I've beening adding both common and pfd to my long term positions. FedEx raised ground rates 4.9% last year and is coming with another 4.9% this year. So all those FD warehouses on long term, NNN leases are looking pretty good. Also, as MONM gets folded into MNRTA, there should be some pennies to increase the divvy on the common. The YTC on the pfd is in the 11-12% range, and most of the FedEx leases are longer than the time to the call.
You`re assuming the preferred will be called. Not necessarily. Depends on what new rate they could get at the time. If new preferreds would have to pay 8% or 9%, they`ll just leave the current issue outstanding.
I was hoping someone could answer a question i have about the preferreds since I'm not overly familiar with how pfds work. If I were to buy the pfds now at 21/share and collect the 9% dividend, if and when the company calls the pfds, at what price do they redeem them?