GasLog Partners just announced all time high revenue, EBITDA and distributable cash flow, not to mention a solid 1.2x distribution coverage ratio. The company also raised its distribution in 2019 and bought back a significant amount of its common units. Further still, during the latest earnings call, management explained they remain very confident in the company’s long-term outlook. This all sounds like a very attractive business, but the units plummeted about 49% after the earnings announcement because management dramatically reduced the upcoming distribution payments, explaining they are “moving to a strategy that prioritizes the strengthening of our balance sheet through debt reductions.” In our view, these actions make the company’s preferred units significantly more attractive (because it frees up more cash flow to support them), yet the preferreds were dragged lower in sympathy with the common, thereby creating an increasingly attractive buying opportunity in GasLog’s 9.6% yield preferred units.