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Chicago Atlantic Real Estate Finance Upsizes Its Revolving Credit Facility To $65M

Chicago Atlantic Lincoln, LLC wholly-owned financing subsidiary of Chicago Atlantic Real Estate Finance, Inc. read more.....»»

Category: blogSource: benzingaMay 13th, 2022

Omni-Lite Industries Reports Third Quarter Fiscal 2021 Results And Announces Conference Call for Investors to Be Held on Tuesday, November 23, 2021

Third Quarter Fiscal 2021 Revenue of US$1.6 million, an increase of 36% compared to Second Quarter Fiscal 2021 and comparable to Third Quarter Fiscal 2020 Adjusted EBITDA loss of US$66,000, representing a 76% reduction over the year ago fiscal quarter despite comparable revenues in both fiscal quarters Third Quarter Fiscal 2021 Bookings of US$1.7 million, representing a Book-to-Bill ratio of 1.06 Quarter End Backlog of US$1.8 million, as compared to US$1.7 million at the End of Second Quarter Fiscal 2021 Year to Date Free Cash Flow Use of US$176,000, despite a 24% decrease in revenues         TSXV: OML OTCQX: OLNCF LOS ANGELES, Nov. 22, 2021 (GLOBE NEWSWIRE) -- Omni-Lite Industries Canada Inc. ((the ", Company", or "Omni-Lite", TSXV:OML) today reported results for the fiscal third quarter ending September 30, 2021. Full financial results are available at sedar.com. Third Quarter Fiscal 2021 Results Revenue for the third quarter of 2021 was approximately US$1.6 million, an increase of approximately 36% as compared to the second quarter of 2021, and flat as compared to the third quarter of 2020. The increase in revenue compared to the second quarter of 2021 was due to increases in commercial aerospace and defense electronics revenue. Backlog increased from US$1.7 million at end of the second quarter fiscal 2021 to US$1.8 million at the end of third quarter fiscal 2021, driven by a book-to-bill ratio of [1.06]. Adjusted EBITDA(1) loss of approximately US$(66,000) was an improvement of US$192,000 over the second quarter of 2021 and an improvement of US$206,000, or a 76% reduction, as compared to the third quarter of 2020. Free Cash Flow(1) was a use approximately US$236,000 in the third quarter, as compared to a use of approximately US$93,000 in the second quarter of 2021, driven primarily by increased working capital resulting from sequential quarterly revenue increase. Subsequent to the Company's fiscal 2021 third quarter end, Omni-Lite was awarded firm orders valued in excess of US$250,000 for military-use forged components used in consumable munition applications. The delivery of these orders is expected to occur over the next two years with the potential for follow-on contract opportunities. A key aspect of these contract wins was the Company‘s expansion of its sales channels in the European defense market with the appointment of a new reseller partner that could lead to further penetration of defense and commercial customer accounts in this strategic market for Omni-Lite. Management Comments David Robbins, Omni-Lite's CEO, stated "Omni-Lite Industries sales in third quarter fiscal year 2021 reflected the start of some recovery in the commercial aerospace market and an increase in defense electronics platform wins. A continuation of these trends including the expansion in the broader European markets would enable the Company to return to normalized positive adjusted EBITDA margins. We continue to focus on operational efficiency and performance and look to capitalize on increased needs for reliable suppliers to support production needs; and, our balance sheet and liquidity position remains strong. The Company ended the third quarter of fiscal 2021 with approximately US$1.4 million in cash and approximately US$1.5 million available under its revolving credit facility. We continue to evaluate M&A opportunities and are progressing with our efforts to monetize our real estate holding to fuel potential in this area," remarked, Mr. Robbins......»»

Category: earningsSource: benzingaNov 22nd, 2021

Bally"s Corporation Announces Third Quarter 2021 Results

PROVIDENCE, R.I., Nov. 4, 2021 /PRNewswire/ -- Bally's Corporation (NYSE:BALY) today reported financial results for the third quarter ended September 30, 2021. Third Quarter 2021 Financial and Recent Highlights Record revenue of $314.8 million, an increase of $198.2 million, or 169.9%, year over year Net loss of $14.7 million compared to net income of $6.7 million for the comparable period; Adjusted EBITDA of $78.0 million, an increase of $40.0 million year over year Retail Casinos revenue was a record high of $301.6 million Retail Casinos net income of $49.4 million versus $22.1 million for the comparable period; Adjusted Retail Casinos EBITDAR of $106.5 million versus $43.5 million for the comparable period Completed acquisition of Gamesys on October 1st Gamesys Revenue of $278.6 million a record high on a constant currency basis; Net loss and Adjusted EBITDA of $8.7 million and $83.8 million, respectively(1) (1) The Company acquired Gamesys on October 1, 2021. Accordingly, Gamesys results are not included in the Company's results as of and for the three and nine months ended September 30, 2021. Lee Fenton, Chief Executive Officer said, "On October 1, 2021, Bally's completed its transformational acquisition of Gamesys Group - a strategic combination that further advances Bally's global, data-driven, omni-channel strategy. As a result, our business is evolving from a regional casino operator into an industry leader in retail, sports, media and iGaming, which will see us harness a set of assets that provides a formidable platform for growth as a digital-first leader in global gaming entertainment." Fenton continued, "This quarter, Retail Casinos had $301.6 million of revenue and $106.5 million of Adjusted Retail Casinos EBITDAR. The quarter was negatively impacted by approximately $6 million of losses related to natural disasters, including two hurricanes and wildfires in Nevada. North America Interactive sales doubled from last quarter at $11.4 million, with Adjusted EBITDA of ($5.5) million, which was in line with our expectations. Adjusted EBITDA for the Company of $78.0 million includes $11.4 million of rent expense and $11.1 million of corporate expense. Gamesys had record Revenue and Adjusted EBITDA on a constant currency basis for the quarter, which will be consolidated into Bally's results starting with the fourth quarter." Summary of Financial Results Three Months Ended September 30, (in thousands, except percentages) 2021 2020 Revenue $ 314,779 $ 116,624 Income from operations $ 27,734 $ 23,383 Income from operations margin 8.8 % 20.0 % Net (loss) income $ (14,747) $ 6,723 Net (loss) income margin (4.7) % 5.8 % Adjusted EBITDA(1) $ 77,977 $ 38,005 Adjusted EBITDA margin(1) 24.8 % 32.6 % Retail Casinos net income $ 49,387 $ 22,083 Retail Casinos net income margin 16.4 % 19.2 % Adjusted Retail Casinos EBITDAR(1) $ 106,534 $ 43,512 Adjusted Retail Casinos EBITDAR margin(1) 35.3 % 37.8 %  (1) Refer to tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable measure calculated in accordance with GAAP. Global Refinancing On August 20, 2021, the Company issued $750.0 million aggregate principal amount of senior notes due 2029 and $750.0 million aggregate principal amount of senior notes due 2031. On October 1, 2021, the Company entered into a credit agreement for senior secured credit facilities consisting of a $1.945 billion senior secured first lien term loan facility and an undrawn $620.0 million senior secured first lien revolving credit facility. The proceeds of the new credit facilities and the new senior notes plus other resources were used to repay the Company's existing debt, pay a portion of the Gamesys acquisition price and repay Gamesys debt. On October 1, 2021, gross debt was $3.445 billion with no drawings on the senior secured first lien revolving credit facility. Shares Outstanding As of October 31, 2021, the Company had 54,363,371 common shares issued and outstanding. Not included in the common shares outstanding are the Company-issued warrants, options and other contingent consideration provided as part of acquisitions and strategic partnerships that, as a result of the exercise of warrants and options, or the achievement of certain performance targets, may result in the issuance of common shares in future periods. These incremental shares are summarized below: Sinclair Penny Warrants 7,911,724 Sinclair Performance Warrants 3,279,337 Sinclair Options(1) 1,639,669 Monkey Knife Fight penny warrants 24,611 Monkey Knife Fight contingent shares 787,557 Telescope contingent shares 75,678 SportCaller contingent shares(2) 230,830 Outstanding awards under Equity Incentive Plans 895,988 14,845,394 (1) Consists of four equal tranches to purchase shares with exercise prices ranging from $30.00 to $45.00 per share, exercisable over a seven-year period beginning on the fourth anniversary of the November 18, 2020 closing of the Sinclair Agreement. (2)  The contingent consideration related to the SportCaller acquisition is 10M EUR, payable in shares subject to certain post-acquisition earnout targets and based on share price at time of payment.  For purposes of this estimate, the Company used the EUR>USD conversion rate of 1.1574 as of September 30, 2021 and the closing share price of Company common shares of $50.14 per share to calculate the shares expected to be issued if all earn-out targets are met. Reconciliation of GAAP Measures to Non-GAAP Measures To supplement the financial information presented on a generally accepted accounting principles ("GAAP") basis, the Company has included in this earnings release non-GAAP financial measures for Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Retail Casinos EBITDAR and Adjusted Retail Casinos EBITDAR margin, which exclude certain items described below. The Company believes these measures represent important measures of financial performance that provide useful information that is helpful in understanding the Company's ongoing operating results. The reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below. "Adjusted EBITDA" is earnings, or loss, for the Company, or where noted the Company's reportable segments, before, in each case, interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, acquisition, integration and restructuring expenses, share-based compensation, gain on sale-leaseback, and certain other gains or losses as well as, when presented for the Company's reporting segments, an adjustment related to the allocation of corporate costs among segments. Adjusted EBITDA margin is measured as Adjusted EBITDA as a percentage of revenue. "Adjusted Retail Casinos EBITDAR" is Adjusted EBITDA (as defined above) for the Company's East and West segments plus rent expense associated with triple net operating leases with GLPI for the real estate assets used in the operation of Bally's Evansville and Dover Downs and the assumption of the lease for real estate and land underlying the operations of the Bally's Lake Tahoe property. Adjusted Retail Casinos EBITDAR margin is measured as Adjusted Retail Casinos EBITDAR as a percentage of revenue. Management has historically used Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Retail Casinos EBITDAR and Adjusted Retail Casinos EBITDAR margin when evaluating operating performance because the Company believes that these metrics are necessary to provide a full understanding of the Company's core operating results and as a means to evaluate period-to-period performance. Management also believes that Adjusted EBITDA is a measure that is widely used for evaluating operating performance of companies in the Company's industry and a principal basis for valuing resort and gaming companies like the Company. Management of the Company believes that while certain items excluded from Adjusted EBITDA and Adjusted Retail Casinos EBITDAR may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods presented or they may not relate specifically to current operating trends or be indicative of future results. Neither Adjusted EBITDA or Adjusted Retail Casinos EBITDAR should be construed as an alternative to GAAP net income or GAAP diluted EPS, respectively, as an indicator of the Company's performance. In addition, Adjusted EBITDA or Adjusted EBITDAR as used by the Company may not be defined in the same manner as other companies in the Company's industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. Third Quarter Conference Call The Company's third quarter 2021 earnings conference call and audio webcast will be held today, Thursday, November 4, 2021 at 10:00 AM EDT. To access the conference call, please dial (877) 876-9176 (U.S. toll-free) and reference conference ID BALYQ32021. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of the Company's website at www.ballys.com. An online archive of the webcast will be available on the Company's website for 120 days. Supplemental materials have also been posted to the Investors section of the website, under Events & Presentations. About Bally's Corporation Bally's Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 14 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 15 states. It also owns Gamesys Group, a leading, global, online gaming operator, Bally Interactive, a first-in-class sports betting platform, Monkey Knife Fight, the fastest growing daily fantasy sports site in North America, SportCaller, a leading, global B2B free-to-play game provider, and Telescope Inc., a leading provider of real-time fan engagement solutions. With approximately 10,000 employees, the Company's Casino operations include more than 15,800 slot machines, 500 table games and 5,300 hotel rooms. Upon closing the previously announced Tropicana Las Vegas (NV) transaction, as well as completing the construction of a land-based casino near the Nittany Mall in State College, PA, Bally's will own and manage 16 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY". Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws.  Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by BALY in this press release, its reports filed with the Securities and Exchange Commission (the "SEC") and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for BALY to predict or identify all such events or how they may affect it.  BALY has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included it the Company's Annual reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995.   Investor Contact Media Contact Robert Lavan Richard Goldman / David Gill Senior Vice President, Finance and Investor Relations Kekst CNC 401-475-8564 646-847-6102 / 917-842-5384 InvestorRelations@ballys.com BallysMediaInquiries@kekstcnc.com   BALLY'S CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share data) September 30,2021 December 31,2020 Assets Cash and cash equivalents $ 164,259 $ 123,445 Restricted cash 1,844,758 3,110 Accounts receivable, net 39,770 14,798 Inventory 12,048 9,296 Tax receivable 102,388 84,483 Prepaid expenses and other current assets 79,255 53,823 Total current assets 2,242,478 288,955 Property and equipment, net 780,656 749,029 Right of use assets, net 499,133 36,112 Goodwill 444,908 186,979 Intangible assets, net 996,686 663,395 Other assets 5,842 5,385 Total assets $ 4,969,703 $ 1,929,855 Liabilities and Stockholders' Equity Current portion of long-term debt $ 5,750 $ 5,750 Current portion of lease liabilities 20,567 1,520 Accounts payable 36,976 15,869 Accrued liabilities 207,283 120,055 Total current liabilities 270,576 143,194 Long-term debt, net 2,556,421 1,094,105 Long-term portion of lease liabilities 504,885 62,025 Pension benefit obligations 8,147 9,215 Deferred tax liability 63,123 36,983 Naming rights liabilities 190,270 243,965 Contingent consideration payable 43,691 — Other long-term liabilities 15,139 13,770 Total liabilities 3,652,252 1,603,257 Commitments and contingencies Stockholders' equity: Common stock ($0.01 par value, 200,000,000 shares authorized; 44,581,568 and 30,685,938 shares issued; 44,581,568 and 30,685,938 shares outstanding) 445 307 Preferred stock ($0.01 par value; 10,000,000 shares authorized; no shares outstanding) — — Additional paid-in-capital 1,368,908 294,643 Treasury stock, at cost — — Retained earnings (8,328) 34,792 Accumulated other comprehensive loss (47,334) (3,144) Total Bally's Corporation stockholders' equity 1,313,691 326,598 Non-controlling interest 3,760 — Total stockholders' equity 1,317,451 326,598 Total liabilities and stockholders' equity $ 4,969,703 $ 1,929,855   BALLY'S CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) Three Months EndedSeptember 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue: Gaming $ 227,594 $ 96,588 $ 585,791 $ 196,191 Racing 2,022 1,684 6,593 4,817 Hotel 32,903 6,874 68,277 16,635 Food and beverage 29,504 6,889 68,386 23,875 Other 22,756 4,589 45,731 13,178 Total revenue 314,779 116,624 774,778 254,696 Operating (income) costs and expenses: Gaming 75,174 25,996 182,059 59,080 Racing 1,996 1,681 5,715 4,877 Hotel 9,413 2,482 22,068 6,926 Food and beverage 21,419 6,016 50,632 21,951 Other 7,624 408 11,442.....»»

