Morning Commentary: Farmland Partners 6% preferreds rebound from lows; DDR improves

By James McCandless

San Antonio, July 12 – Farmland Partners Inc.’s 6% series B cumulative participating preferred stock started to gain back some of the losses experienced on Wednesday when a short-seller accused the company of giving high-risk loans to related parties at a level that put the company at risk of insolvency.

Farmland has denied the short-seller’s allegations.

The preferreds (NYSE: FPIPrB) were up $2.55 to $20.70 on Thursday with about 151,000 shares trading.

On Wednesday, the preferreds lost $6.08 to close at $18.15.

Farmland’s common stock, which saw a 38% loss of value on Wednesday, gained back 17% so far in early trading on Thursday.

Separately, DDR Corp.’s 6.375% class A cumulative redeemable preferred shares gained in early trading.

The company recently completed a spinoff of 48 retail properties worth about $2.8 billion, forming Retail Value Inc. with a separate board of directors but managed by DDR executives.

The preferreds (NYSE: DDRPrA) were up 3 cents to $25.26 on volume of about 100,000 shares.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.06% in early trading, adding to the 0.26% decline at the market close on Wednesday.

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