My guess is the adjusted price will match the dividend initially; however, the underlying assets have not changed, which means the value of the company just gets more undervalued long term.
If the multifamily assets are sold for 500 million and the majority is used to buy back shares, can you really know what AFFO will be? I just find it silly that people are so afraid of this company when it has such a diverse set of real estate.
NRF is the majority owner of the Innkeepers and Inland portfolios - Chatham owns roughly 10% in each portfolio. Island Hospitality is the manager of most of the hotels - NSAM owns nearly half of Island Hospitality. So when Chatham wins, NRF wins.
Joint Venture Investment Performance
The Innkeepers joint-venture portfolio produced 2015 third quarter RevPAR growth of 8.2 percent to $121 on a 6.2 percent increase in average daily rate to $142 and a 1.9 percent increase in occupancy to 85 percent. Gross operating margins rose 280 basis points to 46.3 percent. The Innkeepers joint venture contributed adjusted EBITDA and adjusted funds from operations to Chatham during the third quarter of approximately $3.1 million and $2.1 million, respectively. Chatham received distributions of $2.1 million during the quarter and $4.6 million year-to-date through the end of the quarter.
“The RevPAR growth performance in the Innkeepers portfolio was outstanding. Similar to the Chatham portfolio, the robust performance was experienced across many markets with 19 of the 47 hotels experiencing RevPAR growth of approximately 10 percent or higher. Denver, Fort Lauderdale, Silicon Valley, Washington D.C. area hotels and certain New Jersey hotels performed very well,” stated Dennis Craven, Chatham’s chief operating officer.
For the Inland joint venture portfolio, RevPAR rose 2.6 percent to $100 on a 1.2 percent increase in average daily rate to $125 and a 1.4 percent increase in occupancy to 80 percent. Gross operating margins were flat at 42.2 percent. The Inland joint venture contributed adjusted EBITDA and adjusted funds from operations to Chatham during the third quarter of approximately $2.1 million and $1.2 million, respectively, and Chatham received distributions of $1.0 million during the quarter and $2.4 million year-to-date through the end of the third quarter.
“In the aggregate, the joint venture investments are generating strong, leveraged cash-on-cash returns and are on track to deliver yields of approximately 17 percent in 2015 based on expected distributions and our aggregate joint venture investments of approximately $50 million,” Craven said.
The big Healthcare REITs seem to be performing well. The extended stay hotel business will outperform the select service and full service hotel businesses IMO; while NRF is weighted more towards select service, it also enjoys healthy margins in both select and extended stay.
Island Hospitality is one of the best hotel managers in the hotel industry. I believe Jeff Fisher will be able to get the portfolio in pristine shape and ready for an eventual sale.
Do you know what type of assets they own?
NRF is not an oil E&P corp. The hotel business is performing well. Manu. Homes are doing really well. Multi Family homes are doing really well. Healthcare is doing really well. Commercial Real Estate is performing really well. Please tell me where the danger is.
If that is the case, they lied on their presentation: "$1.50 per share at NRF after spin-off, before adjustment for the anticipated reverse stock split
The NRE-WI shares are down nearly 10% today. I suspect this is the big drag on NRF shares. Why are the European assets being driven down today?