Thanks for the post Davis.
While there is no reinvestment period, RAS can (after a certain date) prepay all of the notes and roll the existing assets into a new securitization. I can see this making sense if some of the loans repay and the securitization loses it's leverage, giving RAS a lower return on the cash invested.......this type of scenario is probably a couple of years away.
Maybe I'm missing something, but if day after day the majority of the trades are short, should the overall short position be growing dramatically.
I think it is highly likely, because they can and it shows steady progress, which they want to show.
I agree with your assessment .........missed opportunity......
Davis, you're typing too fast.
This post was about the $1Billion mixed shelf that IRT just did. Yes, RAS did one a few weeks back. Both companies have expectations of raising funds over the next few years.
IRT will need to raise more funds before RAS.......
Davis, I'm pulling this out from your write up.
How are they defining themselves and their competitors.
They compete with banks, REITs, mortgage REITs, insurance companies......you name it.
As lender they are financial intermediaries that specialize in real estate and they just happen to be structured as a REIT.
I really don't know what they were beating their chest about. They are a small specialty player.....
Well, RAS continues to hold a few hundred million in low quality Tabernas bonds. Most of those holdings were probably not purchases made during the downturn, but rather bonds they were unable to sell off. This is where they were probably misleading. If you keep 6% equity traunch, but there are $200 million of low or unrated bonds right next to them in the structure, how long does it take to recover your investment? A long long time.......Merrill Lynch suffered in a similar fashion, holding onto all types of low quality stuff on their balance sheet they were unable to sell.
In any case, we are talking about past history, and people no longer associated with RAS.
Yes, somewhat pleased. I can see this same thing happening again and again over the next three years. RAS has over 70 mez loans and RAS is in a good position to know and understand the properties as well as being in constant contact with the owners.
Well, it is probably technically accurate. The equity traunch was recovered .......all the non investment grade bonds that they were unable to sell.........well those things are still with the company and on the RAS balance sheet. Betsy, or Danny, was being clever with the wording...................
Wow, zero. I love the sound of that number. let me say it again....zero.
I can see where they will get refi business through the Urban relationship. I can see where Urban can help fill the 4 properties they own. Maybe they can create a new REIT by shoving together players that have invested in retail malls, strip malls etc etc and now they want to diversify away from just one location. As long as RAS doesn't need to invest significant cash in a retail related REIT....I'm all for it............maybe just contribute their 4 properties after Urban has them filled.
I know the building RAIT is in. Very convenient for commuters.
I should have invested a day to come and listen and ask questions.
Thanks. Did they mention how much they needed to pay to take over control of Urban? (100%).
Do you live in the Philly area?
Good luck with the PUTS.........
They really have their fingers in many pies at this point.............
You were there too? No shockers?
I'm surprised we haven't heard from the other Scott during the CC. He was promoted to the right hand man........was he at the meeting. I think he was put on the board.