There seems to be a pattern here. The AFFO is not rising because the share count is rising eating into any potential dividend increase. The question is whether these added shares are incresing the cash inflow of the company or only increasing the size of awarded shares to the management. JC always promises the moon but never delivers on his promises. Having said that, times are tough and I don't know if they could have done better so I'll just have to keep on hoping for better times.
AFFO of .22 down from .26 in Q3, GAAP down from .20 to .14, Book Value increase of .10 from 5.51 to 5.61. Have not looked beyond these headlines, but JC painting a more optimistic outlook. I fear the stock may be currently overpriced relative to these results unless the market will look forward to JC's optimistic growth message.
I'm still long RSO a large amount. I'm more scared about the macro-economic picture right now and not just the US budget issues. The two stories on 60 Minutes last night about the huge housing bubble in China was unbelievable and really frightening. It makes our past housing bubble look tiny in comparison. Literally cities of unoccupied new high rises and skyscrapers. I cannot imagine how this will resolve itself without having an impact on the world economy when China has to come to grips with this. Anybody else see these stories? If not you can watch a replay. How does this get resolved without a major crisis???? I don't know.
RSO continues to grow topline, but as I read it, there are 11 million more common shares this quarter vs last. Hope I am incorrect on this, but if I am, it illustrates RSO's eternal problem, the issuance of costly equity. I do not see how they grow the dividend or share price if this reality holds in the future as it has in the past. I moved a fair amount of my RSO to NRF in the last few months because NRF was sourcing deals of significant size and at a good rate. I am glad I did. Beyond this there was over 7 million dollars income tax expense. I thought this was a reit?
Been here for years. Very much want to hear the conference call. I want to see a plan that creates the ability to source equity at a much lesser expense. NRF's yield is 8%.