Seeking Alpha

Tim McPartland

 
View as an RSS Feed
View Tim McPartland's Comments BY TICKER:
Latest  |  Highest rated
  • This Self-Directed Hospitality REIT Isn't So 'Super' [View article]
    Hi John--I wrote on SPPR exactly 3 years ago and the story was not much different then.

    http://seekingalpha.co...

    A buyout probably makes little sense as the assets have been overvalued on a continuous basis.

    Entrenched management is the problem and with a small REIT like this it best makes sense to just liquidate and start over.
    May 14 01:43 PM | 2 Likes Like |Link to Comment
  • Farmland Partners IPO Offers Investors Unique Opportunity To Own Farmland [View article]
    There is not one bit of this deal that should be attractive to any investor---including the $400,000 salary paid to the chairman for managing what is a very minor bit of farm land.

    I covered this on my website about 2 weeks ago and cover the negatives--not the positives of the offering as there are NONE. The claimed rents are unbelievable given that corn was selling as high as $8.50/bu a year ago and now it is $5/bu. A simple calculation makes these rental claims so silly that I laugh out loud.

    The author is correct that this would be the first REIT in row crops, but Gladstone Land (ticker:LAND) has been operating for a year with ag land in CA, AZ, FL etc and their financials are terrible. They started off immediately paying a .12/share distribution and have cut that to .03 already.
    Apr 5 07:30 PM | 1 Like Like |Link to Comment
  • Supertel Hospitality Preferreds Trade At Large Discount [View article]
    Neither of these make SuperTel a reasonable REIT investment. With a REIT like this why would an investor like Elzstain invest here when he could actually start a brand new REIT from the ground floor if he wanted to be in this space so bad.

    The purpose of a REIT is to generate tax efficient cash flows with which to pay the investors a decent rate of return. It is more than obvious that sppr hasn't done this for 6 years and if they are unable to generate huge amounts of cash (I'm talking 50 million or more) they will simply not generate enough free cash to fulfill the purpose of a REIT.
    Mar 3 05:35 PM | Likes Like |Link to Comment
  • Supertel Hospitality Preferreds Trade At Large Discount [View article]
    The continuation of the business doesn't make economic sense. Their assets are junk--have been all along. The newer properties they have bought to institute their turnaround plan are already on a downward slide.

    They have overstated their asset value every step of the way. Infusions of cash have done nothing. Why wouldn't you simply liquidate? If in fact the asset values are as stated everyone should be happy. This may well be the worst managed REIT of all times.

    When the shares were selling at a split adjusted value of $11 3 years ago we wrote on article on Seeking Alpha--it is now at $2.50.

    http://seekingalpha.co...

    It has had a failed offering after a 1 for 8 reverse split that only a fool would have advised as a course of action.

    For Elstein to be involved makes no sense---if the assets are worth what they claim liquidate.
    Mar 2 10:32 PM | 4 Likes Like |Link to Comment
  • Is Omega Healthcare's Risk In Government-Based Income Overstated? [View article]
    Hi Fidelity--in the simplest terms---taxable income is just that (net income like any corporation)---this is the number they must pay 90% of to holders.

    FFO (funds from operations) in its simplest terms is net income plus depreciation---thus a larger number than taxable income.

    A simple example----Public Storage (ticker:PSA) had net income in 2013 of 1.06 billion -- they had depreciation of 430 million. This gives FFO for all equity holders of around 1.5 billion. PSA breaks down a bit more by subtracting preferred dividends of 204 million to give a FFO for common holders of about 1.3 billion.

    So in this example PSA must pay out 90% of 1.06 billion and in fact they paid out 884 million to common holders and 204 to preferred holders (all are equity holders). Thus they paid out over 100% of net income in distributions.

    On a FFO basis they paid out only only around 71%---so unlike most REITs they have plenty of leftover cash in the till for other things like acquisitions.

