Today - Wednesday, May 6, 2015
- "Well run net lease companies are growth companies," says Gramercy Property Trust (NYSE:GPT) CEO Gordan DuGan on today's earnings call (transcript). Aiming to put to rest the idea that rising interest rates mean companies like Gramercy are sells, DuGan says smart managers with access to capital and with the ability to make accretive purchases can grow EPS through a variety of rate environments.
- Presentation slides (see slides 7 and 8)
- Current Gramercy management took over in July 2012 when the 10-year yield was about 1.5%, says DuGan, so essentially has already been running the company through a Treasury bear market ... and has managed to do pretty well. Others like Realty Income (NYSE:O), National Retail Properties (NYSE:NNN), and STAG Industrial (NYSE:STAG) have also grown the stock price (and the dividend) over this time frame.
- Previously: Gramercy Property Trust digests major Q1 purchase (May 6)
- ETFs: IYR, VNQ, DRN, URE, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI, IARAX
- Q1 core FFO of $4.5M or $0.12 per share vs. $4.9M and $0.13 in Q4 and $2.7M and $0.07 one year ago.
- Book value per share of $15.19 vs. $15.43 at the start of the quarter. Estimated NAV (which takes into account home price appreciation and value created by the company's renovations) of $20.11 vs. $19.93.
- Occupancy rate on stabilized properties of 96% up 200 basis points, for the whole portfolio 92% up 600 bps. Average monthly rent for the entire portfolio of $1,200 vs. $1,194.
- 470.4K shares repurchased during quarter at an average price of $16.16, total cost of $7.6M.
- Things get more interesting from here as the company closed on its purchase of 2,373 properties from The American Home on April 1. Total properties owned is now 6,864.
- Conference call tomorrow at 10 ET
- Previously: Silver Bay Realty FFO in-line, misses on revenue (May 6)
- SBY flat after hours
- Q1 operating earnings of $16.3M or $0.51 per share vs. $17.1M and $0.53 in Q4. Dividend is $0.48.
- Book value per share of $19.21 up from $19.12 at the start of the quarter. Today's close of $15.68 is an 18.4% discount to book. One suspects it ought to narrow as the company has posted some of the stronger quarters in the mREIT sector of late. The dividend was $0.40 a year ago, it's $0.48 today.
- $3.7B portfolio consists of agency MBS with a fair value of $2.3B (same as Q4) and non-agency MBS with a fair value of $1.4B ($100M less than Q4).
- Quarter-end leverage of 4.2:1 down from 4.4:1.
- Earnings call tomorrow at 11 ET
- Previously: Apollo Residential Mortgage misses by $0.01, beats on revenue (May 6)
- AMTG flat after hours
- Q1 net income of $19.3M or $0.57 per share vs. $2.6M and $0.08 in Q4. Dividend is $0.65.
- Book value per share of $23.01 slips $0.08 from the start of the quarter. Today's close of $20 is a 13% discount to book.
- "Our non-Agency diversification efforts are beginning to contribute more meaningfully to our results," says CEO Laurence Penn as earnings rebound from Q4's dismal result. The company also announces the purchase of a stake in a third mortgage originator and simultaneously entering into a flow agreement with that originator to purchase non-QM loans. Ellington expects to be begin acquiring loans under this deal in the next few months.
- Also inked is a one-year agreement with an auto-loan originator, and Ellington expects to being acquiring high-yielding car loans this quarter.
- Earnings call at 11 ET
- Previously: Ellington Financial misses by $0.05 (May 6)
- EFC flat after hours
5:59 PM| Comment!
- Q1 net investment income of $17.8M or $0.54 per share vs. $18.1M and $0.55 in Q4. Dividend is $0.54.
- Net increase in net assets from operations of $8.4M or $0.25 per share vs. $500M and $0.01.
- Net asset value per share of $15.64 slips from $16.11 in Q4.
- Non-accrual assets as a percentage of total portfolio cost of 6.1%, of fair value 2.7%. One quarter ago 5.8% and 3%.
- Conference call tomorrow at 9 ET
- Previously: Triangle Capital beats by $0.03, beats on total investment income (May 6)
- TCAP -0.7%
5:20 PM| Comment!
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