To read images in the text, most will need to be clicked which expands the size. Once 1 image is clicked, all will appear in thumbnails near the page bottom and can be reading consecutively by clicking each image.
Dollar Values of Trades Discussed in this Post:
Inflow Common Stocks (Item # 1): $1,698.49
Outflow Stock Funds (Item # 6 ): $142.3
Realized Gains U.S. Stocks/Stock Funds: $35.86
Net Inflow Stocks/Stock Funds: $1,556.19
I will be returning to a net outflow when I discuss trades in my next post.
Inflow Corporate Bonds (Item # 2): 18 (Cost at $17,841.78)
With the rapid and significant percentage increases in interest rates, I am experiencing almost daily, over the past month or so, the interest rate risk that I call the risk of lost opportunity. I am about 2 weeks behind in discussing my corporate bond purchases.
Treasury Bills Purchased at Auction (Item # 4): $10,000 in principal amount.
I am reducing my purchases of treasury bills and am increasing my purchases of short term T Notes at auction and in the secondary market.
Treasury Note Purchased at Auction (Item # 5): $3,000 in principal amount
Treasury Notes Purchased in Secondary Market (Item # 3): 4 (cost at $3,951.83)
Outflow Exchange Traded Bonds: $529.49 (realized gain at $191.04)
Outflow Canadian Dollars: C$10,000
I am converting CADs into USDs to fund purchases of short term corporate bonds. I still have an excess amount of CADs in my IB account.
So far in 2026, I have converted C$70,000 into USDs:
Shiller PE Ratio - Multpl
Economy:
The ISM Services PMI for August was reported at 55.4%, up from 54.1% in July. The new orders component rose 3.7 to 60.9. The price component rose 2.3 to 72.6.
The ISM Manufacturing PMI for August was reported at 54.6%, down 1%. The new orders component declined 3 to 53.7% from July. The employment component declined 1.6% to 51.2.
The ISM reports are surveys. Numbers above 50 signals an expansion. Understanding the ISM Manufacturing Index: Key to U.S. Economic Trends
30-year Treasury yield hits highest level since 2004 (9/24/26)
The average rate on a 30 year mortgage for the week ending 9/24/26 was reported at 7.03%, up from 5.98% for the W/E 2/26/26, Mortgage Rates - Freddie Mac A 1.05% rise in the a 30 year mortgage rate will result in a $5,250 annual increase in interest payments or $157,500 for 30 years.
Oil falls as potential diplomatic solution to Iran conflict emerges The offer to reopen the Strait is conditioned on the U.S. accepting Iran's conditions which reportedly include lifting the U.S. naval blockade, a waiver of sanctions on Iranian oil sales and a ceasefire that would include Lebanon. This is a plan offered by the Iranian Foreign Minister Abbas Araghchi who probably lacks the power to compel Iran's compliance based on what happened after the MOU was first signed last June. Iran has suggested a deal to reopen the Strait of Hormuz in 7 days | PBS News
Mortgage Rates - Freddie Mac For the week ending 9/24/26, the average rate on a 30 year mortgage was 7.03%, up from 5.98% for the W/E 2/26/26.
Treasury Yield Curve September 2026:
Daily Treasury Rates | U.S. Department of the Treasury
On 2/26/26, the 2 year treasury note closed at at 3.42% and at 4.81% as of 9/25/26.
Treasury Real Yield Curve September 2026:
The real yield on the ten year TIP closed at 2.83% today, up from 2.44% on 9/1/26 and at 1.74% on 2/26/26.
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Trump and His Orwellian Party:
Trump’s stark warning on Iran: ‘If and when do I blow the entire nation up?’ | The Independent (9/20/26). Trump made a similar threat last April. Trump says we're 'blowing up the whole country' if Iran doesn't make deal in 48 hours - ABC News He also threatened to send the entire nation back into the stone age. Trump says U.S. strikes will send Iran back to 'Stone Ages' - YouTube
Trump Says His Planned Arch Would Become A 'Military Complex' Able To Host Drones And Snipers
Trump: "At the strong request of the United States Military, and for National Security purposes, I have agreed to convert the magnificent Triumphal Arch, planned since the Civil War Era many years ago, at the Receptive Circle adjoining the Arlington Memorial Bridge, into a top grade Military Complex/Triumphal Arch, to house, store, and have the rapid ability to use large numbers of drones, plus Snipers, on both the roof and plaza areas, and additionally have and hold large quantities of sniper ammunition in storage." Trump "Truth" Social Message 9/20/26
I would like for Trump to identify by name anyone in the United States Military who made this recommendation.
I liked Tom Nichols comment that the design for the Trump's Arch "looks like it was found in the bottom of Albert Speer’s desk drawer." Trump’s Monumental Obsession - The Atlantic
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Another Trump Violation of the Fundamental and Conservative Values Protected by the First Amendment:
Judge blocks Trump's ban on CNN, MS NOW and Politico, ordering White House to restore access for now - CBS News; Order.pdf
The First Amendment is a bedrock conservative value in the U.S.
So far, there has been 75 federal court rulings holding that Trump or his Administration (one and the same IMO) used the powers of the Presidency to violate the First Amendment. The Trump Administration Has Lost 75 of 93 First Amendment Cases, Report Finds | Truthout; Judges Rip Trump Apart 75 Times for Violating First Amendment The rulings involving Trump's Executive Orders targeting law firms held that Trump violated multiple constitutionally protected rights. President Trump's Law Firm Executive Orders Are Unconstitutional | Cato at Liberty Blog
Any President who routinely uses power to violate First Amendment rights is not a conservative but an authoritarian attempting to undermine freedom in the U.S.
Trump's routine violations of First Amendment rights are fundamentally unAmerican.
