Targa Resources Partners LP Message Board

sold my 800 shares at $2.95 in Oct. I've bought it all back at $35.64. I'm normally on the wrong end of these "secondaries!" Great Company with strong dividend record.

Sentiment: Strong Buy

MWE needed to do a deal too over a week ago and got hammered.

I applaud mgmt for sticking to its discipline and going forward with the secondary even if it costs us some in the near term.

I owned reits many years ago and their steadfast refusal to do equity offerings when they perceived the offering would be dilutive ultimately ended when the real estate cycle ended and the reit had way too much debt because they kept waiting for their equity shares to recover before doing a secondary.... even if there were recoveries it seemed mgmt teams became seduced by lower interest rates.

I got tired of reit mgmt teams sinking their companies every 9 years or so... then they had to do superdilutive offerings in order to right size their balance sheets.... many reits had to do this in 2009 and their dividend levels have been materially reduced since that time. Our MLPs sticking to their 50/50 debt equity discipline will almost assure us of much better outcomes and the proof is in the distribution growth. What reits have come close to the kind of distribution growth we are getting from our MLPs?

FYI General Growth Properties had to go BK twice because their dumber than box of rocks management team overlevered the reit thru the last two economic cycles. Many other reits slashed dividends in 2009 and had to do superdilutive offerings. Now, reits are historically so overvalued as it relates to the cap rate of the underlying portfolio AND subpar dividend growth..... its a mess in reit land and it all goes back to poor management of equity offerings.