Too bad, the Yahoo message boards are worthless because of all the spam. Is anyone
holding MAA-PH? I guess I'll hold on to my preferreds in the hopes that this particular
REIT and others will be able to sustain the quarterly payouts. Of course, if the dividend
is suspended, the dividends are cumulative so there still is hope of capturing the dividend
at a later date. All bets are off, however, if the REIT goes kaput. I'd appreciate any
comments with reference to this preferred or any other preferreds. Thanks
Institutional investors of every stripe are having to sell to meet redemptions and/or margin requirements. Only the most well capitalized reits are likely to make across the valley of the shadow of debt....
...no way to know when its over until its well past over.
The biggest risk on the preferreds is if the company gets bought out by a private equity type buyer, and they take the company private and you no longer have a public market to buy/sell your preferred shares. Plus, they could boost the leverage of the company so the preferred shares would be less secure.
It happened a few years ago, when Hicks Muse bought Walden, another apartment REIT.
I know, because I owned those preferreds at the time, and have been cautious about that risk ever since.
In the current market, this risk is minimal, since few deals are going to be done.
Holding the maa-h at a cost in low 20's
Figure the divy is gonna be paid and will come back in price as low interest rates prevail as part of bailout/stimulas.
Sold the common.. past its peak..plenty of distressed houses on the market for lowball rents and for sale below replacement cost. Expect Apt. occupancy and/or rents to start sliding.
I don't know that rents and occupancy rates are going to take a big hit which is why the apartment REITs may look attractive
relative to other sectors. On the contrary, occupancy rates
should rise. Everyone is saying that the housing
market is going to be slow to bounce back, and I'm not one to
disagree. In any event, the MAA preferreds' dividends look
To expand on your comment, you might check the AIV message
site for the reference to the Street.com article I've never
thought much about market makers and the role they play in
stock transactions. Of course, I know their role is instrumental to an orderly market.
agree w/ you, in principle. How much will the economic downtrend hurt the ops is questionable but IMHO will have some negative affect on FFO.
Expansion & needed financing. also IMHO looks to be negligible at this time. Am invested in a llp which has a minor equity investment in a piece of land in the inner city on which we were expecting to develop into a residential/ commercial building. No chance until $$ loosens up.
Never say "no." I think one has to look at preferreds with a longer time
horizon: they aren't the best instrument for trading. In fact, I think
most holders are corporate entities, not individual investors. What small
investors have to be concerned about is an entity's solvency and thus its
ability to cover its dividends. Look at AIV (Apartment Investment and
Management) where there are good comments on the AIV preferred (which
I own, too). The analysis for AIV is applicable to other REITs including
I am holding a fair amount. I think the divvy is safe for now. Zacks rates the common a buy.
Was hoping the co was entertaining thoughts of redeeming this issue. That's always a possibility down the road, but they would need to raise the funds to make it happen.
Can you do me a favor & call the IR and ask who the market makers are for both the common & pfd h series, if any. They appear to be tired of my questions.
I'll do as you wish, but educate me. Why the names of market makers if I
may ask? Say if a REIT isn't profitable, what are the provisions for paying
preferred dividends? Are reserves maintained for such a contingency? Do you know of a case where a REIT has suspended its preferred dividend?