DTLA Preferred Stock: Hidden Value With A 50% Upside

A REIT long idea for Brookfield dtla preferred stock

Known for their defensive nature and high income, real estate investment trusts have seen strong demand from investors since the financial crisis, as an alternative to low yielding fixed income. However, over the past 12 months, REITs have fallen out of favor with investors as the Federal Reserve has begun to increase interest rates, making yieldcos less attractive and riskier. Indeed, over the past 12 months the iShares Core U.S. REIT ETF has fallen by 6.8% excluding dividends while the Vanguard REIT Index Fund is down 9.5%.

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Against this backdrop, Jordan Capital Partners, LP likes the look of senior preferred shares of Brookfield DTLA Fund Office Trust, which yield 7.625%.

Jordan presented this idea...