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?