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.
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.
Are hedge funds still selling? Why would people wait until today to sell? I just don't understand the logic in all of this. Right now we are standing on the precipice of a 17% yield - Apparently no one in the market believes in management. No one believes they will follow through on the multi family sale. No one believes they will buyback an amount of shares that might actually become effective.
We are now at a 17% yield after dropping below 17.64.
Isn't 17% that magic number for returns the company is getting on a lot of their PE Investments? I say ditch the PE investments and put that capital into share buybacks NOW! :-D
It sure is looking like the dynamics of the share price has changed - How the market lost all sense is anyone's guess, but it sure was nice while it lasted.
So why rail against a company that has a net asset value of 29 and is selling for 19? Time to buy was last week. Time to keep buying if your are the company.
I'd say they have been given a gift...
Lower the stock price. Get options priced at these levels. Sell when stock price doubles.
Rinse and repeat... When FFO adjusts for these share buybacks the market will take notice. It seems like that is all that will take this higher.
What are you talking about? They just pay the rate they have always paid on the debt. It is not like it is going up.