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Health Care REIT, Inc. Message Board

  • ContraIndicator ContraIndicator Mar 1, 2012 12:50 AM Flag

    HCN issues preferred J to redeem D and F

    This doesn't seem like a non-event to me!

    Is the market perception of the issuing of 6.5%preferred J's not threatening to D and F preferred shareholders? That these two preferreds will not be called for some time?

    The F's, whose share price decreased a small amount today, was still trading at a comfortable premium above par. It had been trading and holding closer to 26 more recently.

    I would have thought this would have traded closer to par. Any reason why buyers are willing to pay a premium knowing that the current trading price (25.45), if held for the next div, and called in after the div, will be a net wash in terms of a gain? (div around 47 cents per quarter for the F)?

    And why would anyone want to buy the preferred J at a yield of 6.5%, when the common stock has been (and expected to remain) strong and yielding only slighly less than the J preferred?

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    • Replaced my 2000 shares of the soon to be called Preferred D and F with the new HCN-PJ today with 4000 shares. Best fixed income producer that I can see coming out right now. Not much else out there for newly issued preferreds that is as stable as this company.

    • Couldn't find a way to delete the recently posted message on the preferred J.
      I just read where the F will be redeemed in April, and the process explains why the preferred is currently trading above par.

      I still don't know why someone would find the preferred J more attractive than buying the common at this point.

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