Can anyone shed any light on the refinancing of these ARPS? On the surface it would seem to be a good thing. How exactly does JRS and we as shareholders benefit from the refinancing? Is JRS more stable (secure) because of this action?
My read is the breakdown in the auction rate security auctions takes away a source of low cost funds to leverage our returns with. what's replacing it may decrease spreads, thus income, thus reduce our dividend. The Reits held by JRS may also be decreasing the dividends they pay and be anothe hit to income.
Thanks for the reply. In these economic times it would make sense that JRS will have to continue to reduce the quarterly dividend. As you say the reits held will also probably reduce theirs. It all flows down hill.