At least I thought it was. Company sees a 2004 Cash Availiable for Distribution of $1.81. It's not a reit so it doesn't have to payout 90% or whatever of CAD so it can retain some for future payouts. Dividend payout is 81%.
Debt to equity is point 75 to 1. The average mortgae reit is 4 to 1.
21% of it's capital structure is exposed to rising interest rates. Company feels that rising interest rates will help occupancy rate, which is still holding at 92%.
92% of dividend is tax-exempt. Q2 will be the biggest quarter of the year as some really big deal is ready to close. Of the over 200 bonds in their portfolio, only 3 are in foreclosure. All are in Atlanta. Interst payments are still being paid but at 150 basis points lower than should be. You can listen to the conference call. It lasted about 35 minutes. All in all, I thought it was positive. Management feels the stock is undervalued. Don't we all, don't we all.
Steve, today was not a good day for most of the bond funds, leveraged or unleveraged. But they weren't down as much as CHC. One possible reason for the decline could be that CHC didn't meet Wall Street's numbers. But on closer examination, I don't think that really means anything: "CharterMac's CAD per share for the first quarter of 2004 was lower than the consensus estimate as a result of a delay in the closing of a low-income housing tax credit ("LIHTC") benefit guarantee transaction originally scheduled to close during March. Instead, the transaction closed on April 19, 2004, 19 days after the end of the first quarter. At closing, the Company and its affiliates received acquisition, partnership management, asset management, and guarantee fees totaling $11.3 million, which equates to CAD per share of approximately $ 0.22. Consequently, the $0.22 per share will be reflected in the Company's CAD per share for the quarter ending June 30, 2004."
As I said, I don't think that's any big deal but in this enviroment when a company doesn't meet the consensus earnings it's shoot first and ask questions later. Had the deal closed during Q1 and the 22 cents added to earnings, I don't think CHC would have been down today. But who knows?