The company was going to double in size once again. How will it get the capital? I thought they might issue debt. Maybe. The shares are moving close to their starting point.......low 8s if I recall properly.
I think you should try to make whatever point you think you are making without screaming.
If your point is any good, others will understand without screaming.
Now I see why the board police might delete your posts.
Not all cost accountants are financial accountants. This calls into question all your claim about yourself.
Never expressed your thinking? RAS should eliminate the Prefereds because they are too expensive. RAS should stop lending and be just be a real property REIT. Who's thinking was that? Are you posting for others that have thoughts?
Muck. I need to start new threads or you will kill your posts to kill mine. Stop it.
You realize that a cost accountant is very different than a financial accountant. Look them up and you will see that you are not making a strong case for your expertise or analytical ability, right?
The lending business CAN BE a great business especially when the banks are at a stand still.
If a poster points out the flaws in ones thinking, they are not detractors and they are not knocking you.
It is cowardly to delete others posts that show the flaws in your thinking.
1. How do you plan to retire the prefereds?
2. The new securitizations generate returns in the high teens, more than double the cost of the prefereds.
Your may be Drum as Joel says, or you are just throwing out red hearings for the weak minded.
There are lots of complaints one can have with RAS and its management, you have just picked a few poor ones.
Joel, I've made a lot of money from RAS. I not interested in documenting it, or beating my chest at every little victory. Some here like to do that. Others love to issue red herrings or, maybe they are truly Drum.
I try to stick to RAS talk and macro economics and am happy to have intelligent posters poke holes in my thinking.
IRT's dividend is admittedly very high. Management even noted it in earlier CC when silly analysts asked if they were likely to raise it even more. Is the dividend honey for those with a sweet tooth? Perhaps.
IRT is very young. Realty maybe 18 months old in reality. Yes, FFO exceeded dividend in one quarter ( by, I believe, a penny) because IRT did a cash raise and then took 3 months to buy the properties that were under contract. Management was actually complimented during previous cc for deploying cash so rapidly in comparison to others.
UDR and others are probably very good investments. I believe that if one looks at the states UDR operates and the types of properties they own that they are very different than IRT, which is probably why IRT has been able to relatively easily raise capital from Wall Street and buy plenty of properties in tertiary markets that have limited sex appeal.
Yes, they do need to pay a steady dividend to maintain steady investor interest. If they decreased the dividend because of a penny less FFO two quarters ago, bells and whistles go off and undue concern would enter into weak minded investor's heads.
Perhaps IRT started off with too high of a dividend, and now they must maintain.
IRT appears to be doing OK. Not the investment of the century, but mostly executing the plan that they presented.
Muck since you have twice killed off my explanation of why RAS can not suddenly start retaining all earnings, I needed to start a thread so you can't kill it. It is certainly cowardly to avoid other posters arguments by killing off your original nonsensical posts. Twice cowardly in one week is just too much. I So, let us start again!
REITs are different than other companies because shareholders expect to get steady dividends from REITs. RAS now has a steady ownership group including 65% institutional investors that expect distributions of cash. If RAS were to suddenly change and declare no dividend it would alienate the existing shareholder base. Then, once tax loss carry forwards are used up, RAS would be forced once again to change tactics and start to pay out 90%, again alienating shareholders that had bought anticipating growing retained earnings.
Muck if your arguments are so weak, or so poorly thought out that you feel the need to kill them off and to kill off the rebuttal of those arguments, perhaps you should stop posting until you have a clear thought you feel confident in.
The spin is that REITs are different than many other companies.
The spin is that what your propose would cause a cosmic shift in what set of stockholders would be interested in holding the company's shares.....both today .........and later causing another major shift when the tax loss carry forwards run out. It's not the way any board would want to build a following in the stock.
If you can't understand my point, you probably should not own any individual stocks and Stick to mutual funds.
Borrowers have leverage over their lenders when lenders are afraid, or unwilling to foreclose. Example of when lenders are unwilling to foreclose......when they already hold too much "other real estate owned" an asset category that bank lenders generally hate. Example of when the lender is afraid.......when there are unknown factors, like contaminated soil that will cost and indeterminate amount of money to clean up.
The properties we are talking about are high occupancy multi family properties durning a stable economic backdrop. Why do you think IRT is able to borrow long term low fixed rate against these properties? They are perceived as having very predictable cash flow that will easily repay the loans.
Joel, you are right, I am too patient.
The mortgages can not be renegotiated. The lenders have first mortgages against high occupancy properties. Borrowers need to have some form of leverage to renegotiate. IRT has nothing to put the fear of God into the lender.
Came in at 19 cents compared to last year's 17 cents.
Occupancy is high and IRT says it is just digesting what it bought last quarter.
Management claims opportunities remain the same. Cheap financing for properties with 6% to 7% cap rates.
Shares off slightly based on low volume.
Analysts' questions seemed fine and no apparent disappointment. 4 analysts on the call.
Management explained it relatively nicely as follows:
RAS owns several properties where Rait 1&/or 2 hold relatively smallish second mortgages. The first mortgages are coming due soon and are held by third parties. Now is the time when RAS must decide if the property is a keeper for the long term. Based on marketplace, RAS can sell at a healthy cap rate. No details of location have been provided, but my guess is that the properties will be in either FL or CA. We will see when the transactions occur.
Is Fouiger French:-)
Nothing at RAS has changed since it announced its projection of CAD for 2015. The $1.02-1.20 or whatever, was a disappointment. One could extrapolate the numbers based on this earlier statement and many here did.
Today's announcement only crystallized what had already been stated earlier in a different way.
The new and relatively good news that I took away from the CC was that they don't need cash and, while they will do a raise sometime later this year, it will not necessarily be cash raised via issuance of common.
New loan activity was tepid at only $200 million.
Looking forward to IRT CC and to many nice press releases in the coming weeks.
You mean the seeking alpha "article" that did actually contain materially misleading inaccuracies as well as points that were technically correct but presented in the most misleading of manners. If you want to play the pessimist, you must be able to do better that that. All one needs to be a bit pessimistic is to read the management issued CAD guidance.