Trump's latest flagrant violation of the conservative values protected by the First Amendment was banning 3 news organizations from accessing the White House.
Our Dear Leader claimed that preventing journalists from entering the White House was necessary to protect national security:
Trump "Truth" Social Message 9/21/26
In Trump's America, and this is obvious, it is only necessary for Trump to declare that news organizations are national security threats who publish "Fake News" in order to violate their First Amendment rights. If judges endorse that approach, it would be tantamount to allowing a dictator to terminate First Amendment rights by a Truth Social message or an Executive Order.
Vance, Scalise, others defend Trump over White House media ban: 'Totally appropriate'; Vance says Trump press ban is 'totally appropriate'
Trump's UN Ambassador Mike Waltz also defended Trump's decision to ban CNN, MS Now and Politico from the White House. Ambassador Mike Waltz defends Donald Trump's ban on certain news outlets
Republican politicians will either support Trump's First Amendment violations or will simply remain silent, which is what they have done repeatedly in the past when Trump uses the power of the Presidency to violate multiple rights protected by the First Amendment.
The silence of republicans when Trump repeatedly and systematically punishes the exercise of First Amendment rights is equivalent to approving what Trump has repeatedly done and will continue to do. The ban on access to the White House is just the latest in a long series of Trump actions that violate the foundational conservative values expressed in the First Amendment.
Assuming the U.S. remains a free country, which is certainly questionable given the current trajectory, Trump's numerous violations of First Amendment rights will be an important part, not only of his legacy, but also that of republican politicians who condone those assaults, either by publicly approving them or remaining silent as they repeatedly occur.
Notwithstanding his multiple efforts to punish the free exercise of First Amendment rights, Trump claimed in a recent message that he cherished the First Amendment and has stated many times in the past that he loves it. Trump: 'I love the First Amendment. Nobody loves it better than me' | ABC News - YouTube That claim is pure Orwellian Doublespeak from a demagogic authoritarian. Trump is easily the most dangerous enemy of the First Amendment in U.S. history IMO.
Trump's party has many similarities to Viktor Orbán's Fidesz party in Hungary, idolized by many republicans, which can not be saved as anything resembling a conservative one either.
Hungary After Orbán: The Hard Road Back to Democracy; How Viktor Orbán’s Hungary Eroded the Rule of Law and Free Markets | Cato Institute; Why Hungary inspires U.S. conservatives and populists; How Viktor Orban Pulled Off Hungary’s Descent Into Dictatorship
This is a link to a Trump message published on 9/21/26 which, along with hundreds of others, is worth reading by anyone who still believes he is sane.
Trump must have some personal satisfaction in engaging in personal insults and attacks against female reporters:
All female reports have to do is ask Trump a question that he does not want to answer and then refuse to immediately back down as he directs his ample supply of venom at them. Trump Shuts Down Female Reporter: Timeline of Clashes - Newsweek (9/11/26). Trump's purpose is to intimate female reporters into meek servitude to him and, when that does not happen, he becomes viciously angry at them. Very strange behavior for a person described by self-described christians as God's "Chosen One".
The "totally disloyal" judge referenced by Trump, Timothy Kelly, was appointed by him and has been a member of the Federalist Society since 2009. Trump of course does not say why Judge is "totally disloyal". The reason is that this Judge simply held that Jim Acosta was denied Due Process before his press credentials were pulled by Trump. Judge appointed by Trump will oversee news outlets’ lawsuit over White House ban - POLITICO; Judge orders White House to return press credentials to CNN's Acosta - POLITICO (11/16/28) And, that makes the Judge appointed by Trump "totally disloyal" to him. Kelly did not rule on the First Amendment issue raised by banning Acosta from the White House.
JD Vance Planted the Story That Sparked White House Media Ban | The New Republic
Trump's Communication Chief Steven Chung Hurls Ugly Slur At CNN's Erin Burnett Over Trump TV Chung called Burnett, a female anchor, "a racist and a retard". Chung and Trump are two peas from the same pod.
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Trump Greenland Deal Panned as 'Largely a Rebranding of the Status Quo to Claim a Win' | Common Dreams; Donald Trump savagely mocked by Denmark after ’spectacular defeat' Greenland deal - The Mirror US; The Greenland Fiasco Stumbles to an End - The Atlantic
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The Republican Supreme Court Monarchists:
The Supreme Court Was Never Supposed to Be This Powerful - YouTube; We Need To Talk About Jurisdiction Stripping and SCOTUS Reform - YouTube I would agree with premise that Congress has the power to limit the Supreme Court's jurisdiction and to change the number of Justices. However, court packing or limiting the Court's power to overturn laws passed by Congress are not the solutions to the current rule by the 6 reactionary Supreme Court Monarchists.
Starting to add to the number of Justices will only lead to a cycle of each political party increasing the number when they have the votes. Ultimately, the Justices may have to sit in a basketball stadium to hear oral arguments.
Limiting the power of the Supreme Court to substitute its opinion for that of elected officials is not workable either since most Americans would want the Court to invalidate federal legislation that abridges constitutional rights.
Impeachment of Supreme Court Justices is only a theoretical alternative since there will probably never be enough votes in the Senate to convict. And, even if there were enough votes, the end result would cause even more instability in the U.S. and would not be advisable IMO.
