100 million draw on loan has me baffled as I viewed it as a signal they would buy back with both fists every day they could to the max. It does not appear that happened. Without buybacks, an already cash rich nsam just gets richer every quarter. Yup, we wait for the 10-K at the latest where they have to disclose buybacks by month.
IMO, that nsam call spread contract is a sham as far as stock buybacks are concerned. As in 2Q, their token for show was done at the very end of the quarter. Options contracts are typically next day settlement and the premium was unpaid as of 9/30 suggesting a 9/30 signing with payment due 10/1. While the notional amount may be 100 million, the spread limits maximum proceeds if settled in cash to 40 million for which they paid 16 million leaving a 24 million profit in a best case stock price. Worst case is zero proceeds if settled in cash meaning a 16 million loss to create a make believe buyback illusion.
The 400 million buyback was announced in April. By the end of September they had done next to nothing to buy shares back. The price tanked the first few days after 10-Q filing as nsam admitted by its actions the buyback announcement was a BS bluff.
I'm surprised there wasn't more board reaction to the reduction of the drip discount from 5% to 1%. I'm not surprised the company reduced the discount because they obviously don't want to sell shares at a discount to an oversold price.
Anybody else stop dripping etp due to the discount reduction?
I have 16 positions in my taxable account, all individual stocks, all long. During trading hours my positions screen is sorted in descending order of the day's percentage increase. I just looked and got a shock. Only 3 positions are green.......NSAM, NRF and NRE. Don't remember the last time I saw that.
On a different screen Fidelity displays the three biggest percentage gainers of my entire portfolio (including IRAs, about 28 positions) and the three biggest percentage losers. Today, for the first time in a very long time NRF & NSAM are on the gainers list. Far too often in recent months, both have been on the loser list.
I hope this signifies serious buying back by both (and Europe too). It is so late in the quarter that heavy buybacks to the end of the year will have little impact on weighted average shares outstanding for the quarter, hence little impact on cad per share. However, NAV per share is measured with 12/31/15 diluted shares outstanding, not weighted average. Thus 4Q buybacks will have a bigger impact on 12/31 nav than they will on 4Q cad per share. This quarter's buybacks will have full impact on 1Q 2016 cad per share.
This selling is just feeding on itself and Hamo is doing nothing to stop it.
Looks to me like buybacks are nonexistent, a sham, a fraud.
If they really cared about the cash shareholders they would declare the Feb dividend NOW, and NSAM should raise its dividend.
Ahaaaa, there it is. Undistributed cad. That's why you said 1.5% in excess of the dividend. CAD in excess of the dividend, on a cumulative basis, = undistributed cad which is similar to retained earnings on a cad basis.
Correct: undistributed cad is treated the same as equity issued, subject to the 1.5% base fee..
Now I understand. Thank you.
A bit careless? Where and how could you possibly get this one?????
"NSAM gets an incentive fee quarterly equal to 1.5% of CAD in excess of the common stock dividend."
Above is off-the-wall, nowhere-near-the-ballpark lunacy. I cannot understand how a careless reading of anything related to fees to nsam could possibly produce that statement. I do not think it is a deliberate lie, so help me out here. What about the incentive fee could you have possibly twisted into that statement?
I'm not picking on you. I'm trying to understand how a layperson could make such a statement. If your statement is a plausible layperson's conclusion from anything nrf has put out, I would suggest changes in disclosure to nrf.
Very good. Now all you have to do is learn the difference between the base management fee and the incentive fee. Isn't the title of your opening post, " NSAM Incentive Fee"?
Your words: "NSAM gets an incentive fee quarterly equal to 1.5% of CAD in excess of the common stock dividend." What dark or alcohol-induced place did this come from?
I'm not picking on you. Late one Friday a couple of years ago, Ken posted a very garbled message, so full of typos it was like slurred speech..... both very unlike his prior posts. My response was, "Ken, please don't drive tonight". Had I seen your opening post last night, my words would have been the same. Off-the-wall junk is not your usual style. That's why I think you had a few or smoked some stuff before you typed that post. It's also happened to me on more than one occasion. I cringe the next morning at the typing, syntax and content of some of my late night posts after I have had a few #$%$ Alcohol really does trash intellectual capabilities. That's why I never touched booze during my work week when I was working.
Obviously, they don't want to sell units at these prices. From 8-K:
"Item 8.01. Other Events.
On December 11, 2015, Energy Transfer Partners, L.P. (NYSE: ETP) provided notice to the participants in its distribution reinvestment plan (the "Plan") that it has changed the discount at which participants may purchase ETP common units through the Plan from 5% to 1%, effective for the distributions payable in respect of the fourth quarter of 2015 and future quarters."
It worked for me. I just stopped dripping etp distributions. With only a 1% discount, I'd rather pick the time to buy.
In 30 days from today, none of the nrf group goes ex dividend. VNQ will go ex toward the end of December.
What could go wrong with your plan? NSAM and NRE go down in price while NRF goes up. If so, you get some more tax losses when you switch back.
Fidelity bought drip shares last Tuesday so the buy would settle today, the NRE payday. I drip NRE in 3 small IRAs. Fidelity posted before the open this morning. My cost per share:
If you drip NRE dividends, please post here:
The name of your broker.
When the drip shares were posted to your account.
The price you paid to FOUR DECIMAL PLACES
USAA uses Fidelity for back room work so they should cost about the same as Fidelity. Other brokers will buy today. Ameritrade and Schwab will not buy until Monday.
The more brokers named here, the better we can see the high cost for buying on the same day. In the past, Etrade has been the high cost broker.
Mortgage business is too small to stand on its own and is in runoff mode. New loans are being made by Income 2.
They need to change their name to Northstar Realty Diversified or Northstar Diversified REIT.
What they really need is much less compensation, no more giveaway shares (options instead), a stop to sneaky Friday night sec filings, much more transparency, more interim communications to shareholders, reinstatement of forward guidance and operating results demonstrating that a 3.00 dividend is sustainable.
Give us all these and the price will skyrocket from the depths caused by the stink of management.
MSD Capital owned 6.507 million at 9/30 while MSD Partners owned 12.774 million.
Yeah, I need a remedial eyeball decimal point class.
No excuse, but I was rushing to get somewhere. I don't use decimal points on my calculator because my "eyeball" method is usually correct. Wag going to put steaks on grill when I did math in head which also requires eyeball decimal placement and said to myself " oh s*h*i*t"
A decimal placement does make a big difference. But given the size of nre and the size of other buyer holdings, I do not consider these purchases ""for show" tokens.