UMH Properties taps market with cumulative preferreds; State Street, Citigroup trade up

By Stephanie N. Rotondo

Seattle, July 20 – The preferred stock market was looking at the new issue calendar on Thursday, as UMH Properties Inc. said it was selling $100 million of series C cumulative redeemable preferreds, with price talk at 6.75%.

BMO Capital Markets and Stifel Nicolaus & Co. Inc. are leading the deal.

Toward the end of the day, the preferreds were seen in a $24.90 to $24.95 context in the gray market. Earlier in the session, a trader said the paper was trading around $24.75 in the gray, though he added that there was “not a lot of stock flowing around.”

The deal had not priced as of 6 p.m. ET.

The Freehold, N.J.-based real estate investment trust intends to use proceeds from the sale to redeem its 8.25% series A cumulative redeemable preferreds (NYSE: UMHPrA).

Those preferreds were off 90 cents, or 3.43%, to $25.39.

Overall, the preferred stock space continued to have a positive tone to it, though trading volume remained subdued.

The Wells Fargo Hybrid and Preferred Securities index closed up 1 basis point, though it was up 6 bps at mid-morning. The U.S. iShares Preferred Stock ETF finished up 3 bps.

State Street Corp.’s 5.35% series G fixed-to-floating rate noncumulative preferreds (NYSE: STTPrG) were among the day’s most active issues, trading up a nickel to $27.41.

Citigroup Inc.’s 7.875% fixed-to-floating rate trust preferred securities (NYSE: CPrN) were also busy, gaining 47 cents, or 1.78%, to close at $26.93.

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