Ironic opening...guy from JPM who introduced NRF is head of mortgage reit department. NRF's message on deaf ears here.
Nothing really new.....they used 8/2 presentation materials.
I felt Tylis started out dull, flat....no fire in the belly. He got more animated and "convinced" as time went on.
Said CAD was main operating metric.
Said NRF-originated CMBS all whole and paying. Said this fact gave them credibility to do more. CFO later said Income 1 making more than its payout rate which = cred in peddling Healthcare and Income 2.
Tylis crybabing asset management fees get no respect in stock price. Then he said total this year will be over 30 million.....I believe he was referring to nontraded reits only. If so, total fees should be near 48 million when vie fees added. Look for "over 45" instead of "over 40" at next CC.
Repeated considering spinoff of broker and/or asset management when they get bigger if stock price does not reflect their value. Gotta be bigger operations, though, to stand alone with institutional respect. MY take = ain't gunna happen soon.
Said their first PE deal broke new ground with its structure. Top irr earner for nrf and liquidity at book for tutes holding them. Tylis said pensions and endowments coming to NRF to discuss PE deals. Message to me = we'll see more of them.
Tylis also said even though they bought these at book, book was about 30% less than original cost (due to depreciation and writedowns). Tylis also said EVERY realized transaction in these PE deals (meaning a property sold, for example) was at a higher price than their underwriting (buy-in) price. This indicates that the IRR of PE deals is tending toward 15%, which = 27% to NRF than 10% which = close to 20% to nrf. CFO said nrf will update its expected return on leveraged equity in these as historical facts warrant.
In summary, very little new, but every elaboration on old was positive. Not a negative hint in whole presentation, including Q&A.