The articles of impeachment for the 6 Monarchists can not be based on interpretations of the 14th Amendment's Due Process Clause (e.g privacy right/abortion), or other decisions where there are legitimate grounds for disagreement, but only to
(1) any decisions that undermine the constitutional powers of Congress in Article 2 while enhancing the already Imperial Powers of the Presidency;
(2) any decision that creates Kingly powers in the President that are actually used in ways that violate fundamental constitutional rights;
(3) any decision allowing the President to commit multiple violations of fundamental constitutional rights, particularly involving free speech (e.g. permitting Trump's EOs directed at law firms to stand);
(4) the decision creating out of whole cloth a near absolute Presidential criminal immunity that incentivizes the commission of crimes, including crimes to remain in power (January 6th); and/or
(5) and decision interpreting the constitution or a federal criminal law in a way that is clearly contrary to the plain meaning of words in order to accomplish a desired policy objective (e.g. the dissents and concurring opinion in the birthright citizenship case or decisions like the Fischer v. United States decision on obstruction of an official proceeding when the result was to protect Trump from criminal prosecution for his role in the January 6th insurrection).
Elections matter and that is the lesson. If voters want a reactionary Supreme Court Justices who have a 19th Century ideology and have created Kingly powers for a President and will continue to do so, then vote for a Republican President and Republican Senators. If you are opposed, then vote for Democrats. That is the only viable long term solution that must be followed for decades. The far right in the U.S. followed that long term plan and hit the jackpot with the current 6 Supreme Court Monarchists.
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FBI Eyed Susan Collins Over Defense Contractor’s Donations — ProPublica
The Supporters Urging Trump to Declare Martial Law for the Midterms - The Atlantic
Trump aides explore attaching president’s name to Ford’s Theatre Trump's response to that article was in this "Truth" Social message, referring to it as coming from "Dumocrats" who were lying. The article did not claim that Trump was exploring adding his name to Ford's Theatre. Who could possibly believe that Donald would want to attach his name to buildings?
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Egypt’s Warning to Israel - The Atlantic Egypt reportedly warned Israel that Hamas was planning a major operation 11 days prior to October 7th. Israel has denied there was any such warning. I previously referenced reports that UAE allegedly gave Netanyahu a similar early warning that was ignored by him. Report: UAE intel warned Shin Bet of Hamas action before Oct. 7, prompting leader's call to Netanyahu | The Times of Israel
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1. Small Ball Adds:
Equity REITs are experiencing share price declines as interest rates rise which makes their dividend yields less attractive compared to owning treasury notes and increase their financing costs over time.
Another problem for REITs that are not triple net lease REITs, where maintenance, property tax and insurance costs are the tenants obligation, is that those costs are absorbing the percentage increases in rents, and then some in many cases, resulting in flat Y-O-Y distributable cash flow per share numbers or nearly so.
A. Added to Falling Knife MAA in Schwab Account - Bought 1 at $123.81, 1 at $122.7; 1 at $118:
Issuer: Mid-America Apartment Communities Inc (MAA) at Google Finance - Large Apartment REIT and S&P 500 Component.
Cost: $364.51
"As of June 30, 2026, MAA had ownership interest in 104,698 apartment units, including communities in development, across 16 states and the District of Columbia."
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Website: MAA - Apartment Communities in the Southeast & Southwest
Last Discussed: Item # 3.I. Pared MAA in Schwab Account Again - Sold 1 at $143.93 (7/14/26 Post)(profit snapshot = $8.93); Item # 1.D. Pared MAA in Schwab Account - Sold 2 at $139.33 (6/25/26 Post)(profit snapshot = $2.66)(Discussed the 2026 first quarter report, SEC Filing)
Last Elimination: Item # 1.E. Eliminated MAA - Sold 5 at $169.88 (3/18/25 Post)(profit snapshot = $222.26)
Last Buy Discussion: Item # 2.E. Added to MAA - Bought 1 at $121.3 (4/4/26 Post)
New average cost per share this account: $126.91 (12+ shares)
 |
| Snapshot Intraday on 9/21/26 after last add |
Reduced from $128.88
Dividend: Quarterly at $1.53 per share ($6.12 annually), last raised from $1.515 effective for the 2026 first quarter payment. The quarterly rate in the 2016 third quarter was at $.82
MAA Dividend History & Date | Seeking Alpha
Yield at New AC: 4.82%
Last Earnings Report (Q/E 6/30/26):
This report was unsatisfactory IMO.
Physical Occupancy: 95.3%
Revenues: $555,127M, up from $549.902M
GAAP E.P.S. = $1.04
FFO per share: $2.1, down from $2.19
Core FFO per share: $2.08, down from $2.15
Core AFFO per share: $1.77, down from $1.85
The core AFFO calculation deducts recurring maintenance expenditures of $37.242M from the Core FFO number of $247.524M. These expenses are high for apartment REITs.
Reconciliation:
2026 Guidance: Core FFO of $7.36-$7.62
Owned MAA LP SU Bonds: 8
Stacked as Follows:
2 of the 3.6% SU Maturing on 6/1/27, Bond Page | FINRA.org In Item # 1.E. (3/18/25 Post), I discussed eliminating my MAA stock position at $169.88, I included a snapshot of this bond purchase, noting that I was switching out of the common into this short term bond that was bought at a 97.723 total cost.
4 of the 4.2% SU Maturing on 6/15/28, Bond Page | FINRA.org, discussed at Item # 2.E. below; prior discussion at Item # 2.A. Bought 2 Mid-America Apartments LP 4.2% SU Maturing on 6/15/28 at a Total Cost 0f 99.495 - IB Account (7/8/26 Post)(YTM then at 4.469%).
2 of the 3.95% SU Maturing on 3/15/29, Bond Page | FINRA.org (not discussed)
%203.95%25%20.png) |
| IB Account |
A number of factors caused this dividend slash. The main reasons were this REIT's office exposure in the Los Angeles metropolitan area, high debt levels, and far too much variable rate debt when short term rates were rising due to FED rate hikes that started in March 2022. The federal funds range hit 5.25% to 5.5% prior to the 50 basis point cut in September 2024. Federal Reserve issues FOMC statement (9/16/24) Variable rate loans priced at spreads to short term rates worked during the ZIRP period when the FF range was at 0.0% to .125%.
