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Dane Bowler  

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  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    ag_guy

    Subtracting net cash would definitely be involved in calculations aimed at valuing the company. However, I decided to leave it out of the calculation as I was referring to these companies strictly as a land play. In other words, the free cash would affect the companies overall value, but has no bearing on them as a land play.

    It is a valid concern, and I should have mentioned my reasoning in the article. Thanks for commenting
    Apr 18, 2013. 08:39 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    traderpace,

    I agree with you that David Gladstone is a superb business man. I have long been an owner of GOOD.

    You mentioned that "As the profits go up the dividend should follow, as seen in the dividend jump from .04 to .12."

    The dividend did NOT go up and it is NOT supported at that level. the extra 8 cents per period is required for compliance with its listing as a REIT. It is temporary and has bee announced to end by the end of 2013.
    Apr 18, 2013. 08:34 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    I agree that is not the company's fault for the poorly displayed yield. They issued a press release detailing the precise nature of their dividend. The blame lies on the reporting mechanism of colloquial sites like yahoo finance.
    Apr 18, 2013. 08:27 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    bhh19,

    The cost basis you refer to is what was initially paid for them. Off the top of my head, it was roughly around $40mm. Investors pay more than 3 times that much making the rental return to investors under 3%. I am a big fan of triple net REITs, but most of them get cap-rates in the 7-10% range. 3% is overpriced. Gladstone is a smart man and when he bought the land for $40mm that was a great deal, but it is NOT a good deal for investors to buy the land for more than 3 times that price.
    Apr 18, 2013. 08:26 PM | 1 Like Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    Ligbfec,

    first off, timberland is NOT susceptable to economic cycles. log prices are, but the companies simply don't cut down the trees when prices are too low. By deferring harvesting, these companies continue to grow their asset base (trees grow bigger) and sell when the time is right. Perhaps cashflows vary, but the economic growth is constant. If you are okay with a 3% yield that is your call, but the stock is drastically overpriced relative to earnings.

    There are plenty of better sources of yield where you can get a higher dividend without loss of principal
    Apr 18, 2013. 08:20 PM | Likes Like |Link to Comment
  • Whole Foods: The Short Thesis [View article]
    NGVC has announced potential to expand to 1100 stores. Compared to Whole Foods' 345, this is very serious competition that will limit WFM's ability to expand.

    Walmart, Kroger, Safeway, Trader Joe's and countless others each provide partial competition. Perhaps none are a direct competitor, but when summed together it is a very material threat.
    Apr 12, 2013. 03:13 PM | 1 Like Like |Link to Comment
  • Whole Foods: The Short Thesis [View article]
    WD216,

    Well, the fair price depends on how much you think it will grow. It is difficult to say, but your $50-60 estimate is about right by my judgement.
    Apr 12, 2013. 02:05 PM | Likes Like |Link to Comment
  • Whole Foods: The Short Thesis [View article]
    Thank you Chris
    Apr 12, 2013. 02:03 PM | Likes Like |Link to Comment
  • Investing In Industrial REITs Part 3: Lexington Realty Trust [View article]
    mgordon,

    I agree that the run-up is disappointing for someone trying to get in, but I think it still has room to run. Relative to the rest of REITs and the market as a whole, it is still quite cheap.
    Apr 12, 2013. 09:51 AM | Likes Like |Link to Comment
  • Investing In Industrial REITs Part 3: Lexington Realty Trust [View article]
    Hawmps,

    Thanks for the comment. In terms of the investment grade rating, their balance sheet is nearly ready, it is just a matter of getting the agencies to see it.
    Apr 11, 2013. 02:41 PM | Likes Like |Link to Comment
  • Investing In Industrial REITs Part 3: Lexington Realty Trust [View article]
    Brad,

    I used to own some ADC, but since the huge run-up I feel it is no longer a value. ARCP is also approaching full valuation. In my opinion, the triple-net opportunities going forward lie in LXP and LSE.
    Apr 11, 2013. 10:14 AM | 6 Likes Like |Link to Comment
  • Investing In Industrial REITs Part 3: Lexington Realty Trust [View article]
    smurf,

    well the rule is that REITs have to pay out 90% of TAXABLE income. For most REITs this is a very small or negative number so I'm fairly confident LXP's dividend is legally sufficient. I tend to work more with FFO for REITs as this is a better measure of their true cashflows.
    Apr 11, 2013. 10:07 AM | 4 Likes Like |Link to Comment
  • My 2Q 2013 Diversified REIT Portfolio Designed For Outperformance [View article]
    well its not as good of a value as it used to be due to the huge capital apprecaition, but they have continually impressed me with their acquisitions
    Apr 10, 2013. 12:36 AM | Likes Like |Link to Comment
  • My 2Q 2013 Diversified REIT Portfolio Designed For Outperformance [View article]
    Cheesecake,

    Here is the focus article on WSR
    http://seekingalpha.co...

    It is getting rather outdated unfortunately, but I intend to write another piece on Whitestone soon.
    Apr 9, 2013. 05:55 PM | Likes Like |Link to Comment
  • Investing In Industrial REITs Part 2: CapLease Evades The Pure-Play Premium [View article]
    junction,

    While I too dislike the issuance of equity at such low prices, the offering under $5 was accretive mathematically because they were able to obtain such a high cap rate. If they could make the $5 issuance accretive I suspect they will have no trouble making th $6 issuance accretive.
    Apr 9, 2013. 05:53 PM | Likes Like |Link to Comment
COMMENTS STATS
625 Comments
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