If a REIT is externally managed, I eliminate it eithout going further. But could there be circumstances when one could still add it (e.g., preferreds, unique focus/geographies/expertise, etc)?
The main one for me is if the REIT is very small. They need to get to several hundred $M in assets before it makes sense to afford internal management.
Otherwise, if the management fees are based on per share economic performance then I might think about it. But structural misalignments like we see here just are not worth it.
Thanks Paul. I've held them for a while, my cost basis is low, picked them up on a major dip. I intended to let them go afterward, but they are currently paying 8.9% haven't changed the div in years, so reluctant.
That said, I suspected all the things you confirmed. Every earnings call they talk about increasing the size of the company, never the div. The insider ownership is a smoke screen, those same insiders are most likely insiders at Slate also and get a much bigger slice of the pie there since Slate appears to be bleeding them dry with management fees.
If someone was hoping to hear good things about their investment, it appears that isn't the case here. I am trying to find good non-oily ideas but this sure isn't on the list. Thanks!
If a REIT is externally managed, I eliminate it eithout going further. But could there be circumstances when one could still add it (e.g., preferreds, unique focus/geographies/expertise, etc)?
The main one for me is if the REIT is very small. They need to get to several hundred $M in assets before it makes sense to afford internal management.
Otherwise, if the management fees are based on per share economic performance then I might think about it. But structural misalignments like we see here just are not worth it.
Thanks RPD , avoided another one
Thanks for helping us eliminate this one!
Thanks Paul. I've held them for a while, my cost basis is low, picked them up on a major dip. I intended to let them go afterward, but they are currently paying 8.9% haven't changed the div in years, so reluctant.
That said, I suspected all the things you confirmed. Every earnings call they talk about increasing the size of the company, never the div. The insider ownership is a smoke screen, those same insiders are most likely insiders at Slate also and get a much bigger slice of the pie there since Slate appears to be bleeding them dry with management fees.
Thanks for the insight!
If someone was hoping to hear good things about their investment, it appears that isn't the case here. I am trying to find good non-oily ideas but this sure isn't on the list. Thanks!