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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (34875)	7/22/2009 4:29:14 PM
From: E_K_S	Read Replies (4) \| Respond to of 78748

Added some FRpJ 7 1/2% preferred to the IRA account. The annual dividend payment is $1.81/share which yields 17.30% at my cost. This is a good holding for the IRA since every quarter it spins off $0.45 tax free. I converted some of my treasury bond money that currently yields 0.005%. The investment should double in 5.7 years w/ a very small risk of default. First Industrial Realty Trust Inc. (FR) owns 70 million square feet with 56 million sqft leased under long term contracts. No real maturities are due until 2011. They just sold a vacant industrial building in AZ in the worst market ever for $55 per square foot all cash. Their break even price per square foot at "extreme foreclosure liquidation" is around $38 per square foot (70Mx$38/ft). Their long term and preferred debt totals $2.7 Billion. This debit total assumes that all of their preferred series debit is paid off at par $25.00/share (per their liquidation terms in their prospectus). Therefore, unless the commercial real estate sector in the US totally falls off a cliff and drops another 40% (in a fire side foreclosure sale), FR still s/b able to pay off these preferred series in full w/ payment of any accumulated deferred dividends too. To date no preferred dividends have been deferred. Only last quarter did the company suspend the dividend on their common shares in order to preserve their capital As an extra bonus, you can buy these at a 58% discount to the $25/share IPO par value ($10.50/$25 par value = 42%). I continue to buy these at or around $10.50/share in size but you have to be patient because they are thinly traded. EKS