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Inergy, L.P. Message Board

birdluck1 5 posts  |  Last Activity: May 28, 2016 7:53 PM Member since: Oct 7, 2005
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  • Reply to

    Warning--APTS is very risky

    by analyst112 May 7, 2016 12:33 PM
    birdluck1 birdluck1 May 28, 2016 7:53 PM Flag

    Clearly you are a short who is under water. Cover while you can. APTS is the best small Apartment REIT out there and more and more investors are finding it. Every deal they do is accretive to the dividend. They raise the Div 10 % every year while maintaining the same coverage of the dividend. Yes the external managers make fees, but they are growing the company so they are earning the fees with performance.

  • I confused what BRG has been saying about not selling common stock until the yield is lower. APTs is likely to sell more common as soon as they need the capital. Sorry for the mistake.

  • Reply to

    Warning--APTS is very risky

    by analyst112 May 7, 2016 12:33 PM
    birdluck1 birdluck1 May 9, 2016 2:11 PM Flag

    Why don't you cover your short position and move on. You are not going to scare anyone with foolish claims. The only criticism that is legit is that they have relatively high leverage for an APT reit. With the stock this high, I expect a follow-on common offering to take care of this issue. The simple fact is that APT has the youngest class A apts in the business, a great model for acquiring off market properties and a steady record of raising the dividend while maintaining good free cash flow coverage of the dividend.

  • birdluck1 birdluck1 May 6, 2016 6:14 PM Flag

    They have been holding off on a follow on until the stock price is higher. They have repeatedly said that the stock is undervalued. The shelf lets them time an offering to a favorable stock price, and move quickly when the time is right. They definately want to reduce leverage, but at what stock price? I would guess when the yield goes under 5%. Until then, the preferred private placements provide liquidity.

  • Reply to

    Earnings tomorrow any predictions?

    by kenpalley2000 May 1, 2016 12:48 PM
    birdluck1 birdluck1 May 3, 2016 1:03 AM Flag

    Not true. APTs has reasonable debt levels. The Q1 results are very strong, with big increase in AFFO, so very strong coverage of the dividend, with plenty of extra cash flow for another 10% increase in the dividend late this year. If I did not already have 8% of my portfoli in this REIT, I would buy more.