Yield at $10.21: 7.44%
Last Ex Dividend: 9/30/26
Last Earnings Report (Q/E 6/30/26):
SEC Filing (A portfolio map can be found at pages 4-5)
Revenues: $206.034M, up from $202.81
GAAP E.P.S. = ($.02), up from ($.04)
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
SEC Filed 2025 Annual Report As previously discussed, GTY has some environmental issues, see pages 26-28.
Last Discussed: Item # 2.C. Pared GTY in Schwab Account - Sold 5 at #35.3+ (7/28/26 Post)(profit snapshot = $38.59). I discussed the last earnings report in that post. SEC Filed Earnings Press Release for the Q/E 6/30/26
 |
| Snapshot Intraday on 9/17/26 after add |
GTY Dividend History & Date | Seeking Alpha
I am no longer reinvesting the dividend.
Yield at $27.06: 7.17%
Last Ex Dividend: 9/24/26 (owned all as of)
Last Buy Discussions: Item # 1.F. Added to GTY in Schwab Account - Bought 2 at $27.85; 3 at $27.85 (1/1/26 Post); Item # 3.A. Added to GTY - Bought 5 at $26.8 - Fidelity Account (7/29/25 Post); Item # 1.B. Added to GTY in Fidelity Account - Bought 5 at $25.97; 5 at $25.55 (10/18/25 Post); Item # 3.A. Added to GTY - Bought 5 at $26.8 - Fidelity Account (7/29/25 Post)
Some Other Sell Discussions: Item # 3.F. Pared GTY Again in Fidelity Account - Sold 5 at $34.44 (7/14/26 Post)(profit snapshot = $36.07 discussed 2026 1st Q report, SEC Filed Earnings Press Release, reduced AC to $26.41 in Fidelity account); Item # 1.C. Pared GTY in Schwab Account - Sold 5 at $33.53 and Item # 1.D. Paread GTY in Fidelity Account - Sold 5 at $33.94 (4/18/26 Post)(profit snapshots = $59.09); Item # 3.B. Pared GTY in Schwab Account - Sold 6 GTY at $32.2 (4/4/26 Post)(profit snapshot = $23.64); Item # 1.C. (2/23/26 Post)(profit snapshot = $32.18); Item # 1.I. Pared GTY in Fidelity Account - Sold 5 at $32.7 and Item # 1.J. Sold 5 GTY in Fidelity Account at $32.7 (2/17/26 Post)(profit snapshots = $27.56; discussed the 2025 4th quarter report, SEC Filed Press Release); Item # 1.H. Pared GTY - Sold 5 at $31.33 - Highest Cost Lot in Schwab Account (2/11/26 Post)(profit snapshot = $8.18); Item # 3.A. Eliminated GTY - Sold 5 at $35.65 and 20 at $35.69 (1/3/23 Post)(profit snapshot = $211.35)
GTY Realized Gains to Date: $529.5 (includes some minor gains in RI accounts)
D. Added to STWD - Bought 5 at $15; 5 at $14.4:
Cost: $154.2
Company Description at 10-Q for the Q/E 6/30/26 at page 11
STWD Detailed Earnings Estimates at Zacks.com
Starwood Property Trust, Inc. Profile | Reuters
Starwood Property Trust, Inc. - Press Releases
Last Discussed: Item # 4.B. Bought 5 STWD at $15.84 (8/18/26 Post). I discussed the last earnings report in that post. SEC Filed Press Release for the Q/E 6/30/26
As previously discussed, Starwood is an extremely complicated hybrid REIT who has not been covering its dividend with distributable earnings recently, a trend that makes a dividend cut more likely. I went ahead and bought 2 five share lots after the company declared its regular dividend.
I do not own any REIT whose accounting is anywhere near as complicated as STWD. Given that I have zero training in accounting, this complexity makes me most uncomfortable.
New Average cost per share this account: $16.12 (30+ shares)
 |
| Snapshot Intraday on 9/25/26 after last add |
Reduced from $16.81
Dividend: Quarterly at $.48 per share ($1.92 annually).
Cost: $318.5
Subsequent to the first two purchases, J.P. Morgan downgraded the stock to underweight from neutral and lowered the price target to $12 from $14. I do not have access to that report. The stock declined in response and I then added 5 more shares.
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Website: Safehold - The Modern Ground Lease Company
Last Discussed: Item # 2.C. Eliminated SAFE - Sold 15+ in Fidelity Account at $16.02 (7/8/26 Post)(profit snapshot = $40.99) Item # 2.C. Eliminated SAFE in Schwab Account - Sold 41+ at $15.71 (6/18/26 Post)(profit snapshot = $70.6)(discussed the 2026 first quarter report in that post, where I noted that both GAAP and Adjusted GAAP declined, SEC Filed Press Release and SEC Filed Slide Presentation)
I noted in my last post discussing this REIT why I eliminated my positions: "I was underwhelmed by the last earnings report which caused me to profitably exit my Schwab account position . . . Other negative items include no dividend growth, a relatively unattractive dividend yield at $16+ given the lack of dividend increases and my focus on income generation, and an uninspiring growth in GAAP E.P.S. Safehold owns ground leases so no depreciation, maintenance expenses or capital improvements. GAAP E.P.S., not FFO per share, is the relevant number for valuing the company." I further noted that, given those considerations, my consider to restart price was less than $13.5.
Safehold SEC Filed 2025 Annual Report
Average cost per share: $12.88 (20 shares
Dividend: Quarterly at $.177 ($.708 annually)
SAFE Dividend History & Date | Seeking Alpha
Yield at $12.88: 5.497%
Next Ex Dividend: 9/30/26
Last Earnings Report (Q/E 5/30/26):
I viewed this report as better than the last one.
