People have completely lost faith in this fund. What is NAV? NAV is the Net Asset Value of the fund. Remember this is a Closed End Fund. It is not a stock. For $4.30 you get one share that is actually many other stocks. The value of those stocks is actually $5.57 per share.
What does that mean? That means for $4.30 you can buy $5.57 worth of real estate stocks...
Seems like a deal to me.
Alpine has good management despite the terrible job they did last year. I hope to see this NAV continuing to rise. The fund price may never get back to the NAV, but it should follow it as the NAV increases. Eventually it will start to close the gap. Especially if they continue to grow the NAV and even start bumping the dividend again. Dividend bumps will probably take some time as growing the NAV is the key issue right now.
Sure, there are some trying times ahead, but these guys (and girl) have the skills to beat the market. Heck, they crushed the market on the way down...
i agree with your comments. One of the reasons I think this fund is in the penalty box big time was the drastic cut in the divy from .12 or so to the current level. While it may have been the right move it sent most of the original owners to the exits! Now those investors are slowly being replaced by the value guys. We do need to see the monthly divy move up by a penny or so a month sometime this year....that will close the gap on nav. There are just too many place to go right now for income investors with yields in the mid double digits to consider awp if income is your first concern.
Consider this: the annual dividend per share based on a monthly rate of 3 cents is 36 cents. that computes to to an annual yield of 6.5% based on the NAV of $5.57. But, because of the discount, the market price as of todays close of $4.36, the yield is increased to 8.3%.