In case someone doesn't catch this elsewhere:
Looks pretty good to me on my initial glance. Now time to read through the financials more carefully.
AFFO for the three months ended March 31, 2012 was $18.6 million, or $0.23 per share-diluted. A reconciliation of GAAP net income to AFFO is set forth in Schedule I of this release.
GAAP net income for the three months ended March 31, 2012 was $14.5 million, or $0.18 per share-diluted as compared to $13.1 million, or $0.22 for the three months ended March 31, 2011.
More color on the DRIP from the Q&A:
"Well two things; first, we signed a deal with Wells Fargo. Obviously one of the reasons we are DRIPing is because we plan on expanding our balance sheet and to do $115 [sic, transcription error, should be $150] million line of credit you probably need $70 million of equity which we had some, but no we’ve put away more so that we can be super aggressive in expanding our commercial real estate finance loan origination effort, which is expanding as we speak. So that’s the first thing."
I agree with the comments in the thread. This is a nice, solid report.
GLTA except the imposters.
Oh look! Another new ID for the person impersonating me. I am so honored that this person creates new IDs meant to impersonate me whenever an old one is banned. My goodness, but I do attract attention from some very troubled people. So now I report them for Abuse and just copy and paste my explanation to Yahoo each time. It takes them a while to get around to banning the ID, but they do get to it eventually.
My suggestion: report the ID for abuse and then place it on ignore.
I believe that the share price of RSO is going to climb from $6 to $9 in three years. Should that happen then the compound annual growth rate (CAGR) over that period is 14.47%
In addition I believe it will continue to pay an annual dividend of at least $1.
I did not have time this morning to listen to the call yet. I've since looked over the transcript.
Lots of positives in the Q&A.
I updated my google spreadsheet. This management team knows what they are doing.
Not paying out dividends in excess of FFO is the precursor to internal growth, and they have accomplished that. RSO went accretive to book value which is another improvement that adds to the valuation. Lowered operating risk and financial leverage added to a lower overall risk factor, an increase in return on Common to 12.52% and return on funds from operation to equity at 16.11%. This stock has a a deduced upside value to $9.12/share.
Here is the link.
I made some annual projections for the next 3 quarters based on this earnings statement. I needed that to find the valuation of on funds from operations.
Dilution continues ...
Total common shares outstanding were 84,717,745 as of March 31, 2012 as compared to 79,877,516 as of December 31, 2011.
I believe REXI takes their management fees in RSO shares. I will confirm this