Please explain your logic. You look at the price of the stock and then you deduce that it means xy and z! I have never looked at the price of a stock to determine if the company is executing on its business plan.
Not sure where you are getting that from! Insiders purchased with the issuance of shares on 11/22/2013! No one has sold.
Not sure, but it does provide sound evidence of value. 491M is not small potatos! :)
Well, did you notice that NHI also purchased some of these properties in the same deal for the same terms? I do not believe NHI has any connections to FIG so that transaction should comfort you with regards to their related party dealings. As you should know, related party dealings results in the most scrutiny by different authorities and open up a company to possible lawsuits. Rest assured, these guys would have looked at this deal from different aspects. But if it goes south, expect the lawsuits no matter what. :)
Filling them up was not the goal. It was to reach a point where any spin off would have sufficient mass. At this point in time, I would imagine that the rate on the debt woudl be around 4% and the lease rate was stated at 6.5% with room to grow.
Yup, that would be a great sign of confidence although it does require additional cash. Ya never know everyone's personal situation.
Just rolling around in my head what is possible.
1) Continue making acquisitions and waiting until legacy assets roll off the balance sheet.
2) Make a few more acquisitions and then distribute separate entity to achieve senior living yield
3) Make a few more acquisitions and merge separate entity with another established senior living REIT for stock. Automatically recieve seniorl living yield in price
4) Distribute separate entity and acquire another portfolio or other REIT using stock
Its all interesting and all possible.
Not I. I expect it to start to move upward as we approach Christmas with the expectation of the New Media distribution and a more concentrated senior living portfolio. Another good sized deal would move this towards a 6% yield.
Not sure about you, but I never worry about analysts with regards to my investments. Now, once I am invested, it seems that the public do give them some creedence.But not me.
Your math is off. If the interest rate is assumed to be 5% and the first year lease rate is 6.5%, then the net is 1.5% and you cannot have a deficit!!! No matter how many shares! Its not going to move the needle alot in the initial year but will over time. More importantly, it makes this REIT approach the pivotal point of being considered a senior living REIT which gets it a higher multiple.
Some posters were lamenting on the lack of acquisitons in the senior living space. Not any more. Some posters were wondering why. Well now we know. Management was diligenlty working to get this deal done!
Wasn't refering to the dividend. I was refering to the decrease in value. It follows the discussion.
I think you are correct. They made an error. Probably too caught up in the current events. Maybe that is why they are creating separate officers so NRZ can be given the attention it deserves.
I agree. The GAAP increase in value is a good measure as to the current value of the MSR's. And by the way, this adjustment only goes to show how the conservatism against booking income is contradicted by increasing the value of the instruments which generate that income.
But it seems that this thread is going off in lots of different directions. Lots of these directions require alot of in depth discussions. I was really only trying to point out one metric which is one I really like.
I was not referring to all earning, only to what the MSR's earn. In other words, not the appreciation from holding those instruments. Just the income earned from excess mortgage servicing rights.
That other stuff is another issue.
It is very, very good. Its not income soley because GAAP measurements are conservative. In other words, GAAP will not allow the recognition of income until it is more certain. The income is earned on loans that are subject to prepayment, default, etc. Therefore, the first cash to come in will most likely go to a return on capital with cash coming in later to income. These MSR's were purchased at big discounts and put through quite a bit of metrics as can be seen on the presentation. If you loaned money to a friend to purchase a house and the first two years of payments were booked as a return of capital yet total cash flow over the life of the loan remained the same, would that not be pretty good?
Sure the market doesn't agree. I have made alot of money because the market did not agree. But later it did! :)
Wally, I am pretty well invested, but I am sure considering investing more. Not sure what I am missing and the market is seeing (which as I stated above has happened a few times :) ). Can anyone tell me what is wrong with this stock? Instead of stating the obvious.
If I had to cut through all the different financial metrics in which to measure MSR's I would look at this one closely. Nothing really beats cash on cash especially if you are skittish with regards to certain investments. If you look at the supplement posted on the website, you will notice this gem. To date they have invested 659 M and recieved cash back of 146 M. All of this in just a little over a year and lots of this number is towards the most recent period. If some one told me I could invest 659,000 (lets keep it realistic) and recieve 146,000 in just a little over a year and lots more to come, I would swallow that up in a second. A lot of this 146 M is not GAAP income but a return of capital.
We are part of the market and we see other things. Not sure how you would argue against that.
Can you imagine the mentality of someone who comes onto message boards to spew such simple #$%$? It's beyond imagination how people feel that its worth their time.
I don't think the originations generated much revenue for NRZ, but would impact more the recapture. I think the big block deals are what really impacts NRZ which I believe is still out there.