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Share holders IN REIT's to be given timeshares as Dividends.



January 09, 2009 – Comments (0) | RELATED TICKERS: STAR , PLD , SHO

"We have the best local croc"!
8 January, 2008

Just released:   140 units repossessed by iShares Finacial (SFI) in West Palm Beach, that were unable to be sold by a developer are being converted into timeshare condos to be used as future dividends to SFI's shareholders.

140 condos *52 weeks per year is 7,280 available timeshares. iStar Fiancial will then pass out the timeshares to shareholders in two phases: 
1. All shareholders who own more than 1,000 shares will receive one Timeshare Week (TW) every 5 years as their dividend. 7,280*1000*5 years will cover all of the preferred and common shareholders who have more than 1,000 shares. Those shareholders holding preferred shares will get the more "preferred" upper floor condos.

2. With the extra Timeshare Weeks, because not everyone has 1,000 shares, there will be a surplus of available TWs. There will be a bonus lottery for everyone who owns less than 1,000 shares so everyone has a chance at a “dividend”. Those who own more than 1,000 shares are also entered into the "bonus drawing". Each share gets you ONE chance in the drawing. Since SFI shareholders are known to double down on less sure things, it is expected that current shareholders will rush to buy more shares in order to increase their chances of winning  TW's in the bonus drawings, keeping the SFI share price strong.

Institutional investors will have to determine how to pay these out to their own investors, where a lottery may also work for their investors. It is expected that the advisors who purchased SFI shares will get first choice of times and locations.

SFI will then write the value of these TWs as dividends each year, forever, allowing them to keep their cash to buy more property. All non-performing property will be turned into timeshares reducing the waiting time to collect dividends and making time shares available throughout the US. Shareholders will be allowed/encouraged to trade locations.  This will allow many to visit those highly sought after timeshares that will prevail in Michigan and Ohio, with the highest foreclosure rates. Within three years, if all the bad investments continue as expected, and more worthless property is foreclosed on by SFI, that nearly every shareholder of more than 1000 shares will get a TW each year, further stimulating the economy with their ancillary spending.  SFI is already spinning off a division to manage TW exchanges.

It is expected that other REIT's will follow suit with this innovative use of previously worthless property.  PLD is already determining how many timeshares can be carved out of their larger warehouses in very poplular countries.  Since most are in high traffic areas they are expected to be in high demand in Tokyo, Berlin, and other countries.   Land REIT's are expected to put in camping areas.  Hotel REIT's will have a natural advantage in this endeavor.

SFI has been nominated by President Elect Obama for his new award,  "Award for Economic Innovation and Outstanding Unity" ---  A "Bailout Award" given to non-government entities who stimulate the economy also known as the AE - IOU Award.

 President-Elect Obama is working with top advisors to determine additional tax write offs for these pioneering REIT's.

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