they sold there shares back to GKK, they reduced (and now elimiinated) management fees and spent a couple million to end there relationship w/GKK (part of the PLANNED internalization).
Dont read too much into the reduced FFO to SLG. GKK will still have strong FFO.
NI may be off beacuse of loan provisions. Remember with GKK you have to follow the CASH FLOW. I expect FFO in the .50 to .60 cents range.
Investment income stayed flat Q3 to Q4 which means borrowers are still making there payments. A good sign. If we saw a dramatic drop in the investment income line that would spell trouble.
Prediction: Close at $1.50 today
they are both Hybred Reits, with NNN lease real estate portfolios on the real estate side and a mixture of 1st mtge whole loans and mezz loans on the debt side. Both finance with LOCs and CDOs as well as mortgages on the real property. DFI is larger, but I see many similarities...
These are very similar companies. Look at what happened today with each. Very curious.
BRIDGEWATER SL Green Realty and Gramercy Capital have sold their interests in 55 Corporate Drive, the three-building, sanofi-aventis USA headquarters campus at 55 Corporate Drive to Inland American Real Estate Trust for $230 million.
IR confirmed that they must file on or before the 16th. I asked if the planned to comply with SEC requirements. Answer: "Yes - Keep an eye out for it this week". IMO we will like the results...
These CDOs have been trading at 50 cents on the dollar....of course they needed to be downgraded. If you think the ratings agencies are out in front these issues....I have a bridge in brooklyn we should talk about.
Many posts seem to fret over the div suspension, debt restructure etc...There is no liquidity issue here in my mind. The Company has virtually no debt maturing in '09 and '10. If management is buying back the company debt at 50% discount I applaud the use of every penny for this purpose. I only wish I could buy back my Mortgage at 50% discount. Owning GKK is the closest I'll come to that.