I don't recall anybody mentioning that NRF is targeting $3.5 billion for private REIT; that would work out to about $100 million in fees. The sales force is now up to 74000 registered reps from 65000 earlier this year. There is also a chart showing industry private REIT sales over recent years. This is a heck of a new platform with great revenue stability and dividends to NRF shareholders.
After the failed Opportunity Fund (which was merged into Income 1) and the very slow start selling Income 1 while building the dealer network, the fact that Income 1 is almost sold out proves they can do it. Healthcare just started selling but I expect a much faster ramp because the dealer network is already in place. Just sign new papers to peddle Healthcare. They are expecting 40 million in management fees this year.
Not only is it annuity income, it takes very little NRF equity. They put 2 million into Healthcare to break escrow.
Even if they eventually put 30 million in, collecting 30 million in fees on a 1 billion fund is 100% of tied up capital per year.
I can sit back and collect my penny per quarter increase until a very slow market figures out NRF has fundamentally changed from it's pre-crisis business model.
You are absolutely right. NRF is completely different now. In the presentation of May 13th they did a good job of breaking out the new business model. They expect to have raised 1.1 Billion for the private REIT by July and expect 3.5 BIllion overall. Management fees will soar. The PE investment looks great. The Milford Hotel investment should do well as the economy recovers and travel expands. The manufactured housing investment may turn out to be the best of all in the long run. The like the new CAD accounting. It is what many others are using. Based on the presentation, it looks like we may get more than a penny increase per quarter. All looks good.