My concern over any drop in BV is because all the new shares of the SPO were sold at a strong premium to the then BV of $6.52 (I believe it was $6.86) This only means that current holdings have lost value somewhere. I think this is something the CEO NEEDS to address, because in this environment for this type of investment a lower BV does not make sense. Quarter over quarter, something lost value, because if anything, the SPO shares would have helped to increase BV. Those gains were lost along with an additional .02, which means the negative move was something greater. Hopefully they address it in the call.
Agree with signs, BV is subject to holding market values which fluctuate daily. Look at other REITS like AGNC and ARR and the BV's dropped there as well. The important takeaway I got was that the deployment of funds from the SPO took longer than expected, so that negatively affected earnings for the quarter and when you distribute dividends more than you make in earnings, BV suffers.
I think it also highlights the fierce competition amongst all the REITs out there and the Fed to compete for mortgage instruments....the flood of SPOs are there to grab as much as they can...but unless housing picks up there are only so many available, JMHO.