We believe that the mortgage REIT sector has been propelled by yield starved investors and backed by an MBS consuming Fed. While current (and near-term projected) rates will not mollify the yield hungry, the role of the Fed will be changing.
Yet another REIT has tapped the preferred market in order to raise capital at attractive levels.
Many investors have asked us about potential options instead of the REIT or what to do with funds allocated to the REIT.
BXMT is uniquely positioned to obtain market-leading credit opportunities.
Despite being in the retail sector, Kimco was able to price their new preferred stock at 5.25%.
Larger deal sizes can also be done by certain issuers - today’s issue was 12 million shares, or $300 million.
The risk with balance sheet lenders is relatively straightforward - the risk that the loans don't perform as expected.