For IRT offering.
Last time there were probably 5 others.
I guess they were in a hurry to get the $ in place to buy the 5 KY properties. 91% occupancy. Lets see if they can get the rents and the occupancy up.
I don't think that's correct GAAP, but I can not say for certain.
I get your point, but its still useful to know that it is IRT $ since most of the RAS restricted $, in theory, can become unrestricted very quickly. In any case, RAS does appear to be liquid enough to continue on with no restrictions. I bet they raise $25 million of additional capital in Q4.
It does matter because RAS does not have access to the IRT cash. It turns out, if one looks at the 6/30 IRT BS that it has about $8 million of unrestricted cash and $2 or $3 million of restricted cash. Min this case, not a huge deduction from RAS's books.
The September 2014 presentation (page 26) nets out the $7 million of restricted cash that is owned by Tabernas.
The only thing we can't immediately see is the cash tied to IRT, which is a consolidated entity. I suppose we could go to the IRT 6/30 financials and net out the cash showing on the BS.
You've done well!
IRT should give you an opportunity too. Their Q4 numbers will look very good because they finally invested all the money they raised in the summer. Then they raised more, but invested it ASAP on a levered basis that should get them about 10% return on the money. Not sure when we will hear all of this and if IRT will move off of its low price in the meantime.
I did see it, but thank you for the heads up anyway. It's good to see that all their partners are eager to move forward with them.......
The conduit business is an important leg in their business plan.
I agree with you this time. Some folks were scrambling to buy. The dividend is nice, the company continues to improve, but for NORMAL investors there would be little need to add RAS right now.
It's still far from overpriced. I don't think they will raise the dividend quickly, but I do think that the FFO will improve dramatically in 2015. 2014 was a year of building. Their balance sheet is now $700 million and they financed very cheaply. Rents will go up, while occupancy will remain stable and costs contained.
Very simple, clean formula.
More to come!
Thanks for pointing it out. IRT did not deserve the sell off that it experienced in the past 10 days or so...... In fact they further executed on their plan by buying 6 (yes 6) properties! Basically they are close to fully invested again. Maybe they can buy one or two more properties if they lever a property or two that they haven't yet levered.
Based on the fact that they filed an updated presentation with the SEC a couple of weeks ago I think they are now going to issue $50 to $60 million of debt at say 6%. They have an good enough and long enough track record to pull this off. They will be able to put that money to work quickly on an unlevered basis as they still have a "backlog" of $80 million in properties they have hand shake deals to buy.