SEC Filed Press Release and Supplemental (most of the information is in the supplemental filing)
For a ground lease REIT, E.P.S. will generally be close to cash available for distribution.
Revenues: $114.6M, up from $93.8M
E.P.S. $.42, up from $.39
Net Income = $30.723M, up from $27.969M
The company claimed that unrealized appreciation of its assets increased to $9.8B.
For the six month period ending 5/30/26, E.P.S. was $.82, up from $.83 but up from $.80 excluding a $1.9M write-off during the 2025 first half from a preferred equity interest in a leasehold joint venture.
Portfolio Diversification:
GBV and GLTV Definitions, p.17 Supplemental:
Debt at $4.653+B
Credit Ratings: A3/A-
Fitch has a A- rating on the SU debt.
I would generally describe this ground lease REIT as safer than other REITs that own and lease properties. Expenses relating to owning a structure are avoided by an entity that leases the ground only.
There can be a problem when a tenant defaults, either on obligations connected to the structure (e.g. mortgage) or can avoid making ground lease payments due to some contractual provision in the ground lease about falling below a certain levels of cash flow on the property. I discussed the later problem in connection with a ground lease on an apartment complex issued by the REIT One Liberty Property. Item # 1.K. Added to OLP - Bought 2 at $20 (11/8/25 Post)("the REIT completed the disposition of an unproductive grand lease for an apartment complex for $17.7M. I discussed this problem in a prior post. To summarize, OLP has not received any rental income from this ground lease for several years. The property had not generated sufficient operating cash flow that would trigger the tenant's obligation to pay rent for the ground leases, see pages 32-33 of the 2024 SEC Filed Annual Report.") I do not know how often that happens.
Safehold Inc. SEC Filed 2025 Annual Report (Risk factor summary starts at page 8 and ends at page 27; pages 15-16 discuss risks associated with tenant bankruptcies; )
The "leases at most of our properties provide for rental payments that are CPI-Linked or fixed with future CPI adjustments. Many of our Ground Leases include a periodic rent increase based on prior years’ cumulative CPI growth, with the initial lookback year generally starting between years 11 and 21 of the lease term. These CPI lookbacks are generally capped between 3.0% - 3.5%. In the event cumulative inflation growth for the lookback period exceeds the cap, these rent adjustments may not keep up fully with changes in inflation. They may also not keep up with increases in market rental rates. As a result, we may not capture the full value of the land underlying our leases at given points in time or the UCA at lease expiration. Future leases that we enter into are likely to contain similar or other limitations on rent increases, which may limit the appreciation in value of our land, our net asset value and our UCA." Page 11, Annual Report.
F. Added to BFS - Bought 5 at $30; 5 at $29.6-Schwab Account:
Quote: Saul Centers (BFS) at Zacks
Cost: $298
Saul Centers List of Properties
Website: Saul Centers Inc. - Real Estate Investment Trust - Bethesda, Maryland
SEC Filed Earnings Press Release for the Q/E 6/30/26
New Average cost per share: $30.71 (35 shares)
Reduced from $31.08.
Dividend: Quarterly at $.59 per share ($2.36 annually).
BFS Stock Dividend History & Date | Seeking Alpha
Yield at $30.71: 7.685%
Next Ex Dividend: 10/15/26
I have nothing further to add to my discussion in my last post. Item # 2.F. Added to BFS - Bought 5 at $30.3 (9/19/26 Post)
G. Multiple Small Dollar Buys of Falling Knife CLX at prices indicated in snapshot - Schwab Account:
Quote: Clorox (CLX) at Zacks
Cost: $259.97
Schwab allows its customers to buy in dollar amounts.
I now prefer catching this falling knife by average down in $30 or $40 amounts rather than buying 1 share. With a decline below $80, I may become less chicken and start buying 1 share lots again.
While I view the stock as undervalued from a long term perspective, I am starting to wonder whether I am the only one that has that opinion. The dividend yields for my last purchases were over 6%.
CLX Detailed Earnings Estimates - Zacks.com
Recent Major News: Clorox Completes GOJO Acquisition on 4/1/26
Last Discussed: Item # 1.B. Eliminated Duplicate Position in CLX (Fidelity Account) - Sold 4.565 Shares at $104.5 (8/18/26 Post)(profit snapshot = $42.42). I discussed the last earnings report in that post. SEC Filed Earnings Press Release for the Q/E 6/30/26
Last Buy Discussions: Item # 5.A. Added to Falling Knife CLX in Schwab Account - Bought 1 at $92.5 (6/12/26 Post); Item # 5.B. Added to Falling Knife CLX - Bought 1 at 97.95; 1 at $96.75 (5/2/26 Post)
New average cost per share this account: $103.43 (22+ shares)
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| Snapshot Intraday on 9/24/26 after last add |
Reduced from $105.92
Dividend: Quarterly at $1.25 per share ($5 annually), last raised from $1.24 effective for the 2026 third quarter payment.
CLX Stock Dividend History & Date | Seeking Alpha (noting 48 years of consecutive dividend increases)
CLX is a dividend aristocrat having raised its dividend for more than 25 consecutive years.
Yield at $103.43: 4.834%
Last Ex Dividend: 8/12/26
Next Ex Dividend: 10/28/26
Prior Sell Discussion: Item # 1.C. Eliminated Duplicate Position in CLX - Sold 4+ at $117.3 (2/11/26 Post)(profit snapshot = $43.28)
A current problem for U.S. companies which use trucks to ship their products nationwide is the high diesel prices.
