Will be interesting to see if they double the dividend based on the "operating as a REIT" mantra, or they stick to the previous year's distributions and wait to bump it up. Last year, they declared it on the 12th or 13th so they are a little behind.
Ding ding ding. At least LAMR hasn't gotten theirs either. The IRS is being very unaccomodating. The prision REITs got theirs in January last year.
I've been thinking of doing that the last 3 weeks but I know the PLR will come out when I do that!
You referring to "shorter dated options" as being the puts expiring soon? And ou have to think that IRM's PLR is coming first and is causing this delay for everyone. LAMR's is pretty cut and dry for the IRS.
Is that from Skadden's "kiss the IRS's behind" newsletter? They really went out on a limb saying real estate is real estate, non-real estate is non-real estate. LOL! Fact of the matter is that the racking meets the current definition of real estate. IRS can't do anything about that unless they want to lose in court.
CFO on the conference call also said they expected it to return to 2% in 2014..... Nothing is going to combat this pessimism until they get REIT approval. And I'm surprised not one analyst asked what they were going to do about Q1 dividends if they didn't get approval in time (management is going to have to make a decision in next week). At this point, I wish IRM would just say "screw it" and double the dividend.
Looks to be expecting no PLR in the upcoming months. Buying opportunity if you can stomach the risk. I find it a joke you can buy the July 30s for less than 1.60.
I think the stock is only a little rich as a C-corp. A 4% qualified divy is very rare, and IRM's income stream is stable for the next 5 years. From a REIT perspective, assuming a doubling of dividend. This stock should be 38-40/share.
Just read the earnings release and conference call transcript. Wall Steet b.s. at its finest. The press release clearly stated that EPS would been in-line at 22c if not for one-time reorganiational/(tax charges). The fact OIBDA was strong and the cornerstone acquisition is just now going into effect is very positive that OIBDA will rise in 2014.
As for the October 2015 comments, I think the market may have overreacted to that and the simple fact they didn't sound as positive as Lamar on the timing of the PLR. Again, PLR's are supposed to be answered first in, first out. Off the top of my head, IRM submitted in July 2012 with LAMR was November 2012. Not saying the IRS could break protocol (since the IRS has shown lackluster effort to answering new, complex requests), but I would expect IRMs around the time of LAMRs.
I'd also like to point out that IRM management stated the last day for calendar year 2014 REIT approval was October 2015 is actually false. The cutoff is September 15, 2015 which the extended due date for the 2014 corporate or REIT tax return. A REIT election is made with the first tax return filing, which is why they can wait till 9/15/15. HOWEVER, making this election in 2015 would case IRC 4981 Excise Tax issues if they hadn't paid out at least 85% in 2014 dividends of the 2014 REIT taxable income. Basically, they'd get with a 4% tax on the amount they should have distributed.
Again, I think IRM will get the ruling in the month or so. Presubmission conferences and research should have already been complete by November which usually takes 2-3 months of the expected 6 months for a ruling of this type. My guess is that the IRS is going to issue LAMR and IRM's ruling around the same time to appear fair. I think the October 2015 is completely irrelevant as it was an analyst question that really has no bearing on the IRS PLR process. Once approved, IRM will announce retroctive conversion, update 2014 forecast on FFO/AFFO basis, and up divy
I'm not sure who is representing Lamar accounting and legal wise, but I'm sure Deloitte is in constant contact with the IRS for Lamar. I wouldn't worry about your Jan 15s. At worst this thing drags out till May.
I unloaded my March's for a 10% loss on this runup. Was staring at a 30% loss before the runup. I'm also loaded with Aprils but I'm MAJORILY LOADED in Julys. I'll wait to buy in with my March proceeds in morning. IV crush will drop the Aprils, maybe Julys.
I say its doubtful we got the ruling this week, but its sounding like probably in the next month. Unless LAMR was first to bat and they haven't done anything on IRM. But I doubt that. I just assume they juggle multiple PLRs at one time.