Rexford taps market; Fifth Third ends under par; JPMorgan preferreds sink

By James McCandless

San Antonio, Sept. 13 – At the end of the week, the preferred market saw a dive that sustained throughout the Friday session.

Rexford Industrial Realty, Inc. priced a $75 million offering of $25-par series C cumulative redeemable preferred stock with a dividend of 5.625%.

Fifth Third Bancorp’s new $250 million 4.95% series K non-cumulative perpetual preferred stock ended its first day under par.

Elsewhere in finance, JPMorgan Chase & Co.’s 6% series EE and 5.75% series DD non-cumulative preferreds both sank.

Sector peer Capital One Financial Corp.’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock also declined.

REIT AG Mortgage Investment Trust, Inc.’s recent 8% series C fixed-to-floating rate cumulative redeemable preferred stock was a bright spot.

Public Storage’s recent 4.875% series I cumulative preferred shares trailed with the market.

Rexford prices

Rexford priced a $75 million offering of $25-par series C cumulative redeemable preferred stock with a dividend of 5.625%.

There is an $11.25 million greenshoe.

The offering was announced on Friday morning.

BofA Securities, Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The preferreds are redeemable on or after Sept. 20, 2024 at par. Prior to that, they are redeemable within 120 days after a change of control at par.

Fifth Third under par

Leading Friday’s activity, Fifth Third’s new $250 million 4.95% series K non-cumulative perpetual preferred stock was dragged down with the rest of the market, finishing well under par.

The preferreds, trading under the temporary symbol “FFFKP,” were seen closing at $24.35 on volume of about 3.7 million shares.

The deal priced on Thursday.

Elsewhere in the finance space, JPMorgan’s 6% series EE and 5.75% series DD non-cumulative preferreds both sunk by the close.

The series EE preferreds (NYSE: JPMPrC) were down 39 cents to close at $27.98 with about 1.8 million shares.

On Thursday, the preferreds rose 8 cents.

The series DD preferreds (NYSE: JPMPrD) were down 33 cents to close at $27.62 with about 820,000 shares.

Sector peer Capital One’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock also declined.

The preferreds, trading under the temporary symbol “COFOL,” declined by 32 cents to close at $24.35 on volume of about 791,000 shares.

On Thursday, the preferreds shaved off 3 cents.

AG Mortgage up

Real estate investment trust AG Mortgage’s recent 8% series C fixed-to-floating rate cumulative redeemable preferreds were a bright spot, trending higher.

The preferreds, trading under the temporary symbol “AGMGP” gained 4 cents to close at $25.14 with about 569,000 shares trading.

Public Storage’s recent 4.875% series I cumulative preferred shares trailed with the rest of the preferred market.

The preferreds, trading under the temporary symbol “PBSSP,” fell 24 cents to close at $24.94 on volume of about 455,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the week falling 0.90%, adding to the 0.13% loss from early Friday trading.

The iShares US Preferred Stock ETF was down 30 cents to $36.91.

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