Do you know what the cost and timing was for the two large sales out of ACE3? It seems like those two sales alone are equal to the entire valuation of ACE3 when the assets were put in there. I can't imagine ACAS not knowing that there was interest in these businesses before spinning them out. This has robbed ACAS holders of a great bit of upside. So who are the owners of ACE3 that benefited? And since a sale of a business doesn't happen over night, when were initial discussions begun. It is this slight of hand that has ACAS trading this poorly IMO. With that said, I added another 35k shares yesterday and today and am short 450 of the 13 and 12 puts so I think that ultimately we will see some bump, but view this as a trade now and not worth holding longer term due to the lack of trust
Why should I have been able to sell october 32 puts for 50 and 55 cents just now unless someone is banking on very bad news for WMB or a total collapse which I don't image. I also sold KMI Sept 26.5 for .30! Talk about fear!
Distribution is now at a level that the board can slowly develop a history of raises to instill confidence. This is over a long period of time so the effect will not be immediate. We are comfortably at a payout ratio where there will be institutional confidence regarding stability as shown by rating agency removing VER from negative to stable. That is important. At this point I am constructive on the stock and will add on any selloffs.
They will only write down or up based upon current price of SIR. They don't pick and choose. It has to be a price that is considered to be a new consistent deck level for that to change. With SIR staying down, they had to write it down as other than temporary. Same will go for a write up in value.
If I sell property with $100 of income and $60 of debt interest, I get the net cash from the sale, but my net income drops by $40. That is oversimplified of course, but it shows that your post is jibberish. FFO drops when a property is sold unless the cash is used to buy another property with the same or higher net cash returns. In other words, if you sell at a 5 cap rate, you must buy a new property with a 5 or higher cap rate to maintain your cash flow. The only time you would permit a lower cap rate is if you have a much greater rent escalator to overcome the higher cost and lower initial cash flow. Still, ARCP is very cheap here.