Seeking Alpha
  • Today - Wednesday, August 20, 2014

  • 11:05 AM
    • Junior bankers at Goldman Sachs (GS -0.1%) - where they are known to put in 100-hour work weeks - could see more than a 20% raise next year, reports the NYPost. The paper's source says no changes are planned for how much staff could make from bonuses.
    • The move comes following Goldman's decision to begin giving analysts Saturdays off (if you don't come in on Saturday, don't even think about coming in on Sunday). Morgan Stanley last month reportedly boosted salaries for mid-level staff by up to 25%, and BofA has taken steps to make sure analysts and associates take at least four weekend days off per month.
  • 10:49 AM
    • Dimmock Square is a retail power center in Colonial Heights, VA, and Armada Hoffler (NYSE:AHH) purchased a 100% interest for about 990K operating partnership units and $10M in cash. The deal is expected to be accretive to annual FFO per share.
    • Source: Press Release
    | Comment!
  • 10:42 AM
    • Provisions of the recent debt extension agreement - including the submission of a restructuring plan by March 2, the retention of a chief restructuring officer, and the possible use of reserve funds for debt service payments - suggest, says Fitch, "a financial restructuring remains probable."
    • Fitch takes note of continuing weak financial performance, including a whopper of a $267M net loss led by declining sales, declining customers, high levels of A/R, high fuel costs, "and an unwillingness to increase base electric rates."
    • Watching with interest: MBIA (MBI -0.9%), Assured Guaranty (AGO +0.6%).
    | Comment!
  • 9:29 AM
    • “We will take what economic activity we can get, but our housing market model was designed in the U.S. to build a lot of single-family homes for owners, not multifamily homes for renters," says Diane Swonk commenting on yesterday's big jump in housing starts.
    • A big share of the gain came from multifamily starts - typically a volatile number - but a rolling 12-month total shows apartment construction at its highest level in 25 years. Single-family housing has a bigger multiplier effect for both consumer spending and employment, says Swonk.
    • As for apartment owners, a separate report showed rents up 3.3% Y/Y, their fastest pace of increase in five years. It's little mystery why the stocks of companies like Equity Residential (NYSE:EQR) and AvalonBay (NYSE:AVB) are at all-time highs, but their owners may want to mull the fast pace of building.
    • Others of interest: ESS, PPS, UDR, AIV, CPT, HME, MAA, TSRE, AEC, IRET, APTS
  • 9:14 AM
    • The Wells Fargo Startup Accelerator will be a semiannual "boot camp" for tech startups in the areas of payments, deposits, fraud, operations, and other financial services areas. Wells Fargo (NYSE:WFC) will make a direct equity investment of $50K to $500K in each selected startup.
    • Applications are being accepted through October 1. "We need to expand our access to new ideas at the edges of our industry," says Steve Ellis, head of Wholesale Services at the bank. Three companies have already been selected and funded.
    • Press release
    | Comment!
  • 9:08 AM
    • Adjusted net income of $77.9M or $0.63 per share for the three months ended July 31 vs. $66.5M and $0.52 one year ago.
    • CEO Thomas Faust: "Although flows remain disappointing, continued development of emerging franchises and strong investment performance support improved organic growth in the coming quarters."  Net outflows during FQ3 of $2B vs. $0.9B of outflows in FQ2, and $8.8B of inflows a year ago.
    • Average AUM of $289.3B up 10% from a year ago.
    • 6M shares repurchased during first nine months of fiscal 2014 for total of $227.9M. About 7.2M shares remain under repurchase authorization.
    • Conference call at 11 ET
    • Previously: Eaton Vance beats by $0.01, beats on revenue
    • EV flat premarket
    | Comment!
  • 9:00 AM
    • Eaton Vance (NYSE:EV): FQ3 EPS of $0.63 beats by $0.01.
    • Revenue of $367.59M (+3.8% Y/Y) beats by $2.08M.
    • Press Release
    | Comment!
  • 8:40 AM
    • The 187K square foot cold storage facility and dry warehouse located in Arlington, IL is 100% leased through 2019 to a specialty food importer and distributor. Year 1 NOI should be about $1.5M with annual rent escalations built into the lease. The initial cap rate is 8.1%, and the annualized straight-line cap rate is 8.4%.
    • GPT's purchase was an all-cash deal.
    • Source: Press Release
  • 8:14 AM
    • Clive Brown joins RBC (NYSE:RY) Global Asset Management as CEO of RBC GAM International from JPMorgan Asset Management, where he was most recently global COO and chairman of Asia.
    • In this newly-created role, Brown will be in charge of operations in EMEA and Asia-Pacific. It's RBC GAM's aim to have C$1T in AUM from the current $335B, and its chairman George Lewis has said it will take a greater focus on Europe and the U.S. to do so.
    | Comment!
