Yes, I noticed they cheated. It is even worse than that. If you use a 99 million share baseline instead of 89 million shares, the AFFO is only $0.21/share.
If the $117 million they have available generates $8 million pretax per year, this equates to 2 cents/share/quarter. In other words, the long term AFFO for this stock is no more than 23 cents per share per quarter. If there is a dividend increase (A BIG IF), it will not be more than 1 cent per share per quarter!
Conference call should be interesting. I agree with the others about the divi. Probably won't see an increase till 1st quarter. If even then. But I think we'll only see a couple of cents increase. They have gotten pretty conservative. Which is ok with me.
I have to say that I am pleased with core earnings of $.26/sh. First comes the increase in earnings and then comes an increase in dividends although I wouldn't be surprised if an increase 1st quarter 2013 rather than 4th quarter 2012. Either way, an increase is, IMHO, coming. After all, 90% of taxable income warrants an increase of at least $0.025 pps increase right now, but tax rules for REITs do allow for part of the 90% of taxable income to be deferred to the next tax year which could happen if building BV is still the determinant for determining the amount of dividends.
Good,as always, to hear from you.
Wishing you the best.
The 26 cents AFFO was good considering this includes the new common shares. The money from the sale of common and preferred has yet to be invested. Their investing activity for this quarter shows some payoffs which offset any new loan activity; hardly surprising considering our low interest rate environment. Nevertheless, the are still sitting on $169 million ($98.9 is unrestricted cash, mostly from selling common and preferred).
Loan loss provisions were only $1 million. Over all, their portfolio looks pretty solid (e.g. their CRE loan portfolio was 87% senior whole loan).
GAAP earnings were 20 cents. It does not mean much, but it did meet estimates.
With the dividend easily covered by AFFO and their unrestricted cash, they are in pretty good shape. Tomorrow's CC should bring light to where that cash will be deployed and when. If they can deploy that cash, we may see AFFO get closer to 28 or 30 cents.