Preferreds mixed; Colony NorthStar off on earnings as several preferreds drop below par

By Abigail W. Adams

Portland, Me., March 1 – After an almost two-week streak of market indicators reflecting gains in the preferreds space, preferreds closed Thursday mixed.

The Wells Fargo Hybrid & Preferred Securities Financial index was flat early in the session but closed the day down 0.05%. The U.S. iShares Preferred Stock ETF closed Thursday up 0.36%.

While the broader market was mixed, Colony NorthStar Inc.’s preferreds nosedived in high-volume trading on Thursday after the Los Angeles-based diversified equity REIT announced fourth-quarter and year-end results prior to the market open. Several of the company’s series of preferreds dropped below their liquidation preference.

Colony NorthStar’s 8.25% series B cumulative redeemable preferred stock also traded to below its $25.00 liquidation preference. The 8.25% preferreds were down to $24.42, a decrease of 59 cents, or 2.36%, at the market close. More than 86,000 shares were in play during Thursday versus the average share volume of 16,000.

Colony NorthStar’s 8.5% series D cumulative redeemable preferred stock also dipped below its $25.00 liquidation preference. The preferreds were down to $24.44, a decrease of 91 cents, or 3.59%, at the market close. The preferreds saw more than 100,000 shares in play on Thursday versus the three-month average of about 13,000.

Colony NorthStar’s 8.75% series E cumulative redeemable preferred stock dipped below its $25.00 liquidation preference in high-volume trading on Thursday.

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