Yes, keeping the dividend high was still not getting the company "respect." But the real reason Ras decided to declare lower dividends is because easy money for Ras type lending has dried up over the past year. Look at what the public ally traded debt and the prefereds are trading at. It is not possible in the current market to raise cash at any normal rates of interest. So, if the loan machine must keep loaning, and Scott says it must, one must "recycle cash" by closing out FL1 early, by selling some properties etc etc.
loan we must!!!!!!!!!
The company will "save" $27 million per year, by not paying the "extra" dividend. This can support a lot of new loans over the next few years.
Your points about the stock price movement are accurate, but the company itself is on stronger footing than before.
Income from rents and management are substantial. Debt is laddered so that is is likely manageable.
Management......do seem heck bent on lending no matter what. Of course, that sort of is their stated mission as a company..........but I would hope they can pull in their horns and do less if it makes sense to do less.
Let's see if they get full leverage and full return on FL5.
I think Ras is a good buy for you at this point. Hysterical selling because the dividend is not 18 when it could be.....
I think it is at a good spot for you to buy and if you want to trade hold into early 2016 when all selling pressure will be off. Holding for dividend......I didn't think that was your thing.
Did the three commercial banks providing wholesale lines of credit to Ras agree to all of the extra leverage by insisting on a lower dividend going forward. Is that how the information leaked out?
The Sec should investigate the steady slide right up to the dividend announcement.
Irt is probably ok, but there is still some execution risk. Selling 3 properties. One in 2015 and two in 2016. Why that way? So the gain on sale is covered by depreciation, so 90% of gain doesn't need to be paid out.
Then, Irt will need a bit more cash to pay off the short term debt.
It is very possible that one property is already sold and the other two are under contract.......it is already the second week of December.
Paying Davis or other to pump would be cheap, but it is not clear that there are many readers here with money to invest.
There is other money due before RFTA. $33 million of 7% convert April 2016. Ras will be able to retire it.
RFTA is not too much. The 4% convert is quite a bit. Still a few years away.
If Ras is a Ponzi, then all banking is a Ponzi by your definition. Congrats on selling when you did!
Well, SME, index funds are exactly that......indexes. They will drop Ras when the company no longer fits into their index. As a shareholder, That will not be good for you.
Did management say that the board considers CAD when determining dividend levels, or did management say you will get X% of CAD?
There will be no lawsuit based on your set of issues with management.