Hello Gón B,
Do you know anything about these 2 companies..?
Potentially undervalued and might get some growth as the rotation continues into quality companies. Do they fit into yopur concept of todays markets going forward...?
Good earnings, yield and dividend.
What do you think...know anything about these characters?
Chip
#1 Carey Diversified LLC (NYSE: CDC), It yields 10.16%
#2 Allied Capital Corporation (Nasdaq: ALLC) yielding 10.32%
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NEW YORK--(BUSINESS WIRE)--March 16, 2000--
FFO Per Share Increases to $0.53
Carey Diversified LLC (NYSE: CDC), a market leader in the ownership and net-leasing of corporate properties, today reported that Funds From Operations ("FFO") for the three months ended December 31, 1999, was $13.6 million compared to $13.0 million, an increase of 4.4% from the same three-month period in 1998. On a per share basis, FFO was $0.53 per share (basic and diluted), compared to $0.51 per share in the previous year's fourth quarter.
Funds From Operations for the twelve months ended December 31, 1999 increased 7.34% to $52.9 million compared to $49.3 million for the comparable twelve months last year. On a per share basis, FFO increased to $2.07 per share compared to $1.98 per share for the comparable twelve-month period. FFO is the most commonly accepted and reported measure of operating performance for a real estate investment company.
Income for the three-month period ended December 31, 1999 increased 7.3% compared to the same three-month period in 1998, excluding writedowns to fair value. Net income decreased over the quarter ended December 31, 1999, largely as a result of non-cash writedowns of $5.83 million, primarily to account for a decline in the value of units in the operating partnership of Meristar Hospitality Corp., Inc. held by Carey Diversified. While the value of these units, which were received in exchange for equity capital invested in a hotel property, has declined, they are currently worth $4.25 million more than the original equity capital invested in the property.
In December, Carey Diversified's Board of Directors declared a quarterly cash dividend of $0.4175 per common share (on an annualized basis, $1.67 per share), the Company's fourth quarterly dividend this year at this rate and an increase over last year's rate of $1.65. The dividend was payable on January 15, 2000 to shareholders of record on December 15, 1999. Since Carey Diversified became public in January 1998, it has paid out over $84.0 million, or $3.32 per share, in dividends to Carey Diversified's shareholders.
Performance
Commenting on the Company's performance, Francis J. Carey, Chairman and Chief Executive Officer said, "Since its inception as a public company more than two years ago, Carey Diversified has delivered increases in FFO over each year-to-year period. In addition, we have delivered on our commitment to provide both stable and increasing dividends throughout our history. Management remains focused on producing transactions that will continue to enhance long-term shareholder value."
Carey Diversified LLC, a member of the $2.5 billion W. P. Carey Group, is the largest limited liability company traded on the New York Stock Exchange. The Company's portfolio consists of 210 properties totaling more than 20 million square feet. Carey Diversified leases properties to manufacturing, technology, retailing and communications companies, including Federal Express Corp., America West Airlines, Detroit Diesel, Dr Pepper Bottling Company of Texas, Wal-Mart, AT&T, The Gap and more than 70 others. Additional information about Carey Diversified LLC is available on the Company's website at: careydiv.com.
On November 30, 1999, the Board of Directors of Carey Diversified, LLC unanimously approved a merger with W. P. Carey & Co, Inc. If approved by the shareholders of Carey Diversified, assets under ownership or management will increase from approximately $800 million to approximately $2.5 billion post merger. The combined business will be renamed W. P. Carey & Co. LLC to capitalize on the strong corporate identity that W. P. Carey has built among its clients and the investment community over the last 26 years. The new entity expects to be listed on the New York Stock Exchange and the Pacific Stock Exchange under the symbol "WPC."
