Jump to content

ROIC - Retail Opportunity Investments Corp


Myth465

Recommended Posts

  • Replies 129
  • Created
  • Last Reply

Top Posters In This Topic

  • 3 weeks later...
  • 4 weeks later...

I am looking to sell. Now up 300%.

I want to hold, but I feel its gambling.

 

We have a stock with a 4% yield holding property with cap rates of 5% and 6%.

Dividends wont be raised for a bit while warrants or suggested.

 

When rates move up REITs will be crushed, ROIC included.

On the other side we have one of the best and most professional management teams I have seen.

 

What do you all think?

Link to comment
Share on other sites

You hope rates dont rise.

 

4% seems to be on the low end for REITs.

With a 4% yield being the bottom the only way the stock price goes up is rents moving up and more properties.

 

We are buying properties at 5% and 6%, our debt is cheap and we enhance that yield with upping rents during leases.

For now the Dividend will not move while the warrant money is reinvested. Shares outstanding has gone up but cash flow is the same for now.

 

The upside is there but is capped, who is going to buy a REIT at 2% yield?

The downside is rates move up, or people see the bubble in REITs / MLPS and the stock drifts down.

Leverage works both ways and a 330% gain can go down fairly quickly.

 

http://static.cdn-seekingalpha.com/uploads/2013/3/28/330973-13645267392654927-Brad-Thomas_origin.jpg

Link to comment
Share on other sites

For me it seems like the next 6-9 months we'll see continued dilution from warrants exercising.  That'll hide any improvement in FFO per share and limit dividend raises.  I can't imagine that they can acquire properties or improve occupancy rates fast enough to offset dilution.  Also, find it hard to see divie hungry REIT investors driving the yield down to 3.5%? OTOH, cash from the warrant exercise allows them to pay down their revolver so more capacity for funding acquisitions.

 

So I guess I'm arguing that the warrants might be dead money for a while.  Dunno.

 

I am looking to sell. Now up 300%.

I want to hold, but I feel its gambling.

 

We have a stock with a 4% yield holding property with cap rates of 5% and 6%.

Dividends wont be raised for a bit while warrants or suggested.

 

When rates move up REITs will be crushed, ROIC included.

On the other side we have one of the best and most professional management teams I have seen.

 

What do you all think?

Link to comment
Share on other sites

  • 3 months later...
  • 1 month later...

I am very happy with the results.

 

My second slug of warrants are up 45% so far.

This is after booking a gain at 385% or so when they touched $3.60. I sold then, and bought a small portion at $2.

 

Very happy, they have absorbed the warrants and now will resume raising the dividend in Q4 (thats my guess).

I plan to hold until 2014 and then we could see a fairly large gain.

 

5% growth in same center revenues is very impressive.

Shows they are buying properties with upside. I really like management, I would hold stock for the long term, but I think the REIT space in general is overvalued.

 

Listening to the call now.

 

Link to comment
Share on other sites

  • 4 months later...
  • 1 month later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...