So I'm back in at $9.10 and will add to my position as long as it stays down here. It pays a 7.5% dividend which seems both safe and likely to go up. Better than the 6.5% the preferreds pay. Interest rates are not going to go up significantly for the foreseeable future and even a 2-3% rise does not detract from this stock. They have a good cushion on ffo and several new projects coming on line the next 12-18 mos. that will add to ffo and fad. I would expect a 5-10% p.a. increase in the dividend the next few years.
In looking at the latest prospectus they report an 87% turnover in the preceding year. This strikes me as extraordinarily high. It appears they are trading instead of investing. I would have expected a 20% rate, assuming they bought bonds, held them to maturity and paid us our dividends and then reinvested the proceeds from the maturing bonds. Perhaps we are getting a bunch of window dressing just before the date of the reports to mask the magnitude of the paper losses being reported. Any other comments?