From 8-K: NRF wants to be recognized as diversified equity reit.
"Based on our existing asset base and our strategic focus on increasing owned real estate, we believe that this is the appropriate time to change NorthStar Realty’s industry classification in the MSCI US REIT Index to a Diversified Equity REIT and to consider NorthStar Realty for inclusion in the MSCI US REIT Index. Furthermore, NorthStar Realty’s stockholder base is strongly supported with approximately 80% institutional ownership as of June 30, 2014. In addition, with a current common equity market capitalization of approximately $4.3 billion1, which is expected to increase by over $1 billion following the Griffin acquisition, we believe NorthStar Realty would be in the top quartile of the MSCI US REIT index, based on weighting."
I did not see any letters asking to be removed from mortgage reit indexes.
According to 8K, just rainwater with some mineral in it. From 8-K:
Mexico City, September 22, 2014, Buenavista del Cobre, S.A. de C.V. (the "Company"), a subsidiary of Southern Copper Corporation, reports that there was no second spill of acid copper sulfate solution at any of the reservoirs at the Buenavista del Cobre mine.
As a consequence of heavy rains triggered by Hurricane Odile, the Tinajas 1 and Tinajas 2 reservoirs at the mine were overflowing with rainwater. Such incident was timely communicated to the relevant authorities on September 18, 2014. The Mexican Environmental Protection Agency (PROFEPA) has announced that such discharge derives from the rainwater and contains some ferrous elements below hazardous levels, which are not considered a health hazard. (link deleted to get by yahoo police)
Water testing conducted through September 20th, 2014 by PROFEPA, CONAGUA and the Company reported normal acidity levels in the Bacanuchi and Sonora Rivers.
NLY is an agency reit. CIM is agency and non agency. Both pure mortgage reits. Should never be compared to NRF-NSAM.
My teeth are doing fine. Got a dinner trade out of nrf today. Crybabies forget that price was 26.90 (split adjusted) at 12/31/13 and today the combined close was 35.81. Price alone is up 33.12% ytd. . Add 1.50 cash dividend which is 5.58% of 26.90 and my teeth are feeling pretty good.
That's what caused last Fri's wild ride, especially at the close.......SEP options expired. Did not occur to me until Sat. I'm sure the closing spike was to get as close as possible to max pain.
And now it unwinds.
I expressed here hope the PLS dams would hold through the hurricane's rains. At least one did not:
"Mining giant Grupo Mexico (BMV:GMEXICOB) said in a statement late Sunday the new leak was the product of heavy rains caused by Hurricane Odile, which hit the northwestern state of Sonora during the weekend, local paper El Proceso reports (in Spanish).
Acid levels in the Bacanuchi and Sonora rivers, however are back to normal, according to the newspaper."
I know we have not heard the last of the damages from these spills.
I'm tempted but concerned we have not seen the last of the charges for the Cananea spill.
Larrea continued buying well into Sep with the spill 8/6. Am conflicted......buy on Larrea or wait for spill damage known.
Listen to earnings CC. I'm sure they will be asked about tax gain per share from selling communities. Other than that, I'm expecting 50 to 60% roc.
Option will be exercised in full.
Underwriters paid 50.60 for the shares, a 3.53% discount from the 52.45 pre-announcement closing price.
After expenses, they will net 348.6 million on 6.9 million, or 50.5217 per share.
IMO, very successful offering. I bought 3,000 flippers at a weighted average of 51.594. Will hold for dividend and then flip when my percentage comes.
Will be Northstar Realty Mortgage Reit to leave NRF as a 100% equity reit.
Only problem here is the mortgage business is too small. That can be solved with a stock for stock purchase of the nontraded reit, Northstar Income which has about 1.9 billion of assets and 1 billion of equity. It's an early liquidity event for Income 1 because it just finished selling stock at the end of June 2013.
Nevertheless, Hamo is not going to tolerate a yield over 9% when 75% of the assets are equity after the griffin acquisition. Add another 1.8 billion of pending hotels with more runoff on legacy mortgages, and we get somewhere around 80% equity reit assets.
One way or another Hamo is going to get the yield down. Just be patient while collecting over 9%.
The yahoo police killed my prior reply. I guess you can say yahoo police either.
The start of the website address is NSAMGROUP.......but you should use lower case. Then you add a period, sometimes called dot which is not short for Dorothy. Then you add the abbreviation for commercial, stopping at the first 3 letters.
Let's see if this one sneaks by.
I agree the Griffin acquisition is a big positive to NRF for reasons other than immediate accretion. Neutral on cad per share (initially) means the other benefits are not lessened by dilution. Also, initially neutral does not mean neutral forever. The shares issued are fixed while the net rents go up over time. Thus, it will eventually be accretive through organic growth. Healthcare properties have the 76 million baby boomers supporting them. A very safe investment at a very high price, imo.
The threshold is "more than 50%". Each sibling is deemed to own the stock (units) of the other siblings and you are deemed to own the stock (units) of your children. You sold depreciable property to an entity which you are deemed to own 100% of. Result = ordinary income to you.
The cross reference in 1239 to determine constructive ownership is to section 267. There you will find that you are deemed to own the stock (units) owned by your children.
Help yourself to 1239 and 267 on the IRS website. The language is not that difficult for a layperson to understand.
And you are considered to own the membership interests of your children for purposes of section 1239. The sale of depreciable property to an entity controlled by your family (as defined) results in ordinary income.
Is 13% before or after nsam takes 1.5%? I'll assume it is after.
Start with 210 million shares earning 1.60 = 336 million annualized cad.
Add about 63 million shares for Griffin @ 1.60 = 101 million
Assume net net net on 45 million 17.50 per share = 787.5 million of new equity x 13% = 102 million of additional annualized cad.
So, 336 + 102 + 101 = 539 new annualized cad. 210 + 63 + 45 = 318 new shares. Thus 539 / 318 = 1.695 new annualized cad, a whopping 5.94% increase.
Almost 1.9 billion of new equity produces a 6% increase in cad assuming neutral for Griffin and 13% for this offering. That ain't gunna cause 100% per year total return like the last two years..
Buy NRF for tax deferred yield, not stock price increase.
Buy NSAM for stock price increase, not yield.
No. DB (nrf's proxy) borrowed 30 million and sold them to the underwriters for 17.95 per share. The sale to the underwriters did not hit the short sale volume because it was not an open market sale. But it sure as hell was public. All the pros know this "forward sales contract" makes nrf the economic short.
I defer on the estate tax issue as long as the kids have the power to fire you as manager.
Over simplified, IRC section 453(g) prohibits installment sale treatment on the sale of depreciable property between related persons unless you can convince the IRS that income tax avoidance was not a principal purpose of the transaction. Thus, the problem can be overcome. This cross references to section 1239 to define related persons.
I think you may have real problems with section 1239. Don't trust me on this. I'm just reciting my recollection of expert talk on what seems to be a very similar transaction about 10 years ago. I just looked at my notes of a meeting for the cites. Maybe the law has changed since that meeting. I remember the expert saying a sale directly to the kids was ok for capital gain, but a sale to an entity controlled by the kids would result in ordinary income. Seemed like a weird rule to me, so it stuck in my head. I suggest you make a call.