Category: earningsSource: benzingaNov 4th, 2021

VEREIT® Announces Third Quarter 2021 Operating Results

PHOENIX, Oct. 29, 2021 /PRNewswire/ -- VEREIT, Inc. (NYSE:VER) ("VEREIT" or the "Company") announced today its operating results for the three months ending September 30, 2021. The Company anticipates closing its previously announced merger with Realty Income Corporation on November 1, 2021. Third Quarter 2021 Financial and Operating Highlights Net income of $61.6 million and net income per diluted share of $0.25 Achieved $0.83 AFFO per diluted share, representing a 7.8% increase compared to the same quarter in 2020 Rent collection of 99.1% Compared to last quarter, Total debt - as reported increased from $5.6 billion to $5.7 billion; Adjusted Principal Outstanding remained at $5.8 billion; Net Debt increased from $5.5 billion to $5.8 billion; and Net Debt to Normalized EBITDA increased from 5.46x to 5.75x. Debt metrics were impacted by the redemption of $373.0 million of the Company's 6.7% Series F Preferred Stock during the quarter Year-To-Date Transaction Highlights as of October 27, 2021 Invested over $1 billion of capital, including $530.0 million in property acquisitions and build-to-suits placed into service, along with approximately $473.0 million allocated toward the full redemption of the Company's 6.7% Series F Preferred Stock Office dispositions totaled $287.4 million reducing office exposure to 14.2% as of quarter-end Strategic dispositions totaled $162.5 million Third Quarter 2021 Financial Results Total RevenuesTotal revenues for the quarter ended September 30, 2021 decreased $5.1 million to $290.2 million as compared to total revenues of $295.3 million for the same quarter in 2020. Net Income and Net Income Attributable to Common Stockholders per Diluted ShareNet income for the quarter ended September 30, 2021 decreased $37.3 million to $61.6 million as compared to net income of $98.9 million for the same quarter in 2020, and net income per diluted share decreased $0.16 to $0.25 for the quarter ended September 30, 2021, as compared to net income per diluted share of $0.41 for the same quarter in 2020. Normalized EBITDANormalized EBITDA for the quarter ended September 30, 2021 increased $0.7 million to $253.6 million as compared to Normalized EBITDA of $252.9 million for the same quarter in 2020. Funds From Operations Attributable to Common Stockholders and Limited Partners ("FFO") and FFO per Diluted Share FFO for the quarter ended September 30, 2021 increased $4.8 million to $176.0 million, as compared to $171.2 million for the same quarter in 2020, and FFO per diluted share decreased $0.03 to $0.76 for the quarter ended September 30, 2021, as compared to FFO per diluted share of $0.79 for the same quarter in 2020. Adjusted FFO Attributable to Common Stockholders and Limited Partners ("AFFO") and AFFO per Diluted ShareAFFO for the quarter ended September 30, 2021 increased $25.1 million to $191.6 million, as compared to $166.5 million for the same quarter in 2020, and AFFO per diluted share increased $0.06 to $0.83 for the quarter ended September 30, 2021, as compared to $0.77 for the same quarter in 2020. Balance Sheet and LiquidityAs of the end of the third quarter, the Company had corporate liquidity of approximately $1.4 billion, predominantly comprised of  $1.4 billion of availability under its credit facility. In addition, secured debt was reduced by $15.3 million. Consolidated Financial StatisticsFinancial Statistics as of the quarter ended September 30, 2021 are as follows:  Net Debt to Normalized EBITDA of 5.75x, Fixed Charge Coverage Ratio of 4.2x, Unencumbered Asset Ratio of 86.8%, Net Debt to Gross Real Estate Investments of 40.0%, and Weighted Average Debt Term of 5.5 years. Real Estate Portfolio As of September 30, 2021, the Company's portfolio consisted of 3,882 properties with total portfolio occupancy of 97.6%, investment grade tenancy of 38.0% and a weighted-average remaining lease term of 8.4 years. During the quarter ended September 30, 2021, same-store contract rental revenue (3,723 properties) increased 3.2% as compared to the same quarter in 2020.  The weighted-average rent coverage for retail and restaurant properties was 2.70x. Real Estate Leasing Activity During the third quarter, the Company entered into 56 new and renewal leases on approximately 1.2 million square feet, or 1.4% of the portfolio, including 0.2 million square feet of early renewals.  Year-to-date, the Company entered into 169 new and renewal leases on approximately 4.5 million square feet, or 5.1% of the portfolio, including 1.7 million square feet of early renewals. Rent recapture year-to-date approximated 98% of prior rents on an initial cash basis, including early renewals. AcquisitionsDuring the quarter ended September 30, 2021, the Company invested in 28 properties for $100.5 million at an average cash cap rate of 6.8%.  Office DispositionsDuring the quarter ended September 30, 2021, the Company disposed of one office property for an aggregate sales price of $16.6 million at a gain of $0.7 million. Strategic DispositionsDuring the quarter ended September 30, 2021, the Company disposed of 30 properties for an aggregate sales price of $46.6 million.  Of this amount, $5.4 million was used in the total weighted average cash cap rate calculation of 8.0%.  The gain on third quarter strategic dispositions was $2.6 million. COVID-19 Company UpdateAs of October 20, 2021, VEREIT had received rent of approximately 99.1% for the third quarter of 2021, which is based on the terms of lease agreements in effect at January 1, 2021 and excludes tenants being accounted for on a cash basis.  The property type breakdown for rent collection is as follows: Property Type Q3 2021 Total Retail 99% Casual Dining 100% Quick Service 98% Total Restaurant 99% Total Office 99% Total Industrial 99% As of October 20, 2021, we collected $16.8 million of deferred rent, representing approximately 100% of amounts due through September 30, 2021, or 88.3% of total executed deferrals. Subsequent Events AcquisitionsFrom October 1, 2021 through October 27, 2021, the Company acquired 16 properties for $81.4 million, bringing acquisitions and build-to-suits placed into service year-to-date through October 27, 2021, to $530.0 million. Strategic DispositionsFrom October 1, 2021 through October 27, 2021, the Company disposed of 4 properties for an aggregate sales price of $6.6 million, bringing strategic dispositions year-to-date through October  27, 2021, to approximately $162.5 million. Audio Webcast and Call DetailsIn light of the Company's proposed merger with Realty Income, the Company will no longer be holding earnings conference calls. About the CompanyVEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S.  The Company has total real estate investments of $14.6 billion including approximately 3,900 properties and 88.7 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. VEREIT uses, and until the merger closes intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.  Additional information about VEREIT can be found through social media platforms such as Twitter and  LinkedIn. About the Data Prior period shares and per share amounts have been updated to reflect the reverse stock split, which took effect on December 17, 2020. As previously disclosed, the Company identified an overstatement in amounts recorded to depreciation expense. The Company revised the accompanying statement of operations for the three months ended September  30, 2020 to reduce depreciation and amortization expense by $0.9 million. Rent collection percentages disclosed are based on contractual rent and recoveries paid by tenants to cover estimated tax, insurance and common area maintenance expenses, including the Company's pro rata share of such amounts related to properties owned by unconsolidated joint ventures.  Percentages are based on the terms of the lease agreements in effect at January 1, 2021 and exclude rent due and cash received for leases being accounted for on a cash basis as of January 1, 2021. This change better reflects normalized collections and has a very modest impact of approximately 0.4%. Percentages  also exclude any tenants in bankruptcy prior to the pandemic. Descriptions of FFO and AFFO, EBITDA and Normalized EBITDA, Principal Outstanding and Adjusted Principal Outstanding, Net Debt, Interest Expense, Excluding Non-Cash Amortization, Fixed Charge Coverage Ratio, Net Debt to Normalized EBITDA Annualized Ratio, Net Debt Leverage Ratio, Unencumbered Asset Ratio, Contract Rental Revenue, and Rent Coverage are provided below. Refer to the subsequent tables for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure and the calculations of these financial ratios. Contract Rental Revenue Includes minimum rent, percentage rent and other contingent consideration, and rental revenue from parking and storage space and the Company's pro rata share of such revenues from properties owned by Unconsolidated Joint Ventures. Contract Rental Revenue excludes GAAP adjustments, such as straight-line rent and amortization of above-market lease assets and below-market lease liabilities. Contract Rental Revenue includes such revenues from properties subject to a direct financing lease. The Company believes that Contract Rental Revenue is a useful non-GAAP supplemental measure to investors and analysts for assessing performance. However, Contract Rental Revenue should not be considered as an alternative to revenue, as computed in accordance with GAAP, or as an indicator of the Company's financial performance. Contract Rental Revenue may not be comparable to similarly titled measures of other companies. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") and Normalized EBITDA Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("Nareit"), an industry trade group, has promulgated a supplemental performance measure known as Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income or loss computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate, gains or losses from disposition of property and our pro rata share of EBITDAre adjustments related to unconsolidated partnerships and joint ventures. We calculated EBITDAre in accordance with Nareit's definition described above. In addition to EBITDAre, we use Normalized EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as acquisition-related expenses, merger, litigation and non-routine costs, net and gains or losses on sale of investment securities or mortgage notes receivable. We also exclude certain non-cash items such as impairments of goodwill, intangible and right of use assets, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt and amortization of intangibles, above-market lease assets and below-market lease liabilities. Management believes that excluding these costs from EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, EBITDAre and Normalized EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP. The Company uses Normalized EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. EBITDAre and Normalized EBITDA may not be comparable to similarly titled measures of other companies. Fixed Charge Coverage RatioFixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash amortization, (ii) secured debt principal amortization on Adjusted Principal Outstanding and (iii) dividends attributable to preferred shares divided by Normalized EBITDA. Management believes that Fixed Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed financing obligations. Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO")Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit has promulgated a supplemental performance measure known as FFO, which we believe to be an appropriate supplemental performance measure to reflect the operating performance of a REIT. FFO is not equivalent to our net income or loss as determined under U.S. GAAP. Nareit defines FFO as net income or loss computed in accordance with U.S. GAAP adjusted for gains or losses from disposition of property, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of FFO adjustments related to unconsolidated partnerships and joint ventures. We calculate FFO in accordance with Nareit's definition described above. In addition to FFO, we use AFFO as a non-GAAP supplemental financial performance measure to evaluate the operating performance of the Company. AFFO, as defined by the Company, excludes from FFO non-routine items such as acquisition-related expenses, merger, litigation and non-routine costs, net and gains or losses on sale of investment securities or mortgage notes receivable. We also exclude certain non-cash items such as impairments of goodwill, intangible and right of use assets, straight-line rent, net direct financing lease adjustments, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, equity-based compensation and amortization of intangible assets, deferred financing costs, premiums and discounts on debt and investments, above-market lease assets and below-market lease liabilities. Management believes that excluding these items from FFO provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. AFFO allows for a comparison of the performance of our operations with other publicly-traded REITs, as AFFO, or an equivalent measure, is routinely reported by publicly-traded REITs, and we believe often used by analysts and investors for comparison purposes. For all of these reasons, we believe FFO and AFFO, in addition to net income (loss), as defined by U.S. GAAP, are helpful supplemental performance measures and useful in understanding the various ways in which our management evaluates the performance of the Company over time. However, not all REITs calculate FFO and AFFO the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to net income (loss) and are not intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate AFFO and its use as a non-GAAP financial performance measure. Gross Real Estate InvestmentsGross Real Estate Investments represent total gross real estate and related assets of Operating Properties, equity investments in the Cole REITs, investment in direct financing leases, investment securities backed by real estate and mortgage notes receivable, and the Company's pro rata share of such amounts related to properties owned by Unconsolidated Joint Ventures,  net of gross intangible lease liabilities. We believe that the presentation of Gross Real Estate Investments, which shows our total investments in real estate and related assets, in connection with Net Debt, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Gross Real Estate Investments should not be considered as an alternative to the Company's real estate investments balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP. Interest Expense, Excluding Non-Cash Amortization Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt and the Company's pro rata share of  the Unconsolidated Joint Ventures' outstanding principal balance.  This measure excludes the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP. We believe that the presentation of Interest Expense, excluding non-cash amortization, which shows the interest expense on our contractual debt obligations, provides useful information to investors to assess our overall solvency and financial flexibility. Interest Expense, excluding non-cash amortization should not be considered as an alternative to the Company's interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP. Net Debt Leverage RatioNet Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments. We believe that the presentation of Net Debt Leverage Ratio provides useful information to investors because our management reviews Net Debt Leverage Ratio as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Net Debt, Principal Outstanding and Adjusted Principal Outstanding Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Adjusted Principal Outstanding includes the Company's pro rata share of the Unconsolidated Joint Ventures' outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP. Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and the Company's pro rata share of the Unconsolidated Joint Ventures' cash and cash equivalents. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Net Debt to Normalized EBITDA Annualized Ratio Net Debt to Normalized EBITDA Annualized ("Net Debt to Normalized EBITDA") equals Net Debt divided by the respective quarter Normalized EBITDA multiplied by four. We believe that the presentation of Net Debt to Normalized EBITDA Annualized provides useful information to investors because our management reviews Net Debt to Normalized EBITDA Annualized as part of its management of our overall liquidity, financial flexibility, capital structure and leverage. Rent CoverageRent Coverage is calculated as our tenants' property level EBITDAR (earnings before interest, tax, depreciation, amortization and rent), prior to the deduction of any corporate overhead expenses, for the most recently provided trailing twelve-month period, divided by annualized September 2021 rent per the lease terms. Unencumbered Asset RatioUnencumbered Asset Ratio equals unencumbered Gross Real Estate Investments divided by Gross Real Estate Investments. Management believes that Unencumbered Asset Ratio is a useful supplemental measure of our overall liquidity and leverage. Unconsolidated Joint Ventures Unconsolidated Joint Ventures include the Company's investments in unconsolidated joint ventures formed to acquire and own real estate properties and exclude other investments in unconsolidated entities. Forward-Looking StatementsInformation set forth herein contains "forward-looking statements" which reflect the Company's expectations and projections regarding future events and plans, the Company's future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, rent relief requests, rent relief granted, the payment of future dividends, the impact of the coronavirus (COVID-19) on the Company's business, and the pending merger (the "Merger") with Realty Income Corporation. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which are  difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. Further, information regarding historical rent collections should not serve as an indication of future rent collections. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the Company's ability to consummate the proposed Merger and the timing of the closing of the proposed Merger; the potential impact of the announcement of the proposed transactions or consummation of the proposed transactions on business relationships, including with tenants, clients, employees, customers and competitors;  litigation associated with the Merger; costs, fees, expenses and charges related to the proposed transactions; risks as a result of the restrictions imposed by operating covenants contained in the Merger Agreement restricting the Company generally from issuing equity, incurring or pre-paying debt and limitations on the use of its revolving credit facility; the duration and extent of the impact of COVID-19 on our business and the businesses of our tenants (including their ability to timely make rental payments) and the economy generally; federal, state or local legislation or regulation that could impact the timely payment of rent by tenants in light of COVID-19; the Company's ability to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all; risks associated with tenant, geographic and industry concentrations with respect to the Company's properties; risks accompanying the management of its industrial and office partnerships; the impact of impairment charges in respect of certain of the Company's properties; unexpected costs or liabilities that may arise from potential dispositions, including related to limited partnership, tenant-in-common and Delaware statutory trust real estate programs and the Company's management with respect to such programs; competition in the acquisition and disposition of properties and in the leasing of its properties including that the Company may be unable to acquire, dispose of, or lease properties on advantageous terms or at all; risks associated with bankruptcies or insolvencies of tenants, from tenant defaults generally or from the unpredictability of the business plans and financial condition of the Company's tenants, which are heightened as a result of the COVID-19 pandemic; risks associated with the Company's substantial indebtedness, including that such indebtedness may affect the Company's ability to pay dividends and that the terms and restrictions ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaOct 30th, 2021

