GOOD....."announced today that it has executed three new leases totaling 67,085 square feet on previously vacant spaces. The execution of these leases brings Gladstone Commercial’s portfolio occupancy to 98.5%."
Not only does rental income increase, the tenants pay their share of operating expenses which GOOD is paying because the space is vacant. Income up + expenses down = increased ffo per share.
The terms of that 20 year contract were known by all beginning in June 2014. If it the contract causing the low price, can you explain how NRF traded at over 38 (split adjusted) shortly after reporting 4Q 2014 earnings in late Feb, 2015. (Also, nsam traded at 24.91 a week or so later). Why so high then with the same contract?
The proxy statements were filed in late April 2015 (on a Friday night, of course). The selloff started the Monday after the market learned he stole 74 million for 2014. The shareholder were a Wednesday morning, 5/27/15 but they did not report the results of the votes until after the close on Friday, 5/29. About the same time NRF got mentioned by name in the WSJ and NYT in the context of excessive compensation. The selloff accelerated beginning the following Monday morning.
It ain't the contract. It's the stink of a greedy, sneaky management (imo).
Early closing on Carefree acquisition. Refinanced its debt with cheaper (and much less) new debt. Acquisition press release again said "accretive".
And RV ownership is booming. Found this today:
Recreational vehicles, better known as RVs, are no longer just for retired grandparents with wanderlust.
After a swan dive in the aftermath of the 2008 financial crisis, the RV industry is rebounding with ownership at the highest level in a decade. The increased interest in mobile living has sent shares of RV-maker Winnebago up in tandem, something that CEO Michael Happe says has plenty of room to go.
"The industry has now grown seven straight years in 2016 and we're about to set an all-time record high again," Happe told CNBC's "Power Lunch" this week. "The industry has rebounded to levels that have exceeded the previous highs."
Mobile home ownership is at its highest number since 2005, according to a report from the Recreation Vehicle Industry Association. Year to date, total RV shipments reached the highest starting number to any year since 2006, their second-best start since 1977, the RVIA added.
Sales of RVs climbed by more than 11 percent in the first quarter of 2016, according to the organization's March survey of RV manufacturers.
Now all we need is a dividend increase to keep up with the salary increases.
Is it really not a good deal for NRF? Suppose no deal. Then Hamo keeps on raping us with grossly excessive compensation. He took over 33 million for 2015 (all 3) for ABJECT FAILURE. So far, only pipsqueek Land and Buildings has made public noise, and that is toward NSAM, not NRF or NRE.
On the dilution of NRF's cad and decrease in NRF's dividend, clearly NRF is the big loser.
Hamo is GONE after one year following closing CLNY, with 1/3 the market cap appoints 1/2 of the bod. CLNY people are chairman, CEO, COO and CFO. Tylis is gone after orientation and transition. Gilbert is gone (or paid way less) after one year.
CLNY gets control of all of NRF and NSAM for NO takeover premium unless you want to consider an initial 1% dividend decrease a premium. The deal is hugely accretive to CLNY's ffo per share.
Yeah, NRF cash shareholders get screwed compared to what we think the price should be (and was), but the screwing has already been done. We are where we are. The choice is NOT vote "no" so the price goes back to pre stink prices. It won't go back as long as the current insiders keep raping us with excessive compensation and 2015 shows us Hamo ain't stopping without somebody forcing a stop. CLNY has forced the stop.
So, voting "no" ain't gunna get NRF back to the good old days. It gets us back to the Hamo et all raipng us year after year.
I view the economic screwing, which is here now, as the price we have already paid. The clny deal gets rid of the current insiders. It's a price I'm willing to pay to end the rape.
They did not SAY they were increasing the dividend. They said they expected NEWCO (the 3 combined) to pay 1.08. If can't or don't want to do the math, read my posts on the IV board.
NSAM's dividend goes from 40 cents per year to 1.08 per year if this deal goes through as presented.
The deal is also accretive to nsam's 1Q 2015 cad annualized by 33%. However, that cad will trade at a lower multiple than at a stand-alone nsam.
My first take posted on IV board.
The only reason any NRF shareholder would even remotely consider voting yes on this deal is that is the price you pay to get rid of Hamo. This is an oinker for CLNE (on management power and ffo accretion) followed closely by NSAM on huge dividend increase.
Both pounds of flesh come out of NRF shareholders. Go see for yourself.
IMO, Colony the clear winner as they control NEWCO. NRF clearly the loser on sale price and dividend reduction. NSAM will be no longer a pure asset light asset manager in exchange for mostly reit income and a much bigger dividend (1.08 vs 40 cents).
IMO, CLNY the winner followed by NSAM, less of a winner, followed by NRF, clearly the loser.
But today's market doesn't agree with me.
CLNY down 5.5%
NSAM down 3.41%
NRF down 3.71%
Slow, dumb market will eventually figure it out. I just don't know how long it will take.
I waited 2 more days and got out at 11.51. So I got 35 cents / 11.21 = 3.12%. A little long, but not a bad dividend capture flip.
15 cents / 11.21 (if that is what you paid) = 1.34% in 2 weeks (5/17-5/31) x 26 to annualize = 34.79% annualized. I'd be satisfied if my entire portfolio produced 34.79% per year.
IMO, if no announcement of an agreed and signed deal by before the open next Tuesday, there ain't gunna be a deal with Colony.
The leak and follow-up press releases were after the close on Fri, 5/6. I suspect the period of exclusivity would not exceed 30 days. Typically in deals like this, the parties first address the dealbreakers. If you can't get by these, there is no need to waste time on details. In a three way deal as described, the list of details is long and complicated, many times with multiple paths to the same goal. These take lots of time.
IMO, as of now, talks ended quite a while ago (over dealbreakers) or they are up against an exclusivity deadline to finish the deal or walk away. Nothing like a drop dead deadline to fish or cut bait. I suspect that is this weekend (if talks are continuing).
So, imo, it's Tuesday morning announcement or this deal is dead.