It is not a secondary offering. It is a follow-on offering. Look 'em up so you can learn the difference.
While it is correct that dividends from reits on which no income tax was paid at the entity level does not qualify for special tax rates, any such dividend is taxable only to the extent of current or accumulated earnings and profits (a modified form of taxable income) taxable income (hence the aggregate dividend) is reduced by depreciation, a non-cash expense. Hence, growing reits like sui frequently have cash income exceeding taxable income which enables them to pay return of capital dividends which are not currently taxable but reduce stock basis. Thus, these are tax deferred dividends. Plus roc dividends produce long term capital gains on stock held more than one year before it is sold. In addition, reduced basis stock gets a step up in basis at death. Then income tax deferred dividends become income tax free dividends.
When you learn more about tax law you might favor dividends from equity reits.
I paid 26.897 per share for the 6/4 /10 lot. Fidelity reduces basis by the roc portion of the dividends. They take aggregate roc dividend dollars for the entire year and allocate that to the shares owned at 12/31. They do not allocate any roc dollars to shares sold during the year (thus increasing recognized gain). When the yield was much higher I flipped sui to "capture" dividends.......buy shortly before the ex date and sell shortly after. Thus this lot got allocated roc dollars on shares I sold, but I'm too lazy to find out how much. So I'll use cost and aggregate dividends.
On this lot I have collected 15 dividends at 63 cents = 9.45 and 9 dividends at 65 cents = 5.85 totaling 15.30 in dividends plus 70.04 closing price on the date I posted = future value of 85.34 in 5.75 years from a present value of 26.987 = an average annual compounded return on investment of 22.239%.
BTW, the 6/4/10 lot is not my lowest tax basis lot. It is simply my oldest remaining lot.
I agree that the price appreciation is much more due to multiple growth than on income/ffo/affo/cad per share growth. I do recall the market reacting very positively to announced steps sui took to decrease leverage. That's when the yield came way down.
Now it's time for Shiffman to put meaningful increases in per share affo on the table and increase the dividend by meaningful percentages much more frequently than in the past 15 years. I think the scale of the added investments in the past few years, including the pending big one should produce those increases.
Option was exercised in full.
Original proforma acquisition balance sheet assumed raising 250 million in this offering and borrowing 67 million on the line of credit to close the deal. This offering will net about 385 million to sui after underwriter discount and offering expenses. So, they have an extra 135 million which eliminates 67 million of loc borrowing and they have 68 million left over which they can use to futher reduce debt.
Obviously, the market likes this acquisition.
I suspect opening pop sp00ked some shorts into covering which intensified the early spike. When the covering shorts finished, new shorting and profit-takers took over.
The reason one word is spelled with zeros instead of the correct lower case letters is the censors at Yahoo won't allow the word even though the context contains no racial connotation whatsoever. It is a classic example of the evils of censorship. Shame on Yahoo.
Well, an accredited investor should know that the 29 nav was replaced with a 25 nav on 2/26/16. If you paid UBS for that "exclusive" report within the past 5 weeks, I suggest you ask for your money back. Maybe you should repeat Accreditation 101. It teaches how to keep up to date.
Yeah, nrf is only down 21% (price only) ytd from down 45%. Management is lining up for more bonuses for increasing shareholder value.
Down over 6% in 2 days on all of a 13 basis point increase in 10-yr treasury yield.
Any cost under 68.80 yields more than 5% on an 86 cent per Q dividend. It's even better than that since more than 2/3 of the May dividend has already accreted.
To me, a buying opportunity, so I did. Will flip for a fast 2% or hold for decent dividend.
NRF and NSAM, in their 10-Ks, said management compensation would be disclosed on or before the deadline for filing proxy statements which is 120 days following year end. This year, the 120th day is April 29, a Friday.
As long as the proxy is filed at or before 5:30 pm edt, it is considered filed that day by the SEC. Any filing after 5:30 pm is considered filed the next sec business day.
