REIT Urstadt Biddle Properties to Sell Preferred Issue-Updated

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Shopping center REIT Urstadt Biddle Properties (ticker:UBP) has announced a new preferred offering.  UBP is a relatively good quality company which while shopping center focused also holds a numerous free standing retail buildings.

The company will use the proceeds to redeem their 7.50% preferred issue (UBP-D).  It has been about 2 years since UBP has brought an issue to market and that issue was at 7.125%.  We would expect the new issue to come to market around 7.25%–although the issue has not yet been priced.

When pricing is announced we will post the data (in the next 24 hours we would think).


It will be interesting to see if companies (in particular REITS) use the current low interest rate environment to ‘re-fi’ higher coupon issues that they still have outstanding and have reached there optional redemption date (typically 5 years after issue).

Preliminary data on this issue can be found here.

Thanks to reader Rich for the heads up on this issue.

Issue has priced at 6.75%–much lower than we thought.

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