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.
IRT filed a nice presentation with the SEC.
My guess is they issue medium term debt...5 to 10 years. Money remains cheap.
Can't issue new common at the moment. Prfd too expensive. Debt makes sense. $50 to $65 million @ Between 5% and 7%.
IRT should be able to put it to work quickly at almost break even before they lever it.
The conduit part of RAS business should be kicking.......
Bridge lending requiring more capital than can easily be raised. Will need to be more clever yet.
IRT able to continue to execute its plan with relative ease.
Real property ownership is paying off, in general, with higher rents.
Property management is a very low margin, finger on the pulse of the market role.
RAS was smart, or perhaps more likely had the right survival instincts, when it headed in multiple directions in order to jump start its business.
Put energy into whatever is working at the moment.
yes, but IRT is clean. No complicated story. No BS on the BS. Simple model on how to make money.
There are "negatives." IRT is small. IRT is not self managed. IRT does not have a 20+ year track record like EQR or other bigger folks in what is theoretically the same space.
The Cramer "analysis" is inane. He claims ZFR and IRT are in the same sector..........I guess by that measure NLY is the same as IRT:-) "The shares had an uptrend last month"........Duh.....before the new 6 million shares...then after the 6 million shares "they had a downtrend." zero thinkin' going on!