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Marc Gordon  

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  • There's A Lot In Store For STORE Capital [View article]
    Got it! Thanks.
    Mar 1, 2015. 01:35 PM | 1 Like Like |Link to Comment
  • There's A Lot In Store For STORE Capital [View article]
    Hi Brad, Seeking Alpha shows that the dividend is $0.46, which is how I got the dividend of 2.3% at a share price of $20. I had also checked NASDAQ since I figured the exchange should have it correct, and they show that the Annualized Dividend is $0.4556, similar to Seeking Alpha.

    Having noted that, after reading your reply I looked at the STORE Capital website which says "As previously announced, STORE Capital declared a pro-rated dividend per common share of $0.1139, or $1.00 per share on an annualized basis, reflecting the period since the closing of the IPO through December 31, 2014" although clearly $0.1139 times 4 quarters does NOT equal $1.00 per share.

    Clearly something in the dividend calculation for STORE Capital is not as straight forward as usual due to the pro-rated portion. Perhaps you could shed some light on what the precise calculation is?

    All the best, Marc
    Feb 28, 2015. 02:01 PM | Likes Like |Link to Comment
  • There's A Lot In Store For STORE Capital [View article]
    Brad, even at your target entry point of $20 the dividend will only be 2.3%, which seems a small benefit for the elevated risk of a company with little track record. Aren't some of the larger and extremely well established companies like O, WPC, and NNN which also have higher dividends much more attractive for purchase than STOR at $20?
    Feb 27, 2015. 01:45 PM | Likes Like |Link to Comment
  • The Evolution Of A Virtual Industrial Park [View article]
    Brad, thanks for this excellent update on STAG. I also liked your point by point comparison versus CSG, and I am now reconsidering my below market limit order for CSG. One more week until the release of the ARCP audit and then we should have a better feel for whether it is a viable independent company.
    Feb 25, 2015. 03:00 PM | Likes Like |Link to Comment
  • Bluerock Residential Pays 8.5%, Should I Buy It? [View article]
    Brad, thanks for this well-reasoned article, which nicely balances the benefits and the risks of the company finances. It is very useful information.
    Feb 17, 2015. 05:07 PM | Likes Like |Link to Comment
  • Charlie Brown's Under The Radar $10 REIT Portfolio [View article]
    I asked the same question for that article, but you did not answer it there either, so I am likely not being clear. The same improvements in LXP trends that took place recently have been occurring since 2012, but Mr. Market close to ignore them during the last 24 months and has assigned essentially no value to them. This may be due to the lack of an obvious catalyst, or some other factor that I am not seeing. In any case, since Mr. Market has ignored these improvement over the last 24 months, is there any specific reason you think they will be recognized in 2015?

    I ask because I am considering purchasing LXP for my portfolio, but I am perplexed by the stock's performance.
    Feb 13, 2015. 12:47 PM | Likes Like |Link to Comment
  • Charlie Brown's Under The Radar $10 REIT Portfolio [View article]
    Regarding "'I'm hoping that ... Lexington Realty (NYSE:LXP) can make a move this year", since February 12 2013 LXP has gone nowhere, but with a lot of interim volatility. Why should 2015 be any different?
    Feb 12, 2015. 04:14 PM | Likes Like |Link to Comment
  • HCP Inc. Slides On Woes Related To Its Top Tenant [View article]
    Buying HCP today is investing for a sucker yield (and at about 5% not even that great a yield for the risk). A lesson from ARCP is that when a stock has regulatory issues surrounding aspects of the business, one should stay on the sidelines at least until the smoke clears. There are many other REITs that have no regulatory investigations and have compelling business models, and these are the ones to invest in.
    Feb 11, 2015. 01:45 PM | 3 Likes Like |Link to Comment
  • REITWorld 2014 Recap: Kimco Realty [View article]
    Here is an interesting article regarding Kimco:

    SNL: Staples-Office Depot Merger–Wrong Stuff for REITs
    February 9, 2015, 11:35 A.M. ET
    By Randall Forsyth

    As if mall investors didn’t already have enough woes stemming from the bankruptcy of RadioShack (RSHC) , they also have to contend with a likely wave of store closings resulting from the merger of Staples (SPLS) with Office Depot (ODP), according to a report from SNL Real Estate.

    The REIT with largest exposure to the Staples-Office Depot in terms of leases and square footage, that would be giant Kimco Realty (KIM) with 119 leases. They account for 2.2% of Kimco’s annual rental revenues, SNL said.