CORRECTING and REPLACING – Quaint Oak Bancorp, Inc. Announces Third Quarter Earnings

SOUTHAMPTON, Pa., Oct. 29, 2021 (GLOBE NEWSWIRE) -- In a release issued October 27, 2021 under the same headline for Quaint Oak Bancorp, Inc. (OTCQB:QNTO), under the table heading "Per Common Share Data," the book value per share was stated as $17.47 at the three and nine months ended September 30, 2021. The correct figure should be $16.35. The corrected release follows: Quaint Oak Bancorp, Inc. (the "Company") (OTCQB:QNTO), the holding company for Quaint Oak Bank (the "Bank"), announced today that net income for the quarter ended September 30, 2021 was $1.8 million, or $0.89 per basic and $0.85 per diluted share, compared to $1.0 million, or $0.51 per basic and $0.50 per diluted share for the same period in 2020. Net income for the nine months ended September 30, 2021 was $4.3 million, or $2.17 per basic and $2.07 per diluted share, compared to $2.2 million, or $1.10 per basic and $1.08 per diluted share for the same period in 2020. Robert T. Strong, President and Chief Executive Officer stated, "I am very pleased to present the Company's earnings for the quarter ended September 30, 2021 which exceeded $1.7 million, an increase of 76.8% over the same period in 2020. Additionally, the Company's earnings for the nine months ended September 30, 2021 were $4.3 million, an increase of 99.0% over the same period in 2020. Total asset growth was 10.7% along with deposit growth of 22.7% and loan growth of 6.6% at quarter end when compared to balances of December 31, 2020. The Bank continued curtailment of high rate CD dependency as evidenced by a CD portfolio reduction of 15.3% coupled with growth in our checking accounts of 35.7% and MMA portfolio of 92.0% at period end when compared to balances of December 31, 2020. This strategic posturing has resulted in an average cost of funds for the three months ended September 30, 2021 of 0.96%." Mr. Strong added, "We recently announced the launch of Oakmont Commercial, LLC, a multi-state specialty commercial real estate finance company as an additional subsidiary company of Quaint Oak Bank. Oakmont Commercial is intended to expand our engagement in this specialty line of Commercial Real Estate lending to a National program level. We have been able to initiate the formation of this company through a staged addition of an experienced leadership team. The addition of this company adds to the synergy of our existing Family of Companies as we continue to grow together." Mr. Strong commented, "Our Bank is also in the process of expanding its wholly owned subsidiary, Quaint Oak Real Estate, LLC. Two new offices have been opened, one in Chalfont, Pa. along with one in Doylestown, Pa. This initiative expands the Real Estate Company into the Delaware Valley market in addition to the Lehigh Valley market initially served. With the expansion comes new, experienced, high profile management. Again, the purpose of this expansion is to add to the synergy of our existing Family of Companies." Mr. Strong continued, "Our Bank's wholly owned subsidiary, Quaint Oak Mortgage, LLC has again achieved the designation of one of the "Fastest Growing Companies" in the Lehigh Valley as designated by Lehigh Valley Business. The Mortgage Company has received this award for an astounding six years in a row. The Mortgage Company place tenth in a field of thirty companies who qualified for the award. This award was granted for increased volume during the year 2020 while operating in the depth of the pandemic. Quite an achievement. Additionally, in its own version of expansion, the Mortgage Company has recently launched "QO Direct". This program is a state of the art, automated application process that is intended to expand the Mortgage Company's field of service to a multi-state level." Mr. Strong concluded, "As previously reported, the Company declared a third quarterly cash dividend this year announced October 13, 2021 and payable November 8, 2021. Additionally, I am pleased to report that total stockholders' equity increased 21.9% at September 30, 2021 compared to December 31, 2020. As always, in conjunction with having maintained a strong repurchase plan, our current and continued business strategy includes long-term profitability and payment of dividends reflecting our strong commitment to shareholder value." As it has since the start of the COVID-19 pandemic, the Company continues to assess the effects of the pandemic on its employees, customers and the communities we serve. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted. The CARES Act contains many provisions related to banking, lending, mortgage forbearance and taxation. Since March 2020, the Company has continued to work diligently to help support its existing and new customers through the SBA Paycheck Protection Program ("PPP"), loan modifications, loan deferrals and fee waivers. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") became law. The Economic Aid Act opened a new PPP loan period for first loans and implemented a second loan draw for certain PPP borrowers, each through May 31, 2021. Under the first round the Company funded 854 PPP loans totaling $95.1 million. As of September 30, 2021, 831 of these first round PPP loans totaling $88.9 million were forgiven under the SBA forgiveness program. Under the second round of PPP the Company funded 985 PPP loans totaling $88.4 million as of September 30, 2021. As of September 30, 2021, 304 of the second round PPP loans totaling $18.6 million have been forgiven under the SBA forgiveness program. The Bank also continues to work with our customers affected by COVID-19 through payment accommodations on their loans. Borrowers who were current prior to becoming affected by COVID-19, that received payment accommodations as a result of the pandemic, generally are not reported as past due. Effects of COVID-19 may negatively impact management assumptions and estimates, such as the allowance for loan losses. The Bank continues to evaluate all payment accommodations to customers to identify and quantify any impact they might have on the Bank. However, it is difficult to assess or predict how and to what extent COVID-19 will affect the Company in the future. On January 4, 2021, Quaint Oak Bank, the wholly-owned subsidiary of Quaint Oak Bancorp, Inc., invested $3.0 million for a 51% majority ownership interest in Oakmont Capital Holdings, LLC ("Oakmont"), a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. Oakmont has been providing commercial equipment financing and working capital throughout all 50 states since 1998. Quaint Oak Bank and Oakmont have had an existing business relationship since 2015. The investment in Oakmont provides additional financial resources to support Oakmont's national expansion plans within the equipment finance industry as well as support an expansion of Oakmont's business lines, while adding an equipment finance company to Quaint Oak Bank's subsidiary companies. The financial results that follow include Quaint Oak Bank's investment in Oakmont. Net income amounted to $1.8 million for the three months ended September 30, 2021, an increase of $774,000, or 76.8%, compared to net income of $1.0 million for the three months ended September 30, 2020. The increase in net income on a comparative quarterly basis was primarily the result of an increase in net interest income of $2.1 million and an increase in non-interest income of $1.7 million, partially offset by an increase in non-interest expense of $2.3 million, an increase in the provision for income taxes of $306,000, and an increase in the provision for loan losses of $356,000. The $2.1 million or 74.9% increase in net interest income for the three months ended September 30, 2021 over the comparable period in 2020 was driven by a $1.8 million, or 42.5%, increase in interest income. The increase in interest income was primarily due to a $128.0 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $360.5 million for the three months ended September 30, 2020 to an average balance of $488.5 million for the three months ended September 30, 2021, and had the effect of increasing interest income $1.4 million. Also contributing to the increase in interest income was a 36 basis point increase in the yield on average loans receivable, net, including loans held for sale, which increased from 4.51% for the three months ended September 30, 2020 to 4.87% for the three months ended September 30, 2021, and had the effect of increasing interest income $442,000.   The increase in yield was primarily due to the increase in amortization of deferred loan fees related to forgiven PPP loans. The $354,000, or 26.1%, decrease in interest expense was primarily attributable to an 82 basis point decrease in rate on average certificate of deposit accounts, which decreased from 1.86% for the three months ended September 30, 2020 to 1.04% for the three months ended September 30, 2021, and had the effect of decreasing interest expense by $344,000. Interest expense on deposits continues to be actively managed to lower our cost of funds. This decrease was also partially attributable to a $29.8 million decrease in average certificate of deposit accounts which decreased from an average balance of $198.0 million for the three months ended September 30, 2020 to an average balance of $168.2 million for the three months ended September 30, 2021, and had the effect of decreasing interest expense $138,000. This decrease in interest expense was partially offset by a $139.8 million increase in average money market accounts which increased from an average balance of $52.7 million for the three months ended September 30, 2020 to an average balance of $192.5 million for the three months ended September 30, 2021, and had the effect of increasing interest expense by $294,000. This increase in money market interest expense was partially offset by a 29 basis point decrease in the rate on average money market accounts, which decreased from 0.84% for the three months ended September 30, 2020 to 0.55% for the three months ended September 30, 2021, and had the effect of decreasing interest expense by $142,000. The average interest rate spread increased from 2.58% for the three months ended September 30, 2020 to 3.62% for the three months ended September 30, 2021 while the net interest margin increased from 2.84% for the three months ended September 30, 2020 to 3.82% for the three months ended September 30, 2021.   The $356,000, or 177.1%, increase in the provision for loan losses for the three months ended September 30, 2021 over the three months ended September 30, 2020 was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at September 30, 2021. The $1.7 million, or 90.7%, increase in non-interest income for the three months ended September 30, 2021 over the comparable period in 2020 was primarily attributable to a $657,000, or 54.3%, increase in net gain on loans held for sale, a $475,000 increase in loan servicing income, a $350,000 increase in gain on sales from SBA loans, a $204,000, or 51.0%, increase in mortgage banking, equipment lending, and title abstract fees, a $110,000 increase in net gains on sale and write-downs of other real estate owned, an $11,000, or 16.2%, increase in real estate sales commissions, net and a $3,000, or 2.3%, increase in insurance commissions. The increases in net gain on loans held for sale, loan servicing income, and mortgage banking, equipment lending, and title abstract fees were primarily attributable to Oakmont's results for the three months ended September 30, 2021. These increases were partially offset by a $106,000, or 73.6%, decrease in other fees and service charges. The $2.3 million, or 72.7%, increase in non-interest expense for the three months ended September 30, 2021 over the comparable period in 2020 was primarily due to a $2.0 million, or 91.1%, increase in salaries and employee benefits expense, a $128,000, or 51.0%, increase in occupancy and equipment expense, a $67,000, or 25.9%, increase in other expense, a $59,000, or 155.3%, increase in FDIC deposit insurance assessment, a $57,000, or 32.2%, increase in data processing expense, and a $35,000, or 46.7%, increase in advertising expense. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont. Oakmont's results for the three months ended September 30, 2021 also contributed to the increases in occupancy and equipment expense, professional fees, and advertising expense. The increase in non-interest expense was partially offset by a $9,000, or 81.8%, decrease in other real estate owned expense, a $5,000, or 4.5%, decrease in professional fees and a $3,000, or 4.9%, decrease in Directors' fees and expenses. The provision for income tax increased $306,000, or 77.3%, from $396,000 for the three months ended September 30, 2020 to $702,000 for the three months ended September 30, 2021 due primarily to the increase in pre-tax income. Net income amounted to $4.3 million for the nine months ended September 30, 2021, an increase of $2.2 million, or 99.0%, compared to net income of $2.2 million for the nine months ended September 30, 2020. The increase in net income was primarily the result of an increase in net interest income of $5.6 million and an increase in non-interest income of $4.3 million, partially offset by an increase in non-interest expense of $6.3 million, an increase in the provision for income taxes of $827,000, and an increase in the provision for loan losses of $638,000. The $5.6 million or 72.3% increase in net interest income for the nine months ended September 30, 2021 over the comparable period in 2020 was driven by a $4.8 million, or 40.4%, increase in interest income. The increase in interest income was primarily due to a $167.8 million increase in average loans receivable, net, including loans held for sale, which increased from an average balance of $311.1 million for the nine months ended September 30, 2020 to an average balance of $478.9 million for the nine months ended September 30, 2021, and had the effect of increasing interest income $6.2 million. This increase in interest income was partially offset by a 33 basis point decrease in the yield on average loans receivable, net, including loans held for sale, which decreased from 4.90% for the nine months ended September 30, 2020 to 4.57% for the nine months ended September 30, 2021, and had the effect of decreasing interest income $1.2 million. The decline in loan yield is primarily the result of lower yielding PPP loans funded from the second quarter of 2020 through the second quarter of 2021 and the impact of the Federal Reserve's 150 basis point rate cuts in March 2020, partially offset by the increase in the amortization of deferred loan fees related to forgiven PPP loans. The $791,000, or 19.0%, decrease in interest expense was primarily attributable to a 90 basis point decrease in rate on average certificate of deposit accounts, which decreased from 2.07% for the nine months ended September 30, 2020 to 1.17% for the nine months ended September 30, 2021, and had the effect of decreasing interest expense by $1.2 million. Interest expense on deposits continues to be actively managed to lower our cost of funds. Also contributing to this decrease was a $13.1 million decrease in average certificate of deposit accounts which decreased from an average balance of $192.7 million for the nine months ended September 30, 2020 to an average balance of $179.6 million for the nine months ended September 30, 2021, and had the effect of decreasing interest expense $204,000. This decrease in interest expense was partially offset by a $129.1 million increase in average money market accounts which increased from an average balance of $37.7 million for the nine months ended September 30, 2020 to an average balance of $166.8 million for the nine months ended September 30, 2021, and had the effect of increasing interest expense by $793,000. This increase in money market interest expense was partially offset by a 19 basis point decrease in the rate on average money market accounts, which decreased from 0.82% for the nine months ended September 30, 2020 to 0.63% for the nine months ended September 30, 2021, and had the effect of decreasing interest expense by $234,000. The decrease in interest expense was also partially offset by an increase in average other borrowings of $4.0 million which had the effect of increasing interest expense by $127,000. The average interest rate spread increased from 2.68% for the nine months ended September 30, 2020 to 3.20% for the nine months ended September 30, 2021, while the net interest margin increased from 2.97% for the nine months ended September 30, 2020 to 3.41% for the nine months ended September 30, 2021. The $638,000, or 102.7%, increase in the provision for loan losses for the nine months ended September 30, 2021 over the nine months ended September 30, 2020 was based on an evaluation of the allowance relative to such factors as volume of the loan portfolio, concentrations of credit risk, prevailing economic conditions, which includes the impact of the COVID-19 pandemic, prior loan loss experience and amount of non-performing loans at September 30, 2021. The $4.3 million, or 95.1%, increase in non-interest income for the nine months ended September 30, 2021 over the comparable period in 2020 was primarily attributable to a $1.6 million, or 56.8%, increase in net gain on loans held for sale, a $1.0 million increase in loan servicing income, a $612,000, or 58.6%, increase in mortgage banking, equipment lending, and title abstract fees, a $565,000, or 795.8%, increase in gain on sales from SBA loans, a $362,000 gain on sale of investment securities available for sale, a $92,000 increase in net gains on sale and write-downs of other real estate owned, a $33,000, or 18.5%, increase in other fees and service charges, a $26,000, or 7.5%, increase in insurance commissions, and a $12,000, or 9.2%, increase in real estate sales commissions, net. The increases in net gain on loans held for sale, loan servicing income, and mortgage banking, equipment lending, and title abstract fees were primarily attributable to Oakmont's results for the nine months ended September 30, 2021. The increase in other fees and service charges was primarily due to the increase in loan prepayment fees. The $6.3 million, or 72.9%, increase in non-interest expense for the nine months ended September 30, 2021 over the comparable period in 2020 was primarily due to a $5.0 million, or 85.2%, increase in salaries and employee benefits expense, a $470,000, or 69.8%, increase in occupancy and equipment expense, a $260,000, or 36.4%, increase in other expense, a $167,000, or 35.2%, increase in data processing expense, a $149,000, or 44.0%, increase in professional fees, a $136,000, or 160.0%, increase in FDIC deposit insurance assessment, a $113,000, or 50.4%, increase in advertising expense, and an $11,000, or 6.3%, increase in Directors' fees and expenses. The increase in salaries and employee benefits is primarily due to generally expanding and improving the level of staff at the Bank and its subsidiary companies, including Oakmont. Oakmont's results for the nine months ended September 30, 2021 also contributed to the increases in occupancy and equipment expense, professional fees, and advertising expense.   The increase in non-interest expense was partially offset by a $20,000, or 58.8%, decrease in other real estate owned expense. The provision for income tax increased $827,000, or 95.5%, from $866,000 for the nine months ended September 30, 2020 to $1.7 million for the nine months ended September 30, 2021 due primarily to the increase in pre-tax income. The Company's total assets at September 30, 2021 were $535.9 million, an increase of $51.8 million, or 10.7%, from $484.1 million at December 31, 2020.   This growth in total assets was primarily due to a $53.6 million, or 100.8%, increase in loans held for sale, and a $22.6 million, or 6.3%, increase in loans receivable, net. These increases were partially offset by a $19.6 million, or 57.8%, decrease in cash and cash equivalents and a $6.4 million, or 59.8%, decrease in investment securities available for sale at fair value. The largest increases within the loan portfolio occurred in commercial real estate which increased $24.9 million, or 18.9%, construction loans which increased $8.8 million, or 183.5%, one-to-four family non-owner occupied loans which increased $3.2 million, or 8.3%, and one-to-four family owner occupied loans which increased $2.7 million, or 35.2%. The increases within the loan portfolio were partially offset by commercial business loans which decreased $15.7 million, or 10.2%. Loans held for sale increased $53.6 million, or 100.8%, from $53.2 million at December 31, 2020 to $106.8 million at September 30, 2021 as the Bank's mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $162.0 million of one-to-four family residential loans during the nine months ended September 30, 2021 and sold $184.4 million of loans in the secondary market during this same period. Additionally, the Bank reclassified $17.4 million of equipment loans from loans receivable, net, to loans held for sale, received $9.8 million of loans held for sale from the formation of Oakmont Capital Holdings LLC, and originated $98.4 million in equipment loans held for sale during the nine months ended September 30, 2021. During the nine months ended September 30, 2021 the Company sold $49.6 million of equipment loans.        Total deposits increased $80.7 million, or 22.7%, to $435.5 million at September 30, 2021 from $354.8 million at December 31, 2020. This increase in deposits was primarily attributable to increases of $91.7 million, or 92.0%, in money market accounts, and $19.4 million, or 35.7%, in non-interest bearing checking accounts. The increase in deposits was partially offset by a $30.6 million, or 15.3%, decrease in certificates of deposit. The increase in non-interest bearing checking accounts was primarily due to the checking accounts opened by PPP loan customers.   Total Federal Home Loan Bank (FHLB) borrowings increased $7.0 million, or 18.3%, to $45.2 million at September 30, 2021 from $38.2 million at December 31, 2020. During the nine months ended September 30, 2021, the Company used excess liquidity to pay down $10.0 million of FHLB short-term and $4.0 million of FHLB long-term borrowings. During the second and third quarters of 2021, the Company borrowed $10.0 million and $11.0 million, respectively, of short-term FHLB advances to provide additional liquidity in anticipation of loan funding needs. Federal Reserve Bank (FRB) long-term borrowings decreased $43.2 million, or 89.7%, to $5.0 million at September 30, 2021 from $48.1 million at December 31, 2020 as the Company paid off PPP loans pledged as collateral under the FRB's Paycheck Protection Program Liquidity Facility (PPPLF). The Company did not utilize the FRB's PPPLF to fund second round PPP loans. Other short-term borrowings increased to $933,000 at September 30, 2021 from none at December 31, 2020. Total stockholders' equity increased $6.3 million, or 21.9%, to $35.0 million at September 30, 2021 from $28.7 million at December 31, 2020. Contributing to the increase was noncontrolling interest of $2.2 million, net income for the nine months ended September 30, 2021 of $4.3 million, common stock earned by participants in the employee stock ownership plan of $187,000, amortization of stock awards and options under our stock compensation plans of $126,000, the reissuance of treasury stock for exercised stock options of $87,000, and the reissuance of treasury stock under the Bank's 401(k) Plan of $52,000 and net gain attributable to noncontrolling interest of $12,000. These increases were partially offset by dividends paid of $618,000, other comprehensive loss, net of $84,000, and the purchase of treasury stock of $25,000.        Non-performing loans amounted to $1.7 million, or 0.45%, of net loans receivable at September 30, 2021, one loan of which was on non-accrual status and one loan was 90 days or more past due and accruing interest. Comparably, non-performing loans amounted to $643,000 or 0.18% of net loans receivable at December 31, 2020, consisting of five loans, two loans of which were on non-accrual status and three loans were 90 days or more past due and accruing interest. The non-performing loans at September 30, 2021 include one one-to-four family residential non-owner occupied and one multi-family residential loan, and both are generally well-collateralized or adequately reserved for. The allowance for loan losses as a percent of total loans receivable, net was 1.13% at September 30, 2021 and 0.85% at December 31, 2020. Excluding PPP loans, which are 100% guaranteed by the SBA, the allowance for loan losses to total loans was 1.41% at September 30, 2021. Other real estate owned (OREO) amounted to $489,000 at September 30, 2021 consisting of one property that is collateral for a non-performing construction loan. During the nine months ended September 30, 2021, the Company made $203,000 of capital improvements to the property. Non-performing assets amounted to $2.2 million, or 0.41% of total assets at September 30, 2021 compared to $929,000, or 0.19% of total assets at December 31, 2020. Quaint Oak Bancorp, Inc. is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank's subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC and Quaint Oak Real Estate, LLC. These subsidiary companies conduct business from numerous locations within the Bank's market area. As of January 4, 2021, the Bank holds a majority equity position in Oakmont Capital Holdings, LLC, a multi-state equipment finance company based in West Chester, Pennsylvania with a second significant facility located in Albany, Minnesota. Oakmont's third quarter and year-to-date results are incorporated in the financial statements below. In October 2021, the Company formed Oakmont Commercial, LLC, a wholly-owned subsidiary of Quaint Oak Bank. This subsidiary will be based in Southampton, Pennsylvania and will operate as a multi-state specialty commercial real estate financing company. Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company's market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company's credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company's loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company's business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and fees. QUAINT OAK BANCORP, INC. Consolidated Balance Sheets (In Thousands)   At September 30,   At December 31,    2021    2020    (Unaudited)   (Unaudited)  Assets           Cash and cash equivalents $14,316   $33,913   Investment in interest-earning time deposits   7,892     9,463   Investment securities available for sale at fair value   4,312     10,725   Loans held for sale   106,828     53,191   Loans receivable, net of allowance for loan losses (2021: $4,303; 2020: $3,061)            381,690     359,122   Accrued interest receivable   3,338     3,054   Investment in Federal Home Loan Bank stock, at cost   2,018     1,665   Bank-owned life insurance   4,115     4,054   Premises and equipment, net   2,550     2,341   Goodwill   3,107     515   Other intangible, net of accumulated amortization   234     271   Other real estate owned, net   489     286   Prepaid expenses and other assets        4,977     5,475         Total Assets   $535,866     $484,075        .....»»

