- 2020 was a difficult year for almost every REIT, but American Finance Trust performed rather well.
- The REIT issued a new class of preferred shares, which will increase the outflow related to preferred dividends to in excess of $20M.
- Despite this, and even assuming the REIT's performance doesn't improve in 2021, the preferreds have a dividend coverage ratio exceeding 500%.
- That being said, I will rotate my AFINP position into the new AFINO issue, as it simply makes more sense given the current share prices of both issues.
For further details see:
American Finance Trust: A Good Result Makes The Preferred Shares Safer