Public Storage prices; Bank of America dips; Pennsylvania REIT preferreds boosted

By James McCandless

San Antonio, Nov. 9 – At the open of a new week, the preferred market mostly improved on news of a potential COVID vaccine.

In the primary space, Public Storage plans to price a $150 million offering of $25-par cumulative preferred shares with a dividend of 3.9% at par.

At the top of the secondary trading pack, Bank of America Corp.’s 4.375% series NN non-cumulative preferred stock dipped.

Also in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock rose.

Meanwhile, property owner Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferreds were boosted.

Sector peer New Residential Investment Corp.’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock increased by the close.

Monmouth Real Estate Investment Corp.’s 6.125% series C cumulative redeemable preferred stock also finished on a positive path.

Public Storage prices

In the primary space, Public Storage plans to price a $150 million offering of $25-par cumulative preferred shares with a dividend of 3.9% at par on Monday.

There is a $22.5 million greenshoe.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

The preferreds are redeemable on or after Nov. 17, 2025 at par.

Bank of America dips

At the top of the Monday secondary trading pack, Bank of America’s 4.375% series NN non-cumulative preferred stock dipped lower.

The preferreds (NYSE: BACPrO) were down 5 cents to close at $25.23 on volume of about 814,000 shares.

On Friday, the preferreds shaved off 13 cents.

Also in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock rose with the rest of the market.

The preferreds (NYSE: COFPrJ) picked up 8 cents to close at $25.03 with about 558,000 shares trading.

On Friday, the preferreds slipped 2 cents.

Penn REIT boosted

The early news about a potential Covid vaccine from Pfizer sparked huge gains in the property space.

Meanwhile, property owner Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferreds were boosted.

The preferreds (NYSE: PEIPrC) jumped up $1.18 to close at $6.75 on volume of about 298,000 shares trading.

Sector peer New Residential’s 6.375% series C fixed-to-floating rate cumulative redeemable preferred stock increased by the close.

The preferreds (NYSE: NRZPrC) garnered 43 cents to close at $19.32 with about 295,000 shares trading.

Elsewhere Monmouth’s 6.125% series C cumulative redeemable preferred stock also finished Monday on a positive note.

The preferreds (NYSE: MNRPrC) tacked on 4 cents to close at $24.94 on volume of about 281,000 shares.

Indexes

The Wells Fargo Hybrid & Preferred Securities Financial index kicked off the week better by 0.87%.

The index was 0.45% lower on Friday, garnered 0.30% on Thursday and jumped up 1.01% on Wednesday.

The iShares US Preferred Stock ETF was up 58 cents to $37.27.

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