Category: earningsSource: benzingaOct 30th, 2021

First Industrial Realty Trust Reports Third Quarter 2021 Results

CHICAGO, Oct. 20, 2021 /PRNewswire/ -- First Industrial Realty Trust, Inc. (NYSE:FR), a leading fully integrated owner, operator and developer of industrial real estate, today announced results for the third quarter of 2021. First Industrial's diluted net income available to common stockholders per share (EPS) was $0.33, compared to $0.28 a year ago and third quarter FFO was $0.51 per share/unit on a diluted basis, compared to $0.49 per share/unit a year ago. Excluding approximately $0.04 per share/unit of income related to the final settlement of an insurance claim, third quarter 2020 FFO was $0.45 per share/unit. "Our team continued its strong performance in the quarter producing excellent portfolio results and executing on our investment strategy," said Peter E. Baccile, First Industrial's president and chief executive officer. "We are achieving strong rent growth across our markets while driving external growth through our expanding development pipeline." Portfolio Performance In service occupancy was 97.1% at the end of the third quarter of 2021, compared to 96.6% at the end of the second quarter of 2021, and 96.3% at the end of the third quarter of 2020. Third quarter 2021 same property cash basis net operating income before termination fees ("SS NOI") increased 6.9%. Cash rental rates increased 22.8% and increased 36.2% on a straight-line basis in 3Q21. Cash rental rate growth on the 98% of 2021 rollovers completed and new leases signed to-date is 15.3%. The Company, to-date, has signed approximately 29% of 2022 rollovers by square footage at a cash rental rate increase of approximately 19.0%. Development Leasing During the third quarter and fourth quarter to-date, the Company: Leased its 548,000 square-foot First Park @ PV303 Building C in Phoenix prior to completion and signed an agreement for a 254,000 square-foot expansion with the tenant. Leased 100% of the 303,000 square-foot First Wilson Logistics Center I in the Inland Empire. The lease is expected to commence upon completion in the first quarter of 2022. Leased 100% of its 28,000 square-foot port-centric redevelopment in the South Bay submarket of Los Angeles. Investment and Disposition Activities In the third quarter, the Company: Commenced development of three projects totaling 691,000 square feet, with an estimated total investment of $108 million comprised of: First Park Miami Building 1 in South Florida - 219,000 square feet; 50% pre-leased; $39 million estimated investment. First Loop Logistics Park in Central Florida - four buildings totaling 344,000 square feet; $45 million estimated investment. First Steele in Seattle - 129,000 square feet; $24 million estimated investment. Acquired a 39,000 square-foot building in Fremont in Northern California for $8 million. Acquired three sites totaling 122 net acres in the Inland Empire East and Denver for $59 million that are developable up to 2.1 million square feet. Sold six buildings and four units totaling 159,000 square feet located in Detroit and South Florida for $14 million. In the fourth quarter, the Company: Plans to commence development of three projects totaling 800,000 square feet, with an estimated total investment of $130 million comprised of: First Pioneer Logistics Center in the Inland Empire - 461,000 square feet; $73 million estimated investment. FirstGate Commerce Center in South Florida - 132,000 square feet; $24 million estimated investment. First Bordentown Logistics Center in New Jersey - 208,000 square feet; $33 million estimated investment, includes $8 million for site acquisition in 4Q21. Acquired two additional sites comprised of ten acres in the Inland Empire and Northern California for a total of $10 million. Sold four buildings totaling 90,000 square feet located in Detroit for $7 million. "Our team is creating value for shareholders by delivering high quality distribution facilities to serve the logistics needs for tenants operating in a range of industries," said Johannson Yap, chief investment officer. "We will have $725 million of development projects underway including our three planned fourth quarter starts and we continue to replenish our pipeline by sourcing and entitling land in high-barrier locations."   Capital During the third quarter, the Company: On July 7, 2021, closed a $750 million senior unsecured revolving credit facility which amended and restated its previous facility. The facility matures on July 7, 2025 and has two six-month extension options. The agreement provides for interest-only payments currently at an interest rate of LIBOR plus 77.5 basis points based on the Company's current credit ratings and consolidated leverage ratio which is a 32.5 basis point reduction in the credit spread compared to the prior facility. On July 7, 2021, closed a new unsecured term loan facility that refinances its $200 million unsecured term loan facility previously scheduled to mature on July 15, 2021. The new term loan matures on July 7, 2026 and provides for interest-only payments currently at an interest rate of LIBOR plus 85 basis points based on the Company's current credit ratings and consolidated leverage ratio which is a 65 basis point reduction in the credit spread compared to the prior term loan. With the interest rate swap agreements in place, the fixed interest rate on the new term loan is 1.84%. Issued 1.1 million shares of its common stock at an average price of $55.35 per share through its "at-the-market" equity offering program generating approximately $59 million in net proceeds. Outlook for 2021 "We are raising our full year FFO per share guidance for 2021 by $0.02 at the midpoint due to our strong third quarter performance and our outlook for the fourth quarter," added Mr. Baccile. "With strategic land positions that support the development of more than 16 million square feet of additional space, we are well-positioned for future growth." Low End of High End of Guidance for 2021 Guidance for 2021 (Per share/unit) (Per share/unit) Net Income $ 1.48 $ 1.52 Add:  Real Estate Depreciation/Amortization 0.98 0.98 Less:  Gain on Sale of Real Estate, Net of Allocable Income Tax Provision Including Joint Ventures, Through October 20, 2021 (0.53) (0.53) FFO (NAREIT Definition) $ 1.93 $ 1.97 The following assumptions were used for guidance: In service occupancy at year-end fourth quarter of 96.75% to 97.75%. This implies a full year quarter-end average in service occupancy of 96.5% to 96.8%, an increase of 15 basis points at the midpoint. Fourth quarter SS NOI growth on a cash basis before termination fees of 6.0% to 7.5%. This implies a quarterly average SS NOI growth for the full year 2021 of 4.3% to 4.7%, an increase of 25 basis points at the midpoint. Same Store revenues for the full year 2020 excludes approximately $1 million of insurance settlement gain relating to a building destroyed by fire in 2016. General and administrative expense of approximately $34 million to $35 million, an increase of $1 million at the midpoint. Includes the incremental costs expected in 2021 related to the Company's developments completed and under construction as of September 30, 2021 and the aforementioned planned fourth quarter starts of First Pioneer Logistics Center, FirstGate Commerce Center and First Bordentown Logistics Center. In total, the Company expects to capitalize $0.08 per share of interest in 2021. Other than the transactions discussed in this release, guidance does not include the impact of: any future debt repurchases prior to maturity or future debt issuances, any future investments or property sales, or any future equity issuances.  Conference Call First Industrial will host its quarterly conference call on Thursday, October 21, 2021 at 10:00 a.m. CDT (11:00 a.m. EDT). The conference call may be accessed by dialing (866) 542-2938 and entering the conference ID 2499227. The conference call will also be webcast live on the Investors page of the Company's website at www.firstindustrial.com. The replay will also be available on the website. The Company's third quarter 2021 supplemental information can be viewed at www.firstindustrial.com under the "Investors" tab.  FFO Definition In accordance with the NAREIT definition of FFO, First Industrial calculates FFO to be equal to net income available to First Industrial Realty Trust, Inc.'s common stockholders and participating securities, plus depreciation and other amortization of real estate, plus impairment of real estate, minus gain or plus loss on sale of real estate, net of any income tax provision or benefit associated with the sale of real estate. First Industrial also excludes the same adjustments from its share of net income from unconsolidated joint ventures. About First Industrial Realty Trust, Inc. First Industrial Realty Trust, Inc. (NYSE:FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers. Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. In total, we own and have under development approximately 67.7 million square feet of industrial space as of September 30, 2021. For more information, please visit us at www.firstindustrial.com. Forward-Looking Information This press release and the presentation to which it refers may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on certain assumptions and describe our future plans, strategies and expectations, and are generally identifiable by use of the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "project," "seek," "target," "potential," "focus," "may," "will," "should" or similar words. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. Factors which could have a materially adverse effect on our operations and future prospects include, but are not limited to: changes in national, international, regional and local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) local economic conditions generally and real estate markets specifically; changes in legislation/regulation (including changes to laws governing the taxation of real estate investment trusts) and actions of regulatory authorities; the uncertainty and economic impact of pandemics, epidemics or other public health emergencies or fear of such events, such as the recent outbreak of coronavirus disease 2019 (COVID-19); our ability to qualify and maintain our status as a real estate investment trust; the availability and attractiveness of financing (including both public and private capital) and changes in interest rates; the availability and attractiveness of terms of additional debt repurchases; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; our competitive environment; changes in supply, demand and valuation of industrial properties and land in our current and potential market areas; our ability to identify, acquire, develop and/or manage properties on favorable terms; our ability to dispose of properties on favorable terms; our ability to manage the integration of properties we acquire; potential liability relating to environmental matters; defaults on or non-renewal of leases by our tenants; decreased rental rates or increased vacancy rates; higher-than-expected real estate construction costs and delays in development or lease-up schedules; potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; risks associated with our investments in joint ventures, including our lack of sole decision-making authority; and other risks and uncertainties described under the heading "Risk Factors" and elsewhere in our annual report on Form 10-K for the year ended December 31, 2020, as well as those risks and uncertainties discussed from time to time in our other Exchange Act reports and in our other public filings with the SEC. We caution you not to place undue reliance on forward-looking statements, which reflect our outlook only and speak only as of the date of this press release or the dates indicated in the statements. We assume no obligation to update or supplement forward-looking statements. For further information on these and other factors that could impact us and the statements contained herein, reference should be made to our filings with the SEC. A schedule of selected financial information is attached.   FIRST INDUSTRIAL REALTY TRUST, INC. Selected Financial Data (Unaudited) (In thousands except per share/Unit data) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2021 2020 2021 2020 Statements of Operations and Other Data:     Total Revenues $ 121,082 $ 116,194 $ 354,739 $ 335,739     Property Expenses (33,396) (30,355) (98,386).....»»

Category: earningsSource: benzingaOct 20th, 2021

Rickards: Systemic Risk Is Greater Than Ever

Rickards: Systemic Risk Is Greater Than Ever Authored by James Rickards via DailyReckoning.com, Contagion! There has been a litany of bad news recently, including the U.S. August humiliation in Afghanistan, China’s aggressive actions against Taiwan and increased tensions with Iran, North Korea and Russia. It will take the U.S. years, possibly decades, to recover from the debacle of August 2021 and the collapse of American prestige. All of these geopolitical events combine to undermine confidence in U.S. power. When that happens, a loss of confidence in the U.S. dollar is not far behind. And, perhaps most importantly of all recent bad news, is a market meltdown and slowing growth in China. Greatest Ponzi Ever I’ve long advised my readers that the Chinese wealth management product (WMP) system is the greatest Ponzi in the history of the world. Retail investors are led to believe that WMPs are like bank deposits and are backed by the bank that sells them. They’re not. They’re actually unsecured units in blind pools that can be invested in anything the pool manager wants. Most WMP funds have been invested in the real estate sector. This has led to asset bubbles in real estate (at best) and wasted developments that cannot cover their costs (at worst). When investors wanted their money back, the sponsor would simply sell more WMPs and use the money to pay back the redeeming investors. That’s what gave the product its Ponzi characteristic. The total amount invested in WMPs is now in the trillions of dollars used to finance thousands of projects sponsored by hundreds of major developers. Chinese investors are all-in with WMPs. Now the entire edifice is collapsing as I predicted it would. The largest property developer in China, Evergrande, is quickly headed for bankruptcy. That’s a multibillion-dollar fiasco on its own. Evergrande losses will arise in WMPs, corporate debt, unpaid contractor bills, equity markets and unfinished housing projects. China’s entire property and financial system is on the verge of a world-historic crack-up. And it won’t remain limited to China. It comes back to contagion. Financial Contagions Are Like Biological Contagions Unfortunately, since early last year, the world has learned a painful lesson in biological contagions. A similar dynamic applies in financial panics. It can begin with one bank or broker going bankrupt as the result of a market collapse (a “financial patient zero”). But the financial distress quickly spreads to banks that did business with the failed entity and then to stockholders and depositors of those other banks and so on until the entire world is in the grip of a financial panic as happened in 2008. Disease contagion and financial contagion both work the same way. The nonlinear mathematics and system dynamics are identical in the two cases even though the “virus” is financial distress rather than a biological virus. And unfortunately, each crisis is bigger than the one before and requires more intervention by the central banks. The reason has to do with the system scale. In complex dynamic systems such as capital markets, risk is an exponential function of system scale. Increasing market scale correlates with exponentially larger market collapses. Today, systemic risk is more dangerous than ever because the entire system is larger than before. This means that the larger size of the system implies a future global liquidity crisis and market panic far larger than the Panic of 2008. Too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system and have much larger derivatives books. Contagion and The Old Man and the Sea To understand the risk of contagion, you can think of the marlin in Hemingway’s The Old Man and the Sea. The marlin started out as a prize catch lashed to the side of the fisherman Santiago’s boat. But once there was blood in the water, every shark within miles descended on the marlin and devoured it. By the time Santiago got to shore, there was nothing left of the marlin but the bill, the tail and some bones. An even greater danger for markets is when these two kinds of contagion converge. This happens when market losses spill over into broader markets, and then those losses give rise to systematic trading against a particular instrument or hedge fund. When the targeted instrument or fund is driven under, credit losses spread to a wider group of fund counterparts that then fall under suspicion themselves. Soon a marketwide liquidity panic emerges in which “everybody wants his money back.” This is exactly what happened during the Russia/Long Term Capital Management (LTCM) crisis in 1998. To the Brink of Collapse It was an international monetary crisis that started in Thailand in June 1997, spread to Indonesia and Korea and then finally to Russia by August 1998. It was exactly like dominoes falling. LTCM wasn’t a country, although it was a hedge fund as big as a country in terms of its financial footings. I was right in the middle of that crash. I was the general counsel of that firm. I negotiated that bailout. The importance of that role is that I had a front-row seat. I was in the conference room, in the deal room, at a big New York law firm. There were hundreds of lawyers. There were 14 banks in the LTCM bailout fund. There were 19 other banks in a $1 billion unsecured credit facility. Included were Treasury officials, Federal Reserve officials, other government officials, Long Term Capital and our partners. I was on point for one side of the deal and had to coordinate all that. Wall Street Bailed out Itself It was a $4 billion all-cash deal, which we put together in 72 hours with no due diligence. Anyone who’s raised money for his or her company or done deals can think about that and imagine how difficult it would be to get a group of banks to write you a check for $4 billion in three days. Systematic pressure on LTCM persisted until the fund was almost broke. As Wall Street attacked the fund, they missed the fact that they were also the creditors of the fund. By breaking LTCM, they were breaking themselves. That’s when the Fed intervened and forced Wall Street to bail out the fund. Those involved can say they bailed out Long Term Capital. But if Long Term Capital had failed, and it was on the way to failure, $1.3 trillion of derivatives would’ve been flipped back to Wall Street. In reality, Wall Street bailed out itself. The panic of 2008 was an even more extreme version of 1998. We were days, if not hours, from the sequential collapse of every major bank in the world. The 2008 panic had its roots in subprime mortgages but quickly spread to debt obligations of all kinds, especially money market funds and European bank commercial paper. Think of the dominoes again. What had happened there? You had a banking crisis. Except in 2008, Wall Street did not bail out a hedge fund; instead, the central banks bailed out Wall Street. Systemic Risk Is Greater Than Ever The point, again, is that today systemic risk is more dangerous than ever, and each crisis is bigger than the one before. Remember, too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system and have much larger derivatives books. The ability of central banks to deal with a new crisis is highly constrained by low interest rates and bloated balance sheets, which have exploded even higher in response to the pandemic. The Fed’s balance sheet is currently about $8.5 trillion. Last March it was $4.2 trillion. In September 2008, it was under $1 trillion, so that just shows you how bloated the Fed’s balance sheet has become since the Great Financial Crisis. The threat of contagion is a scary reminder of the hidden linkages in modern capital markets. The conditions are in place. But you can’t wait for the shock to occur because by then it will be too late. You won’t be able to get your money out of the market in time because it’ll be a mad rush to the exits. The solution for investors is to have some assets outside the traditional markets and outside the banking system. Tyler Durden Thu, 10/14/2021 - 08:22.....»»

