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Resource Capital Corp. Message Board

lunco 53 posts  |  Last Activity: May 26, 2015 6:45 PM Member since: Sep 3, 2008
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  • "On May 19, 2015, NorthStar Realty Finance Corp. (“NorthStar Realty”) and NorthStar Healthcare Income, Inc. (“NorthStar Healthcare”), acting through direct or indirect subsidiaries of the Owner Partnership (as defined below), completed the acquisition (the “Acquisition”) of an $875 million real estate portfolio comprised of 32 private pay independent living facilities (the “Portfolio”) from affiliates of Harvest Facility Holdings LP (“Holiday”). The Acquisition was completed through a joint venture (the “Joint Venture”), which is owned 60% by NorthStar Realty and 40% by NorthStar Healthcare.
    The facilities comprising the Portfolio contain approximately 3,983 units and are located in 12 different states, with the largest concentrations in California, Texas and Washington. As of March 31, 2015, the Portfolio’s overall resident occupancy was approximately 93%. The Portfolio will continue to be managed by an affiliate of Holiday pursuant to management agreements with the Manager Partnership (as defined below), subject to the Manager Partnership's right to terminate the management agreements on 90 days’ written notice following the end of this year.
    In connection with the Acquisition, certain direct or indirect subsidiaries of the Owner Partnership (each, a “Borrower”) obtained 32 separate, cross-collateralized non-recourse loans through Fannie Mae’s Multifamily DUS Loan Program (each, a “Loan”), each with a fixed interest rate of 4.17% and a term of 10 years, for an aggregate principal amount of approximately $648 million. Although recourse for repayment of each Loan is generally limited to each Borrower’s respective assets, NorthStar Realty Finance Limited Partnership (“NorthStar Realty Operating Partnership”) provided a “non-recourse carveout” guaranty." NorthStar Healthcare Income Operating Partnership, LP will indemnify NorthStar Realty Operating Partnership, subject to certain limited exceptions, for its proportionate share of any obligations..."

  • Reply to

    recap conference call

    by forager3215 May 6, 2015 8:55 AM
    lunco lunco May 6, 2015 3:39 PM Flag

    seeds...
    You speak from experience, experience and sentiments that I share.

  • Reply to

    PSEC Might Be in DEEP Trouble

    by psec_isa_scam May 6, 2015 1:11 PM
    lunco lunco May 6, 2015 3:34 PM Flag

    Factually WRONG!!! PSEC's review by the SEC had absolutely nothing to do with the removal of ALL BDCs from the S&P 500 or from the Russell indexes. You have earned the "ignore" button for your untruthful statement above.

  • Reply to

    Dividend

    by keebon May 4, 2015 11:23 AM
    lunco lunco May 4, 2015 3:39 PM Flag

    mizesaw...
    Also, if there was a concern about being able to pay the dividend, why would the company indicate their intention to maintain, (or increase) the current dividend through 2016.

  • Reply to

    What happens when the interest rate rises?

    by wendy_shaherah Apr 30, 2015 11:40 PM
    lunco lunco May 4, 2015 11:39 AM Flag

    blue_sky...
    The nature of AI's hedges is best answered, IMO, by reading AI's SEC filings. As for how the actions of the BOE and/or the ECB may affect AI's hedges, I have a hard enough time trying to figure out what the actions of the FED might be and what the results to AI's hedges might be. There is certainly uncertainty in the financial markets and the best I can do is to make some educated guesses as to what central banks might or might not do, what the management of AI might or might not do, and what the market might or might not do. However, my bottom line is that I do believe that AI will continue to earn a non-GAAP core earnings that will allow AI to continue to make distributions at the current rate.

  • Adam Aloisi in a SA article publish today had this to say about how one might want to invest in various REITs, including NRF, going forward.

    "Strategy Session
    While rate movement will be key going forward, I think you can play REITs in a variety of ways. Conservative types will want to own well capitalized names like O, Simon, and Ventas (NYSE:VTR) with solid management and clean income streams. More aggressive types may want to look at some off the beaten path REITs like Rouse (NYSE#$%$), an owner of second tier malls that gets less per square foot than Simon, but is much cheaper and is improving its balance sheet. My old standby, NorthStar (NYSE:NRF) has been comparatively steady the past year and continues to churn out well above average dividends."

