RAIT Financial Trust Message Board
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cash to invest
At 12/31 RAS had $100 million in actual cash. $35 million in money available from Almanac. and if they keep generating 33 cents per Q of AFFO but only pay out 10..........they will generate an extra $45 million per year (theoretically) available to invest. Further, they have the $100 million + of assets that they traded out of securitizations that they control and replaced with $100 million of recourse debt issued by RAS. Assuming the assets they took out are turning into cash(we don't know that for sure since it is all consolidated and management hasn't talked about these assets since they did the transaction, but that is one of the speculations many posters have made), RAS will be very liquid for quite some time.
Thoughts.-
Ethison....734775 plus the numbers in my handle
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Assume that the dividend will go up and that the increase will eat a portion of that $45M. Also assume that the 33 cents is closer to 25 cents when the shares sold at the end of 4Q hit the 1Q numbers, That will eat another piece of the $45M. But assume that rents and investment interest income will continue to rise with the effect of pushing the free cash even higher.
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Ethison.. Financials and Reits are not my thing .. What couple metrics should i use to value these things .. Especially if they are not profitable right now.. Book value and some others.. got some suggestions??? Thanks truth 8360
- 2 Replies to truth8360
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Also, I would generally say that book value is a poor metric for RAS and for many other REITs and companies........
RAS is "profitable" right now, except that non recourse subsidiaries are throwing the numbers off because of GAAP rules...... If you know GAAP it will be easy to explain......if not, it might be very cumbersome to explain. -
For REITs they typically present FFO.........RAS presents AFFO.......funds from operation, adjusted funds from operation. This metric is a bit like EBIDA.
Truth, do you have an accounting background? Do you understand GAAP? There are many types of REITs with different models for making money. One must choose carefully and be comfortable with the structure and understand the risks of what you actually own.....
If you don't mind, give me more of your investing background and I will be happy to give you the five cent tour of RAS and discuss investing in financial related stocks....
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Plus they repaid the secured line of credit. Presumably they can borrow that again..
- 1 Reply to ethison
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Plus, RAS could get cash from IRT, assuming that the brokers are selling some shares.......this could actually be a steady stream of cash....
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Once RAS burns off the losses carried forward they will have to adhere to the 90% distribution rule for REITS...Not sure how long that will take....2-1/2 more years maybe?
- 1 Reply to jmyduce
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Well, there are more unrealized losses within the three remaining Tabernas.
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I'll ask Obama when we meet at the funeral of Presidente Hugo Chavez. Maybe RAS should branch out into the solar energy field.
- 1 Reply to davisfouger
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Great idea. Give him my best, Fouger.
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