t am not questioning whether they should issue preferred but whether issuing only 300,000 shares is economic (fixed costs of ongoing accounting and administration and issuance etc) Most of their peer mREIT preferreds are in the 2 million to 18 million share range. Perhaps they will issue more of this series but I did not see the prospectus where this is contemplated.
Does anyone have any idea why the company would issue a new class of preferred that raised less than $7.5 million? Were they caught when a large buyer backed out at the last minute?
They say they might call ANH-A (pfd) but this seems somewhat unlikely to me. Due to large stock buybacks over the past year (aiding NAV as they buy at a discount) the total equity capital of ANH is getting near the low end of the range that is viable for a mREIT due to economies of scale/fixed cost issues.
I will be watching to see what management is up to. Do any of you have any thoughts on what they are up to?