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Newcastle Investment Corp. Message Board

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  • bobdbeck bobdbeck Sep 10, 2011 7:22 AM Flag

    DIVY per PPS

    Other REITS in similar space have announced dividend cuts the past 2 days. IVR went from .97 to .80 and CYS went from .60 to .55. Granted the businesses are not exactly the same but the trend is there. Expecting AGNC to announce this week with NO dividend cut ($1.40) and NLY soon, again with steady dividend. These 2 companies weathered the 2008 meltdown unaffected.

    JMHO.

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    • Was not aware of IVR and CYS divy reductions or familiar enough with their businesses to understand why the cuts were made and if the cuts were expected before the current market declines.

      There are alot of moving parts with nct so cannot rule anything out, but hard to see a scenario where the divy would be cut,NII would have to decline, I am still expecting an increase.

      • 1 Reply to objective11
      • From Brian Sigman at ccall:

        "We are encouraged by the recent market moves and the decline in asset values because basically our whole portfolio is term finance so the change in prices on the asset that we own today don’t really impact our earnings and operations and cash flow that we generate on a quarterly basis. We are very excited about the new investment opportunities that we are seeing today you know this volatility creates better opportunities for us and we have a lot of cash to invest. So we feel really good about that".

        Hope he's right!

    • I would be very careful comparing IVR, CYS or AGNC to NCT. The former invest all or nearly all of their capital in Agency mortgages and rely exclusively on short-term repo funding with recourse to finance their portfolios. NCT currently invests the vast majority of their capital in a variety of non-Agency mortgage assets and finances that primarily with CDOs or other securitization debt that is non-recourse and duration matched. These are very different business strategies that create different risk/reward opportunities for investors. The bottom line is I would not extrapolate current dividend trends in the Agency mREIT space to the non-Agency mREIT space.

      • 1 Reply to gczbc901
      • My Post: <<< Other REITS in similar space have announced dividend cuts the past 2 days. IVR went from .97 to .80 and CYS went from .60 to .55. Granted the businesses are not exactly the same but the trend is there. Expecting AGNC to announce this week with NO dividend cut ($1.40) and NLY soon, again with steady dividend. These 2 companies weathered the 2008 meltdown unaffected>>>

        I did state the businesses were not the same. Just noting REITs in general were starting to show some weakness. I realize NCT is neither an agency nor non-agency but hybrid with many different avenues of investment. I am VERY long NCT and am looking for a small increase of their dividend this month. Will be very disappointed with the same .10.

 
NCT
3.48+0.05(+1.46%)Feb 5 4:02 PMEST