CLP announced today that they acquired another class A apartment complex, this one in Nevada, no less, for $341 million. They bought it at 95% occupancy.
Hurray.
That’s the third major acquisition they’ve made this month.
Update:
I’m back in MGM for $12.80 a share. I used my 10% cash position to repurchase; it’s not quite the 15% position I held before now. I’m not messing with margin right here, but with CLP buying up real estate in Nevada, and reports from one of our own regular on this site that Las Vegas is not the desperate shit hole it was two years ago, I’m not risking missing out on the Sin City recovery.
I have no cash, which is stupid with one of our largest debtors and trading partners on the table; however, I believe in each of the companies I have allocated resources to enough that it doesn’t matter to me. If the market should fall, in tandem, then I will deploy credit.
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Mortgage rates were up again today. I also found out what my college kid’s rent is going to be next year…no inflation, my ass. So it should be good in the hood for the apartment REITS.
Still, it would be nice if CLP and AEC would actually go UP.
(laughter) they’re hovering around where I bought, after retracing the gains. Wait until quarter announcements. Most people are reactionary; they’ll buy when the “beat expectations” is written for their eyes. They aren’t interested in reasoning things out ahead of time.
What is your thought on NLY or CIM…NLY just hangs, good enuff with the yield though.
Personally, I absolutely hate NLY. It’s basically an example of everything done wrong over the last decade. A gigantic collection of complex securities and overlapping financial rights and obligations, thrown into a trash can and compacted to as small as possible.
It took me forever to even locate their assets and liabilities pages, as they seem to prefer to present their operations in terms of “average investment values,” whatever the fuck those meaningless things are.
Their cash flows page is a cluster fuck of substandard operations and massive losses from investments, which are saved only by the grace of their financial segments (read thawing of the MBS markets).
They claim to be worth about $14 a share in common (assuming I even managed to navigate their pages properly, lots of different ownership stakes with multiple legal rights). If that’s so, then I guess it’s a good risk, but then they’re an $80 billion corporation that took lots of government money and are holding paper derived from the value of homes whose values are still melting down, so it’s a crap shoot.
Honestly, this thing is so leveraged, it could easily quadruple on a housing recovery. But as they don’t actually seem to do anything, and aren’t really directly invested in real estate at all, except by extension of all their insurance bonds, even if the company does grow to many multiples, I’m still much happier not owning them myself.
If you must get dirty, then at least stick with preferred stock, and don’t hold it for too long. Just try to make your 14% and then get out with your hand intact (hopefully).
Thank you for the time. When I initially looked at this, I could only assume as long as they access cheap money, they leverage the bejesus out of it. I made the assumption as soon as interest rates rise the yield collapses.
CIM looks like it got into a bout with Bellerophontes.
At this time, I’m solely interested in owning multi family apartment REITs. And, one of my core stipulations is that their investment line of cash flow needs to be buying up real estate right now. These guys are buying into MBS’s in enormous sums, which isn’t necessarily a bad thing. They’re definitely on my watch list; MBS’s could very well prove an excellent investment in three to five years, when we get a rebound in housing.
But, for now, especially with general real estate getting slaughtered, and on the back of my own research, which hasn’t shown real estate in especially enviable light, I’m gonna take a pass.
The Chimera looks a lot better than Annaly, for what it’s worth. Annaly pulled some $trillion magic in their operations segment which raises red flags all over the place. You almost couldn’t pay me to own it. I guess it comes down to how much you’d offer…it’s shady…
“Her breath came out in terrible blasts of burning flame.” Sounds like it may not be good to be in the arena at the time of the battle. My interest in either of these is yield..not any luv you long time pals.
I’ll check tonight, but at first glance NLY looks like a slow motion trainwreck.
Something odd, with their average investment yielding about 3%, and their dividend yielding greater than 10%. It’s possible for this to happen, if their shares are absurdly undervalued. However, it needs to be looked at thoroughly before jumping in.
CLP caught a couple of upgrades this morning.
Where? I haven’t seen anything on this.
7:35 AM ET
JAG MediaCLP: Upgrade – JAGNote by CitigroupCLP: Upgrade – The firm upgraded shares from Hold to Buy with a price target of $22 up from $20.7:25 AM ET
JAG MediaCLP: Upgrade – JAGNote by FBR Capital MarketsCLP: Upgrade – The firm upgraded shares from Market Perform to Outperform with a price target of $21.
Awesome
I finished reclaiming my stake in MGM.
BofA/ML have a $25 target on CLP
Jefferies with a $19 PT (back in late Feb.) on AEC… Baird @ $17 (also Feb.) is a buyer on a pullback under $15
FWIW, indeud.