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  • 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 | Likes 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 | 3 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 | 4 Likes Like |Link to Comment
  • A Canadian REIT That Says Buy Me [View article]
    Interesting idea, will look forward to your future CAD ideas. I don't see an OTC symbol for this? My brokerage firm (TD Ameritrade) doesn't offer trading on the Canadian exchanges.
    Mar 30, 2015. 11:01 AM | 1 Like Like |Link to Comment
  • An Undiscovered Canadian Gem That Pays 6% [View article]
    Brad - are you saying that the shares listed on the Canadian exchange are listed in US$?
    Mar 23, 2015. 10:51 AM | 1 Like Like |Link to Comment
  • I Just Bought A High-Quality REIT With A Sound Margin Of Safety [View article]
    Community shopping centers are much different than the traditional shopping mall. So I would agree that the big "Mall of America" type centers will be very unlikely to ever be built anymore, and that only the strong, well located , giant malls will survive (like Simon Properties). The community shopping centers where I live are all mostly fully leased, and even during the 2008-2009 period, were always 90%+ leased. So to the point of Brad's article, the well located community centers will survive, adapt and do well.

    I haven't stepped into the big regional mall near me in years (although my wife and daughter are always there) but I visit the community shopping centers 3-4 x a week. Last week it was 1) Traders Joe's picking up some groceries, 2) Wegman's - groceries and beer 3) Supercuts for a haircut 4) drycleaners to have a suit cleaned 5) Five Guys Burgers - lunch with a friend 6) Staples - couple of office supplies needed that day 7) Liquor store for weekend BYOB dinner, 8) Dinner out with friends 9) UPS store to mail some returns back for my wife's online shopping (retailer pay the shipping back!). These stores are all located near my house and are east to get to. Based on the amount of cars in the lots of these centers, I'm not the only one shopping there.
    Mar 16, 2015. 02:11 PM | 2 Likes Like |Link to Comment
  • I Just Bought A High-Quality REIT With A Sound Margin Of Safety [View article]
    Regarding the comments about "shopping centers worries, bricks & mortar dying, the internet is taking over everything", etc. I think Brad nailed it - there are plenty of crappy, overbuilt shopping centers that are destined to die off, be redeveloped or torn down. But there are PLENTY of highly desirable, high value retail properties in high income, high growth areas of the country , and the task is to own the REIT's that own these . It looks like BRX is one of those. The internet will not take over everything, and many bricks and mortar companies are competing with internet only retailers and in many cases are competing successfully.

    Regarding the low dividend yield. Yes it is low, but that is because the payout ratio is so low. What that indicates to me is that BRX has the ability to raise their dividend at a faster rate that some of their competitors who may not be able to raise theirs , or may have to cut in some cases. BRX is also trading at one of the lower FFO/Price valuations, so I am not so sure that it will trade off much in the future and may actually trade up toward their peers.
    Mar 16, 2015. 01:27 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    A rise in rates will hit both the reit common and pfd shares, and the dividends rec'd on both are also not qualified (although the equities may have some ROC element).

    I think there is a place for pfds in any investors portfolio, esp as they approach or are in retirement - and (big and) they are only withdrawing part of the income their portfolio generates each year. The pfds provide a steady income stream, allowing an investor to maintain traditional equity holdings (both reit and non-reit) that will grow their dividends over time.
    Mar 16, 2015. 12:39 PM | Likes Like |Link to Comment