Middlefield has not bothered to announce the recent name change of Real Estate Split Corp. (formerly Real Estate & E-Commerce Split Corp.). To get the details, one must visit SEDAR and search for “Real Estate Split Corp. (formerly Real Estate & E-Commerce Split Corp.) Jan 6 2022 09:36:30 ET Other securityholders documents – English PDF 169 K” to get a link to a document that the Canadian Securities Administrators won’t allow me to link to because we’re all stupid investor scum and should not bother ourselves with complicated documents.
Oh, Canada!
Anyone know of nay forums to discuss preferreds ? I dont know if this is a good time or bad time to buy? I see some of the preferreds here with dates maturing eg 2025 . IS that a hard maturity or do the issuers have the options to extend for another 5 years ? TIA
eg CM.PR.Y or TD.PF.D ?
Anyone know of nay forums to discuss preferreds ?
I recommend the Financial Wisdom Forum, which has a very long thread devoted to preferred shares, as well as other scattered mentions.
I see some of the preferreds here with dates maturing eg 2025 . IS that a hard maturity or do the issuers have the options to extend for another 5 years ? TIA
eg CM.PR.Y or TD.PF.D ?
Virtually all Canadian preferred shares are perpetual with embedded calls exercisable at the sole discretion of the issuer; this is due to accounting changes in the 1990’s that disallowed the inclusion of non-perpetual issues as a component of Shareholders’ Equity on the balance sheet. For practical purposes, the only exception to this general rule is SplitShares – which can be useful, but have their own problems.
In particular, CM.PR.Y and TD.PF.D are perpetual issues of the FixedReset type; they have a call provision that applies every five years on their reset date.
Please always check the prospectus yourself before investing; I hear a constant stream of horror stories from investors who didn’t.
Middlefield does another new offering, this time with RS.PR.A (gotta boost those management fees):
https://www.globenewswire.com/news-release/2024/04/15/2863130/0/en/Real-Estate-Split-Corp-Announces-Overnight-Offering.html
RS Prefs offered at $9.65, barely above the last trade at $9.68. After the recent ENS.PR.A offering at $10.10, that split pref dropped by almost 20cents. I dont think RS.PR.A will drop by that much, but will likely open tmr below this offering price.
After the recent ENS.PR.A offering at $10.10, that split pref dropped by almost 20cents.
It certainly seems like a sign that the preferred SplitShare market is saturated: everybody in the world who wants a split preferred is stuffed up to the gills with them, thanks to the various ATM issuance programmes!