In the last two months this stock has gone sideways. Not bad. With 16% dividend, I'll take sideways. Of course if it goes up 10%, then I have a 26% gain.
There is risk. The dividend could go down. But the stock is already 60% off its high. Management has been doing this business for a long time. I assume they know what they are doing.
As long as "true" earnings are 1.25/shr or better, they can maintain divvy with sales of EPR or with special '07 divvy..of course, that is return of book so might be better to cut div and invest, depending on EPR value and buz opportunities....they have 1.25 in extra '07 earnings that need to get paid out. Of course, all this comes out of BV, so one has to consider....In a nut, yes, divvy is "safe" for '08/09 IMO
small nibbles but yes, they are adding to position...relative to existing holdings, very small, so would normally not be too meaningful....these guys have impressed me considerably in how they managed their balance sheet into '07 so I give it credence...good luck
they'll do what is in their best interest. If that means restructuring so they don't have to pay out 90% of earnings as dividends as in it's current reit form, so be it. This is high risk and anyone who has the guts to go in deserves the dividend.
OK, I have been in this stock before. Had it for 4 yrs and they sold around 22. Just got back in at 16.5. What is the status of the divdend for the quarter? I looked on their web site and in the release on 12/13 and did not see any information.
Does anyone know " what the status of the divident and what the x date will be?
I like this addition to the board of trustees, it looks like a smart move. Quoting the press release, "Mr. Weiss served from September 1997 to September 2007 as Vice President of Development of Robert Stark Enterprises, Inc., a Cleveland, Ohio based company engaged in the development and management of retail, office and multi-family residential properties." It seems BRT is going to agressively manage the new acquisitions to obtain maximum value.
They aggressively marked down the foreclosed prop'ty also....the recent add to REO is valued just over 17 on an original loan amount of 27.5 and I am sure they did not loan at 100 LTV - more like 80 according to past transactions....that implies prop'ty marked down to 50% or below original value - very conservative - even though Apopka is probably down 30% or so
that is not to say there is not risk here...but they strike me as strong risk managers, conservative players and aggressive foreclosurers