RAS, like many of these REITS recognized that this quarter was a good time to raise funds. They did a rather large common share issue although they weren't in desperate need. Plus, they were pushing along the IRT IPO, which has yet to happen.
I wonder if RAS raised any significant funds through its ATM (at market issuance deal with MLV & Co) ? They were set up to potentially issue a rough maximum of $50 million each of from new prfd A, B and C (2 million new shares of each).
Also, there is the Capital on Demand facility with Jones Trading that was set up in November '12. Under this deal RAS can sell up to 10 million shares. If they did issue the maximum this quarter.......another $80 million to play with??????????
I'm not sure they did any of this, but Kudos to management for planning ahead and having capital raising options in place. I hope they issued more shares of both common and prfd since they were doing a good amount of lending especially with the bridge product........they could put it all to use immediately and worry about creating a CDO for some of it whenever the market is really ready for it.
Bernanke's recent remarks couldn't be better timed for the new secuiritization, which I'm sure RAS has been holding back on while they waited for markets to settle down. My guess is that they'll have that on its way to market before the 3Q results. IRT is harder to predict, if only because its currently in the SEC's hands. This wouldn't be a bad moment for them to issue an effectiveness notice.
No more than ever, RAS would look very smart if they had been selling into the stronger market this past quarter............Maybe at the same time RIMA was selling RAS was selling too..........
I hope we have no capital needs until 2014.....