Stone Fox Capital
Long/short equity, growth at reasonable price, research analyst, deep value

Colony Financial: Too Volatile For A 6.5% Yield

Most investors know Colony Financial (NYSE:CLNY) for its investment in single-family rental homes, but the company is actually so much more. In reality, the company is a real estate investment trust, or REIT, that owns a diversified portfolio of distressed and opportunistic commercial real estate debt and equity investments.

The REIT currently offers a solid 6.5% dividend, but Colony Financial has raised money multiple times at similar prices in relation to the current net asset value, or NAV. In addition, the company is now highly invested in equity at nearly 40% of the investment portfolio, but the stock has seen limited gains since the IPO back in 2009 at $19.50.

Colony Financial has consistently grown core earnings since...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details