10% Preferred Yield And 50% Appreciation From Ramco-Gershenson

Seeking AlphaREITs10% Preferred Yield And 50% Appreciation From Ramco-GershensonJul. 13, 2020 5:16 PM ET|| About: RPT Realty 7.25 PFD D CONV (RPT.PD), Includes: RPTby: Investing With ConfidenceInvesting With Confidence Long only, value, special situations, long-term horizonSummaryRPT Realty is a small, well-run, forward-thinking, open-air REIT.
Net operating income will vastly exceed the preferred dividends.
No near-term debt to worry about.
Board are essentially compelled to pay out the >10% preferred yield.
Preferred shares are a bargain for both dividend and capital appreciation.
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In mid-2019, Ramco-Gershenson Properties Trust (RPT) began - purely for the welfare of its employees - to implement a work-from-home day, one day a week. Naturally, this meant that they had to set up a cloud computer infrastructure so that work could continue equally well at either location.
When COVID-19 hit in 2020, they were perfectly placed to just 'press the button' to go all-virtual, all-week. Maybe it was foresight. Maybe it was luck. When one of Napoleon Bonaparte's generals came under criticism for winning a battle by luck, the Emperor retorted:
Give me an army of lucky men!

RPT's lucky general was CEO Brian Harper (formerly CEO of Rouse within the Brookfield empire) who took over from founder and longtime CEO Dennis Gershenson. RPT owns 49 open-air shopping centers across the USA, with a focus on metropolitan areas. Since 2018 it has been gradually moved to its new strategy, under the leadership of CEO Brian Harper. The REIT is internally managed, which is a key consideration when choosing a REIT: in a downturn we don't have external management leeching gigantic fees, and... Read more

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