Category: blogSource: zerohedgeOct 14th, 2021

AFC Gamma Provides Justice Cannabis Co. With $75.4M Via Extended Credit Facility, Announces Funding Updates

Cannabis-focused commercial real estate finance company AFC Gamma, Inc. (NASDAQ: AFCG) has bolstered its senior credit facility with Justice Cannabis Co. to $75.4 million. read more.....»»

Category: blogSource: benzingaOct 4th, 2021

How Can Houses Be Unaffordable And Booming?

How Can Houses Be Unaffordable And Booming? Authored by John Rubino via DollarCollapse.com, Home prices have never been higher when compared to the average family’s income. This kind of imbalance is normally a sign of an impending crash in home sales, followed by a drop in prices. But that’s not happening. Some recent headlines: Home prices set records in July; Tampa 4th highest in nation With no slowdown in sight, Dallas home prices go up 23.7% Asking Price On Homes Increases 12% To An All-Time High How is it that homes are both unaffordable and soaring in price? As with so many other things that shouldn’t be, the answer can be found at the intersection of Wall Street and easy money. During the previous decade’s Great Recession, hedge funds and private equity firms figured out that they could borrow for next-to-nothing and buy up the houses that banks were repossessing, then rent those houses back to millions of newly homeless Americans for good returns. Combine these positive cash flows with massive recent price appreciation, and those foreclosed houses turned out to be phenomenal investments.  Now Wall Street is doubling down, using hundreds of billions of essentially free money to outbid individual buyers for whatever houses are still available. In some cases investment giants like Blackrock buy up entire neighborhoods at big premiums to the asking price, pushing everyone else out of the market. Hence the disconnect between home prices and family incomes.  But wait, there’s more. Now the securitization machine has discovered houses.  Zillow’s Home-Flipping Bonds Draw Wall Street Deeper Into Housing (Bloomberg Businessweek) — Zillow Group Inc. is best known for the addictive real estate listings that keep people browsing the internet all night, has dived into the house-flipping business, offering to quickly take properties off sellers’ hands. And in the process it’s helping pull Wall Street even deeper into the $2 trillion U.S. housing market. In August, Zillow raised $450 million from a bond backed by homes it’s bought but not yet sold. The offering, led by Credit Suisse Group AG, was modeled on the loan facilities that car dealerships use to finance floor models. The novelty of using that structure for houses didn’t scare off investors hungry for a new way to bet on the hottest housing market on record. The offering was over subscribed and Zillow, which declined to comment on its bond market activities, is now in the process of selling another $700 million in bonds.  Now those volumes are set to explode. Zillow expects to acquire homes at a pace of 5,000 a month by 2024. Another competitor, Offerpad Solutions Inc. could eventually buy 70,000 homes a year, based on its view of the future opportunity. Opendoor, still the largest iBuyer, has said its playbook calls for the company to capture 4% of all home sales in 100 markets. Together the three companies could soon be buying close to $100 billion worth of homes a year, requiring more than $20 billion in revolving credit facilities. Looks like housing is yet another example of how easy money perverts formerly free markets. Where family income used to dictate (and limit) home prices, now the driver is the yield on corporate and asset-backed bonds. The lower those rates go, the higher home prices climb. If individual buyers are priced out, well, they can just rent from Wall Street, on whatever terms our new landlords think is fair. Tyler Durden Sat, 10/02/2021 - 13:30.....»»

Category: dealsSource: nytOct 2nd, 2021

Vail Resorts Reports Fiscal 2021 Fourth Quarter and Full Year Results, Provides Fiscal 2022 Outlook, Announces Transformational Capital Plan and Declares Dividend

