Morning Commentary: New issues from Federal Realty, Investors Real Estate enter the pipeline

By Stephanie N. Rotondo

Seattle, Sept. 25 – The preferred stock market had two new deals added to the calendar early Monday.

Both deals were from real estate investment trusts. A trader said neither issue had many gray markets in mid-morning trading.

First up, Federal Realty Investment Trust said it was selling $100 million of series C cumulative redeemable preferreds.

Price talk is around 5.125%, a market source reported.

BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Investors Real Estate Trust also announced an offering of series C cumulative redeemable preferred stock.

Price talk is 6.5% to 6.75%.

BMO Capital Markets and Raymond James & Associates Inc. are the joint bookrunners.

For its part, Investors Real Estate said it was using proceeds to redeem its company’s $115 million outstanding 7.95% series B cumulative redeemable preferred shares (NYSE: IRETPrB). Those preferreds were down 6 cents in early dealings at $25.11.

Meanwhile, Georgia Power Co.’s $270 million of 5% $25-par series 2017A junior subordinated notes due 2077 began trading on the New York Stock Exchange on Monday.

The ticker symbol is “GPJA.”

Paper was trading at $24.99 at mid-morning, down a penny.

The deal priced Sept. 18.

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

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