This REIT's Preferred Stock Limits Investors' Risk And Yields 6.1%

This REIT's common shares crashed in May of this year after the REIT adjusted its AFFO guidance. While it has reduced its exposure to its largest retail tenant a lot of income investors are still avoiding the REIT. I think company's preferred stock layer offers good value. The REIT's Series A preferred stock has only recently begun trading. The Series A comes with a yield of 6.11 percent, and is a less risky way of investing in the REIT business.

Spirit Realty Capital, Inc. (SRC) is a REIT at the higher end of the risk spectrum due to its exposure to Shopko, a retailer that has been closing stores in the struggling retail industry. Income investors who think Spirit Realty Capital's 8.3 percent common stock yield is too risky can take a look at the REIT's preferred stock layer to find good value instead. The REIT's preferred stock would be a good income vehicle for more risk-conscious investors who are concerned about the REIT's exposure to the retail industry.

Source: Seeking Alpha

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