Morning Commentary: Winthrop Realty liquidating preferreds; RAIT, Gramercy new issues gain

By Stephanie N. Rotondo

Phoenix, Aug. 14 – A preferred stock trader said there was “something going on” with Winthrop Realty Trust on Thursday.

On Aug. 5, the Boston-based real estate investment trust announced that shareholders had approved a plan of liquidation. On Thursday, the company said it was liquidating its 9.25% series D cumulative redeemable preferreds (NYSE: FURPD) on Sept. 15.

On the news, the preferreds dropped 45 cents, or 1.74%, to $25.46.

Holders of the preferreds will receive a liquidation payment of $25.4815.

Meanwhile, recently priced issues were firming up.

RAIT Financial Trust’s $70 million issue of 7.125% $25-par senior notes due 2019 was offered at $24.85 early in the day, according to a trader.

The deal came Monday and freed to trade on Wednesday.

Gramercy Property Trust Inc.’s $87.5 million of 7.125% series B cumulative redeemable perpetual preferreds – a deal that came Tuesday – were also “moving up,” a trader said, seeing the issue at $24.95 bid, par offered.

Overall, the market remained strong, even as U.S. unemployment claims rose more than expected.

The Wells Fargo Hybrid and Preferred Securities index was up 17 basis points at midday.

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