Management has stated that they can defease the existing mortgage of $45 million at 5.6% that is due in April 2016. One wonders if locking in a reasonable rate for the next 7 to ten years is worth doing today, or roll the dice and wait until the due date to refinance at the then available rates. Thoughts?
Thanks, I just reread what was written, and I think you are right.
Knowing that great numbers are coming in Q1, I can't imagine the board holding back on a penny increase.........that would be silly.
No raise after that? I beg to differ. Theoretically, the Q1 numbers will be great based on the loan volume mentioned during the CC......................unless we are being mislead.
Also, a new securitization in April.........cheap financing and nice leverage to hold the loans on the BS.
You are right about the first and wrong about the second. The OK property has two years to run, and has an interest rate of something like 5.6%......way over market. They will defease and get a much lower rate. The St. Louis property has a 3.96% rate with 9 years to run. They can not do better than that.
Two more properties to enter into contracts to buy, according to the CC.
Assuming they close on the St. Louis property they will have used $50 million of the cash. Just $15 more to go for the next two. Then it would seem they will go back to the markets to raise more cash. Still a small cap company that is growing rapidly......
There was also 60,000+ after hours shares that traded at normal prices.
IRT just closed on the OK properties.
Need, I know you have issues with Scott, but I really haven't seen him do anything stupid. Is he to conservative for your liking................yes. Is he missing the boat on some interesting opportunities........perhaps. Is he giving away the store........nope.
Those Jonestown people died. The ones that bought RAS at the wrong time (and especially leveraged) just went bankrupt:-)
Theoretically, the Q1 numbers should be quite good since they told us during the CC that they are originating $260 million in new loans. Having said that, we have all been mislead and disappointed in the past.