Seeking Alpha

Workinhard

Workinhard
Send Message
View as an RSS Feed
View Workinhard's Comments BY TICKER:
Latest  |  Highest rated
  • Whitestone REIT Is Now Yielding 8.9% [View article]
    Concern I have in any high yielding reit like this is that the cost of equity is high and that makes it difficult to buy properties that add to FFO on a per share basis. Their leverage is high so they are likely relying more on debt. The only thing I find attractive is the price/FFO.

    If they cut the dividend to a decent payout ratio, I'd have more interest but they are a risky REIT. The properties they buy and fix up were run down for a reason - because they are likely in areas that are not attractive demographically. So while they do fix them up and are able to attract new tenants , I worry that the same issues that allowed then to buy properties cheap will circle back on them and start affecting their smaller tenants.
    Jul 31, 2015. 10:38 AM | 5 Likes Like |Link to Comment
  • KCAP Financial, Inc. Announces Adjournment of Special Meeting and Board Action [View article]
    this would dilute shareholder nav tremendously and benefit only external manager buy allowing them to earn more fees on more assets.
    Jul 20, 2015. 10:33 PM | Likes Like |Link to Comment
  • Mr. Market Is Not Thrilled With This Net Lease Merger, Neither Am I [View article]
    While the initial reaction for both stocks has been down , mainly due to CSG shareholders likely selling, it think CSG (and by default GPT) will drift upwards as the monthly income sellers are replaced by longer term investors who will be happy Dugan is in charge of the combined entity.
    Jul 2, 2015. 06:56 PM | 3 Likes Like |Link to Comment
  • Investing In A Sleep Well At Night REIT Like Warren Buffett [View article]
    Brad - although the trading volume is much lighter and bid offer is wider, for a patient investor, any reason not to own UBP over UBA? Over $2/share cheaper than UBA.
    Jun 19, 2015. 01:17 PM | Likes Like |Link to Comment
  • My Rationale For Selecting STAG For The Long Haul [View article]
    As long as STAG can continue to add properties and grow they will look ok, but they own a lot of properties in secondary markets that will be tough to re-lease when they expire. It may be one to be in for a little ride , but be careful buying this one for the long haul. A better option at this posit in time is WPC , similar yield but better mgmt.
    Jun 4, 2015. 11:18 AM | 2 Likes Like |Link to Comment
  • KCAP Financial: What Comes Next? [View article]
    It's a shame these guys can't get their act together as I would like to add another internally managed BDC to my list.
    May 19, 2015. 01:32 PM | 1 Like Like |Link to Comment
  • Northstar Is Far From An Intelligent REIT Alternative [View article]
    Brad, NRF is definitely a bit more complicated than your average reit, and I have no issues with your decision to not invest. I have followed NRF for the last 8 years and they have a very good mgmt team that is able to take advantage of opportunities in many different areas. My one concern right now is the mgmt may be getting a little greedy and talking a bit too much out of the company.

    Longer term though, I see NSAM / NRF making the decision to start spinning out various specialized reits that will be managed by NSAM. So NSAM should do well over the longer term, but the reits they spin out will likely trade at a discount to reflect the external mgmt issue. But I still think the spin outs will create value for shareholders over the medium term. I think the way to play this is to own both NRF & NSAM.

    So I will hold for now.
    May 18, 2015. 11:01 AM | 5 Likes Like |Link to Comment
  • Fifth Street Finance: What Comes Next? [View article]
    Only BDC's I am considering at this point are two internally managed ones - MAIN & TCAP. They sell at a premium to BV and as a result can raise equity that is accretive to share value. I am holding off any purchases now as I think they will sell off along with other BDC's but they are on the buy list at some point.
    May 12, 2015. 10:44 AM | 2 Likes Like |Link to Comment
  • Is Lexington Realty's 7.5% Yield Too Good To Be True? [View article]
    Brad - these guys would be a good candidate for a one on one with mgmt, to get their thoughts. I am also curious if any of your industry contacts have given you any thoughts on LXP because I am in a similar position as you are - on the surface everything looks like LXP is a value buy here but in the back of my mind I am wondering what I am missing? It can't just be the general selloff in REIT'S that is causing this underperformance.

