If you mean by "we" me, hell yes.
NRF has a fantastic, tax deferred (imo) yield for anybody who buys before Hamo gets the yield down, probably by spinning off the mortgage business. So I see a pop to 22 when that happens. After that, imo, it's a slow growth yield hold, just like most equity reits.....get rich slowly.
I still believe NSAM will hit 30 before year end on a great growth rate which a slow, lazy market has yet to see or believe.
While I'm very p'od over the excessive compensation just paid, the thought of selling (other than flippers) has not even entered my mind.
While NRF looks good compared to dismal (and deserved) NSAM performance ytd, for an equity reit NRF ain't doin well. YTD price change with no intervening ex dividend days:
VNQ ( equity reit index etf) + 4.67%
SUI (mfg housing) +7.26%
HCN (healthcare) +5.33%
I suspect some of the stink from the nsam robber rape rubbed off onto nrf.
If in a taxable account, you must consider the tax consequences of a sale. To illustrate, if 100,000 of sui proceeds will cause 20,000 of incremental taxes to be paid, you only have 80,000 to reinvest elsewhere.
No investment is without risk or potential reward. The only thing certain about such a move is handing 20 grand to the governments.
Another consideration is whether you need more income (yield). I don't which is why I am not converting nsam (with huge tax gains) into something with a much higher yield. There is a place in my current portfolio for high price growth potential instead of current yield. Ten years ago that would not have been the case.
Hamo = 1,940,671
Tylis & Gilbert = 1,390,932 EACH
Hess = 383,049
Lieberman = 245,193
TOTAL = 5,350,777 x 22 = 117.7 million.
Of course they cover up and spread out the real cost with GAAP rules, restrictions and deferred vesting, all of which are economic fictions.
Told ya. 9 trading days for over 3% including the dividend.
Those not at position limit may want to wait for 4Q earnings and first est of 2015.....I suspect another 5% in a month or so.
From today's press release:
"Immediately after the closing, the Company refinanced approximately $120.9 million of the mortgage debt on 13 of the communities, generating excess proceeds of $126.0 million, at a weighted average interest rate of 3.87% per annum and a weighted average term of 14.1 years."
120.9 + 126.0 = 246.9 /742.9 = 33.2% of purchase price at 3.87% for 14 years. That goes a long way in making the predicted accretion from this deal. Balance of assumed debt must be that with most favorable terms. Details will be in 10-K.
Sold the common at 50 and preferred kinda expensive vs common yield. BUT dividend on preferred will not increase whereas dividend on common will.
This is just a super buy for SUI. Geographic diversification, 73% age restricted (for baby boomers), concentration in Florida. Just a super duper deal.
Because nsam got raped and nrf didn't. Remember the lessons I posted here last year about percentage ownership of insiders tilting toward nsam. It's happening, big time. Insiders are not buying nrf share issuances (thus pct goes down) and the obscene giveaway shares come from nsam.
They should get options, not shares, and the strike price should increase 1% per quarter, compounded. Then the insiders get big bucks only if the shareholders get 4% per year on the price, and only in proportion to shareholders' gain.
If you are wondering why, go read the Forms 4 which were filed last Friday night at 9 pm when they hoped nobody would notice. Obviously, more than a few noticed the obscene pillaging of giveaway shares.
Assuming the closing prices Fidelity is reporting stand, 17.58 + 22.57 = 40.15 closing price combined.
Total return for nrf combined for 2014 dripping with Fidelity = 57.79%.
From July 1 closing prices, nrf= 9.85% total return vs 18.13% for nsam. Combined = 14.26%.
Details on IV board.
Given the price action so far today it is unlikely that I will sell any nrf or nsam today. Thus, Fidelity's summary this morning will stand for the year. The following report is from all accounts in which I have traded nrf/nsam.
This year I sold 199,841 shares of pre-split/spin nrf, 84,974 shares of post-spin nrf and 54,541 shares of nsam, a total of 339,356 shares, all of them flippers. I now own more shares than I did at the beginning of the year (split adjusted) so that means I bought more than I sold. Several flip lots of both in the taxable account morphed into core holdings because I do not want any more short term gains this year.
None of the sold lots were sold at a loss. Excluding captured dividends, the gain on these sales totaled 194,135, an average of 57.2 cents per share. Best year flipping nrf I've ever had. It's no wonder why I love this stock.
Isn't more than 9% tax deferred yield enough? And yes, Hamo will do something big to get the yield down, including spinning off the mortgage business.
Also, consider the tax cost of selling in a taxable account. For the shares I have held over 1 year, the smallest gain I have is 106% and the largest is 348%. I can't think of an equity reit where I could match or beat nrf's yield on after tax proceeds. As to the short term gains, I ain't gunna giv the feds & RI 49.8% of the gain.
It's not assets, it's equity raised by nrf. Each billion of new equity issued = 15 million of base management fees to nsam. IF after tax cad is 70% of incremental revenue (will report on this after 4Q released), then 15 million of gross = 10.5 million of cad. I expect weighted average shares of, say, 210 million. Thus, 10.5 / 210 = 5 cents incremental cad per share on an incremental 15 million of revenue.
Then are the incentive fees. If nrf cad per share in a quarter exceeds 39 cents, nsam gets 15% of the excess until it gets to the higher level of incentive fees, 45 cents. NSAM gets 25% of the excess over 45 cents. That's just some frosting on the cake.
Not gunna happen, Rog. The socialist pig does not know how to make a deal. All he knows from his community organizer experience is how to demand. (Ah is entitled).
He proved his lack of negotiation skills in the 2011 budget talks. AFTER he had a preliminary deal with Boehner, he walked in and demanded another 800 billion in taxes over 10 years. That is a monster breech of business deal etiquette, the hallmark of a dishonorable snake. One just does not do that if one wants to be a trusted business associate. The repubs don't trust him with good reason.
Trying to materially change a deal after agreement in principal but before the fine print is agreed upon is the second worst sin in dealmaking. The worst is deliberately not keeping your part of a deal, the ultra snake, immediately shunned by the honorable business community. He swore on a bible to uphold the laws of the United States.
He is a no good dishonorable snake with no dealmaking skills. Not gunna happen.