    Of course NRF's above average dividends is a result of its below average valuation, which, IMO will change as:
    1- the market changes its perception of NRF from being a mREIT to an equity REIT;
    2- NRF's recent acquisitions begin to have an impact on NRF's financial statements, especially on CAD which will result in higher dividends in the future;
    3- spin-offs continue to happen;
    4- NRF is recognized as an above average REIT investment, (for the reasons listed above) and the tax benefits of its dividends are better understood make it an "old standby" for more and more investors as they become more familiar with it.

  • Reply to

    deutshce (douche) bank

    by ruswise May 1, 2015 8:17 AM
    lunco lunco May 1, 2015 11:45 AM Flag

    ruswise...
    great observation.

  • Reply to

    deutshce (douche) bank

    by ruswise May 1, 2015 8:17 AM
    lunco lunco May 1, 2015 10:43 AM Flag

    Seeking Alpha bulletin this morning:
    May 1, 2015
    Northstar stocks pulled from Deutsche's short-term buy list • 7:11 AM
    Stephen Alpher, SA News Editor
    Neither Northstar Realty Finance (NYSE:NRF) nor the spun off Northstar Asset Management (NYSE:NSAM) has really been a short-term buy - both are down marginally over the last three months.
    For the year, NRF is up 6.7% while NSAM 9s down about an equal amount.

  • Reply to

    What happens when the interest rate rises?

    by wendy_shaherah Apr 30, 2015 11:40 PM
    lunco lunco May 1, 2015 10:38 AM Flag

    wendy...
    this last quarter showed us what happened when interest rates fell, (the 10 year was 1.8659 on 3/31/15 and 2.114 at the first of the year). If they had risen, then there would not have been the losses on the hedges that were experienced. I suspect that with rising rates, the hedging losses will be reversed and the BV increase.

  • Reply to

    So What Happens to the Dividend

    by frisk455 Apr 30, 2015 12:43 PM
    lunco lunco Apr 30, 2015 1:48 PM Flag

    frisk445
    This is a post I made yesterday. It may help answer your question.
    From the press release;
    "This non-GAAP core operating income measurement is used by management to analyze and assess the Company's operating results on its portfolio and assist with the determination of the appropriate level of dividends. The Company believes that this non-GAAP measurement assists investors in understanding the impact of these non-core items and non-cash expenses on our performance and provides additional clarity around our earnings capacity and trends. A limitation of utilizing this non-GAAP measure is that the GAAP accounting effects of these events do in fact reflect the underlying financial results of our business and these effects should not be ignored in evaluating and analyzing our financial results. Therefore, the Company believes net income on a GAAP basis and core operating income on a non-GAAP basis should be considered together."
    Please note that it is non-GAAP that has the most bearing on dividends and that number was $1.50, which BTW beat estimates by 30 cents. Also, while some of the hedging losses were actual losses, much of the hedging loss was a loss in value, a paper loss. With interest rates rising, one might think that the paper hedging losses should turn into paper gains which would improve BV.
    IMO, the dividend will remain $0.875 unless non-gap earnings fall significantly from what they were the first quarter.

  • Reply to

    Earnings have been released...

    by lunco Apr 27, 2015 5:16 PM
    lunco lunco Apr 28, 2015 12:26 AM Flag

    As long as a company has positive cash flow, they can continue indefinately

  • Reply to

    Earnings have been released...

    by lunco Apr 27, 2015 5:16 PM
    lunco lunco Apr 27, 2015 7:25 PM Flag

    What does the non-GAAP measure indicate?

  • lunco lunco Apr 27, 2015 7:24 PM Flag

    From the press release;
    "This non-GAAP core operating income measurement is used by management to analyze and assess the Company's operating results on its portfolio and assist with the determination of the appropriate level of dividends. The Company believes that this non-GAAP measurement assists investors in understanding the impact of these non-core items and non-cash expenses on our performance and provides additional clarity around our earnings capacity and trends. A limitation of utilizing this non-GAAP measure is that the GAAP accounting effects of these events do in fact reflect the underlying financial results of our business and these effects should not be ignored in evaluating and analyzing our financial results. Therefore, the Company believes net income on a GAAP basis and core operating income on a non-GAAP basis should be considered together."
    Please note that it is non-GAAP that has the most bearing on dividends and that number was $1.50, which BTW beat estimates by 30 cents.

