I just listened again to the REIT week 6/7 presentation available on the irt website and seems like they are driving NOI growth-- improving properties and rent increases are more the focus and it seems like things are on track. they pointed out that RAS mgmt. of properties, while external, is very low cost G&A expense compared to internally managed apt reits- when scale is achieved, internal mgmt. is still an objective.
No acquisitions planned or share sales at these prices, based on cap rates for recent sales, shares very undervalued. "B" apts very attractive in this market. I see IRT as more of a target than an acquirer? long and dripping monthly into more shares. full yr Thompson/reuters est for ffo is about .86 w 2nd q est at .21.
recent refi's of mtges at avg cost about 3.6% plus Keybanc doing the 2yr senior term loan on the bal of tradestreet interim at 4 plus libor means bankers see a strong company here- we did not have to do an expensive pfd like BRG did. glad they did not sell anymore properties and if they do,probably could payoff the $40mil no problem, no material debt due.. oh well, hanging in there! under $7 adding more.. glta, Bea
any focus helps I guess, could have stressed more that SNR's focus is IL/AL while OHI is skilled/ltc focus mostly,and there are really no pure plays like us in the IL/AL space.. .
the current low price of shares w improving FFO ,consolidation of acquisitions -and potentially declining share count- makes this an attractive holding and acquisition target for a VTR, HCN, HR or OHI seeking more diversification- VTR's share price near 70 again so they have the "currency"- and a less speculative holding on it's own.
2nd q results should be good and CEO should update where she is on further consolidation of the portfolio. she should do a 20-30m (2-3mil) share tender to remind folks buyback in place too. Bea
making new high list near 70, time for them to buy SNR, pick up good AL/IL assets very cheap w the VTR stock up so much. they could probably get it for 13-15$, FIG may be glad to get out of SNR too. Bea
holding position as it appears undervalued compared to the run up in most income cef this year. also PCI. Bea
looks like it is still positive at .14 for 5/31/16, latest UNII report available as of 6/20/16. I would imagine, depending on how they hedged etc., that June would be a good month for income funds w gains in most categories.
these funds are getting more and more difficult to analyze w all the derivative and hedged positions piled on top of high leverage. Bea
the #$%$ it's own merits w the consolidation of growth, buyback and good CEO makes the shares worth holding too. really it is a pure play on IL/AL w little LTC exposure and thus little Medicaid exposure. If shares come under pressure more would expect CEO to do a tender. we'll see.. Bea
Bill Gross position, probably attracting yield seekers today w volume way up. this has lagged the recovery in other cef's this year, w strong yield, positive UNII etc. could get over 20 again.
EQR indicating weakness last week in NY, SF (A primo properties, not the irt type small market, b/c rental stuff) w lots of supply coming on, some seeing "free" month rents to lure tenants etc. Hitting AVB, ESS as well as AIV, MAA, so probably? by default, IRT which gets lumped in with the hit.. Also some negative articles on apts on seeking alpo site..
IRT presenting at NAREIT Tue am,, also ESS, EQR later in week, should give some perspective on the apt mkt. maybe IRT updates it's presentation or tidbits on progress w this years plan...Meanwhile recent IRT apt bldg sales have been for great prices, rents rising, executing plan to consolidate tradestreet buy. I don't see garden b/c apts being hurt like these big towers going up in all markets. oh well, long IRT and if we get a dip w summer volatility, would add.