2. Corporate Bonds: 18
I will generally cut off corporate bond purchase discussions in the 18-20 range and then pick up with other purchases made prior to a post's publication in the next post and so on. Depending on the number of purchases, I am now running about 2 weeks behind.
All of the bonds discussed below can be purchased now at lower prices.
There has been a rapid and significant decline in bond prices across the 2 to 30 year maturity spectrum.
If this continues for much longer, I will have met my interest income generation goal for 2027-2029, which is a annual total, reduced by federal taxes on the interest income, that is about twice my anticipated living expenses.
A. Bought 2 Xcel 4.75% SU Maturing on 3/21/28 at a Total Cost of 99.818 - Interactive Brokers Account:
%204.75%25%20(9:14:26)%20IB.png)
Issuer: Xcel Energy Inc (XEL) - A Utility Holding Company
Cost: $1,996.36
Filled on 9/14/26
The operating utilities owned by XCEL issue first mortgage bonds, XEL 2025 SEC Filed Annual Report at pages 59-60 Currently, I own several FM bonds issued by Public Service of Colorado.
XEL SEC Filed Earnings Press Release for the Q/E 6/30/26 (Revenues = $3.119B with net income at $586M).
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB
YTM at Total Cost: 4.875%
Current Yield at TC: 4.759%
B. Bought 1 Dominion Energy 5.25% SU Maturing on 8/1/33 at a Total Cost of 97.521:
%208:1:33%20(9:15:26).png)
Issuer: Dominion Energy Inc (D) - a Utility Holding Company whose operating subsidiaries are Virginia Electric Power, now called Dominion Energy Virginia, and Dominion South Carolina. The South Carolina operations were owned by the utility holding company SCANA that was acquired by Dominion Energy in 2019. The operating subsidiary of SCANA was known as South Carolina Electric & Gas.
Cost: $975.21
Filled on 9/15/26
The NextEra Energy Inc (NEE) SU bonds are currently rated A-/BBB+ with Fitch at A-. Financial Strength – NextEra Energy, Inc.
Dominion SEC Filed Earnings Press Release for the Q/E 6/30/26
10-Q for the Q/E 6/30/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 5.69%
Current Yield at TC: 5.384%
I now own 4, with 1 of those owned in a RI account.
I sold 2 at 103.45 on 9/15/35:
%20+$70.34.png){kind=small} |
| +$70.34 "Profit" |
I also sold 1 in a RI account in July 2025 at 100.
Other Owned Dominion Energy SU Bonds:
2 Dominion Energy 3.6% SU Maturing on 3/15/27, Bond Page | FINRA.org
2 Dominion Energy 4.6% SU Maturing on 6/15/28, Bond Page | FINRA.org, discussed at Item # 2.K. Bought 2 Dominion Energy 4.6% SU Maturing on 6/15/28 at a Total Cost of 99.882 (9/12/26 Post)
Other owned Dominion Energy Subsidiary Bonds:
4 Virginia Electric & Power 3.5% SU Maturing on 3/15/27 (2 in a RI account), Bond Page | FINRA.org
2 Virginia Electric & Power 3.8% SU Maturing on 4/1/28, Bond Page | FINRA.org, Item # 2.E. Bought 2 Virginia Electric and Power 3.8% SU Maturing on 4/1/28 at a Total Cost of 98.85 (9/7/26 Post)(YTM then at 4.559%)
1 Dominion Energy Energy South Carolina First Mortgage Bond Maturing on 3/1/35, Bond Page | FINRA.org, discussed at Item # 1.E. Bought 1 Dominion South Carolina 5.25% First Mortgage Bond Maturing on 3/1/35 at a Total Cost of 99.204 (6/18/26 Post)
C. Bought 2 AstraZeneca Finance 4.85% SU Maturing on 2/26/29 at a Total Cost of 99.816:
%204.85%25%202:26:29%20.png)
Issuer: Wholly owned subsidiary of AstraZeneca PLC (AZN) who guarantees the notes.
Cost: $1,966.32
Filled: 9/16/26
I recently bought a Placeholder position in AZN: Item # 5.D. Bought 1 AZN at $154.68 (8/11/26 Post)
AZN Detailed Earnings Estimates at Zacks.com
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A1/A+
YTM at Total Cost: 4.93%
Current Yield at TC: 4.859%
D. Bought 2 Digital Realty Trust, L.P. 4.45% SU Maturing on 7/15/28 at a Total Cost of 98.879:
%207:15:28%20.png)
Issuer: Operating entity for Digital Realty Trust Inc (DLR) who guarantees the notes.
Cost: $1,977.58
Filled on 9/16/26
DLR "owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. (the “operating partnership”). The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. As of June 30, 2026, the company’s 310 data centers, including 89 data centers held as investments in unconsolidated entities, contain applications and operations critical to the day-to-day operations of technology industry and corporate enterprise data center customers. Digital Realty’s portfolio is comprised of approximately 3.1 gigawatts of IT capacity, as well as approximately 8.5 gigawatts of buildable IT capacity under active development and held for future development, located throughout North America, Europe, South America, Asia, Australia, and Africa."
DLR SEC Filed Earnings Report for the Q/E 6/30/26 (Revenues of $1.92404B with net income at $443.108M attributable to common share owners after payment of the preferred dividends)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB+
YTM at Total Cost: 5.096%
Current Yield at TC: 4.5%
I now own 4.
E. Bought Mid-America Apartments LP 4.2% SU Maturing on 6/15/28 at a Total Cost of 98.835:
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Issuer: Operating entity for Mid-America Apartment Communities Inc (MAA) who does not guarantee the notes.
Cost: $1,976.7
Filled: 9/16/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A3/A1
YTM at Total Cost: 4.901%
Current Yield at TC: 4.25%
I now own 4.
Last Bond Offering (2/26): Prospectus for 4.65% SU Maturing in 2033.
