Greetings fellow longs. I've been in and out of FPO, I think 5x this year. In spite of the fairly steady down trend, I managed to make a few bucks each time. Today, 2 hours prior to the earnings release, with the intent to hold long-term (for the 1st time ever), I parked a small chunk of FPO in my SEP-IRA account. I suspected some decent news, certainly something better than the street has us believing. I could be wrong, and it wouldn't be the 1st time, but the quarterly report looks pretty decent to me. A positive surprise, and tangible attempts to improve & document their accounting. With FPO very close to it's yearly low today, (I bought at $11.16), and the dividend being over 7% now, I think that we should start seeing an nominal upswing in the share price from here. Nothing to write home about, but I'm good with $12 by year's end, which would give me a respectable 15% return in 12 months. If Dear Leader is re-elected, $13 is definitely possible. Anyway, good luck to all the longs of FPO, and I hope the quarterly report is received as well as I hope it is.
You now have 3 pieces of good news: 1. Internal investigation complete and actions taken. 2. Otherwise beat estimates. 3. Occupancy rates are excellent. (likely to get better as the election cycle heats up)
The Class A 7.75% preferreds are also very attractive, still trading at only a small premium to par and not callable for 4 more years, yielding at least 100 basis points more than many other REIT preferreds. Nice place to park your money for a couple of years in this environment. I bought it to replace another REIT preferred and picked up almost 150 basis points of yield + call protection.