- "We get paid for total shareholder return," says CYS Investments (CYS -0.1%) CEO Kevin Grant, presenting at a Wells Fargo conference. Asked what differentiates his REIT from others, Grant says management is not paid on assets under management, but on the returns it delivers.
- Thus, the team happily sold expensive assets in Q1 and bought back stock selling at a steep discount to book value with the proceeds.
- Presentation slides
- As for a return to strong economic growth and a long series of Fed rate hikes, color Grant as (still) skeptical. He reminds that Fed economic and inflation forecasts have consistently been too optimistic throughout the recovery. Grant also takes note of the increasingly dovish tilt of FOMC voters.