F. Bought 2 Cisco Systems 4.85% SU Maturing on 2/26/29 at a Total cost of 99.947 - IB Account:
%204.85%25%20.png)
Issuer: Cisco Systems (CSCO) at Zacks
Cost: $1,998.94
Filled on 9/17/26
CSCO Detailed Earnings Estimates - Zacks.com
SEC Filed Earnings Press Release for the Q/E 7/25/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A1/AA-
YTM at Total Cost: 4.872%
Current Yield at TC: 4.853%
G. Bought 2 DTE Energy 4.875% SU Maturing on 6/1/28 at a Total Cost of 99.798:
%206:1:28%204.875%25%20F%20(9:17:26).png)
Issuer: DTE Energy (DTE) at Zacks - Utility Holding Company
Cost: $1,995.96
Filled on 9/17/26
There are 3 operating segments: DTE Gas, DTE Electric and DTE Vantage:
DTE Electric segment "consists principally of DTE Electric, an electric utility engaged in the generation, purchase, distribution, and sale of electricity to approximately 2.3 million customers in southeastern Michigan. . . Electricity is primarily generated by two coal-fired plants, a combined cycle natural gas plant, a hydroelectric pumped storage plant, a nuclear plant, wind and solar assets, and is supplemented with purchased power."
"DTE Energy's Gas segment consists principally of DTE Gas, a natural gas utility engaged in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.4 million residential, commercial, and industrial customers throughout Michigan, and the sale of storage and transportation capacity."
The DTE Vantage business is described in this snapshot:
DTE SEC Filed 2025 Annual Report (Revenues = $15.695B with net income reported at $1.462B)
 |
| Page 58 |
DTE-Detailed Earnings Estimates at Zacks.com
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 4.996%
Current Yield at TC: 4.885%
H. Bought 2 Lockheed Martin 4.5% SU Maturing on 2/15/29 at a Total Cost of 99.005:
%202:15:29%204.5%25%20(9:17:26).png)
Issuer: Lockheed Martin (LMT) at Zacks
Cost: $1,980.10
Filled on 9/17/26
LMT Detailed Earnings Estimates - Zacks.com
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A2/A-
YTM at Total Cost: 4.941%
Current Yield at TC: 4.545%
I. Bought 1 BP Capital Markets America 5.227% SU Maturing on 11/17/34 at a Total Cost of $98.685:
%205.227%25%2011:17:34%20(9:18:26).png)
Issuer: Wholly owned indirect subsidiary of BP (BP) who guarantees the notes.
Cost: $986.85
Filled 9/18/26
FINRA Page: Bond Page | FINRA.org
Credit Ratings: A1/A-
YTM at Total Cost: 5.428%
Current Yield at TC: 5.297%
J. Bought 2 Mondelez International 4.75% SU Maturing on 2/20/20 at a Total Cost of 99.388:
%204.75%25%202:20:29%20(9:17:26).png){kind=small}
Issuer: Mondelez International (MDLZ) at Zacks
Cost: $1,987.76
Filled on 9/17/26
I have eliminated my small ball position in the common shares. Item # 1.C. Eliminated MDLZ - Sold 5+ at $61.51 (5/29/26 Post)(profit snapshot $40.43) - Item # 1.D. Bought 1 MDLZ at $55.07; 1 at 54.1; 1 at $53.33; 1 at $52.8; 1 at $51.8 (1/8/26 Post)
MDLZ Detailed Earnings Estimates - Zacks.com
MDLZ SEC Filed Earnings Report for the Q/E 9/30/26 (Revenues = $9.355B with net income at $1.548B)
FINRA Page: Bond Page | FINRA.org
Credit Ratings: Baa1/BBB+
YTM at Total Cost: 5.02%
Current Yield at TC: 4.779%
3. Treasury Notes Purchased in the Secondary Market: 4
All purchases of T Notes were made in my Schwab Account.
I am buying T Notes in the secondary market in 1 T Note lots ($1,000 par value) As rates continue to rise, I am averaging down with 1 T Note purchases.
A. Bought 1 Treasury Note 4.375% Coupon Maturing on 8/31/31 at 98.0234:
.png){kind=small}
Cost: $980.23
YTM: 4.826%
I now own 2.
B. Bought 1 T Note 4.375% Coupon Maturing on 11/30/28 at 99.4219:
%204.375%25%2011:30:28%20.png){kind=small}
Cost: $994.22
YTM: 4.651%
C. Bought 1 Treasury Note 4.625% Coupon Maturing on 9/30/30 at 99.375:
%209:30:30%204.625%25%20.png){kind=small}
Cost: $993.75
YTM: 4.797%
D. Bought 1 Treasury Note 4.125% Coupon Maturing on 7/15/29 at 98.3633:
%207:15:29%20.png){kind=small}
Cost: $983.63
YTM at 4.749%
Filled on 9/17/26
I now own 3. The prior purchase was on 9/9/26 at 99.039.
4. Treasury Bills Purchased at Auctions:
A. Bought 10 T Bills at the 9/21/26 Auction - 2 Accounts:
%203:25:27%20S.png){kind=small}
%203:25:27%20F.png)
182 Day Bills
Matures on 3/25/27
Interest: $210.06
Investment Rate: 4.303%
I am attempting to restrain my movement into a higher marginal tax bracket this year.
That is in part accomplished by buying in 2026 securities whose interest payments will be taxed in 2027 and using as funding sources money market funds whose dividend payments are taxed in 2026, thereby reducing the tax on the income being generated by those funds.
5. Treasury Notes Purchased at Auction:
A. Bought 2 T Notes at the 9/22/26 Auction:
2 Year Note
Matures on 9/30/28
Coupon: 4.75%
YTM at 4.787%
The last auction was on 8/25/26 that resulted in a 4.204% YTM.
