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Omer Altay  

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  • My Second Half Predictions - Part I [View article]
    Hi Bret,

    What are your thoughts on REITs today? They seem to have gotten unusually cheap on a p/ffo ratio.
    Jun 30, 2015. 08:22 PM | Likes Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    ....I understand the negatives of the RMR Management agreement. But to say that issuing shares to grow AUM to grow fees is nonsense. Starting in 2014 RMR is no longer paid based on AUM. They're paid on the LOWER OF A) Real Estate at cost (aum) OR Market cap. Since market cap is below their real estate at cost price (6.7B) vs market cap of (4.24B), RMR is receiving LESS fees. In their prior management agreement they were paid based on AUM.

    The further RMR stock dives the less fees they get. RMR gets paid MORE if the stock rises. They're paid on market cap NOT AUM. AUM is NOT market cap, so you're the "clueless" one.
    Jun 29, 2015. 12:19 AM | Likes Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    I guess I'll spell it out for you since you don't understand basic math.

    If a company has 100 shares outstanding and stock price is $10 the market cap is $1,000. If they issue 10 more shares at $7 and the shares plummet to the offering price of $7, now there are 110 shares outstanding at $7, market cap of $770 (110x7). Looks like new shares were issued but market cap went down.

    Management will get LESS fees if they issue below NAV IF stock price declines more than the % diluted (Which will happen if they keep issuing shares below NAV).
    Jun 29, 2015. 12:08 AM | Likes Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    If they dilute 5% at below NAV, stock will tank more than 5% and they will get LESS fees. This is obvious.
    Jun 27, 2015. 03:50 PM | 1 Like Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    What? You just said HCN's #s are the same as SNHs but with more dividend growth. Would you be happy if SNH cut their dividend in nearly half to 4.8% then grew it say 10% a year? Would you be jumping in joy for that high dividend growth and claim that SNH is more committed to a dividend? Makes no sense...
    Jun 27, 2015. 02:44 PM | 4 Likes Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    Whiteshell, as per their 2013 management agreement new terms, they are paid management fees on the lower of:

    A) Market cap
    B) Cost basis of all real estate assets.

    So issuing shares below NAV to grow assets would result in less fees since market cap is lower. People keep repeating the same nonsense about growing assets at the cost of shareholders. This used to be a thing, but since 2014 they changed their fee structure. Looks good to me.

    See:
    http://tinyurl.com/pnk...
    Jun 27, 2015. 02:34 PM | 3 Likes Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    Buying into RMR is a good way to balance out the external management. Yes, Portnoys still control RMR with 10-1 voting rights, but RMR managed reits own half the economic interested. They're essentially getting half their fees back.
    Jun 27, 2015. 12:48 AM | 1 Like Like |Link to Comment
  • Senior Housing Properties Trust: A Big Opportunity In The Assisted Living Industry With An 8% Yield [View article]
    long snh here too. my biggest position. snh and sir have gotten way too cheap
    Jun 26, 2015. 08:24 PM | 1 Like Like |Link to Comment
  • Perfect World: Buyout Offer Likely To Be Raised [View article]
    I mean, I pretty much agree with what you said earlier. Farallon getting in now post-offer means they're either in it for the small arbitrage or to get a higher bid. It's not worth their time for such a small arbitrage opportunity.

    It's tough because the founder owns over 50% of the voting rights. He only needs like another 15% to secure the deal. He could easily just get fosun to vote with him and give fosun a kickback / piece of their shares when its relisted in China. He can do all this without raising the price. It's still a good bet IMO if you hold shares. Minimal risk.
    Jun 22, 2015. 04:32 PM | Likes Like |Link to Comment
  • Twitter up 4.6% on unconfirmed Google M&A rumors [View news story]
    Thanks for the clarification.
    Jun 19, 2015. 11:15 AM | 2 Likes Like |Link to Comment
  • Twitter up 4.6% on unconfirmed Google M&A rumors [View news story]
    Aren't all rumors "unconfirmed"? When a rumor is "confirmed" it's no longer a rumor.
    Jun 19, 2015. 10:54 AM | 15 Likes Like |Link to Comment
  • Ventas Has Gotten Way Too Cheap With 30% Upside On Strong Fundamentals [View article]
    Great work as always Dane. I always look forward to your articles on SA. Been long MPW for a while and added recently. I think it's one of the best buys in the space. Those looking for more risk more returns can look into SNH (dreaded RMR company that's gotten insanely cheap).

    I'm adding VTR tomorrow to my reit portfolio. Was considering HCP earlier but VTR looks like a better bet.
    Jun 18, 2015. 09:40 PM | 1 Like Like |Link to Comment
  • ARC Hospitality to buy 13 hotels for $300M [View news story]
    arc hospitality has nothing to do with the arcp ticker.
    Jun 16, 2015. 06:14 AM | 4 Likes Like |Link to Comment
  • Perfect World: Buyout Offer Likely To Be Raised [View article]
    Some news.
    Farallon Capital discloses a stake in PWRD.

    http://seekingalpha.co...
    Jun 12, 2015. 06:45 PM | Likes Like |Link to Comment
  • Farallon discloses PWRD stake, could hold talks about going-private deal [View news story]
    I still expect a higher buyout price as I stated in my last article on Seeking Alpha. PWRD is a steal at $20.20.
    Jun 12, 2015. 06:20 PM | 1 Like Like |Link to Comment
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