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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (52675)	10/31/2013 12:48:59 AM
From: Steve Felix	Respond to of 78711

The buyback announcement seems to have been a waste of breath and press. Arthur William Stein - Chief Financial Officer, Chief Investment Officer and SecretaryWell, I'll answer the buyback question. There is no assumption with respect to a buyback in the outlook that we've given for next year. And as I said in my remarks, we consider the returns on our development deals, the 10% to 12% unlevered, to be superior to what the return would be in repurchasing our common stock. Now another point, quite frankly, is that we have -- basically, our capital is earmarked for our development program at this point. So our ability to repurchase common would be a function of raising alternative equity. As to the leverage, we obviously are very keen and focused on maintaining our investment-grade debt ratings. You saw on the statistics that we provided that we are in good shape in that regard. But I think if we were to embark upon a common stock repurchase program, it would be funded with either another preferred issuance or potentially a joint venture. seekingalpha.com