Great post!! I did not look it up but did they not say a few quarters ago that they were not going to go out issuing shares to buy hotels? I had about the same price target in my mind as well. These guys say one thing and do another. In the past it was all how they know how important the dividend is. Now it is oh, what a capital intensive business this is we can't pay a dividend.. OK, so here we are, occupancy is 2% higher than the past peak. Share price is not even 1/2 where it was at peak. OK, peak was way over valued. But heck, if there had not been the dilution train we could have been a lot higher.
I was hoping we would hear a discussion of refinancing the preferred once they get to investment grade. Anyone think that is something we should hope for?
I wonder how they reached that target. I rather liked the Smith Travel luxury RevPar increase last week of 16% and if we saw that all year I guess I could see that price. I think Chicago might be a problem area. I am curious about the Marriott income guarantee that come into 4th Q earnings. No mention of it in the last Q CC.
What to make of that Barrons quip today. More free cash flow? Is not GGB going to have to spend to develop ore? Sell on SID. I was wondering if SID had been rising because of backing out on buying the Thysoenkrupp assets. Lord I hope this stock does make a move.
I doubt a link would work, but there is a Jan. 3rd article about New Jersey office improving. That call sure did not give me a warm feeling:
New Jersey's office market ended 2013 on a high note, notching the second-highest quarterly leasing volume in four years even as large blocks of space continued to open. ....All told, the activity on the waterfront totaled more than 200,000 square feet for the first time since mid-2012, Cushman & Wakefield reported.
"It is safe to say that New Jersey's office market is seeing notable momentum heading into 2014," Kimberly Brennan, C&W's New Jersey market director, said in a prepared statement. "We look forward to a promising year."
The firm also noted that stepped-up demand pushed rental rates up by a full $1 during the fourth quarter. That brought the rates to $26.39 per square foot, up 6.3 percent year over year.
Granted, I could not listen to everything. But that sure did not give me confidence. Possible dividend cut? Did they even mention when the apartments will start producing income?
I keep pondering today's story (not directly related to BEE) of the increase in value for the Plaza in New York. Anyone have any thoughts on the value of Essex compared to what was paid? The value of the whole company in relation to Orange Capital's $14 estimate?
"Just a year after acquiring a controlling stake in the 280-room New York Plaza hotel for $600 million, Mumbai-based Sahara Group is looking to sell the property as legal and financial issues swirl about the company, the New York Post reports.
Sahara, led by Subrata Roy, has already received one $1.6-billion offer from an unidentified group from the Middle East"
Granted I am not sure if it is an apples to apples comparison.
Well, I hope New Jersey will be a net beneficiary if businesses flee New York to avoid tax increases. I don't live back east, can someone comment if NJ would be an attractive alternative? I think CLI has 4 times more space in NJ than NY.
Interesting, Indian Hotels abandon's purchase we go up. Strange takeover of Bali Hotel, we go up. Did anyone read that SEC filing by Indian Hotels. Did they actually increase there stake?
Well, it is a very nice hotel without a doubt. But not a bargain. I guess perhaps they are thinking that with the new office in the area things will get better. But nice asset, provides diversification so I am not complaining.
Not sure why the sell off. Some sweet compensation package coming down the pike that will dilute things?
I am still scratching my head over that West Harlem loan deal. I don't get it. Why loan the money. What did we get out of it? Some smelly deal and the shareholders don't even get a stinking 1 cent increase in the dividend? Come on. Lets see an increasing dividend.