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I've run across these three REIT preferreds - PSB-X,-Y and -Z. Due to price crashes, these @5.5% coupons are yielding over 10%. Found a nice analysis on these over at SA in trying to find out what's up with these. TLDR version:
1.) Public Storage split into two subsidiaries some time ago, PSA and PSB (business parks)
2.) PSB issued these a few years ago
3.) Blackstone bought PSB in April '22, immediately canceled the common of PSB but...
4.) rolled the preferred into some new entity they call Sequoia.
5.) The amount of funding/capital structure of Sequoia is unknown & invisible.

So, the price of these preferreds has crashed. That 10% yield is enticing, and the price represents a nearly 100% CG opportunity if BX redeems them at even 20. I don't think they have to retire them at

The original rating of the PSBs was BBB, which is still attached to them but obviously irrelevant now.

I'm thinking of a opening a 1 to 2% position in one of these. Opinions?
https://seekingalpha.com/article/4554989-9-6-perce...

FC

Emily Latella: "Never mind."
Immediately after posting the above, I see that Blackstone posted a Form 15-12g, which appears to mean delisting these three securities and/or end reporting requirements. So I guess that's a wrap on those!

What on earth is going to become of those PFD's? It will be interesting to see whether the evil financial geniuses in the depths of Blackstone manage to prevail over the SEC's attempts to protect the investors. My gut feeling (the only thing I can go by since I'm way out of my league in understanding this stuff) is that the people who bought at par will be screwed, but the screwing will not be so complete that it hits those who jumped in late at a cheap price. At least that is my hope.

PSB preferred's made me a lot of money in the past. They were considered very secure, nearly a first mortgage position. Their sin was operating too responsibly, and companies like that can always be taken over by someone who will load them up with debt.

When I first posted on getting back into PFD's, I bought heavily with my IRA money: PFF, VNO, PSA, UMH, PEB. I figured the dividend would match inflation, and if the big recession does materialize, moderating interest rates will push up the base value. Many of those have jumped 10% in just a few weeks so I'm hoping I might have done something right this time.

I also picked up a fair bit of PSB, figuring that it was a reasonable high risk play. Those are down 10%. I guess the market worries that in delisting Blackrock will come up with something that works better for them than the shareholders, even at half price. I think I'll hold tight at this level and see where the ride goes.

Well, the PSB orphans seem to be alive and well after delisting. They are trading at decent volumes on the pink sheets, and Blackstone has not yet found a creative way to stop paying the dividends. Looks like a decent high yield/ high risk holding.

There is now a REIT specific preferred stock ETF, trading as PFFR. It yields more than PFF, and looks a lot like the basket I tend to assemble for myself.

Blackstone made another offer to buy the PFD's at around 15.60 a share. Sucks for the original owners, but I'm out at a quick 35% profit. Ah, the fast paced world of day trading preferred stocks!

Consider PFFA rather than PFF or PFFR. Better yield (10.03%) and much greater volumes than PFFR. PFFA pretty much mirrors PFFR 1yr graph but has outperformed on 3yr & 5yr.

Full disclosure: I've owned PFFA for numerous years.

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