interesting IRET today announcing total focus on apts, in it's markets vs being diversified in med ofc, industrial etc put that one on my watch list, small players seem undervalued, big ones probably have room to fall w their low yield and the overbuilding in A space.. glta. Bea
these pfds will pay 7% and be non cumulative. would have "preferred" a cumulative issue to interest me for protection in a slow down, but the common seems interesting as the company grows. consistently one of the better rated and managed bdc's. I am a little leary as I was burned in 2007-8 when Capital Source was hit in the recession. put arcc on my watch list. Bea
at 10.20 close Friday, I would suspect ceo may revisit the buyback? it is not $9- but it is not 11.50 where it was recently. oh well, probably add some here soon if the doldrums continue w summer volatility in yield shares, , div coming soon as well. maybe VTR or some other diversified hc larger reit whose shares have recovered nicely will also take a hard look at SNR. Bea
looks like Cooperman cut his stake in 13f filings, still holding, actually I'd rather have thse whales out of what I own, now interest rate fears have hit the reits again..providing hopefully good op's to add. Seems like the CEO is really on top of things, she is great. Long a full position, should be trading at 12-13 at least,, and w all the divestitures of LTC in the space, maybe our AL/IL properties will look attractive to a diversified hc reit. Bea
I see there is a reit conf 6/7 scheduled, no new IRT presentation but probably they will update? maybe we get some interim /pre-2nd q release details or updates..
I was reviewing new/revised 13f holdings, Monarch still owns about 8%, AllianceBernstein doubled their IRT stake and is at about 8% ownership..Senator, an activist involved post Tradestreet has sold out but there are several other new and increased positions in advisor groups and pension funds- so good to see...
I think the stabilization and execution of the strategy of the reit is attracting more and more interest, along w decent yield, at some point would expect IRT to at least recover to 9 where we still get 8% yield, in line w other covered by AFFO div's etc.
Long a full position in IRT still dripping the monthlies as I feel undervalued here w great properties either in an expansion or flat/recession economy in these affordable apt units.
RAS itself just continues to be too complicated for my tastes..but these interrelationship reits do have some pieces that are attractive as I do my dd - and find IRT and SNR decent holds for now. Bea
sorry to post on this board, AGroupie - did you see BWG cut dist again! no buybacks etc. Bea
omg another cut, mkt seems to be ignoring somewhat - but still no buybacks under the auth many moons ago, 15% disc to NAV.. shares are at 12.48 paying 1.08/yr now.. my avg cost around this price, dist is realistic for levered bond fund= but there does not ever seem to be any good news in this fund -or any LM fund for that matter, already sold my WIW, CBA, thinking of dumping this one. PIMCO seems to do a much better job than LM managers.
The only positives I can see is continued world wide low, mostly declining and negative rates pushing bond prices (NAV) higher from investors in EU/JP etc. who want yield which could further help price recovery- and of course the ever- present disc to NAV.
Considering the history of the fund share price and dist cuts, the disc to NAV seems to be warranted. oh well, crazy times in fixed income. Don't see much price appreciation potential and now lower income monthly! down from .13 to .09/mo this yr!! this fund should just be closed out. Bea
thot they'd buy back more shares, there is still a big auth outstanding to do so, of course it is $2 higher than avg cost. of those purchased, adding 4-5c this yr to affo.. waiting to review the conf call, I see some properties out for sale as they consolidate the growth etc. also pretty soon we will get 13f's see who owns/sold.. since we are mainly IL/AL properties, it may benefit a LTC or hosp reit to buy to diversify, Brad on SA seems to think VTR would be interested, I don't think it fits their diversification pattern but they are familiar w Holiday mgr etc. oh well, holding for income. Bea
will be interesting to see if dist holds for the May declaration, Tortoise has managed leverage well thru this mlp turmoil,, watching to add to current underweight position in IRA. most holdings have held or increased their dist this year, SE, EQM and others. Bea
sold today at 15.54, last quarter ending 2/29, they did not earn the dist, .31, paying out .33/ still minor positive UNII, they have cut leverage, it has run from 14ish and disc to nav is down to just 6%, just taking some risk off the table here..i see some insiders have bot isd and ghy, other pru cef fund, but again, I am just cutting some risk here,, I have about a 15% gain w dist in ira.. glta. Bea
agree, it has moved up nicely w other world bond funds this year- and disc to nav has narrowed- but hollow buy back announcements upset me as well. disc is still over 14%, an instant 14% return- it cuts the assets under mgmt. so there is no incentive to follow thru for some mgr's. not too happy w lm these days overall. at least we are earning the .11mo dist w no ROC. holding for now, it is a great yield.