond Purchases: 

A. Bought 2 Verisign 5.25% SU Maturing on 4/1/25 at a Total Cost of 99.761:   

Issuer: VeriSign Inc. (VRSN) 

VRSN Analyst Estimates | MarketWatch

VRSN SEC Filings 

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: 5.472%

Current Yield at TC = 5.26%

This is the next SU bond to mature, which is something that I check and place some value on. 

B. Bought 2 Essex LP 3.5% SU Maturing on 4/1/25 at a Total Cost of 97.976:    

Issuer: Operating entity for Essex Property Trust Inc. (ESS) who guarantees the notes: 

Essex SEC SEC Filings 

Essex SEC Filed Earnings Report for the Q/E 12/31/23 

Prospectus 

FINRA Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB+

YTM at Total Cost: 5.426%

Current Yield at TC = 3.57%

C. Bought 2 Trimble 4.75% SU Maturing on 12/1/24 at a Total Cost of 99.407: 

Issuer: Trimble Inc. (TRMB) 

TRMB Analyst Estimates | MarketWatch

This is the next SU note that matures. 

SEC Filed Earnings Press Release for the Q/E 12/31/23 

TRMB SEC Filings 

FINRA Page: Bond Page | FINRA.org

Credit Ratings: Baa3/BBB- 

YTM at Total Cost: 5.545%

Current Yield at TC =  4.778%

Last Bond Issuance (2/23): Prospectus for $800M SU Maturing in 2033 

D. Bought 2 UNUM 3.875% SU Maturing on 11/5/25 at a Total Cost of $97: 

Issuer Unum Group (UNM) 

I have eliminated my common stock position. 

UNM Analyst Estimates | MarketWatch

UNM SEC Filings 

UNM 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: 5.767%

Current Yield at TC = 3.995% 

E. Bought 2 CMS Energy 3.6% SU Maturing on 11/15/25 at a Total Cost of 96.828:   

Issuer:  CMS Energy Corp. (CMS) - Utility Holding Company 

CMS Analyst Estimates | MarketWatch

CMS SEC Filings 

CMS SEC Filed Earnings Press Release for the Q/E 12/31/23 

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB

YTM at Total Cost: 5.565%

Current Yield at TC = 3.718%

I had a 3.875% SU bond issued by CMS mature on 3/1/24: 

The operating utility for CMS Energy is Consumers Energy which issues first mortgage bonds and has a higher credit ratings (A1/A) than its parent company. I own 2 Consumers Energy 3.125% first mortgage bonds that mature on 8/31/24 and received the semiannual payment on 2/28: 

A number of operating subsidiaries of utility holding companies issue first mortgage bonds.  

4. Treasuries Bought at Auction: $16,000 in principal amount. 

A. Bought 10 Treasury Bills at the 2/28/24 Auction: 

Fidelity Account

Schwab Account

119 Day Bill

Matures on 7/2/24

Interest = $172.72

Investment rate: 5.391%

B. Bought 2 Treasury Bills at the 2/26/24 Auction: 

182 Day Bill

Matures on 8/29/24

Interest: $51.87

Investment Rate: 5.34%

C. Bought 1 Treasury Note at 2/26/24 Auction: 

2 Year Note

Matures on 2/28/26

Coupon: 4.625% 

Yield with OID = 4.691%

D. Bought 3 Treasury Bills at the 2/29/24 Auction:  

56 Day Bill: 

Matures on 4/30/24: 

Interest: $24.66

Investment rate: 5.403%

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.