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Allied Capital Corporation (Nasdaq: ALLC)
Allied Capital Announces 1999 Results
Fourth Quarter 1999 Net Income Increases 58%
Allied Capital provides long-term capital to fuel the expansion of growing companies nationwide. The company's private finance group provides mezzanine debt and equity financing ranging in size from $5 million to $30 million. Allied Capital Express, the company's small business loan program, provides real estate loans of up to $3 million for small businesses through the Internet at www.AlliedCapitalExpress.com. The company is also an active participant in the real estate capital markets, providing commercial mortgage loans and investing in commercial mortgage-backed securities. The company is headquartered in Washington, DC and has eight regional offices throughout the United States. For more information, please visit the web site at www.alliedcapital.com, call Allied Capital Investor Relations toll-free at 888/818-5298 or e-mail us at ir@alliedcapital.com.
WASHINGTON--(BUSINESS WIRE)--Feb. 15, 2000--Allied Capital Corporation (Nasdaq: ALLC) today announced record 1999 net income of $98.6 million, or $1.64 per share. Fourth quarter 1999 net income was $30.9 million, or $0.49 per share, a 58% increase over fourth quarter 1998 net income of $16.6 million, or $0.31 per share.
For the year ended December 31, 1998, net income was $78.1 million, or $1.50 per share. 1998 net income included a post-merger commercial mortgage securitization gain of $14.8 million, or $0.28 per share.
1999 portfolio income before net realized and unrealized gains was $71.0 million, or $1.18 per share. This compares to $55.2 million, or $1.06 per share, for 1998. Excluding the 1998 post-merger securitization gain, portfolio income per share increased 53%. For the fourth quarter of 1999, portfolio income before net realized and unrealized gains totaled $21.3 million, or $0.34 per share, a 55% increase per share over fourth quarter 1998 portfolio income of $11.8 million, or $0.22 per share.
Total net realized and unrealized gains were $27.5 million, or $0.46 per share, for 1999 as compared to $23.6 million, or $0.45 per share, for 1998. Realized gains in 1999 resulted primarily from transactions related to seven portfolio investments, and the gains from these transactions ranged from $0.5 million to $10.5 million.
"Our excellent 1999 financial results demonstrate our intense focus on growing our balance sheet with quality, high-return assets. Our portfolio is positioned to generate significant recurring income and strong upside through capital gains," said Bill Walton, Allied Capital Chairman and CEO. "Our quarterly earnings growth over 1998 further demonstrates our momentum in reliable portfolio income growth. We successfully increased total assets by 51% during the year, and this growth should carry us forward into 2000 with more good news for our shareholders," Walton said.
1999 Portfolio Activity
As was reported on January 27, 2000, the company invested a total of $752 million for 1999, a 44% increase over 1998 investment activity of $524 million. For the fourth quarter of 1999, new loans and investments totaled $218 million, a 25% increase over 1998 fourth quarter investment activity. At December 31, 1999, the overall weighted average yield on the company's portfolio was 13.03%, as compared to 12.5% at December 31, 1998.
At December 31, 1999, total assets increased 51% to $1.3 billion from $856 million at December 31, 1998. Shareholders' equity increased 36% to $667.5 million at December 31, 1999 from $491.4 million at December 31, 1998.
Private Finance
The private finance portfolio, which consists of the company's mezzanine debt and equity securities, increased 67% during the year and totaled $647.0 million at December 31, 1999. The weighted average yield on the debt portion of this portfolio, which totaled $559.7 million at December 31, 1999, was 14.2%.
Commercial Real Estate Finance
The commercial real estate finance portfolio increased 46% from $355 million to $520 million at December 31, 1999. The increase was primarily due to the purchase of $246 million of commercial mortgage-backed securities (CMBS), which were purchased to yield 14.6%. The company made significant progress in its plan to liquidate lower yielding commercial mortgage loans from this portfolio in 1999. The company sold approximately $86.1 million of commercial mortgage loans with a weighted average yield of approximately 9.5% and redeployed the proceeds into higher yielding assets. The weighted average yield on the commercial real estate finance portfolio at December 31, 1999 was 12.3%.
Small Business Finance
Allied Capital Express originated loans for sale of $116.5 million, and sold loans and loan participations of $112.3 million during 1999. During the fourth quarter, Allied Capital Express originated $37.1 million in loans for sale, and sold $52.0 million in loans and loan participations. The company's small business finance portfolio is comprised primarily of loans originated for sale, and residual interests in loans sold. The portfolio totaled $61.4 million at December 31, 1999. Net premiums from loan sales totaled $10.3 million, or $0.17 per share, for the year ended December 31, 1999.