    Most exposed to Staples were two Canadian REITs listed in Toronto, Plaza Retail REIT and Retrocom REIT, which SNL said respectively derived 2.9% and 2.5% of their revenues from the office-supply giant. Urstadt Biddle Properties (UBA)had the largest exposure to Staples among U.S. REITs, with 2.3% of its revenues.

    As for REITs exposed to Office Depot, One Liberty Properties (OLP) gets 5.5% of its revenue from the paper and toner purveyor, followed by Equity Commonwealth(EQC) with 2.2%.

    Office Depot already was in the process of shuttering 400 Office Max stores as the result of the combination of the No. 2 and No. 3 in the sector. Of course, the entire bricks-and-mortar office supply business is being pressured by (AMZN.)
    Feb 9, 2015. 04:57 PM | Likes Like |Link to Comment
  • An Attractively Priced 'Build-To-Suit' REIT That Yields 6.1% [View article]
    Brad, regarding "I believe 2015 will be the turning point year." LXP is almost unchanged in share price since 24 months ago, despite a lot of interim volatility. Why do you think 2015 will be any different than 2013-2014?
    Feb 9, 2015. 02:25 PM | Likes Like |Link to Comment
  • Specialized REITs Poised For Growth In 2015 [View article]
    I strongly recommend that you study how to properly value REITs, specifically, that you should use Funds From Operations (FFO), not PE and cash flow. GAAP historical cost depreciation of real estate assets is usually not correlated with changes in the value of real estate assets, whose value usually does not diminish over time, as historical cost depreciation implies. For this reason, comparisons of the operating results of REITs that rely solely on net income have been less than satisfactory. Comparing or measuring prices of REIT stocks solely in terms of conventional P/E multiples is not particularly useful like it is for a conventional corporation. Funds From Operations (FFO) should be used for the sake of determining a REIT's capitalization multiple. FFO is a measure of the sustainable level of dividends payable by a REIT. FFO specifies that depreciation and amortization are to be added back to consolidated net income. Examples of items that should be added back include real property depreciation, amortization of capitalized leasing expenses, tenant allowances or improvements, and the like. FFO produces a measure of consolidated operating performance that is recurring in nature, and is far superior to the GAAP metrics that you are using.
    Feb 5, 2015. 02:06 PM | 2 Likes Like |Link to Comment
  • Starwood Waypoint Residential Has All Of The Ingredients For Something Special [View article]
    This article repeatedly refers to economies of scale, but it appears to me that there are considerable dis-economies of scale as costs are very high for management, operations, and maintenance of single family homes, there are higher vacancies than apartments, and at sale time, the seller likely has to sell in pools or in bulk at sizeable discounts. Think about it; would you like to own either two 200 unit apartment buildings or 400 homes spread over multiple states? The answer as to which has a better economy of scale seems obvious. So what is the evidence that SWAY is capitalizing "on the efficiencies generated through economies of scale"?
    Feb 3, 2015. 03:43 PM | 3 Likes Like |Link to Comment
  • What Is The World's Largest Net Lease REIT Worth? [View article]
    Thank you for this very interesting analysis Brad! I think part of the value of this is general education of what goes into NAV calculations, as well as that it gives readers a basis for figuring out where they agree and disagree with your valuations, adjusting the figures of your model to their expectations (such as cap rates, Cole's value, etc.) and being able to come up with their own estimate of NAV.
    I also like charleyzap's comments, although I must note that if "triple net REITs have become a bond substitute" then ARCP must be the junk bond substitute.
    Jan 29, 2015. 12:24 PM | 3 Likes Like |Link to Comment
  • 5 Reasons I Am Accumulating A Long-Term Position In Verizon [View article]
    Frank you make an excellent point. I am a current Verizon subscriber and I cannot say that I am a happy customer. However, they are still better than ATT, S, and TMUS. In a business with a huge moat and as essential and massive as wireless, you don't have to be good, you just have to be better than the competition, have adequate financials, and have a sustainable dividend to be a worthwhile investment, and VZ qualifies.
    Jan 28, 2015. 11:19 PM | 1 Like Like |Link to Comment
  • Beware Of The Sucker Yield: Bumpy Roads Ahead For Wheeler REIT [View article]
    Brad, I have always liked the rather pithy definition of "sucker yield" that I read back in the April 2008 edition of Morningstar DividendInvestor (on page 15) "I can see that I fell for just the kind of “sucker yield” that I’ve been warning investors against for years. Their fat dividends were not a way of rewarding investors for steady business success, but rather a “bribe” to draw capital into a risky operation."
    Jan 28, 2015. 02:41 PM | Likes Like |Link to Comment