Fri, Dec 26, 2014, 7:32 PM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Gramercy Property Trust Inc. Message Board

  • js291955 js291955 Sep 6, 2013 12:30 PM Flag

    Why paying the Preferreds is a bad idea

    Say you have a friend that lent you $35 million. The friend is charging you 0% interest. That's not all. Your friend is willing to lend you $2 million more every quarter at 0% interest. Well, what are you going to do with this money? You could buy properties and lease them at 9-10% cap rates. You are USING YOUR FRIEND'S MONEY to earn 10% FOR YOURSELF!

    Of course you have to pay him/her back someday, but you'll only have to do that when you NEED to do it to remain a REIT.

    So simple. So profitable!

    Anybody want to lend me $35 million at 0%? I promise I'll give it back to you someday.

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
GPT
6.99+0.03(+0.43%)Dec 26 4:03 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Virgin America Inc.
NASDAQFri, Dec 26, 2014 4:00 PM EST
Southwestern Energy Co.
NYSEFri, Dec 26, 2014 4:02 PM EST