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NorthStar Realty Finance Corp. Message Board

  • dar200 dar200 Apr 28, 2014 2:55 PM Flag

    Bought some ARCP

    Bought 4,000 ARCP at 12.732 for the dividend or a flip. It's enough to get me to skim the 10-K and 10-Q.

    I suspect price decline is concern over "too much too fast." Nevertheless, the dividend is backed by real, cash-flowing properties. 7.85% in an IRA is enough to catch my interest.

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    • I just bought some ARCP @ $11.94, gonna buy more if it drops, as long as they can maintain their current dividend, im a happy camper !!

    • Noticed for what it's worth article by an Alex Planes, Motley Fool, "Should be clear which of these companies have been better managed over the past few years. Since NRF went public in late 2011, it has produced total growth of 21%, but ARCP has rewarded shareholders with a monster return of 440%, including dividends reinvested. If you're going to use today's news as a buy signal, I'd look at ARCP long before dipping into NRF." As a long-time holder of NRF I'm not sure about his facts. Again, for what it's worth, probably not much.

      Sentiment: Buy

    • Dar, not an attack, but I have serious reservations about Nick Schorsch, the current CEO and founder of ARCP. Back in early 2006 I bought a small position if American Financial Realty Trust (AFR), his previous company. I still own the remnants of my position is AFR, mostly as a reminder of a serious investing blunder and am sitting on a 85% loss (including re-invested div's) since my initial purchase. Other REIT's that I owned before the 2007 - 2009 meltdown have fully recovered but the capitol destruction from my AFR position is permanent. As I recall, Nick Schorsch left/was fired by the BOD of AFR under a cloud of acrimony and blame. Prior to the crises, AFR reminds me a lot of the current ARCP: Spectacular growth, analysts singing praise, etc... But how over-leveraged is ARCP??? I personally don't 't know and am not interested enough to dig through ARCP's financials to find out. If this deal goes through, I'll take the cash or sell the ARCP, take my gains and follow Hamo to his next venture.

      Sentiment: Hold

      • 1 Reply to cerebus_laughing
      • I haven´t owned ARCP for long so your reservations about Nicky are appreciated. Others seem to share your sentiment. However, check the February 10th and 27th investor presentatios on completion of cole acquisition and earnings to see debt levels relative to industry peers. Recent balance sheet transformation activities have resulted in: 20% lower leverage, lowered average weighted interest rate to 3.5%, 91% fixed rate, better matched funding, resulted in S&P awarding investment grade status. In addition to showing you how "over leveraged" they are or arent´it will also will bring you up to speed on tenant profile and earnings guidance.

    • I'll be interested in your take on the ARCP management team--they own a lot of shares, but some people have doubts about them. And thanks for all your work on NRF!

    • Dar, I think you'll like ARCP. They have great properties with an average about 10 year leases built in raises. They also have a spin off in the works. If you went to buy these triple net lease properties individually, the return is considerably less. The market has recognize the value, just like NRF.

12.96-0.21(-1.59%)Sep 29 4:02 PMEDT