  • Reply to

    Earnings have been released...

    by lunco Apr 27, 2015 5:16 PM
    lunco lunco Apr 27, 2015 6:45 PM Flag

    Looks like the decrease in BV ("the Company's book value per share was $24.83 as of March 31, 2015 compared to a book value per share of $27.95 as of December 31, 2014"), is causing some AH selling. The trades are fairly small and the volume is less than 8K shares so far but AI is down $1.89, over 8%. As I understood the earnings statement, the decrease in BV was caused mostly by the decrease in value of the hedging instruments being employed by AI. ("Reduced expectations for U.S. growth, low global yields and uncertainty about the pathway and impact of the U.S. Federal Reserve monetary policy contributed to lower forward interest rate expectations, decreasing the value of the Company's hedge instruments while its fixed-rate agency mortgage-backed securities ("MBS") did not appreciate commensurately as prices for those securities increased only slightly during the quarter. Lower rates drove heightened prepayment expectations on fixed-rate agency-backed MBS, shortening durations and creating increased mark-to-market adjustments between our 30-year agency-backed MBS and associated hedges.")
    While the drop in BV was substantial a significant portion of that drop was paper losses caused by revaluing the hedges based upon current low interest rates.
    The AH "sell-off" seems to me to be somewhat overdone as AI's non-GAAP core earnings, (real money) of $1.50 per share beat the earnings estimate of $1.20 by $0.30. This is one of those earnings reports that magnifies the difference between GAAP earnings, (a loss of $1.84 per share and non-GAAP core earnings of $1.50 per share.
    In discussing the use of GAAP and non-GAAP measurements the company stated, (This non-GAAP core operating income measurement is used by management to analyze and assess the Company's operating results on its portfolio and assist with the determination of the appropriate level of dividends.
    Please see post below for the full statement concerning GAAP and non-GAAP measurements

  • ARLINGTON, Va., April 27, 2015 /PRNewswire/ -- Arlington Asset Investment Corp. (AI) (the "Company" or "Arlington") today reported non-GAAP core operating income of $34.5 million for the quarter ended March 31, 2015, or $1.50 per diluted share. A reconciliation of non-GAAP core operating income to GAAP net income (loss) appears at the end of this press release. On a GAAP basis, the Company reported a net loss of $(42.2) million for the quarter ended March 31, 2015, or $(1.84) per diluted share, compared to net loss of $(32.8) million for the quarter ended December 31, 2014, or $(1.43) per diluted share, and net income of $7.0 million, or $0.41 per diluted share, for the quarter ended March 31, 2014. The Company's book value per share was $24.83 as of March 31, 2015 compared to a book value per share of $27.95 as of December 31, 2014.

  • Reply to

    SECONDARY

    by art6711 Apr 15, 2015 1:43 PM
    lunco lunco Apr 16, 2015 12:01 PM Flag

    art6711
    I would suggest removing your post from the NSAM message board.

  • lunco lunco Apr 14, 2015 4:28 PM Flag

    Something happened to NSAM at 3:00pm today. It went from $21.39 @ 3:00 to $22.28 in five minutes and to $22.78 in 20 minutes.

  • Reply to

    NRF....10 Billion in debt....780 M in Revenue

    by rbgambler99 Apr 13, 2015 2:39 PM
    lunco lunco Apr 13, 2015 6:06 PM Flag

    rbgambler99
    and your point is...?
    One might think, from your post, that the ratio of debt to revenue is in some way an important measurement in determining the financial health of a company.
    Let me suggest what many would consider better measurements:
    Debt service coverage ratio; (Interest payments divided by Net Operating Income)
    Debt to equity ratio; (Debt divided by equity)
    Quick ratio; (liquid assets divided by short term liabilities
    And my favorite when considering the financial health of a REIT; CAD. NRF, IMO, will continue to generate CAD that will allow them to not only maintain but increase the distributions the make.

  • Reply to

    NRF News...

    by nrf2020go Apr 6, 2015 3:50 AM
    lunco lunco Apr 6, 2015 5:00 PM Flag

    Looks like my impostor is at it again.

  • Reply to

    dar sold

    by maverick7572000 Apr 6, 2015 12:32 PM
    lunco lunco Apr 6, 2015 1:57 PM Flag

    I would suggest re-reading who made the post saying "bye" to NSAM, (it was made by mtwolfguy who apparently has sold NSAM), and who made the post mtwolfguy was referring to, (which was dar who didn't said anything about selling).

RSO
4.24+0.06(+1.44%)May 27 4:04 PMEDT