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Alpine Global Premier Propertie Message Board

  • mike57dk mike57dk Jan 11, 2013 1:13 PM Flag

    AWP - 1 yr trailing performance - wow / wow

    Understand that many long term investors in the fund have been whip-sawed by the price decline and unrealized losses in the fund ....but having said that ....AWP has turned in a trailing 12 month TOTAL RETURN ( thru 1/10/13 ) of plus 53.81% making it a top performer for 2012 ....blowing away the much hyped Total Return of APPLE shares over the same period ...which was UP 25% during the same period.
    We still get the discount to NAV ( about 7% currently ) and the estimated $0.60 per year cash flow per share ( about 8% annualized current yield ) ....
    Fund management got " slammed " back in late 2008 when they cut the monthly dividend from $0.127 per share to $0.03 per share, a 73% cut in expected income ...and the market price quickly dropped to about $2.28 per share by early March 2009 ...The fund did subsequently pay out special one time dividends at year end to augment the greatly reduced monthly payment investors had been dieting on ....( 2009 & 2010 I believe ) ....
    Investors were furious about the decision to slash the dividend so harshly ...and dumped the fund.
    Now ..with real estate markets on the gradual mend ...and the fund has raised the dividend to $0.05 per share and has even successfully executed an approximate 10% tender offer to buy-back its own shares in mid 2012 ....
    We have seen significant price appreciation along with dividend enhancement ....while there are about 10% LESS shares of the fund in the open market.
    I started buying this fund to take advantage of the special year end dividend in 2009 when the market price was $6 per share and the special dividend was $0.266 per share or about 4.4% of the current market valuation ...and have found a reason to hang on to the shares ever since ....despite watching the market price decline back to $4.50 in late 2011 ....( was close to dumping them then )

    Summary - looks like the way too aggressive dividend cutting back in 2008 is now being replaced with cautious dividend increases ...and the 10% tender offer has certainly helped restore investor confidence and support in the fund.

    Continue to reinvest the monthly dividends ...essentially dollar cost averaging into the fund 12 times per year ...This may have started out as a monthly income play ....but has turned into a Top Performer in any portfolio for 2012 at least ....and I think the 8% current yield along with a 7% discount to NAV make this a solid holding for 2013 ....I would guestimate a 15-17% Total return, maybe more ? ...certainly a reason to keep holding it ....
    Hope this is useful - Comments appreciated - Mike

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