    Funds available for distribution is FFO minus some miscellanous expenses like non cash comp and maintenance capital (thus a slightly smaller number than FFO).
    All this data is here.

    http://bit.ly/1kkYZyx;highlight=
    Mar 1 02:11 PM | 2 Likes Like |Link to Comment
  • A Preferred Bond Replacement Strategy For Intelligent REIT Investors [View article]
    I think it would be correct to say REIT common shares have the 'potential' to appreciate, while the preferreds have minimal appreciation potential at this point in time (most investors would buy the preferreds for income versus appreciation). It would be incorrect to say the regular shares pay a higher dividend--with the exception of some mREITs the preferreds pay higher dividends. Here is our list of all REIT preferreds -

    http://bit.ly/1c2eIjx

    There are some very good yields out there--of course you have interest rate risk.
    Feb 24 04:59 PM | 3 Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    Last year they decided to monitize their base gas (the cushion in storage meant to be permanent to provide pressure). They should have known and made it clear to investors that this would affect future revenues. Someone at the top should do the honorable thing and fall on their sword.
    Feb 10 06:26 PM | 1 Like Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    Last year they made the decision to monitize their base gas (the permanent inventory used to maintain pressure)--management should have known they would pay for this in the future. These things happen too often and no one pays for it with their job. Someone should fall on their sword.
    Feb 10 06:23 PM | 1 Like Like |Link to Comment
  • Preferred Stocks Pay 7%: Risks And Taxes Explained [View article]
    I guess this article falls short in a number of ways--but good effort anyway.

    Financials are not in any way all that is available in preferreds--REITs are a huge portion, and while REIT preferreds do not pay 'qualified' dividends if inside a retirement plan it doesn't really matter. Additionally there are a number of preferreds which are called 'Term Preferred" which in fact do have maturities and day to day price movements are very much limited.

    We cover all of these on our site. http://bit.ly/1attQDl

    Lastly their are many investors that are not concerned with day to day movement in the total portfolio value and instead concentrate on the income generated. All depends on ones place in life.
    Feb 2 11:53 PM | Likes Like |Link to Comment
  • Amazon: More Likely To Plummet Than To Soar [View article]
    I would suggest that everyone should actually read Amazons financial reports (the new 10K is available now). What you will find out is Amazon is rapidly becoming what they disdain--bricks and mortar.

    For instance--Best Buy has 44 million square feet of building (owned or leased) - Amazon now has OVER 90 million square feet (with 50% more sales). Amazon still has an edge with just 117,000 employees against Best Buys 140,000 (and falling) number. The facts are that Amazons fixed costs are growing very fast and with the pricing they have trained consumers to expect I believe there is a real battle being set up. Anyone that would actually look at the facts underlying the fluff would see that Amazon no longer deserves the values being assigned to their stock.
    Jan 31 09:29 PM | 4 Likes Like |Link to Comment
  • Revisiting Profitable Glacier Water Services Trust Preferred Stock [View article]
    Sounds like there are different ways to own this issue--buy and hold and trade as it moves in the 50 cent range--glad that has worked for you.

    Relative to OAKS--we don't know. It is a mREIT and we aren't smart enough to fully understand those (or we haven't taken the time to study them closer). As such we don't buy mREITs, although that doesn't mean they are bad to buy.
    Jan 11 12:24 PM | Likes Like |Link to Comment
  • Revisiting Profitable Glacier Water Services Trust Preferred Stock [View article]
    Hi Greg--yes I have loved it--I like the monthly pay feature and the threat of a call always keep the share price steady at $25 or a bit above.
    Jan 11 12:18 PM | Likes Like |Link to Comment
  • Revisiting Profitable Glacier Water Services Trust Preferred Stock [View article]
    Hi DRG--yes it is a leap of faith, but as noted above it is simple and straightforward and the CEO has some decent credentials.
    Jan 11 12:17 PM | Likes Like |Link to Comment
  • Revisiting Profitable Glacier Water Services Trust Preferred Stock [View article]
    Very simply business--I did notice a few years back some groups were suing them for some sanitation issues on the machines--so there is always something waiting to bite you-even in a simply business.
    Jan 11 12:16 PM | Likes Like |Link to Comment
  • Revisiting Profitable Glacier Water Services Trust Preferred Stock [View article]
    Hi reader--we always wished we would have bought more of our best issues--but you can't get overloaded in an issue, although we are always tempted.

    Good luck
    Jan 11 12:15 PM | Likes Like |Link to Comment
COMMENTS STATS
224 Comments
169 Likes