I don't think they are obligated to tell you.......................unless they actually file a lawsuit. I wonder how many of these things start with an undefined complaint?
They will not have trouble finding the handful of complaining witnesses needed to move forward. The question is how legitimate is the case. If you fill out their form maybe they will tell you all about what they feel the board had done wrong.....................go for it.............share with us...........
True, 2 cents will be great news, and it probably will move the needle........................but no way to $11.
But it would appear that management is planning for a huge jump in dividends (if not this quarter, then in Q4). On the upper end they say CAD of $1.07 meaning dividends of 80 cents. So, 16 + 17 + maybe 18 or 19 or ?? + Q4? = 80 cents. These are NOT my numbers. It is part of management's presentation to the investor community.
If the Q4 dividend is a one time event, again, the needle will not move much..........Will RAS management hit their planned CAD number of 99 Cents to $1.07 and will the perception be that it is a sustainable CAD number. Fun to watch...........
I remember parking the family car in a line at the gas station in the evening in anticipation of them getting a delivery in the morning and us being able to refill our tank.
The US political landscape is a mess because we let foreign interests dictate policy. The Saudis and the UAE have too big of a voice in Washington.
Still, as flawed as we are here in the US, I live an upper middle class life, which is BETTER that the richest person's life from 150 years ago. I can travel the world at a moment's notice. I have access to better healthcare. I get a wider variety of fresh foods. Can you imagine how amazing things could be with some fixes in Washington?
The FED probably exacerbated the Great Depression. They didn't fully understand their actions and prsumably there was some politics getting in the way of correcting misguided actions. Even today, they over or under shoot ............using a butcher's knife more than a scapal.
Since most of the posters and readers here know that the FED is predisposed to creating some controlled level of inflation, I wonder how many build their portfolios with that in mind?
For better, or worse, we are all interconnected worldwide at this point. Even the Swiss, who had one of the most stable currencies in the world and were committed to maintaining it, have been forced to weaken the Swiss Franc, because so many were eager buyers of the currency that it appreciated so much so fast that the Swiss companies soon weren't going to be able to export anything. So, what did the Swiss central bank do, bought USDs and Euro and pegged the Franc to a basket of the two.
For better, or worse, all the major economies are interconnected now. We live in more complex times.
So, if you were there, you would have been with Jackson and not renewed Biddle's bank charter? :-)
I don't think the central bank has caused the woes you have listed. There was no central bank between the demise of the Second bank and the creatinine of the FED. Too many booms and busts between those two events.
My hat off to you sir, I love a man that knows some history:-)
If a company settles for $500,000 it was cheaper to settle than to litigate. If they settle for $35 million there was a real problem with what was done.
Actually a modified line with a 50% increase in amount, a lower interest rate and looser terms. Not a huge deal. Just shows that bank is comfortable with how IRT is developing.....
I believe the point is that they specialize in creating lawsuits "for the benefit of the shareholders" where there really no complaining shareholders.......
18 cents might be right. However, there is no lawsuit just yet. The firm is looking for shareholders to list as the complaintant on a potential suit. It appears that the suit would be against the directors, not the company itself. Of course the company would pay the legal fees of the directors. Any loss in the suit would be paid by directors themselves, or the directors insurance policy.
I could see the RAS Multi-Family eventually folding into IRT and be a good size narrowly focused REIT. Or, if IRT doesn't continue to develop, they could fold IRT back into RAS.
Needoptions, your friend Scott seems to be playing his cards just right, so that he can go in either direction and still come out the winner. Maybe not the shareholders........
I would be pleased if a class action loosened up some change from the RAS director's insurance policy.
I don't think I will hang by the mailbox waiting for the check, but if one comes I will deposit it:-)
Just an FYI DF, Top line is not where the earnings are located:-)
Maybe you fingers typed too fast................
Maybe they see the conflict in a board member also having his firm invest in the prefered D. Of course the D was negotiated and in place before he joined the board, and RAS very much needed the money when the D was negotiated. Nonetheless, it would appear to be a complicit of sorts. Heii, if I were putting in a $100 million I would want a seat too.
Interesting. Click on the link.
It looks like they are going after the board for breach of fiduciary duties. Not sure what it's related to. The board has limited duties and presumably has director's insurance.
You may be right that a more static set of assets managed properly would have brought a healthy return.
Of course you are also right that Leverage is the magic that turns 4.5%-7.5% loans into 18%+ returns.
RAS really is like a bank with less regulation and less leverage that specializes in only commercial real estate loans. Banks could historically have a capital base of 5 or 6% and take in deposits to fund the loans. Huge leverage.
RAS uses securitizations rather than deposits and based on the latest securitization has 20% capital in the deal.
Unlike banks, RAS doesn't fear foreclosure. It almost seems like they like the prospect.
If the market for real property falls apart again, those holding RAS common will wish they were higher up in the capital structure.
Further, you point out the competition for the conduit loans squeezing spreads, but there is also the problem of loans repaying too soon, lowering the leverage of the securitizations.
They have been saying they are targeting 6.25 -7.
IF they buy properties that are ripe for rent increases, don't need major capital improvements, have existing high occupancy rates and can be quickly financed long term and cheaply, their formula works.
I think they get their stock options as part of their pay package...............public companies are frustrating.......I wish I ran one rather than investing in them.
Not a bad post J_cromatie!
Frankly, On this topic, I think my thinking is more in line with management than your thinking is. IRT already had the deals lined up and basically ready to close. If the deal is already done it should be done quickly so that $70 million doesn't sit in the bank account idle. The company is committed to paying out 6 cents per share per month............if they don't cover the dividend with cash flow they will lose credibility with the institutional investors. $70 million is a lot of cash for a company that had only $360 million in assets at 6/30/14. A high dividend payout will only attract stupid investors if the dividend isn't covered. IRT knows this fact and that is why they have deals lined up to put the cash to work at the time of the share offering. Even then, the deals are often done all cash, so IRT is "only" earning 6% to 7% on the investment until they leverage with cheap long term fixed rate financing and get the opportunity to start raising rents.
Davis, don't feel the need to chastise every poster that has a point that COULD be construed as slightly negative. You might get yourself a bad reputation.