I suspect it will take quite a while for it to get over the $100 mark that it was at a few years back. Perhaps several of my lifetimes!
I agree, I don't think that's likely.
I'm not sure why the Cohens gave up.
It's also interesting because the guy that bought REXI, Andrew Farkas, is a Srewed operator. It only buys when there is good value available.
Somewhat amazed that no one has posted on this topic. I've been traveling all day, so I haven't been able to up until now. What will the Cohens do now that they have sold out of REXI?
Will Scott let them back here?😉😂
Will they invest their proceeds here?
Based on the valuation paid, what does that mean for RAS. What does it mean for RSO?
I didn't say anything.
A month or two back, I too had suggested a complete suspension of the dividends to common. Pay off the recourse debt as it comes due, or buy it back faster if there is excess cash. It will infuriate some common holders. Strengthen balance sheet for all debt holders and prefereds.
It might sound a bit crazy, but Ras would not be the first to do something like this.
It is a much less risky path.
Maybe you can express the board member's disenchantment with the pay packages that are not so closely tied to share price.
It certainly seemed like the Scott's were gifted big bonuses when the compensation was tied to CAD including the gains on the property sales.
The equity in the properties has been building the past few years as the economy and real estate in general improved.
The bonuses should also have something to do with how well the company fares over time (stock price).
I know the Cohens handed back the reigns when all as in the crapper, but still, the Scotts are paid a lot.
Cut off before I finished. It seems that thanks to Enron and clever accounting done by them to take subsidiaries off the Enron books, GAAP rules have changed and if the company has substantial control the company must be consolidated ,,,,,,,,,thus, Irt must be consolidated into Ras. Accounting to a CC some quarters back, this will continue for some time even to the point of only 5% ownership. In some ways Irt is a tracking stock.
Unfortunately, GAAP is that messed up. When I took accounting 30 years ago it was like you describe. 50% consolidate. 20% to 50% equity method.
When was capital raised at 25% below market? That would be crazy. I think last two common stock raises were done at about 5% below trading price just prior to announcement of raise. From what I have seen, that seems to be relatively normal for a REIT.
Ras had told us what money they expected to generate from the four properties they are selling (under contract)...... The original broad stroke "plan" mentioned last year called for $250 million in sales recapturing about $50 million of cash, with limited (if any) profits generated from those particular transactions.......