    The only things I can think of are 1) the development pipeline and the funding risks and 2) the dispositions of vacant properties. On this second point, I guess the worry is that as LXP has leases expire, if the buildings are not in good markets, the leasing opportunities are limited and they may be in a situation where over time they keep disposing of properties that become vacant.

    Fyi - this is part of the concerns I have with the NNN lease reits like LXP, CSG, STAG, etc that have large industrial / commercial properties in secondary markets. LXP has some of this concern migrated by the long lease terms they have.
    May 12, 2015. 10:35 AM | 2 Likes Like |Link to Comment
  • Stress Test For Dividend Growth Investors [View article]
    This is why I believe investors should have some fixed income component to their portfolio (gov't, munis, high yield, convertibles, pfds, CD's, etc) to provide a steadier income for the portfolio as a whole and help an investor resist the urge to sell stocks at the lows (which is what many all stock investors are tempted to do). I know a few friends who were spooked out of the markets in '08-'09 and went to all cash and /or CD's are are still waiting to get back in to stocks.
    May 10, 2015. 12:11 PM | 10 Likes Like |Link to Comment
  • The Perfect Storm For STAG [View article]
    Some things to think about regarding STAG.

    First is that bizarre , promotional video they have on their website. Makes me cautious when I see something like that.

    Second -their short term lease duration is not in any way a benefit, no matter how mgmt tries to spin it. Their assets are located in secondary market and when they expire it is much more difficult to find a tenant, let alone get a rate increase.

    Third, on the CC they talked about their goal to continue to grow by 25% a year. Well they had better keep buying 100% occupied properties because once they slow down buying, their occupancy will start dropping quickly as leases expire and are not renewed.

    STAG might be good for a short term ride, but it is not on my SWAN list.
    May 8, 2015. 12:38 PM | 4 Likes Like |Link to Comment
  • American Realty Capital plans dividend announcement in three months [View news story]
    I think the dividend will be in the $0.50 - $0.60 range , likely starting in Q4 , depending on how Q2/Q3 shapes up . So around an 6% yield at todays price by year end. Big unknown is the legal costs going forward. With the reit sell off in general, I think I will stick with adding to other , more established reits that are currently paying a dividend until there I see Q2 results. Still on my radar though.
    May 7, 2015. 04:27 PM | Likes Like |Link to Comment
  • You Big Dummy, I Just Bought More Shares In Lexington Realty [View article]
    At some point I think they get bought out if they stay at this level, it would be an accretive deal to an acquirer if they fund it with their higher priced stock. I agree with you that they have been doing the right thing over the past few years - reducing debt and keeping the payout ratio low.
    Apr 29, 2015. 01:58 PM | 2 Likes Like |Link to Comment
  • Feed Your Family With These 4 Monthly Paying REITs [View article]
    I am looking at STAG and while it has some positives - low debt, high yield - there are a couple items that give me some pause, one being the high FFO payout ratio an the other the focus on B markets. The concern there is that if you lose a tenant, it will be hard to replace them in a B market.

    I was also a little taken back by the video they have on their home page "WE ARE HUNTERS , WE ARE STAG". I've never seen this before on a REIT site and it comes across to me as a promotional video, devoid of any facts or numbers, trying to appear to investors emotions.
    Apr 25, 2015. 01:04 PM | 2 Likes Like |Link to Comment
  • Gramercy Property Is Well Positioned To Deliver Something Special [View article]
    Brad - off topic here but looks like APCP is out today with their restated financials, outlook and dividend plans. Would be interesting to get your take on them now.
    Mar 30, 2015. 11:04 AM | 5 Likes Like |Link to Comment
COMMENTS STATS
242 Comments
641 Likes