ARR is the worst flea infested within a group of mis-managed flea investments. However, CIM became a high return fire sale investment__even tho they cannot file SECs forms and faced delisting. ARR will most likey slash the payout yet again__as will many mREITs.
HELP !!! I want to buy a REIT (I think) ARR is the first REIT I found alphabetically and thought you guys are more familiar with and know more than me. There is not a board for ORM
I have been advised to buy this stock...ORM (just converted today from Limited Partnership to stock)
(was Owens Mortgage Investment Fund Limited Partnership)
Based on what an initial analysis shows will someone please tell me what I must be missing...
My questions are re the following:
1. My review of the S-4, if I am reading correctly, show the Company has not been profitable for the years, 2009-2011. Not sure about 2012. I understand how bad the recession has been.
2. Management fee is 2.75 % of loan amount. 12-31-12 10-K (page F-3) shows the Management Fee was $1.7 million dollars. The same 10-K page shows Interest Income (if I am reading correctly) as $2.5 million. Can someone tell me if a $1.77million fee with interest income of
$2.5 million is normal for a REIT?
3. In the Notes to the Consolidated Financial Statements (Note 7) show a very large difference in value between 2011 and 2012. How do we know these figues can be relied on? My anecdoctal experience these last few years have seen bigger declines. What makes these properties different? Also, I understood this to be a “Mortgage Partnership”. Is this normal to own this many properties ($71 million) and if so, is this an appropriate amount relative to the performing mortgages, which I believe are $44 million approximately according to the 10-K dated 12-31-12?
4. I understand Owens has not paid a substantial dividend for years. I found a dividend paid in 2012 of approximately $30,000 (30,708?). I understood the original Partners Capital was approximately $181 million.
5. They paid the above dividend operating as a partnership. It seems to me the additional costs of being a public company, may have precluded paying even that dividend last year if they were publicly traded. Since ORM will be a public company, with the additional costs going forward, can someone please address if this should be a concern?
6. I found at SEC.GOV a filing on 3-22-13(?) regarding a presentation the Company made, I believe to their limited partners. Slide 5, I think, stated 38 % of all units (totaling approximately 108.2 million units) have requested redemption. If I understand correctly, there are a total of a little over 11 million shares (11.2 mm?) after conversion. If my math is correct, that means four million plus shares had previously requested redemption. Today's volume was around 100,000 shares. If those 4,000,000+ shares are still sellers or any significant percentage are...that is a large overhang to work through.
How's that???? They didn't try to deliver a divy that they could not uphold and that gives them a bad rap. Their last 8k was all green. And their divy will hold and start to go up as the spread goes up. You must have shorted to far out and know you know your hosed.