BROOMFIELD, Colo., Sept. 23, 2021 /PRNewswire/ -- Vail Resorts, Inc. (NYSE:MTN) today reported results for the fourth quarter and fiscal year ended July 31, 2021, which were negatively impacted by COVID-19 and related limitations and restrictions, and reported results of season-to-date season pass sales. Vail Resorts also provided its outlook for the fiscal year ending July 31, 2022, announced a one-time transformational capital plan for calendar year 2022, and declared a dividend payable in October 2021. Highlights Net income attributable to Vail Resorts, Inc. was $127.9 million for fiscal 2021, an increase of 29.4% compared to fiscal 2020. Fiscal 2021 was negatively impacted by COVID-19 and related limitations and restrictions, including the early closure of Whistler Blackcomb on March 30, 2021 and "stay at home" orders and periodic resort closures impacting our Australian ski areas. The prior year period was negatively impacted by the early closure of the Company's North American destination mountain resorts and regional ski areas on March 15, 2020 due to COVID-19 (the "Resort Closures"). Resort Reported EBITDA was $544.7 million for fiscal 2021, an increase of 8.2% compared to fiscal 2020. Fiscal 2021 was negatively impacted by COVID-19 and related limitations and restrictions. The prior year period was primarily impacted by the Resort Closures, which included the resulting deferral of approximately $120.9 million of pass product revenue and $2.9 million of related deferred costs from fiscal 2020 to fiscal 2021 as a result of pass holder credits offered to 2019/2020 North American pass product holders. Pass product sales through September 17, 2021 for the upcoming 2021/2022 North American ski season increased approximately 42% in units and approximately 17% in sales dollars as compared to the period in the prior year through September 18, 2020, without deducting for the value of any redeemed credits provided to certain North American pass product holders in the prior period. To provide a comparison to the season pass results released on June 7, 2021, pass product sales through September 17, 2021 increased approximately 67% in units and approximately 45% in sales dollars as compared to the period through September 20, 2019, with pass product sales adjusted to include Peak Resorts pass sales in both periods. Pass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.79 between the Canadian dollar and U.S. dollar in all periods for Whistler Blackcomb pass sales. The Company issued its fiscal 2022 guidance range and expects Resort Reported EBITDA to be between $785 million and $835 million. The guidance includes an expectation that Resort Reported EBITDA for the first quarter of fiscal 2022 will be between negative $118 million and negative $106 million, which includes the negative impact from COVID-19 resort closures in Australia. Fiscal 2022 guidance assumes, among other assumptions described below, no material impacts associated with COVID-19 for the 2021/2022 North American ski season or the 2022 Australian ski season, other than an expected slower recovery for international visitation and group/conference business. The Company continues to maintain significant liquidity with $1.2 billion of cash on hand as of July 31, 2021 and $613 million of availability under our U.S. and Whistler Blackcomb revolving credit facilities. The Company declared a cash dividend of $0.88 per share payable in October 2021 and plans to exit the temporary waiver period under the Vail Holdings, Inc. revolving credit facility ("VHI Credit Agreement") effective October 31, 2021. The Company announced a transformational $315 million to $325 million capital plan for calendar year 2022 focused on the addition and/or upgrade of 19 new chairlifts and other improvements to enhance the guest experience ahead of the 2022/2023 North American ski season. Commenting on the Company's fiscal 2021 results, Rob Katz, Chief Executive Officer, said, "Given the continued challenges associated with COVID-19, we are pleased with our operating results for the year. Our results highlighted our data-driven marketing capabilities, the value of our pass products, the resiliency of demand for the experiences we offer throughout our network of world-class resorts and our disciplined cost controls. "Results continued to improve as the 2020/2021 North American ski season progressed, primarily as a result of stronger destination visitation at our Colorado and Utah resorts. Excluding Peak Resorts, total skier visitation at our U.S. destination mountain resorts and regional ski areas for fiscal 2021 was only down 6% compared to fiscal 2019. Whistler Blackcomb's performance was disproportionately negatively impacted due to the closure of the Canadian border to international guests, including guests from the U.S., and the resort closing earlier than expected on March 30, 2021 following a provincial health order issued by the government of British Columbia. Whistler Blackcomb's total skier visitation for fiscal 2021 declined 51% compared to fiscal 2019. Our ancillary lines of business were more significantly and negatively impacted by COVID-19 related capacity constraints and limitations throughout the 2020/2021 North American ski season. We generated Resort Reported EBITDA margin of 28.5% driven by our disciplined cost controls as well as a higher proportion of lift revenue relative to ancillary lines of business compared to prior periods." Regarding the Company's fiscal 2021 fourth quarter results, Katz said, "We are pleased with the strong demand across our North American summer operations during the fourth quarter, which exceeded our expectations and which we believe highlights our guests' continued affinity for outdoor experiences. In Australia, we experienced strong demand trends at the beginning of the 2021 Australian ski season. However, subsequent COVID-19 related stay-at-home orders and temporary resort closures negatively impacted financial results for the fourth quarter by approximately $8 million relative to our guidance expectations issued on June 7, 2021. Fourth quarter results were also negatively impacted relative to our June 7, 2021 guidance by a one-time $13.2 million charge for a contingent obligation with respect to certain litigation matters." Katz continued, "We remain focused on our disciplined approach to capital allocation, prioritizing our investments in our people, as well as high-return capital projects, strategic acquisition opportunities, and returning capital to shareholders. Our liquidity position remains strong, and we are confident in the free cash flow generation and stability of our business model. Our total cash and revolver availability as of July 31, 2021 was approximately $1.9 billion, with $1.2 billion of cash on hand, $418 million of revolver availability under the VHI Credit Agreement, and $195 million of revolver availability under the Whistler Blackcomb Credit Agreement. As of July 31, 2021, our Net Debt was 3.0 times trailing twelve months Total Reported EBITDA. Given our strong balance sheet and outlook, we are pleased to announce that the Company plans to exit the temporary waiver period under the VHI Credit Agreement effective October 31, 2021, declared a cash dividend of $0.88 per share payable in October 2021, and announced a transformational $315 million to $325 million capital plan for calendar year 2022 to add or upgrade 19 new chairlifts and make other investments to enhance the guest experience and are expected to generate strong returns for our shareholders." Operating Results A more complete discussion of our operating results can be found within the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Company's Form 10-K for the fiscal year ended July 31, 2021, which was filed today with the Securities and Exchange Commission. The discussion of operating results below compares the results for the fiscal year ended July 31, 2021 to the fiscal year ended July 31, 2020, unless otherwise noted. The following are segment highlights: Mountain Segment Total lift revenue increased $163.5 million, or 17.9%, to $1,076.6 million primarily due to strong North American pass sales growth for the 2020/2021 ski season, including the deferral impact of the pass holder credits offered to 2019/2020 North American pass product holders from fiscal 2020 to fiscal 2021 as a result of the Resort Closures, partially offset by a decrease in non-pass visitation due to limitations and restrictions on our North American operations due to the impacts of COVID-19, which disproportionately impacted Whistler Blackcomb. Ski school revenue decreased $44.9 million, or 23.7%, dining revenue decreased $70.4 million, or 43.8%, and retail/rental revenue decreased $42.3 million, or 15.7%, each primarily as a result of by COVID-19 related capacity limitations and restrictions in the current year, partially offset by the Company operating for the full U.S. ski season in the current year as compared to the impact of the Resort Closures in the prior year. Operating expense decreased $65.9 million, or 5.4%, which was primarily attributable to cost discipline efforts in the current year associated with lower levels of operations and limitations, restrictions and closures of resort operations resulting from COVID-19. Mountain Reported EBITDA increased $50.3 million, or 10.1%, which includes $20.3 million of stock-based compensation for fiscal 2021 compared to $17.4 million in the prior year. Lodging Segment Lodging segment net revenue (excluding payroll cost reimbursements) decreased $26.4 million, or 11.1%, primarily due to operational restrictions and limitations of our North American lodging properties in the current year as a result of the ongoing impacts of COVID-19, partially offset by stronger summer demand in the U.S. during the fourth quarter of fiscal 2021. Lodging Reported EBITDA decreased $9.0 million, which includes $3.8 million of stock-based compensation expense in fiscal 2021 compared to $3.4 million of stock-based compensation expense in fiscal 2020. Resort - Combination of Mountain and Lodging Segments Resort net revenue was $1,907.9 million for fiscal 2021, a decrease of $50.9 million, or 2.6%, compared to resort net revenue of $1,958.9 million for fiscal 2020. Fiscal 2021 revenue included approximately $12 million of favorability from currency translation, which the Company calculated on a constant currency basis by applying current period foreign exchange rates to the prior period results. Resort Reported EBITDA was $544.7 million for fiscal 2021, an increase of $41.3 million, or 8.2%, compared to fiscal 2020. Fiscal 2021 includes the impact from the deferral of $118 million of pass product revenue and related deferred costs from fiscal 2020 to fiscal 2021 as a result of credits offered to 2020/2021 North American pass product holders, a one-time $13.2 million charge for a contingent obligation with respect to certain litigation matters, and approximately $2 million of favorability from currency translation from Whistler Blackcomb, which the Company calculated on a constant currency basis by applying current period foreign exchange rates to prior period results. Total Performance Total net revenue decreased $54.0 million, or 2.7%, to $1,909.7 million. Net income attributable to Vail Resorts, Inc. was $127.9 million, or $3.13 per diluted share, for fiscal 2021 compared to net income attributable to Vail Resorts, Inc. of $98.8 million, or $2.42 per diluted share, in fiscal 2020. Net income attributable to Vail Resorts, Inc. for fiscal 2021 and fiscal 2020 included tax benefits of approximately $17.9 million and $8.0 million, respectively, related to employee exercises of equity awards (primarily related to the CEO's exercise of SARs). Additionally, fiscal 2021 net income attributable to Vail Resorts, Inc. included approximately $3 million of unfavorability from currency translation, which the Company calculated by applying current period foreign exchange rates to the prior period results. Season Pass Sales Commenting on the Company's season pass sales for the upcoming 2021/2022 North American ski season, Katz said, "We are very pleased with the results of our season pass sales to date, which continue to demonstrate the strength of our data-driven marketing initiatives and the compelling value proposition of our pass products, driven in part by the 20% reduction in all pass prices for the upcoming season. Pass product sales through September 17, 2021 for the upcoming 2021/2022 North American ski season increased approximately 42% in units and approximately 17% in sales dollars as compared to the period in the prior year through September 18, 2020, without deducting for the value of any redeemed credits provided to certain North American pass holders in the prior period. To provide a comparison to the season pass results released on June 7, 2021, pass product sales through September 17, 2021 for the upcoming 2021/2022 North American ski season increased approximately 67% in units and approximately 45% in sales dollars as compared to sales for the 2019/2020 North American ski season through September 20, 2019, with pass product sales adjusted to include Peak Resorts pass sales in both periods. Pass product sales are adjusted to eliminate the impact of foreign currency by applying an exchange rate of $0.79 between the Canadian dollar and U.S. dollar in all periods for Whistler Blackcomb pass sales." Katz continued, "We saw strong unit growth from renewing pass holders and significantly stronger unit growth from new pass holders, which include guests in our database who previously purchased lift tickets or passes but did not buy a pass in the previous season and guests who are completely new to our database. Our strongest unit growth was from our destination markets, including the Northeast, and we also had very strong growth across our local markets. The majority of our absolute unit growth came from our core Epic and Epic Local pass products and we also saw even higher percentage growth from our Epic Day Pass products. Compared to the period ended September 18, 2020, effective pass price decreased 17%, despite the 20% price decrease we implemented this year and the significant growth of our lower priced Epic Day Pass products, which continue to represent an increasing portion of our total advance commitment product sales. "We are very pleased with the performance of our pass product sales efforts to date, which exceeded our original expectations for the impact of the 20% price reduction, particularly in the growth