openhandedgrouse (< 20)

RAS could lose 0.53 of BV a qaurter for 7 years and still have a P/BV of 1 AKA Q2 11' update

August 03, 2011 – Comments (0) | RELATED TICKERS: RAS , NRF , NCT

RAS has already re-instated a quartly DIV of 0.06 or 0.24 per year which is 5 percent at current depressed prices.
I think they will be increaing the DIV over the next year or two, thanks to increasing interest income, income from IRT, and selling some properties.
RAS's AFFO in Q2 is 0.22, which is more than enough to pay 0.06 DIV or higher.
IMO the reason everyone is selling is a GAAP loss of 0.53, thanks to a mark to market adjustment (loss) of $25.7 million.
Now if RAS had a BV of 0.53 that would be really bad. However with their current book value of over $20, RAS has a huge margin of error and could lose 0.53 cents of book value for the next 28 quarters or 7 years and still have a price/BV of 1.