Digital Realty prices $25-par preferreds; AGNC sees decline; People’s United positive

By James McCandless

San Antonio, March 4 – The preferred space opened a new week with mixed trading.

Digital Realty Trust, Inc. priced $200 million of $25-par series K cumulative redeemable preferred stock at par with a dividend of 5.85%.

In the secondary, real estate investment trust AGNC Investment Corp.’s recent 6.875% series D fixed-to-floating rate cumulative redeemable preferred stock ended lower.

Elsewhere in REITs, Public Storage’s new 5.6% series H cumulative preferred shares were also trending downward.

In the finance space, People’s United Financial, Inc.’s 5.625% series A fixed-to-floating rate non-cumulative perpetual preferred stock saw a positive boost.

Sector peer JPMorgan Chase & Co.’s 6% series EE non-cumulative preferred stock closed better.

Air Lease Corp.’s recent 6.15% series A fixed-to-floating rate non-cumulative perpetual preferred stock gained slightly.

Digital Realty prices

Digital Realty priced $200 million of $25-par series K cumulative redeemable preferred stock (Baa3/BB+/BB+) at par with a dividend of 5.85%.

There is a $30 million greenshoe.

The deal was announced Monday morning.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The preferreds are redeemable on or after March 13, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event.

AGNC lower

Real estate investment trust AGNC’s recent 6.875% series D fixed-to-floating rate cumulative redeemable preferred stock closed the session lower.

The preferreds, trading under the temporary symbol “AGNCO,” was down 3 cents to close at $24.87 on volume of about 1.1 million shares.

Elsewhere in the sector, Public Storage’s new 5.6% series H cumulative preferred shares took a downward turn.

The preferreds, trading under the temporary symbol “PSALL,” lost 7 cents to close at $25.10 on volume of about 837,000 shares.

On Friday, the preferreds closed their first trading day at $25.17.

People’s United up

Meanwhile, in the finance space, People’s United’s 5.625% series A fixed-to-floating rate non-cumulative perpetual preferreds were positive.

The preferreds (Nasdaq: PBCTP) added 19 cents to close at $24.01 on volume of about 733,000 shares trading.

On Friday, the preferreds rose 31 cents.

Sector peer JPMorgan’s 6% series EE non-cumulative preferred stock was also better by the session’s close.

The preferreds (NYSE: JPMPrC) gained 18 cents to close at $26.28 with about 658,000 shares trading.

On Friday, the preferreds gained 21 cents.

Air Lease gains

Aircraft leasing name Air Lease’s recent 6.15% series A fixed-to-floating rate non-cumulative perpetual preferreds gained.

The preferreds, trading under the temporary symbol “ALSCP,” closed up by 2 cents at $25.35 on volume of about 568,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended Monday down 0.01%.

The iShares US Preferred Stock ETF was level at $36.29.

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