  • 7:37 AM
    • "Nationstar (NYSE:NSM) represents a tremendous opportunity to apply cutting edge, data-driven consumer marketing to an industry that isn't known for innovation in marketing or customer experience," says the company's first-ever Chief Marketing Officer, Kevin Dahlstrom.
    • Dahlstrom most recently was CMO at Elevate, a provider of financial solutions to consumers.
    • Source: Press Release
    | Comment!
  • 7:30 AM
    • The all-cash deal was for the purchase by Ventas (NYSE:VTR) of 29 private-pay senior living communities located in seven Canadian provinces, with the majority in Ontario and Alberta. They will be managed by Atria Senior Living.
    • The financial impact of the deal is reflected in recently updated full-year normalized FFO guidance, which was boosted to $4.39-$4.43 per share from $4.31-$4.37.
    • Source: Press Release
    | Comment!
  • 7:22 AM
    • Preferred Apartment Communities (NYSEMKT:APTS) teams with Westport Capital Partners on a $17.2M mezzanine loan tied to a 304-unit apartment development in Northern Virginia. In connection with the loan, Preferred has received an option to buy the property upon completion and stabilization.
    • Preferred expects to partner with Westport on several other deals totaling about $275M in total development costs.
    • Press release
    | Comment!
  • 7:17 AM
    • Goldman Sachs (NYSE:GS) and Goldentree Asset Management acquired Travelodge Hotels in a debt restructuring in 2012, and today agree to buy 144 hotels leased to the company in a deal valued at about $830M. Among the owners is Lloyds (NYSE:LYG), which is busily shedding noncore assets.
    • The budget-hotel chain operates 500 hotels and 38K rooms in the U.K., Ireland, and Spain. It has been busily renovating its properties in hopes of improving profitability.
    | 1 Comment
  • 6:32 AM
    • Leju (NYSE:LEJU): Q2 EPS of $0.15 misses by $0.01.
    • Revenue of $117.4M (+63.4% Y/Y) beats by $3.62M.
    • Press Release
    | 1 Comment
  • 6:31 AM
    • E-House (NYSE:EJ): Q2 EPS of $0.14 in-line.
    • Revenue of $210.1M (+28.6% Y/Y) beats by $9.69M.
    • Press Release
    | Comment!
  • 2:42 AM
    • The International Swaps and Derivatives Association has delayed Argentina's CDS auction until September.
    • An issue arose yesterday regarding the addition of two Japanese-law restructured notes to be included at the auction, and needs to be resolved before the sale can take place.
    • The auction, run by Creditex and Markit, will establish the payout that holders of protection on Argentine bonds will receive as a result of the country's recent default.
    • ETFs: ARGT
    • Previously: Argentina CDS auction set for Aug. 21
    | 1 Comment
  • Tuesday, August 19, 2014

  • 4:21 PM
    • Current CFO Kellie Pruitt is retiring and will be replaced by current EVP of Corporate Finance and Capital Markets Robert Milligan, effective September 1. Milligan has been with HTA since 2012.
    • Source: Press Release
    | Comment!
  • 4:06 PM
    • Hercules Technology Growth Capital (NYSE:HTGC) amends and restates its credit facility with MUFG Union Bank, boosting its size to $75M from $30M, and lowering the interest rate to Libor +2.25% with no floor from Libor +2.5% with a 4% floor.
    • The maturity date is extended to August 2017.
    • Source: Press Release
    | Comment!
  • 3:09 PM
    • Known internally as the "Big Hairy Audacious Goal," Wells Fargo (WFC +0.2%) aims to double the size of its asset-management operation to more than $1T of AUM over the next decade through (small) acquisitions and aggressive selling to big-fish investors, reports the WSJ.
    • The move comes as other parts of Wells' business - notably mortgages - stagnate (bank revenue fell 1.5% Y/Y in Q2), and major acquisitions are pretty much verboten in today's regulatory environment.
    • Investors may be steering away from mutual funds and toward passive products like ETFs and index funds, but it hasn't stopped JPMorgan from racking up $17B of inflows in 2013, and another $17.5B so far this year. Wells, on the other hand, saw $1.6B of outflows in 2013 and another $1B YTD. Goldman Sachs - the only other of U.S. banks ranking among the top 50 asset managers - like JPMorgan, also saw sizable inflows during this period.
  • 2:54 PM
    • At issue is New York REIT's (NYRT -1%) purchase of a 48.9% stake in NYC's Worldwide Plaza in October 2013 (along with an option to buy the entire property). RXR Realty had previously been under contract to make the purchase, but didn't close.
    • RXR initially sued to stop New York REIT's purchase and then sued after the close seeking disgorgement of an alleged $200M NYRT made on the deal. A NY justice last week dismissed all of RXR's claims against the seller along with the disgorgement claim, permitting only a claim against NYRT for RXR's cost of producing due diligence-related material to proceed.
    • Source: Press Release
    | Comment!
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