When they run out of cash to plow into properties. At that point they'll need more capital to grow. That means tapping the equity markets. They can't tap the equity markets as a REIT without declaring a dividend first.
unlikely, management has been pretty clear on their intention to only distribute enough to be an REIT. Doubt that 90% of taxable income will be enough to pay off the arrears on the preferred. Even if GAAP earnings are enough, don't know enough about how taxable income will come out.
Bringing the preferred current will be the key. Once that happens, they can pay on the common as soon as their profits allow. Hopefully it will be a 2013 event and hopefully they will not try to retire some of the preferred as Newcastle did.
I think once we see a couple of quarters of recurring revenue/profit? share price will go up and make a secondary possible
58 milion shares out
at 6 they would need to issue 5 million shares in a secondary to get the preferreds caught up
i think they are waiting to show wall street their model is working and wait for some share price appreciation to decrease dilution
I think the right way to do it is through a seconday
once the preferreds are out of the way and we get a share price over $5 and pay a dividend, a double is right around the corner from where it is now