So, if you were there, you would have been with Jackson and not renewed Biddle's bank charter? :-)
I don't think the central bank has caused the woes you have listed. There was no central bank between the demise of the Second bank and the creatinine of the FED. Too many booms and busts between those two events.
My hat off to you sir, I love a man that knows some history:-)
If a company settles for $500,000 it was cheaper to settle than to litigate. If they settle for $35 million there was a real problem with what was done.
Actually a modified line with a 50% increase in amount, a lower interest rate and looser terms. Not a huge deal. Just shows that bank is comfortable with how IRT is developing.....
I believe the point is that they specialize in creating lawsuits "for the benefit of the shareholders" where there really no complaining shareholders.......
18 cents might be right. However, there is no lawsuit just yet. The firm is looking for shareholders to list as the complaintant on a potential suit. It appears that the suit would be against the directors, not the company itself. Of course the company would pay the legal fees of the directors. Any loss in the suit would be paid by directors themselves, or the directors insurance policy.
I could see the RAS Multi-Family eventually folding into IRT and be a good size narrowly focused REIT. Or, if IRT doesn't continue to develop, they could fold IRT back into RAS.
Needoptions, your friend Scott seems to be playing his cards just right, so that he can go in either direction and still come out the winner. Maybe not the shareholders........
I would be pleased if a class action loosened up some change from the RAS director's insurance policy.
I don't think I will hang by the mailbox waiting for the check, but if one comes I will deposit it:-)
Just an FYI DF, Top line is not where the earnings are located:-)
Maybe you fingers typed too fast................
Maybe they see the conflict in a board member also having his firm invest in the prefered D. Of course the D was negotiated and in place before he joined the board, and RAS very much needed the money when the D was negotiated. Nonetheless, it would appear to be a complicit of sorts. Heii, if I were putting in a $100 million I would want a seat too.
Interesting. Click on the link.
It looks like they are going after the board for breach of fiduciary duties. Not sure what it's related to. The board has limited duties and presumably has director's insurance.
You may be right that a more static set of assets managed properly would have brought a healthy return.
Of course you are also right that Leverage is the magic that turns 4.5%-7.5% loans into 18%+ returns.
RAS really is like a bank with less regulation and less leverage that specializes in only commercial real estate loans. Banks could historically have a capital base of 5 or 6% and take in deposits to fund the loans. Huge leverage.
RAS uses securitizations rather than deposits and based on the latest securitization has 20% capital in the deal.
Unlike banks, RAS doesn't fear foreclosure. It almost seems like they like the prospect.
If the market for real property falls apart again, those holding RAS common will wish they were higher up in the capital structure.
Further, you point out the competition for the conduit loans squeezing spreads, but there is also the problem of loans repaying too soon, lowering the leverage of the securitizations.
They have been saying they are targeting 6.25 -7.
IF they buy properties that are ripe for rent increases, don't need major capital improvements, have existing high occupancy rates and can be quickly financed long term and cheaply, their formula works.
I think they get their stock options as part of their pay package...............public companies are frustrating.......I wish I ran one rather than investing in them.
Not a bad post J_cromatie!
Frankly, On this topic, I think my thinking is more in line with management than your thinking is. IRT already had the deals lined up and basically ready to close. If the deal is already done it should be done quickly so that $70 million doesn't sit in the bank account idle. The company is committed to paying out 6 cents per share per month............if they don't cover the dividend with cash flow they will lose credibility with the institutional investors. $70 million is a lot of cash for a company that had only $360 million in assets at 6/30/14. A high dividend payout will only attract stupid investors if the dividend isn't covered. IRT knows this fact and that is why they have deals lined up to put the cash to work at the time of the share offering. Even then, the deals are often done all cash, so IRT is "only" earning 6% to 7% on the investment until they leverage with cheap long term fixed rate financing and get the opportunity to start raising rents.
Davis, don't feel the need to chastise every poster that has a point that COULD be construed as slightly negative. You might get yourself a bad reputation.
New presentation filed with SEC.
Page 10. Next deal to close is a 500 unit property in TN for $29.8 million. expected mid September.
Backlog of $229.5 million in other properties, but I imagine that none of those are certain.
Next step is to put permanent financing on the properties they just bought with cash..........
I have no posters on ignore. Your feeble mind is failing you. The synapses are misfiring again. Search among your remaining nerve cells to find the name of the poster you meant.
I wish I could post that it's funny too, but it is just sad to see the elderly laps into blather.
How AMUSING. You were able to find a synonym for thought. Now, if you could only find a thought and post it here! I guess one could claim that endless insults are a form of thought.......low level thought, but perhaps thought nonetheless.
RAS is now around $8 and has even gone below at points today....oh my..... RAS is not a GREAT company, but it is interesting. You are not. Reread your posts........pure dreg of the message board.
oh my shining light. Oh brilliant one, I haven't posted in days and when I did I wrote about three topics today. Two topics came from the financial press. As Greg says.......thanks for your in depth analysis. You clearly have knowledge that enlightens us all...............are you the Dalai Lama's illegitimate brother? Sister? pet squirrel? Maybe, when I die, I could be the lucky one that is reincarnated as you:-)
I agree that they are always positioning themselves for the next cash raise. It will happen, but exactly when and in what form is harder to tell. I felt pleased, but blindsided, when they issued the 5 year notes. They have a new deal in place with MLV for prfds...............maybe that will be next.