Liquidity and Capital Resources
The company significantly strengthened its capital structure during the year. Allied Capital raised a total of $164.3 million in new equity, and extended the maturity of its debt financing by placing $239 million in additional long-term debt. The company successfully achieved its earnings objective for the year through accretive capital raising and maintained its competitive cost of capital by remaining appropriately leveraged throughout the year. At December 31, 1999, the company's debt to equity ratio was less than 1:1. Approximately 82% of the company's debt has a fixed interest rate, and the company's weighted average cost of funds was 7.9% at December 31, 1999. There are no significant maturities of long-term debt until 2003.
Portfolio Quality
The company employs a grading system to monitor the quality of its portfolio. Grade 1 is for those investments from which a capital gain is expected. Grade 2 is for investments performing in accordance with plan. Grade 3 is for investments that require closer monitoring; however, no loss of interest or principal is expected. Grade 4 is for investments for which some loss of contractually due interest is expected, but no loss of principal is expected. Grade 5 is for investments for which full loss of interest and some loss of principal is expected, and the loan is marked down to net realizable value.
The quality of the company's investment portfolio remains strong. At December 31, 1999, the portfolio of Grade 1 investments totaled $156.0 million, or 13% of the total portfolio at value; Grade 2 investments totaled $1,002.9 million, or 81% of the total portfolio; Grade 3 investments totaled $22.5 million, or 2% of the total portfolio; Grade 4 investments totaled $32.2 million, or 3% of the total portfolio; and Grade 5 investments totaled $14.9 million, or 1% of the total portfolio.
Grade 5 private finance investments totaled $12.6 million at value at December 31, 1999, or 1% of the company's total investment portfolio. The value of these Grade 5 investments has been reduced from an aggregate cost of $31.3 million in order to reflect the company's estimate of the net realizable value of these investments upon disposition. This reduction to value has been recorded previously as unrealized depreciation over several years in the company's earnings.
At December 31, 1999, the credit quality of the company's CMBS portfolio remained very strong and delinquencies in the underlying collateral pool were negligible. The yield used to accrue interest on this portfolio assumes a 1% loss rate on the entire underlying collateral mortgage pool.
For the total investment portfolio, loans greater than 120 days delinquent were $18.6 million at value at December 31, 1999, or 1.5% of the total portfolio. Included in this category are loans valued at $11.7 million that are fully secured by real estate. Loans greater than 120 days delinquent generally do not accrue interest. In addition, the company is not accruing interest on a $14.2 million investment that was not yet 120 days delinquent at December 31, 1999, but is expected to be in this category in the first quarter of 2000. Loans greater than 120 days delinquent at December 31, 1998 were $10.4 million at value, or 1.3% of the total portfolio.
Quarterly Dividend Increased 12.5% to $0.45 Per Share
On February 4, 2000, the company increased its regular quarterly dividend by 12.5% to $0.45 per share for the first quarter of 2000. The regular quarterly dividend had previously been $0.40 per share.
The dividend is payable as follows:
Ex-dividend date March 15, 2000
Record date March 17, 2000
Payable date March 31, 2000
The company's Board also established a policy to review the dividend rate quarterly, and to adjust the quarterly dividend rate throughout the year as the company's earnings momentum builds. In 1999, the Board had established a dividend policy of level quarterly dividends to approximate annual taxable income. The Board changed its dividend policy for 2000 because of the company's significant portfolio growth and continued growth in recurring ordinary income.
As a result of growth in ordinary taxable income combined with the increased size and diversity of the company's portfolio and its projected future capital gains, the company also announced that its Board of Directors would evaluate whether to retain or distribute capital gains as they occur. The new policy will allow the company to continue to distribute some capital gains, but will also allow the company to retain gains that exceed a "normal" capital gains distribution level, and therefore avoid any unusual spike in dividends in any one year. The new policy also enables the Board to selectively retain gains to support future growth. |
