Heard from someone who went. Said that they had huge number of deals closing this year. Will use more than equity raised. Will borrow more money to do deals. All with higher IRR's than current. Should mean huge earnings in 4th quarter (and beyond). TWT.
I attended the meeting and encourage any who are able to do likewise. It was highly interesting to meet the senior officers in an intimate setting and listen to John Barry hold forth. None of their current investments yield less than double digits. First Tower acquisition is working out to be a strategic and successful investment so far. As PSEC investors, it is my opinion that we have a top-notch investment team seeing to our (and of course, their) interests. Additionally, NYC at this time of year is nothing but a good time.
How do they fund the huge dividend? Are they just selling assets and thereby depleting the Company? Have they been earning the dividend? How is the dividend taxed? Is it considered "return of principal"?
Actually I THink that I know the answers to those questions:
1) "How do they fund the huge dividend?" With income.
2) "Are they just selling assets and thereby depleting the Company?" Inpart at least, but that is their business modal, and as long as other oppunities are available, it doesn'y really deplete the company.
3) "Have they been earning the dividend?" Clearly htey have been earnings significantly more than the dividend, but some of thoose earnings are one time events (but again that is part of the businrss model).
4) "How is the dividend taxed? Is it considered "return of principal"?" In most cases as ordinary income. A little but may be "qualified dividend" or capital gain. As long as the earnings are more than the distribution, it will not be return of income.
1) How much of the recent offering will be put to work by the end of the year? And will the investments yield enough to fund the dividend (fees and income, minus administrative expenses)?
2) How is First Tower investment doing? How much of the money raise was used for First Tower expansion/capital? What is the long term goal for this investment - resale/expansion/long-term ownership?
3) What are the current "excess" income numbers/ When and how will they be distributed?