Morning Commentary: Kimco plans deal to fund possible redemption; Farmland in the market

By Stephanie N. Rotondo

Seattle, Aug. 7 – Two new issues were added to the preferred stock calendar early Monday, both of which were from real estate investment trusts.

Kimco Realty Corp. announced a $150 million offering of class L cumulative redeemable preferreds, with price talk expected between 5.125% and 5.25%.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are running the books.

The company said it would use proceeds for general corporate purposes, which could include the redemption of the 6% class I cumulative redeemable preferreds (NYSE: KIMPrI) and the 5.5% class J cumulative redeemable preferreds (NYSE: KIMPrJ).

Both of those issues were softening in the wake of the new issue.

The Is were off 21 cents at mid-morning, trading at $25.20. The Js had slipped a penny to $25.15.

Meanwhile, Farmland Partners Inc. said it was selling series B participating preferred stock.

Raymond James & Associates Inc. and Jefferies LLC are the bookrunners.

Proceeds from that offering will also be used for general corporate purposes.

As for the secondary, Annaly Capital Management Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferreds (NYSE: NLYPrF) continued to be busy, trading up 3 cents to $24.99.

The $700 million deal priced July 25. Since pricing, the issue is regularly seen among the most actively traded issues.

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