Colony Financial Corp (a REIT) Prices a Preferred Issue

June 12, 2014  11 pm

Colony Financial Corp (a specialty finance REIT) has priced a cumulative preferred issue.  The issue has a 7.50% coupon, which we believe is too low for this particular REIT.  Colony issued preferreds 2 years ago at 8.50% and while we have not dug real deep into Colony Financials recent 10q’s we think it is unlikely that 7.50% is a great coupon.  We have no interest in this particular issue at this coupon–but maybe it is a good issue for one having different needs.

Colony Financial holds all kinds of real estate loans and equity investments—office buildings, apartments and a huge number of single family homes (which to us is a negative as there is little chance of substantial current income off of single family residences).

Check it out.  Details are here.  The issue trades OTC Grey market tomorrow (Friday).