They got $20 million for a pile of #$%$.
That's $20 million less cash needed in future capital raises.
But, I hear you. I didn't like him dancing around the FFO number net of Tabernas. He knew the number, or should have been able to figure it on the spot.
I'm not talking. I'm typing..........and reading. I find it hard to believe you haven't heard of the world famous Dr. Hugh. Many people find him to be quite a heroic character.
I did listen to the call. They didn't provide any specifics on spread. It is certainly a concern for any lender. They also took the opportunity to write off some no accrual loans.
You are clearly mistaken. I read on the Seeking Alpha website that the book value was $4.75 and that RAS's stock price is headed to match the book value shortly. This was reported by none other than Dr. Hugh Akston.
For doing nothing as the hedges disappear.
That's 10 cents per share more for sitting back and kicking their feet up on the desk.
They didn't disclose at what point(s) in the year the $8 million would come to them. Could be lumpy :-). Could be late.
It's not up to them. It's up to the board.
If it has already been determined, maybe they showed you their cards with their answer. Maybe they increase the % payout. If it weren't for the losses already booked, RAS would be paying 23.5 cents. I can't see that happening, but 19, 20, or even 21 would not be crazy.
The 4% convert should not hurt. It converts somewhere around$9. Then RAS paid the investment bank fees to get those shares to have the impact of converting at about$12. The 7% convert will hurt a bit and the prefered D has some dilutive impact tied to its issue.
Nothing to worry about........until the shares move up.
Duce, I know what you mean, I have felt sucker punched a couple of times in the last two years. This is their chance to hide moderately bad news along with the big numbers of terrible news we all know about.
There was no last lawsuit. Just class action lawyers looking for potential claimants. Who knows, maybe there is a suit to file yet.
Shoes to drop. Not swearing to it, but it would make sense for RAS to expose all its dirty laundry in q4. It will be buried by all of the big numbers and messy disposal of Tabernas. Lost in the shuffle so to speak.
I believe that the lumpiness Scott referred to on many conference calls and over the past two years related directly to the conduit business. RAS makes money and a bit of spread when they book these long term fixed rate loans, but doesn't get to book the real money until those loans are sold off into the investment bank's securitizations. The closing of these loans and the selling off of these loans are lumpy and not fully within RAS's control. Two years ago the conduit business represented a very large portion of RAS's income. The business continues to matter quite a bit, but is relatively flat. RAS is now making more from growing rents, new securitizations of bridge loans and from IRT. RAS is much healthier and diversified than it was only a short while ago.
If RAS really wants to throw a monkey wrench in the whole thing they should declare the dividend and pay it out like IRT......one third every month. That would drive Dr. Hugh and his crew crazy. Very steady predictable cash flow and no easy logical time to sell. Ohhhhh what Seeking Alpha thingees would need to be written and stories told.
Just confirming my understanding of the world. I think that RAS management said they will pay out 75% of CAD, DF says CAD will be at least 28, so that would indicate a dividend of at least 21. Doesn't that sound right?