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Dane Bowler

 
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  • Independence Realty Trust's 7.4% Yield Is Worth A Look Here [View article]
    Josh and rdbach,

    I'm not sure that I qualify as an expert opinion, but i'll do my best.

    RAS has become very cheap in these past couple weeks and has very strong upside potential. Its market price is being held down at the moment by a legacy asset (Tabernas) which is making their earnings appear negative despite a very healthy cashflow. While Tabernas is not actually costing them money as they already value it at 0, the paper loss creates confusion and discomfort with the stock in the market. As it clears off the balance sheet, the enormous CAD will become visible to the market and hopefully, the value will be realized.

    I am long both RAS and IRT.

    Thanks for the article Josh and the kind words
    Aug 4, 2014. 05:05 PM | 1 Like Like |Link to Comment
  • An 8.6% Yielding REIT Preferred With Upside From Pareto Superior Pricing [View article]
    James,
    The C pays a much lower coupon due to being variable, in my opinion it is not as good
    Jul 28, 2014. 12:49 AM | 1 Like Like |Link to Comment
  • An 8.6% Yielding REIT Preferred With Upside From Pareto Superior Pricing [View article]
    griffbos,

    I was not referring to it having a higher coupon, but rather a higher current yield (price/dividend).

    it did jump nicely today, and is almost in balance with RSO-A. I think the current yield spread will go a little bit further than the 1 basis point it closed at today, but RSO-B has definitely moved in the right direction with today's gains.

    Thanks for reading and continuing the discussion
    Jul 24, 2014. 04:50 PM | 1 Like Like |Link to Comment
  • Sotherly Hotels Still Has Room To Run [View article]
    Galicianova,

    Hersha is a great company in my opinion. Their NYC properties have appreciated nicely as hotel NAV rises in major MSAs, and they have been smart enough to be a seller into the trend rather than a buyer.
    Jul 21, 2014. 11:44 AM | 1 Like Like |Link to Comment
  • A Behavioral Overreaction Makes Select Income Realty An Opportunity [View article]
    freeman,

    I wouldn't call selling at a massive profit "abandoning ship". CWH took advantage of the Portnoy's fears to make an intelligent profit.
    Jul 15, 2014. 04:51 PM | Likes Like |Link to Comment
  • A Behavioral Overreaction Makes Select Income Realty An Opportunity [View article]
    ditten,

    I didn't mean to suggest that it was not relevant, rather that it was already priced in. the 33% discount to market median suggests value destroying acts by management were already expected.
    Jul 13, 2014. 12:39 AM | Likes Like |Link to Comment
  • A Behavioral Overreaction Makes Select Income Realty An Opportunity [View article]
    waldipup,

    I agree that a 4% move alone is not a huge move, but a 4% dip on a stock that is already 33% discounted to the median multiple makes it almost too cheap to ignore when the fundamentals are strong.
    Jul 13, 2014. 12:38 AM | Likes Like |Link to Comment
  • RAIT Financial's Asset Management Capabilities Could Unlock Material Value [View article]
    berloe,

    The dividend is well supported by CAD.
    Jul 11, 2014. 07:42 PM | Likes Like |Link to Comment
  • RAIT Financial's Asset Management Capabilities Could Unlock Material Value [View article]
    Lochner,

    I agree that it is an aggressive approach and I stated in the article that $3B in assets would be the bull scenario.

    The reason I feel comfortable speculating like that is because there is no downside to the fee stream as the market is seemingly not attributing value to it.
    Jul 10, 2014. 10:42 AM | Likes Like |Link to Comment
  • An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties [View article]
    Toneguru,

    I think the data you looked at might be for general stocks and not applicable to REITs.

    CSG's debt load is moderately high but well within the normal range for REITs. Their EBITDA debt coverage is 3.4X which is also within the normal range and not particularly concerning.

    P/E ratio for REITs is almost always going to be high because REITs don't always generate earnings due to high depreciation at an accounting level. The REIT equivalent metric is P/FFO and in this regard CSG is very low.

    In terms of the dividend payout ratio, CSG pays out about 82% of FFO which is quite sustainable given the contractual nature of its revenues.

    I hope this helps to clarify and thank you for reading
    Jul 9, 2014. 11:44 AM | 7 Likes Like |Link to Comment
  • An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties [View article]
    Steve,

    What I meant by the mixed bag comment is that while management seems to be experienced and is generally making good decisions, CSG's performance has been quite poor. This raises doubts that management might not be as strong behind the screen as they publicly appear.

    Of course it is also possible that the underperformance was a timing or macro thing, but I think most investors would be more trusting of management with a stronger track record.

    I hope this helps to clarify and thank you for reading.
    Jul 9, 2014. 10:07 AM | 2 Likes Like |Link to Comment
  • An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties [View article]
    Brad,

    Thanks for the opportunity to clarify that statement. My guess would be that CSG's price has been held down by an outflow of investors who owned it before it was listed. Many of these investors lost money with CSG so they are likely spreading negative sentiment in addition to selling their shares. I do believe, however, that the pace of outflow is slowing as CSG has been public for a while now so the demand for shares can now surpass the supply. With these more transitory trading elements beginning to fade, CSG should trade closer to its fundamental value.

    In terms of the office exposure, I echo your thoughts that it is not as strong as their industrial portfolio, but office REITs still trade at an average of 14.6X forward FFO. CSG's properties are arguably superior to some of their competitors so they really shouldn't be so discounted.

    Thanks for reading,
    Dane
    Jul 9, 2014. 10:04 AM | 6 Likes Like |Link to Comment
  • Farmland Is The Next Big Thing In REITs [View article]
    WMhilger,

    I apologize if it was misleading in the article, but you have some of those facts reversed.

    The $360 annual rent/acre was for the initial portfolio which is valued at roughly 10,000 per acre. The more recent land bought around $2,000 per acre has substantially lower rent. I hope this clarifies.
    Jun 30, 2014. 05:22 PM | Likes Like |Link to Comment
  • Farmland Is The Next Big Thing In REITs [View article]
    The 7000 acre figure you are quoting was their IPO acreage. FPI now has closer to 23,000.

    Thanks for reading
    Jun 30, 2014. 10:40 AM | 1 Like Like |Link to Comment
  • 3 Warnings For Those Seeking Demand Growth Stories [View article]
    David,

    I'm long VTR because the price has dropped more than it should have in my opinion. Back when it was over $80 it was likely overpriced, but now that its sold off to the low $60s, its a pretty good deal for bluechip quality. My bet is that a couple dividend raises will bring it back into favor.
    Jun 19, 2014. 10:14 AM | Likes Like |Link to Comment
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