Is anybody telling those poor SNH investors about the Porkies, RMR and the selling of more toilet paper common? They should learn about CWH peddling at $24 and at $28!!! Some poor suckers here are still crying (and I'm not of of them). Praise the Lord..
SNH has been a money maker for shareholders,since the financial crisis they have raised their dividend from 1.36 to 1.56 and the stock is only off 9% from its all time high in early 2007. Long term shareholders have been collecting a average 7.5% per year for the past 5 years with no loss of principal
The SNH IPO will likely be used for acquisitions and add to their assets base. Without a specific count on my part, the RE assets within the RMR group now exceed $15 billion, moving toward $20 billion(don't forget FVE, SNH, HPT, GOV, SIR). This builds an asset base, one of expertise that should inure to the benefit of the long term investor. There haven't been many office reits setting the woods on fire. Many debunk the additional IPO's but the upside is that it adds to scale/size, which is an advantage in the marketplace.
Let us say that starting 10 years ago one had put $10,000 into each and every RMR managed REIT stock offering, whether IPO or secondary stock offering, and had reinvested the dividends in the REIT issuing the dividends.
And let us say that as a control you had on the exact same times in a different account put $10,000 into a REIT ETF such as RWR, and reinvested the dividends into the REIT ETF.
Now which account with the highest value now?
And what excuse would RMR have to their underperformance overall?
I see these RMR-managed REITs like closed end mutual funds with high management fees. They can be worth holding--when the discount is 20% or so. To buy them at par value when issued is a big mistake.
If you get a chance, take a look at all the IPOs CWH has executed in the last 10 years or so and then tell me where the investor has made a gain (except for getting some dividend). It's like giving them $10 to receive $2 over a long period. In the meantime RMR and the Porkneys have been collecting fees that would put anybody to shame. And let's not forget the exess 1/2% finders fee RMR has been collecting all these years on almost every purchase made available by the "Investors" $$..