Certainly decreases leverage the moment the capital is on the books. Your second point is interesting.........it sets the company up for more debt (ala leverage).
Undoubtedly Ras is a leveraged company by design. It will borrow more and lend more as it is a real estate bank of sorts..........as well as a real property owner.
RAS issue GAAP #s too, as they are obligated to. Then you can choose to ignore all other methods that management suggests. However, various industries do use their own metrics to avoid certain problems with GAAP. FFO is the typical for REITs.
Why do you cry when you can compare GAAP every quarter, if you so chose?
Incredible flight to zero risk.........
All conduit loans on the books just shot up in value.
Cap rates improved for the expected sales of Irt and Tsre properties as well as some Ras properties on the block........
Interesting times. There is a real hedge of sorts built in.
With China roiling the world's stock markets, getting the cash while possible is looking like a smarter move than it did only a short while back. I'm still not sure it was essential, or that it will prove to be accretive.
Waterbomb or water board? 4 or 5 years ago Ras had no choice but to issue common shares in order to eliminate big chunks of the convertible debt. Today it has a choice. We will see what it does with the cash. 96% wasn't Scott's fault, it was all Daniel and his get rich quick schemes.
1. Prior management forced the merger with Tabernas in '86 or '87. It was a separate publicly traded company.
2. The Q2 results are reasonably good. The loan volume was a little light relative to projections.
Overall it is hard to complain, except for the soft share price........
It actually mentions a non-public reit started and run by resource capital. Another philly reit (Cohen related). They plan to buy and turn around properties with investment. Slightly different investment proposal than Irt.
I own a stock, ALX, that has a book value of only $350 million, but a market cap of $2 billion. That is because ALX owns real property that has appreciated in value and throws off a steady flow of cash. Oh, RAS owns real property and that property throws off a steady flow of cash. Muck, great point. RAS might be worth many times its book value because GAAP is misleading. Thank you for adding clarity to this message board.
When I was in banking we worked with Andrew Farkas to take over what was the largest manager of multi family properties then called USShelter later Insignia.
The rule of thumb when analyzing a property for investment is that you will need to pay at least 5% to a management company. In order to make money they management company must be very efficient. In the case of Ras, it is very beneficial to have your own management company that is not distracted and has no potential conflicts.
Cohen claimed the big loan was on non-accrual. Not sure when they actually stopped accruing interest. Don't trust them. If it was a while back the w/o has no impact on FFO or perceived ability to pay dividend. Are securitization ratios still adequate?
Just the sillies.
I'm an accountant.
I've never noticed book value
I think I can swing with Dr.HughA whole lot.
I just can't handle ykw.........I can't tell you who......maybe Cindy Lou Who.........who cares.