of new pass holders and in the trade up we are seeing from pass holders into higher priced products. As we enter the final period for pass product sales, we feel good about the current trends we are seeing. However, it is important to point out that we know a portion of the growth we have seen to date represents certain pass product holders purchasing their pass earlier in the selling season than in the prior year period and we saw strong growth in the late fall in the prior year period due to concerns around COVID-19, including questions about resort access as a result of our mountain access reservation system. Given these factors and the other changing economic and COVID-related dynamics, it is difficult to provide specific guidance on our final growth rates, which may decline from the rates we reported today." Capital Investments Commenting on the Company's capital investments, Katz said, "As previously announced, we are on track to complete several signature investments in advance of the 2021/2022 North American ski season. In Colorado, we are completing a 250 acre lift-served terrain expansion in the signature McCoy Park area of Beaver Creek, further differentiating the resort's high-end, family focused experience. We are also adding a new four-person high speed lift at Breckenridge to serve the popular Peak 7, replacing the Peru lift at Keystone with a six-person high speed chairlift, and replacing the Peachtree lift at Crested Butte with a new three-person fixed-grip lift. At Okemo, we are completing a transformational investment including upgrading the Quantum lift to replace the Green Ridge three-person fixed-grip chairlift. In addition to the transformational investments that will greatly improve uplift capacity, we are continuing to invest in company-wide technology enhancements, including investing in a number of upgrades to bring a best-in-class approach to how we service our guests through these channels. "We are encouraged by the outlook for our long-term growth and the financial stability we have created. The success of our advance commitment strategy, the expansion of our network and our focus on creating an outstanding guest experience remain at the forefront of our efforts. Toward that end, we are launching an ambitious capital investment plan for calendar year 2022 across our resorts to significantly increase lift capacity and enhance the guest experience as we drive increased loyalty from our guests and continuously improve the value proposition of our advance commitment products. These investments are also expected to drive strong financial returns for our shareholders. The plan includes the installation of 19 new or replacement lifts across 14 of our resorts that collectively will increase lift capacity in those lift locations by more than 60% and a transformational lift-served terrain expansion at Keystone, as well as additional projects that will be announced in December 2021 and March 2022. All of the projects in the plan are subject to regulatory approvals. "We expect our capital plan for calendar year 2022 will be approximately $315 million to $325 million, excluding any real estate related capital or reimbursable investments. This is approximately $150 million above our typical annual capital plan, based on inflation and previous additions for acquisitions, and includes approximately $20 million of incremental spending to complete the one-time capital plans associated with the Peak Resorts and Triple Peaks acquisitions. Given our recent financings and strong liquidity, the outlook for our business driven by the growth of our advance commitment strategy, and the tax benefit in 2022 from additional accelerated depreciation on U.S. investments, we believe this is the right time for our Company to make a significant investment in the guest experience at our resorts and expect this one-time increase in discretionary investments will drive an attractive return for our shareholders. Additional details associated with our calendar year 2022 capital plan can be found in our capital press release issued on September 23, 2021. We also intend to return our capital spending to our typical long-term plan in our calendar year 2023 capital plan, with the potential for reduced spending given the number of projects we would complete in calendar year 2022. We will be providing further detail on our calendar year 2022 capital plan in December 2021." Return of Capital Commenting on the Company's return of capital, Katz said, "The Company plans to exit the waiver period under the VHI Credit Agreement effective October 31, 2021, reinstating the required quarterly compliance with our financial maintenance covenants beginning with the first quarter of fiscal year 2022. We are also pleased to announce that the Board of Directors has reinstated our quarterly dividend by declaring a cash dividend on Vail Resorts' common stock of $0.88 per share, payable on October 22, 2021 to shareholders of record on October 5, 2021. This dividend payment equates to 50% of pre-pandemic levels and reflects our continued confidence in the strong free cash flow generation and stability of our business model despite the ongoing risks associated with COVID-19. Our Board of Directors will continue to closely monitor the economic and public health outlook on a quarterly basis to assess the level of our quarterly dividend going forward." Guidance Commenting on guidance for fiscal 2022, Katz said, "As we head into fiscal 2022, we are encouraged by the robust demand from our guests, the strength of our advance commitment product sales and our continued focus on enhancing the guest experience while maintaining our cost discipline. Our guidance for net income attributable to Vail Resorts, Inc. is estimated to be between $278 million and $349 million for fiscal 2022. We estimate Resort Reported EBITDA for fiscal 2022 will be between $785 million and $835 million. We estimate Resort EBITDA Margin for fiscal 2022 to be approximately 32.1%, using the midpoint of the guidance range, which is negatively impacted as a result of COVID-19 impacts associated with Australia in the first quarter of fiscal 2022 and the anticipated slower recovery in international visitation and group/conference business. We estimate Real Estate Reported EBITDA for fiscal 2022 to be between negative $6 million and $0 million. The guidance assumes normal weather conditions, a continuation of the current economic environment and no material impacts associated with COVID-19 for the 2021/2022 North American ski season or the 2022 Australian ski season other than an expected slower recovery for international visitation, which is expected to have a disproportionate impact at Whistler Blackcomb, and group/conference business, which is expected to have a disproportionate impact in our Lodging segment. At Whistler Blackcomb, we estimate the upcoming winter season will generate approximately $27 million lower Resort Reported EBITDA relative to the comparable period in fiscal 2019, primarily driven by the anticipated reduction in international visitation. "Fiscal 2022 guidance includes an expectation that the first quarter of fiscal 2022 will generate net loss attributable to Vail Resorts, Inc. between $156 million and $136 million and Resort Reported EBITDA between negative $118 million and negative $106 million. We estimate the negative impacts of COVID-19 in Australia and the associated limitations and restrictions, including the current lockdowns, will have a negative Resort Reported EBITDA impact of approximately $41 million in the first quarter of fiscal 2022 as compared to the first quarter of fiscal 2020. "There continues to be uncertainty regarding the ultimate impact of COVID-19 on our business results in fiscal year 2022, including any response to changing COVID-19 guidance and regulations by the various governmental bodies that regulate our operations and resort communities, as well as changes in consumer behavior resulting from COVID-19, which are not factored into the guidance and could negatively impact it. The guidance assumes an exchange rate of $0.80 between the Canadian Dollar and U.S. Dollar related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.74 between the Australian Dollar and U.S. Dollar related to the operations of Perisher, Falls Creek and Hotham in Australia." The following table reflects the forecasted guidance range for the Company's fiscal 2022 first quarter ending October 31, 2021 and full year ending July 31, 2022, for Reported EBITDA (after stock-based compensation expense) and reconciles net (loss) income attributable to Vail Resorts, Inc. guidance to such Reported EBITDA guidance. Fiscal 2022 Guidance Fiscal 2022 Guidance (In thousands) (In thousands) For the Three Months Ending For the Year Ending October 31, 2021 (6) July 31, 2022 (6) Low End High End Low End High End Range Range Range Range Net (loss) income attributable to Vail Resorts, Inc. $ (156,000) $ (136,000) $ 278,000 $ 349,000 Net (loss) income attributable to noncontrolling interests (3,000) (7,000) 24,000 18,000 Net (loss) income (159,000) (143,000) 302,000 367,000 (Benefit) provision for income taxes (1) (60,000) (54,000) 82,000 100,000 (Loss) income before income taxes (219,000) (197,000) 384,000 467,000 Depreciation and amortization 63,000 61,000 250,000 238,000 Interest expense, net 41,000 38,000 150,000 142,000 Other (2) (5,000) (8,000) (5,000) (12,000) Total Reported EBITDA $ (120,000) $ (106,000) $ 779,000 $ 835,000 Mountain Reported EBITDA (3) $ (122,000) $ (110,000) $ 766,000 $ 814,000 Lodging Reported EBITDA (4) 3,000 5,000 16,000 24,000 Resort Reported EBITDA (5) (118,000) (106,000) 785,000 835,000 Real Estate Reported EBITDA (2,000) — (6,000) — Total Reported EBITDA $ (120,000) $ (106,000) $ 779,000 $ 835,000 (1) The (benefit) provision for income taxes may be impacted by excess tax benefits primarily resulting from vesting and exercises of equity awards. Our estimated (benefit) provision for income taxes does not include the impact, if any, of unknown future exercises of employee equity awards, which could have a material impact given that a significant portion of our awards are in-the-money. (2) Our guidance includes certain known changes in the fair value of the contingent consideration based solely on the passage of time and resulting impact on present value. Guidance excludes any change based upon, among other things, financial projections including long-term growth rates for Park City, which such change may be material. Separately, the intercompany loan associated with the Whistler Blackcomb transaction requires foreign currency remeasurement to Canadian dollars, the functional currency of Whistler Blackcomb. Our guidance excludes any forward looking change related to foreign currency gains or losses on the intercompany loans, which such change may be material. (3) Mountain Reported EBITDA also includes approximately $5 million and $21 million of stock-based compensation for the three months ending October 31, 2021 and the year ending July 31, 2022, respectively. (4) Lodging Reported EBITDA also includes approximately $1 million and $4 million of stock-based compensation for the three months ending October 31, 2021 and the year ending July 31, 2022, respectively. (5) The Company provides Reported EBITDA ranges for the Mountain and Lodging segments, as well as for the two combined. The low and high of the expected ranges provided for the Mountain and Lodging segments, while possible, do not sum to the high or low end of the Resort Reported EBITDA range provided because we do not expect or assume that we will hit the low or high end of both ranges. (6) Guidance estimates are predicated on an exchange rate of $0.80 between the Canadian Dollar and U.S. Dollar, related to the operations of Whistler Blackcomb in Canada and an exchange rate of $0.74 between the Australian Dollar and U.S. Dollar, related to the operations of our Australian ski areas. Earnings Conference Call The Company will conduct a conference call today at 5:00 p.m. eastern time to discuss the financial results. The call will be webcast and can be accessed at www.vailresorts.com in the Investor Relations section, or dial (888) 204-4368 (U.S. and Canada) or (323) 994-2093 (international). A replay of the conference call will be available two hours following the conclusion of the conference call through October 7, 2021, at 8:00 p.m. eastern time. To access the replay, dial (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international), pass code 8866986. The conference call will also be archived at www.vailresorts.com. About Vail Resorts, Inc. (NYSE:MTN) Vail Resorts, Inc., through its subsidiaries, is the leading global mountain resort operator. Vail Resorts' subsidiaries operate 37 destination mountain resorts and regional ski areas, including Vail, Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow, and Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in Pennsylvania; Alpine Valley, Boston Mills, Brandywine and Mad River in Ohio; Hidden Valley and Snow Creek in Missouri; Wilmot in Wisconsin; Afton Alps in Minnesota; Mt. Brighton in Michigan; and Paoli Peaks in Indiana. Vail Resorts owns and/or manages a collection of casually elegant hotels under the RockResorts brand, as well as the Grand Teton Lodge Company in Jackson Hole, Wyoming. Vail Resorts Development Company is the real estate planning and development subsidiary of Vail Resorts, Inc. Vail Resorts is a publicly held company traded on the New York Stock Exchange (NYSE:MTN). The Vail Resorts company website is www.vailresorts.com and consumer website is www.snow.com. Forward-Looking Statements Certain statements discussed in this press release and on the conference call, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws, including the statements regarding fiscal 2022 and the first quarter of fiscal 2022 performance (including the assumptions related thereto), including our expected net income and Resort Reported EBITDA; our expectations regarding our liquidity; the effects of the COVID-19 pandemic on, among other things, our operations; expectations related to our season pass products; our expectations regarding our ancillary lines of business; the payment of dividends and our expectations regarding electing out of the temporary waiver period under the VHI Credit Agreement; and our calendar year 2022 and calendar year 2023 capital plan and expectations related thereto. Readers are cautioned not to place undue reliance on ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaSep 23rd, 2021