My guess is they both file on 4/29 at about 5:15 pm edt, about 15 minutes before the deadline and after most have left the office to start the weekend. I can't wait to vote.
Meeting won't be until the end of May. I doubt any kind of a deal will be on the original proxy statement but I suppose there is time to send out special notice of a deal for a vote at the annual meeting. I too am opposed to a recombination as that would have nsam cad trading at nrf multiples. Besides, a price which will satisfy nsam shareholders will be too expensive in nrf stock at the current price. Conversly, a recombo via stock for stock which satisfies nrf shareholders will be unacceptable by nsam shareholders.
I'm not suggesting changing management, especially Hamo. Hamo should be the only employee director and NOT the chairman. No reason for Tylis to be a director. Kick the rubber stamp directors out. We need truly independent directors and NO director of any company should be a director of any other company in the group, except Hamo who should not be chairman.
We need to get the inside employees compensated like employees, not royalty looting the treasuries. Yup, if they don't like the pay they can quit. The lawyers will remind them of their noncompete contracts.
I'm still waiting for "accretive" to mean more than accretive to management salaries and bonuses.
A fine income statement and stronger balance sheet even adjusting the balance sheet for the pending big acquisition. BUT, affo per share was 90 cents in 1Q 2012 and here we are with 90 cents in 2016.
Where's the accretion we were told was coming? It has gone to management, not the shareholders.
On a positive note, the excess money raised in the recent offering should cause a pause in the ATM offering thereby removing a big chunk of selling pressure on the price. I'm holding the core and flipping the dips.
NRF filed an amended 10-K last night reporting compensation info when the original 10-K said it would be in the proxy statement. This says to me we ain't gunna get a proxy statement from NRF by 5:30 tonight. They satisfied the 120 days to disclose compensation deadline with an amended 10-K.
NSAM is the same boat with a 5:30 pm edt today deadline.
BTW, nrf paid Hamo over 10 million for part time caretaker work to destroy the price of the group, especially NRF.
I am going to write to the two big proxy advisory companies (one of which advised against the compensation last year) and every hedge fund holding more than 1 million shares. This has to stop.
I am also going to contact one of those class action law firms for a breach of fiduciary duty law suit, including an unconscionable contract with NSAM. I don't mind being the lead plaintiff.
These are the same people running the same company they were in 2013 (except Europe assets) which used to be one reporting entity and is now three reporting entities. The extra work is incremental, not fundamental.
By definition, these are part time employees of the separate reporting entities which, when combined, results in full time employment.
They destroyed the price of the companies with their greed and sneakiness and are awarded bonuses for doing so, INCLUDING more shares because the value of their prior unvested shares has gone down.
Words cannot describe my outrage. Hey, Bernie Sanders. Want a great corporate greed story? Look no further than nrf/nsam.
Well, last year earnings were announced on Fri, 5/8 and the dividend was announced 3 business days earlier on 3/5, as you stated. This year earnings are on Tues, 5/10. Thus the 3rd business day prior is 5/5. If they are consistent with last year, you will be right.
Nevertheless, it appears to me that Hamo has been in maximum "keep-away" mode since the price went into the crapper. A May 9 dividend announcement would not surprise me.
QUIZ: What is the latest date nrf can timely file its 10-Q for 3/31/16?
Answer from SEC website:
"Large Accelerated Filers:
10-Q: for Quarterly Period Ended 03/31/16 due Tuesday, May 10, 2016"
As is the norm, Hamo is withholding as much info as he can for as long as he can.
NEW YORK, May 4, 2016 /PRNewswire/ -- NorthStar Realty Finance Corp. (NYSE: NRF) ("NorthStar Realty") today announced that its Board of Directors has declared a cash dividend of $0.40 per share of common stock, payable with respect to the quarter ended March 31, 2016. The dividend is expected to be paid on May 20, 2016 to shareholders of record as of the close of business on May 16, 2016. NorthStar Realty's common shares will begin trading ex-dividend on May 12, 2016.