You people are all high on crack. JRT should be congratulated on a great quarter.
They have sold profitable assets to buy assets which will be even more profitable.
This is an unprecedented real estate buying opportunity.
They forecasted the worst case scenario in order to price it in now........but they will never see that much loss.
They simply have equity in their good properties and are flipping those to get enough cash to buy even more profitable properties.
All the while preserving liquidity and more importantly REIT status. They are required to pay out 90% but they SEEK TO PAY OUT 100%
Hench the 65 % special dividend. The insiders do this becuase they are all major shareholders in the coompany. By paying out 100% of their taxable income to share holders they are actually paying themselves......AS WELL AS ALL YOU SHARE HOLDERS.
Wake up people. Buy all you can at these levels and hold.
These guys have too much to lose if they DEREIT.
Calpers is 40% invested now and shareholders will be rewarded.
Good luck to all.
however, in this particular case, buy low, sell high, and collect a huge dividend.
I predict announcement of div. Tommorow mid day.
Any takers? 1 dollar to your paypal account if I'm wrong.
You must accept this bet in the next 5 minutes to validate.
i haven't had the chance to listen to the call yet, but it's on the list this morning.
"This is an unprecedented real estate buying opportunity."
which is yet another reason why i don't like them selling what used to be a wholly owned property, turned JV.
"They simply have equity in their good properties and are flipping those to get enough cash to buy even more profitable properties."
did they say that in the call cause it sure didn't look that way in the PR. they got slammed with margin calls, it makes no sense to sell the best asset you have when they could try and sell some of those whole loans with a WAY of 7.1%. i understand they love debt securities, but it doesn't seem to be the best move right now. unless they cease getting margin called, unlikely, they're going to have to now start selling the loans anyway.
can they bundle up a small CMBS with those loans? what about a CLO, where's the future here?
Investit, to put things into perspective, right now BBB CMBS are trading for around S+1500.
So there are plenty of opportunities for investments at RoA's higher than the schools.
The strategy is to ramp up the calpers fund, and try to sit pretty. JRT is going to have tremendous leverage on its $10M investment, since it earns management fee's and a promote.