Preferreds improve in thin trading; EPR Properties softens; Wells Fargo, Ashford better

By Cristal Cody

Tupelo, Miss., Nov. 22 – Preferred stocks closed stronger on Wednesday in otherwise light market activity ahead of the Thanksgiving Day holiday.

“Today was very quiet,” a source said.

The Wells Fargo Hybrid and Preferred Securities index climbed 17 basis points.

The U.S. iShares Preferred Stock ETF rose 18 bps on the day.

EPR Properties’ new 5.75% $25-par cumulative redeemable perpetual preferred shares (Baa3/BB) that priced on Monday traded over the afternoon at $24.55 bid, $24.60 offered, a market source said.

The preferreds were last seen going out off 1 cent at $24.74 in over-the-counter trading under the temporary symbol “EPRRP.”

EPR Properties sold $150 million of the securities on Monday. The Kansas City, Mo.-based real estate investment trust plans to list the preferreds on the New York Stock Exchange under the symbol “EPRPrG.”

In other trading on Wednesday, Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) rose 10 cents to $26.26.

The preferred stock has been heavily traded since the previous week after investors realized it would not be called on its first optional call date, according to market sources. The preferreds are callable on Dec. 15.

Wells Fargo issued $2.3 billion of the preferreds in December 2007.

AT&T Inc.’s 5.35% $25-par global notes due Nov. 1, 2066 (NYSE: TBB) headed out on Wednesday up 2 cents at $25.73.

The Dallas-based telecommunications company sold $1.15 billion of the notes on Oct. 25.

Also, Ashford Hospitality Trust Inc.’s 7.5% series I perpetual cumulative preferred shares are now listed for trading on the NYSE under the symbol “AHTPrI.”

The preferreds rose 6 cents to close the day at $24.64.

The Dallas-based real estate investment trust sold $135 million of the preferreds on Nov. 8.

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