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Cohen & Steers Reit and Preferr Message Board

  • joelndll joelndll Dec 7, 2008 7:00 AM Flag

    Let's clear up this NAV understanding.

    NAV is "Net Asset Value". RNP does hold 40+%
    leverage of $254,000,000 as they had announced. Divide that by 48,000,000 shares and you get $5.29. Add $5.29 to the NAV Friday of $7.61 and the ASSET Value of RNP is $12.90. Deduct the leverage of $5.29 per share and the NAV is $7.61 x 48,000,000 shares for a dollar value of $365,380,000.

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    • I was simply trying to establish the leverage.
      If I'm correct,the Asset Value is $12.90 and the $254,000,000 leverage divided by 48,000,000 shares is $5.29 or 43% of the assets, leaving an NAV of $7.61. As the price of RNP rises when the market rises, is it safe to assume that they will leverage more? This bodes well for rising RNP prices. In that case the buying opportunity for RNP is before the announcement mid December on the dividends.Just trying to evaluate my best opportunity regarding RNP.

      • 1 Reply to joelndll
      • In the old days as the nav went up they would sell more Arps at some point to juice the return.However,the Arps market is gone.The trend right now is to reduce leverage and find a solution for the arps dilema. I would put a big ?? as to what is going to happen with this fund. We will know more shortly when C$S decides what direction they want to go.Regardless, with the big nav discount here on solid reits and preferreds, buyers are making out like bandits. JMHO RRW

    • Why do you want to go through all this?. The daily calculation of NAV is carried at and you are correct as of Friday it was 7.61.You figure it all out.I'll take the web site.RRW

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