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Two Harbors (TWO) announces a plan to spin off its portfolio of single-family properties to a...

Two Harbors (TWO) announces a plan to spin off its portfolio of single-family properties to a newly formed REIT (Silver Bay Realty Trust) in which it will receive shares. Silver Bay has filed for an IPO and will acquire additional portfolios of single-family rentals. The plan still requires board approval. After a quick pop higher, shares -0.5% AH. (PR)
Comments (4)
  • Boog
    , contributor
    Comments (103) | Send Message
    after reading TWO's formal announcement details, I think it's anybody's guess as to the net effect on TWO IF (and it looks like a pretty big if) this transaction takes place.
    11 Sep 2012, 06:07 PM Reply Like
  • royk01
    , contributor
    Comments (184) | Send Message
    Assuming equal competence, isn't it a general rule that it's better for an organization to "stick to it's knitting" and do what it has done very well without distraction? I did not listen to the conference call, but I assume a major consideration is that another organization will apply its expertise to the rentals business and TWO will reap the benefit from a percentage of ownership in that organization. Sounds okay and it minimizes risk in return for less potential profit.
    11 Sep 2012, 10:53 PM Reply Like
  • salpicc
    , contributor
    Comments (2) | Send Message
    Insiders have been buying this year. That hints to me that they
    had a plan and feel that it's a positive for the company. They
    certainly know more than we do.
    12 Sep 2012, 09:10 AM Reply Like
  • mostserene1
    , contributor
    Comments (3356) | Send Message
    Long TWO.
    14 Sep 2012, 09:33 AM Reply Like
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