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Kellogg Company Message Board

trader123454321 1 post  |  Last Activity: Jun 28, 2015 10:25 AM Member since: Jul 29, 2012
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    What's Up With WPC?

    by financekid299 Jun 25, 2015 12:00 PM
    trader123454321 trader123454321 Jun 28, 2015 10:25 AM Flag

    Around 25% of NOI is volatile from investment management, so it would be reckless to take the payout ratio high.

    Near $4 AAFO/year is from NNN reits so the payout of 3.82 makes sense.

    I believe the recent drop, exacerbated by downgrade is from At the market offering of equity of 400M which is 6%. It has to be done since company issued $1billion in debt roughly earlier this year--they need to reduce leveraged, but timing is poor of course. At least they issued the debt 4-5 months ago and got very low rates b/c the stock has 1% or so higher yield than if they issued equity 6 months ago, but at least the debt was at good rates.

    But last time they issued lots of stock was sept 2014--see what the stock did that month--only major down month the entire year.

    I believe stock is cratering due to overall reit selloff and then right as market is dumping Reits WPC needs to issue stock.

    I believe this is a great buy zone here.

    Sentiment: Strong Buy

K
63.14+0.13(+0.21%)Jul 2 4:04 PMEDT