Average Joe was just taking "sell in May" to heart. He'll come back in a month when the shares are higher and then whine and cry for the remainder of the year how Wall Street is corrupt and the market is rigged against the small investor.
Actually, I think the news was great. This is the first Q in quite a while that ABR showed an operating profit. In recent Qs, ABR has been making money, but mostly by buying back its own debt at a discount. ABR did this again in Q1, but it also made an operating profit.
The per-share amount is misleading, tho. It was based on 33 million shares outstanding, but ABR now has 43 million outstanding, due to the secondary and the ATM agreement ABR entered into in December. I hope they can put the money to work fairly quickly.
But whatever the per-share amount, the fact that they have started making an operating profit is great news.
"I hope they can put the money to work fairly quickly."
This was answered on the call:
Although we think they are legacy and it doesn't include your operating expenses. You'd have to look at the operating expenses from the prior year maybe grow it a little bit, so if that was 27-28 last year, if it's 29 or 30 this year wherever you think it's going you net those two out and you say well that's the net core FFO, on all the shares we have outstanding. And I think when you do that you'll still see a pretty strong number. Keep in mind we did raise a decent amount of capital in the first quarter so there was a little bit of a drag for the quarter on that capital but we went to work immediately and in April we did 107 million of loans and we think we are going to deploy our capital very quickly and effectively to grow it going forward.
Steven DeLaney - JMP Securities LLC
Yes so I mean if you weren't fully deployed, the 50 million run rate obviously at June we would expect that to be slightly higher with the 100 million additional loans.
Yeah there is a little bit of a lag between the time we raised the capital and put it out. It wasn't that big of a lag it probably affected us for about a month maybe but we have been pretty effective in terms of not raising the capital until we have the pipeline and there is a little delay in getting that pipeline across.
Not much change in earnings, no change in dividends from last quarter.
This is after a number of quarters of improvement.
However, they have substantially increased the amount of cash available for new investments.
They are ramping things up.
Another thing they mention, is that they raised a lot of capital in Q1 and have not deployed it all yet.
Once this get all deployed with reasonable spreads, their income should improve.