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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (35448)	9/25/2009 4:00:24 PM
From: E_K_S	Read Replies (1) of 78724

BDN closed their financing today. finance.yahoo.com Brandywine gains after $250 million debt offer Brandywine shares advance after raising $250 million in unsecured debt Tuesday September 22, 2009 From the article:"...UBS analyst Ross Nussbaum said the new debt carries a "solid" yield, which compares well with its other debt due 2014 with an interest rate of 5.4 percent and yields in the low 8 percent range. Bond investors compare yields when they're investing in debt. Brandywine's successful debt offering shows there's still strong demand for real estate investment trust paper in the credit markets, the analyst said in a research note...." ..."...Nussbaum said access to the unsecured market is important for Brandywine, since it's more dependent on this type of debt than its peers. About 70 percent of Brandywine's debt is unsecured as of the second quarter, compared with 34 percent on average for its peers. Brandywine's ability to raise unsecured debt is a positive for the company, a feat Nussbaum didn't believe it could have pulled off some months ago...." =============================================================== I own the BDNpC which at $21.5 now yields 8.75%. The stock goes xdividend on 10/15/2009 ($0.47/share) and is only yielding a 1.125% premium to the new debt just issued. I am tempted to sell 1/2 my BDNpC in the taxable account and put the proceeds into FRpK which yields around 12.5%. The risk may even be a bit less with FR as their debt exposure is a bit less than BDN. I missed DDR so I will pass on that one. Keep us advised on other income producers with value as your lists have been useful to me. EKS

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