B. Bought 1 T Note at the 9/23/26 Auction:
%20.png)
5 Year Note
Matures on 9/30/31
Coupon: 5%
YTM: 5.033%
6. Small Ball Stock Fund Sell:
A. Pared PEO in Schwab Account - Sold 5 at $28.46:
Quote: Adams Natural Resources Fund Inc (PEO) at Google Finance - Stock CEF
Proceeds: $142.3
PEO is one of the few CEFs, formed prior to the October 1929 stock market crash, that survived that crash and the subsequent Great Depression. This fund shares personnel and office space with Adams Diversified Equity Fund Inc (ADX), another survivor of the 1929 crash. As of 6/30/26, ADX owned 2,673,453 PEO shares. ADX SEC Filing at page 16
SEC Filed Shareholder Report for the Semiannual Period Ending 6/30/26 (Cost of assets then at $542.541+M with the value at $769.342M)
Top 10 Holdings as of 6/30/26:
Sponsor's website: Adams Funds
Last Discussed: Item # 1.G. Pared PEO in Schwab Account - Sold 5 at $25.77 (2/17/26)(profit snapshot = $18.35)
Last Buy Discussion: Item # 1.E. Added to PEO - Bought 5 at $21.15 (10/18/25 Post)
Profit Snapshot: $35.86
Average cost per share in this account: $21.29 (20+ shares)
Schwab changed my cost basis to average cost per share without my consent. When I tried to change the cost basis back to actual cost for each lot, I received a message that this information was no longer available.
For all CEFs that I own in my Schwab account, all owned shares were converted to average cost for all the shares and consequently I can no longer select the highest cost lots to sell that would lower my AC per share.
No other broker that I use have voided my ability to select my cost option for closed end funds.
Dividends: Paid quarterly pursuant to a managed distribution plan.
Total Distribution Paid in 2025: $2.05 per share
Last 3 Quarterly Dividends in 2026: $1.55
PEO Dividend History & Date | Seeking Alpha
Last Ex Dividend:
Data Date of 9/21/26 Trade:
Closing Net Asset value per share: $30.94
Closing Market Price: $28.26
Discount: -8.66%
Average 3 Year Discount: -12.03%
Sourced: PEO-CEF Connect
Largest Gain: Item # 1. Eliminated PEO - Sold 182+ at $22 (1/16/23 Post)(profit snapshot = $852.23)
Other Sell Discussions: Item # 5 Pared PEO - Sold 10 at $24.27 (1/29/26 Post)(profit snapshot = $15.11) Item # 2.B. Eliminated PEO-Sold 15 at $23.94 (4/12/24 Post)(profit snapshot = $50.72); Item # 1. Sold 104+ PEO at $27.06 (8/10/2013 Post)(profit snapshot = $205.95); Item # 3. Sold 100 PEO at $26.19 (11/15/2010 Post)(profit snapshot = $144.29)
PEO Realized Gains to Date: $1,348.29
7. Exchange Traded Baby Bond:
A. Eliminated DDT - Sold 20 at $26.27 - Schwab Account:
Quote: Dillards Capital Trust I 7.50% Matures 2038 (DDT) at Google Finance
Proceeds: $525.49
Investment Category: Trust Preferred Securities, a subcategory of Exchange Traded Bond.
Issuer: Dillard's Inc (DDS) - a Department Store Chain
SEC Filed Earnings Press Release for the Q/E 8/1/26
Last Discussed: Item # 1.B. Eliminated DDT in 2 Taxable Accounts - Sold 8 at $25.5; 5 at $25.5 (3/11/23 Post)(profit snapshots = $120.97)
Last Buy Discussions: Item #3.B. Added 1 at $17.15; 1 at $16; 1 at $15.28; 1 at $14.17 (5/16/20 Post); Item # 3.C. Bought 10 DDT at $21.61, 2 at $19.31, 1 at $14.08; 1 at $13.34 (3/21/20 Post)
Profit Snapshot: $191.4
I bought shares in April and May 2020.
DDT is a "trust preferred" bond. I discussed this type of bond in an old post. Trust Preferred Securities
A Trust Preferred security will trade like a stock on a stock exchange, rather than as a bond in the bond market, and would consequently be classified by the generic name "exchange traded bonds" by me and others.
These bonds are generally junior to all other bonds and senior only to equity preferred and common stocks. Most allow the issuer to defer interest payments for an extended period provided no cash dividend payment is made on the equity stocks or cash used to buy those junior securities. During a deferral period for the junior bond, interest accrues on each deferred interest payment at the coupon rate of the junior bond.
The buyer of DDT does not own the junior bond. Instead, the bond is owned by a trust created by the bond issuer (a Grantor Trust). DDT represents an undivided beneficial interest in the bonds owned by the Grantor Trust.
Security: Prospectus
Par Value: $25
Coupon: 7.5%
Legal Form of Ownership: Trust Preferred
Placement in Capital Structure: Junior bond allowing for interest payment deferrals subject to Stopper Clause (Page S-21). The deferral may be up to 20 consecutive quarters (Page S-6) There was never a deferral to my ownership period.
Interest Payments: Quarterly
Next Ex Interest: 10/16/26
Maturity: 8/1/38
Credit Rating: BB by Fitch who rates the SU bonds at BBB-. Fitch Affirms Dillard's at 'BBB-'; Outlook Positive
Issuer Optional Call: Callable now at par value + accrued and unpaid interest
DDT Realized Gains to Date: $546.29
The lowest price paid for this junior bond was $5.82. Item # 4. Bought 50 DDT at $5.82 (3/18/2009 Post)
Other round trip profit snapshots: $233.92
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.
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