Typo.. I mean leveraging up... I'm impressed that they are generating this much AFFO with so little leverage.
RSO is levering up... There is plenty of room for that... I have no doubt they will cover the dividend before year end.
So what you are saying is that earnings must be 100% higher from here before divi is covered? But Cohen said they would cover the dividend before year end, so something is not right in your calculation of what CAD (cash available for distribution) is.
The same old same discussion AFFO vs GAAP... Everyone knows AFFO is a better measure for figuring out how much cash was generated for distribution... If what you saying the $0.11 is the cash eraned, book value would have fallen much more than 4 cents.
The news says to be paid on stockholders of 31 december, so I suppose the fall is not because of the dividend, or what? I
For me RSO is turning out to be a great trading stock... I have a big core position that I hold for long term, on top of that I trade on dips below $6 or a quick profit to lower my average price... The reason I like RSO so much for trading is, if I made a short term purchase that turns our to be a bit above the trading range, I can always wait a few weeks to sell our for a profit... I do these trading on margin.
Sentiment: Strong Buy
What is very risky about RSO? They are only leveraged 1.8 times? With risky I imagine an investment where there is a big risk of loosing 30% or more.
I'm wondering why RSO don't double the leverage to 3.6, that by it self should increase earnings and thus the dividend... At the current 1.8 leverage, there should be room for increasing it... Why don't they do it?
Sentiment: Strong Buy
Only other 2 reits I know that are growing income and raising divedens is RAS and NRF, both are much more expensive than RSO... So you have to take into account the stock price...
Yes... It's still $0.80... Why you asking when you can read this in their latest earnings release?
Well, if RSO was selling at $8 I guess it wouldn't be such a great deal... But it isn't... At $6, it's undervalued... No way any one purchasing at these prices will loose money... I don't care at all for dividend increases... All I want is for them to be able to pay the current dividends out of profits, and I believe they will... They are getting 14% return on capital, only leveraged 1.8 times... So there ample room fro leveraging up and putting all the 200 million $ they have to work.
You did very well... Another reason to move out from RAS into RSO, is to lock my gains... Chances of losing big on RSO on a market downturn is smaller than if I stay in RAS, because RSO haven't had much of a run up... So, I guess I'm being more conservative investing in RSO... the 13% dividend also give a some protection of price decreases... I'm all about preserving profits right now, given the current market run-up and anticipation of a correction coming soon.
Yes, it is correct... RSO is almost done transitioning from their very profitable CLO investments (I think thats the name) for which they have received back their equity, and moving into other types of loans... During this transition, they have sold the property to maintain AFFO above dividend payout... The transition is almost over and they have plenty of cash to invest going forward, which when completed will provide AFFO to cover the dividend...
RSO is in a transitional period... During this transition, to maintain the AFFO above payout ratio, they sold a property. But the transion is going well... They have lots of cash to invest and I'm convinced they will be able to earn more AFFO than they pay out in dividends... For those looking for an increase in dividend, well, I think RSO is not going to do that anytime soon... As I said, they are transitioning from CLO's (not sure the name) into other type of loans... But I see potential for growth in 2015... They acquired a new business, which they want to grow, so management is absolutely also thinking about growing.... They are hiring staff, etc... So, I Sold all my RAS today, for a nice gain of 0.80 per share + dividend... Went all in on RSO, looking to gain $0.5 to $0.8 + plus dividends.
Hi, there... Well, I took my nice profits on RAS... I sold out today and went al in on RSO after reading their quaterly earnings announcement and outlook for 2014... 20c in dividends for all 2014, and a low stock price of $6.14... Looking for a $1 gain per share... RAS may run a bit higher but chances of making a short term gain of $1 I believe is ahigher owning RSO... Also, I will be paid a whole lot more to hold the shares.
I will be back into RAS if it drops 5% to 10%.
1. They make 14% return on investments while only being leveraged 1.8 times. Other reits have to leverage much more to achieve this type of returns.
2. Little to no interest rate risk.
3. Loans are performing really well.
4. Visibility of dividend payout the next 12 months.
5. Great management team that is doing a good job on transitioning from CLO's to other types of investments.
6. Good growth possibilities. They are aquiring new businesses with good potential for growth.
RSO is a no brainer at $6.15
Sentiment: Strong Buy
That's why I love RAS... It's one of the few stocks were I don't have a problem putting all my money on... So, at $7 I did that. Now I'm sold half so I can make a few trades down the road.