back to close to 7% . . . don't get why this company is SOOOOOO hated by the street. I get the commonwealth overhang and I get they clearly raised more capital than they really needed last time around BUT a comparable quality REIT would trade 50% higher than SIR and you have zero risk of a secondary for quite a while here. . . hahaha maybe a sharknado is coming to HA and Wall Street knows about it
RBC the house with the best target price lowered their outlook today from buy to hold and price target from 35 to 28. They cited interest rates,lower resets in Hawaii and limited pipeline of new properties to buy.
Yes they raised way to much money when they didn't have a great use for it,the reset problem is new and it must have to do with arbitration. Interest rate risk was supposed to be taken care of by getting an investment grade rating to get out of floating rate debt,so far that didn't happen.
FFO will be going down unless they can find worthwhile properties to buy,my guess is 66 to 68 per share for next quarter.
Shame they had it all going for them till the last secondary that wasn't needed at all
The underwriters just bought 10.5m shares at 28.25,thats a 2% gain just to get back to what they are paying. The company will make 2.25 in net income this year and 3.25 in FFO,THE DIVIDEND will get raised again.
SIR just purchased a property for approx 140m and they stated that they are looking at quite few other deals. The new money will be put to use real quick
Selling the 10.5m shares will change their ratios where they can get rated investment grade by S&P allowing them to sell 10 year paper rather than more shares.
I bought more yesterday at 27.49
You may be right about the opportunity, but I'd like to see your math. Near as I can tell, SIR has a track record consisting of just four dividends (including three different amounts) and let's not forget (how could we?) the 10.5 million share offering's effect on the number of outstanding shares.