I like these kinds of investments. Ones which require the primary value to be one's assessment of management's competence. Ones which might even push the envelope regarding present structure and future change. The murkiness keeps the price in place for longer than would be routine. Then, all of a sudden something new just comes into being and the price moves nicely as people realize that real change is happening.
I remember the "good old days" on the SFI board with Quad and others leading the way. I still own preferred and a nice bunch of common (haven't sold a share) which is moving in the last few days. It is nice to contemplate just what STAR is going to do in the next five years. I suspect the development of the land projects is going to produce a great deal of value. I think the greatest temptation will be selling too soon.
I sold Friday, also, and am sad to hear of your ROE expectations. I have mostly moved to preferreds which do provide some nice yield as a seasoner to equity reit preferreds.
I can certainly expect them to increase the payout ratio in the reit (NRF). Even, expect another spin out to create a pure equity reit.
What I wonder about is the dividend going forward in the asset management company? I wonder if, being a C Corp or something else, if capital needs to be retained so that the asset management company is a capital appreciation play, no longer a dividend play. I can see a future spin out from NRF being a reit and dividend company, also. But, the asset management company not so much so. Any thoughts.