AFFO: 20 cents
CRE loans: $61 million
Reduced CRE legacy loan portfolio by 19%
Sold one legacy loan for $34 million. Did they take a loss?
GAAP income: 11 cents. (Market will take this as a miss.)
BV: down one cent to $5.60.
As of April 30, 2013, we have over $162 million of unrestricted cash
I'll give this report a "B-" becasue the AFFO is covering the dividend. In this low interest-rate environment it's tough to make a buck on spreads. The cash on hand is mostly from the April offering, so I cannot say that they have been sitting on cash. Of the $61 million in loans, $44 was made late in the quarter. They need to deploy their cash more quickly -- otherwise, AFFO will continue to play catch to to the number of shares.
As I read what Cohen said, the 44 million was "in the pipeline" at the end of the quarter and so was not included in the the 61 million of loans. Here is the quote from Cohen:
"Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "Resource Capital Corp. had a very good first quarter, in which we had new loan production of $61 million and a strong pipeline, including the $44 million loan which we announced last week and several more in the works". That would imply that this next quarter may be a "bit" better, and hopefully earnings will start moving up but it won't be very fast. I think that dividends are going to be at $.20 a quarter for the rest of the year.
I agree with a B- grade for the quarter and I must say I'm disappointed but I'm not a sell yet.
Thanks for the post.
I agree. Big disappointment. At least they aren't decreasing the dividend but the future looks very shaky if they don't start earning more money. We'll see a 2-3% drop tomorrow. Hopefully not more and hopefully only a temporary drop. GLL
The sp is going to whittle back down to the 6.20s. I bought the SPO for the trade at 6.24 and dumped it all at 6.70 this afternoon. Over 2 quarters worth of dividends for holding one month and no ROC degradation. This is the only way I will play this stock now... it didn't used to be that way :o( This is a hold or light sell right now.
That is why RSO's dividend is the highest of all commercial MREITs. The stock price is not going anywhere except staying about where it is and the dividend isn't going up at all for the forseeable future.
A 12% yield is great but I'd rather have an 8% yielder where the price is increasing and the dividend is increasing by a couple of times a year.
"A 12% yield is great but I'd rather have an 8% yielder where the price is increasing and the dividend is increasing by a couple of times a year."
Try NRF, dividend has been increased by a penny for each of the last 7 quarters and it will continue.
Stock up significantly this year.