Morning Commentary: Jernigan Capital talks series B preferreds; UMH Properties prices

By Abigail W. Adams

Portland, Me., Jan. 18 – The primary market was active early Thursday with two real estate investment trusts bringing new deals forward.

Jernigan Capital plans to price an offering of $25-par series B cumulative redeemable preferred stock after the market close on Thursday.

Price talk is for a dividend of 6.75% to 7%, according to a market source.

The preferreds are non-callable until January 2023, except in a change of control event or to preserve Jernigan’s tax status as a REIT.

Starting January 2023, there is a call option exercisable at par, according to the preliminary prospectus.

The Memphis, Tenn.-based real estate investment trust intends to list the series B preferred stock on the New York Stock Exchange under the symbol “JCAPPrB.”

UMH Properties Inc. priced $50 million, or 2 million shares, of 6.375% series D cumulative redeemable preferred stock at par of $25 a share prior to the market open on Thursday.

BMO Capital Markets and Stifel, Nicolaus & Co. are joint bookrunners for the offering, which carries a greenshoe of $7.5 million, or 300,000 shares.

Net proceeds are expected to be $48.425 million if the greenshoe is not exercised, which will be used for general corporate purposes.

The series D preferred stock will be listed to trade on the New York Stock Exchange under the symbol “UMHPrD.”

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