Healthpeak (PEAK) Boosts Flexibility With $3B Credit Facility

Healthpeak (PEAK) enhances financial flexibility with maturity extension and reduces borrowing costs of unsecured revolving credit facility. Healthpeak Properties, Inc. PEAK has announced the closing of a new $3-billion senior unsecured revolving credit facility. The move boosts the company’s financial flexibility, as its offers the extension of maturities and reduction in borrowing costs as well as supports its growth endeavors.The new credit facility increases the total revolving commitments from $2.5 billion to $3 billion, and extends the mature date to Jan 20, 2026. The maturity of the facility can be prolonged by using two six-month extension options.The interest rate on the new credit facility will be LIBOR plus 77.5 basis points (bps), marking five bps improvement from the pricing under the previous unsecured revolving credit facility. It carries a facility fee of 15 bps per annum on the entire revolving commitment.With an enhanced financial flexibility, the company is well poised to ride on its growth curve. Its life-science real estate is likely to witness decent demand on the back of drug innovations and developments. Therefore, its expansion efforts in this asset category augur well.The company will break ground on the development in the Sorrento Mesa submarket in the ongoing quarter. The construction of Sorrento Gateway, a Class-A development will comprise a five-story building, spanning nearly 163,000 square feet. It will be purpose-built with numerous amenities, enabling the company to capitalize on the demand from the existing and new tenants alike.Shares of this Zacks Rank#3 (Hold) company have gained 3.1% over the past three months, outperforming the industry’s growth of 1.6%.Image Source: Zacks Investment ResearchKey PicksThe Zacks Consensus Estimate for Alexander & Baldwin Holdings, Inc.’s ALEX ongoing-year FFO per share has been revised 32.4% upward over the past two months. The company carries a Zacks Rank of 2 (Buy), currently. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.The Zacks Consensus Estimate for CubeSmart’s CUBE 2021 FFO per share has moved marginally upward over the past month. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Extra Space Storage Inc.’s EXR current-year FFO per share has moved marginally north in the past 30 days. The company carries a Zacks Rank of 2, at present.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Extra Space Storage Inc (EXR): Free Stock Analysis Report Alexander & Baldwin Holdings, Inc. (ALEX): Free Stock Analysis Report CubeSmart (CUBE): Free Stock Analysis Report Healthpeak Properties, Inc. (PEAK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Lancewood Capital expands lending platform’s national presence in 2021

Lancewood Capital, a New York-based commercial real estate lender, continues to be a reliable source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior note financing or credit facilities. Lancewood was founded seven years ago by a New York-based family office to invest in... The post Lancewood Capital expands lending platform’s national presence in 2021 appeared first on Real Estate Weekly. Lancewood Capital, a New York-based commercial real estate lender, continues to be a reliable source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior note financing or credit facilities. Lancewood was founded seven years ago by a New York-based family office to invest in real estate debt. Justin Godner and Matt Schatzle, who have been instrumental in driving Lancewood’s originations, attribute the firm’s success and growth to its unique family office capitalization structure and the strength of Lancewood’s team who work tirelessly to provide the best execution for borrowers.   When asked about the platform, Justin Godner spoke about Lancewood’s family office capitalization structure, which allows for near-bank pricing, structural creativity and custom-tailored financing for their borrowers which he believes is the firm’s competitive advantage. When asked about the marketplace, Matt Schatzle noted the liquidity in the in the debt market and the options available to today’s borrowers, which he said makes it very important to consistently execute for borrowers in order to win repeat business. Stephen Zaro, who recently started at the firm, noted that Lancewood’s ability to provide near-bank pricing allows for the firm to win a lot of business. While Lancewood continues its growth in the New York metro area – with over $100 million of capital deployed in the area in 2020 – the company also seeks to expand in other primary markets, particularly Atlanta, Florida, California and Texas, according to Tino Martins, Lancewood’s Director of Commercial Mortgages. The company has been increasingly active in Florida and California, where Matt Schatzle and Stephen Zaro have originated bridge loans and Justin Godner set up two $50 million senior credit facilities with $19.2 million funded to date for FL and CA based real estate lenders. Below are some of the platform’s recent closings:  $6,450,000 bridge loan to finance the completion of a construction project in the Tribeca neighborhood of New York, NY. Lancewood Capital was able to provide capital to complete the project at a near-bank rate. This transaction was structured by Matt Schatzle of Lancewood. $50,000,000 senior credit facility with initial advances of $7,500,000 and $3,300,000 for a Florida-based real estate lender. The underlying properties are located in Miami, FL. This transaction was structured by Justin Godner of Lancewood. $16,020,000 senior note financing for a $20,000,000 underlying loan secured by a mixed-use building in New York, NY. This transaction was structured by Justin Godner of Lancewood. $3,800,000 bridge loan to finance a mixed-use property in the Ybor City neighborhood of Tampa, FL. This transaction was structured by Stephen Zaro of Lancewood. $2,850,000 bridge loan to finance three buildings located in the Midtown East neighborhood of New York, NY. This transaction was structured by Matt Schatzle of Lancewood. $50,000,000 senior credit facility with an initial advance of $1,720,000 for a Seattle-based real estate lender. The underlying industrial property is located in Los Angeles, California. This transaction was structured by Justin Godner of Lancewood. $6,500,000 senior note financing for a $12,000,000 underlying loan secured by a single-family residence in Miami, FL. The underlying lender is Florida-based. This transaction was structured by Justin Godner of Lancewood. $3,410,000 bridge loan to finance a 31-unit multifamily building in Fordham Heights neighborhood of New York. This transaction was structured by Matt Schatzle of Lancewood. $12,000,000 senior note financing for a $20,000,000 underlying loan for the completion of a ground-up development in the SoHo neighborhood of New York, NY. This transaction was structured by Justin Godner of Lancewood. $1,400,000 bridge loan to finance a 26,000sf owner occupied industrial building in Boynton Beach, FL. The borrower needed a quick closing to pursue a time-sensitive acquisition opportunity. This transaction was structured by Matt Schatzle of Lancewood. $7,360,000 senior note financing to finance a newly-constructed condominium building in New York, NY. The units were recently brought to market and the developer needed a condo inventory loan. This transaction was structured by Justin Godner of Lancewood. $50,000,000 senior credit facility with an initial loan advance of $7,800,000 for a New York-based real estate lender. The underlying property is located in Brooklyn, NY. This transaction was structured by Justin Godner of Lancewood. $3,000,000 bridge loan secured by an eight-unit condo building in the Bushwick neighborhood of Brooklyn, NY and four mixed-use buildings in the downtown area of White Plains, NY. This transaction was structured by Matt Schatzle of Lancewood. The post Lancewood Capital expands lending platform’s national presence in 2021 appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklySep 21st, 2021

PRA Group (PRAA) Up 1.5% Since Q2 Earnings Beat Estimates

PRA Group (PRAA) expects the credit card charge-off rates to increase in the coming days, as the current level is unsustainable. PRA Group, Inc.’s PRAA shares rose 1.5% since it reported better-than-expected results on Aug 8. Its results were supported by decreased operating expenses and higher fee income. The positives were partially offset by reduced cash collections in the Americas and Australia Core, coupled with reduced portfolio incomePRA Group reported second-quarter 2022 earnings per share of 91 cents, beating the Zacks Consensus Estimate of 53 cents. However, the bottom line decreased from $1.22 per share a year ago.Total revenues of $258.3 million were down from the year-ago quarter’s $285.6 million. However, the top line beat the Zacks Consensus Estimate of $233 million.PRA Group, Inc. Price, Consensus and EPS Surprise PRA Group, Inc. price-consensus-eps-surprise-chart | PRA Group, Inc. QuoteQuarterly Operational UpdatePRAA’s cash collection of $444.1 million decreased from the year-ago figure of $543.8 million due to a decrease in the Americas and Australia Core, Americas Insolvency, Europe Core and Europe Insolvency collections. U.S. call center and other collections declined 32.5% year over year in the second quarter. Similar traits were witnessed in the U.S. legal collections.PRA Group’s fee income of $6.5 million increased from $2.5 million a year ago. Its portfolio income came in at $194 million during the quarter under review, down from $219.1 million in the prior-year quarter.Total operating expenses were down to $174.5 million from $181.4 million a year ago on lower compensation and employee services, legal collection costs and fees, outside fees, communication and other operating costs.PRA Group purchased $231.3 million of nonperforming loan portfolios in the quarter under review. Its cash efficiency ratio declined to 61.3% in the second quarter, down from 66.8% in the year-ago period. Estimated remaining collections in the second quarter were $5.6 billion, the majority of which were in the United States.Share Repurchase UpdatePRAA bought back shares worth $34.9 million in the second quarter of 2022. Last February, management authorized a new $150-million program upon completion of the previous program. At the second quarter-end, PRA Group had $92.7 million under its share buyback authorization.Financial Update (as of Jun 30, 2022)PRAA had total assets worth $4,088.8 million at the second quarter-end, down from the $4,366.2 million level at the 2021 end. Cash and cash equivalents in the quarter under discussion were $68 million, down from $87.6 million at the 2021 end.At the end of the June quarter, borrowings decreased to $2,481.6 million from $2,608.7 million in 2021 end. PRA Group exited the second quarter with total equity of $1,242.4 million, down from $1,324.8 million as of Dec 31, 2021.Net cash used in operating activities amounted to $41.8 million in the first half of 2022 compared with the operating cash flow of $21.6 million a year ago.Forward ViewPRA Group has plans to keep boosting its products and market share. It expects the sales volume to increase by 2022 end. PRAA plans to continue its growth in Australia. Also, the company expects the credit card charge-off rates to increase in the coming days, as the current level is unsustainable.Zacks Rank & Key PicksOwl Rock Capital currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are FlexShopper, Inc. FPAY, SmartFinancial, Inc. SMBK and Paramount Group, Inc. PGRE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Headquartered in Boca Raton, FL, FlexShopper is a financial technology provider with a vast e-commerce presence. The Zacks Consensus Estimate for FPAY’s September-quarter bottom line indicates 140% year-over-year growth.Based in Knoxville, TN, SmartFinancial is a leading financial services provider for individuals and corporate clients. The Zacks Consensus Estimate for SMBK’s 2022 earnings indicates 18% year-over-year growth.New York-based Paramount Group works as a fully-integrated real estate investment trust. The Zacks Consensus Estimate for PGRE’s 2022 bottom line indicates 4.4% year-over-year growth. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PRA Group, Inc. (PRAA): Free Stock Analysis Report Paramount Group, Inc. (PGRE): Free Stock Analysis Report SmartFinancial, Inc. (SMBK): Free Stock Analysis Report FlexShopper Inc. (FPAY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 12th, 2022

Owl Rock Capital (ORCC) Jumps 5.7% Since Q2 Earnings Beat

Owl Rock Capital (ORCC) currently has no debt maturities until April 2024. Owl Rock Capital Corporation’s ORCC shares have risen 5.7% since it reported strong second-quarter results on Aug 3. The results were supported by growth in the portfolio, dividend income and incremental fee income. The positives were partially offset by higher costs.Owl Rock Capital reported second-quarter 2022 earnings per share of 32 cents, which beat the Zacks Consensus Estimate by a penny. The bottom line also improved from 30 cents a year ago.The total investment income of ORCC amounted to $273.3 million, which climbed from $249 million a year ago. Also, the figure beat the consensus mark by 2.9%.Owl Rock Capital Corporation Price, Consensus and EPS Surprise Owl Rock Capital Corporation price-consensus-eps-surprise-chart | Owl Rock Capital Corporation QuoteQ2 UpdateNet investment income rose to $125.1 million from $119.1 million a year ago.New investment commitments were $603.4 million across 16 new portfolio companies and existing 10 portfolio companies. The metric plunged 61.8% year over year in the quarter under review.Owl Rock Capital ended the second quarter with investments in 168 portfolio companies, backed with an aggregate fair value of $12.6 billion. Based on the fair value, the average investment size in each portfolio company was $75.3 million as of Jun 30, 2022.Total expenses escalated nearly 13% year over year to $146.6 million in the second quarter.It recorded a net loss of $34.9 million in the second quarter against a net income of $150.2 million in the prior-year quarter.Financial Update (as of Jun 30, 2022)Owl Rock Capital exited the second quarter with cash and restricted cash of $343.3 million, which declined from $447.1 million as of Dec 31, 2021. Total assets of $13.1 billion slipped from $13.3 billion at 2021-end.Debt was at $7.1 billion, in line with 2021-end. ORCC had $1.4 billion of undrawn capacity under its credit facilities. It currently has no debt maturities until April 2024.Net cash used in operating activities during the first half was $74.7 million compared with the prior-year quarter’s cash usage of $574.4 million.At the quarter-end, debt to equity was at 1.20X.Dividend UpdateThe board of directors at Owl Rock Capital approved a third-quarter dividend of 31 cents per share. The dividend will be paid out on or before Nov 15, 2022, to shareholders of record as of Sep 30, 2022.OutlookAs most of Owl Rock Capital’s assets are floating in nature, an improving interest rate environment is projected to drive net investment income in the second half of 2022. The volatile market conditions are also expected to provide ORCC with direct lending opportunities.Zacks Rank & Other Key PicksOwl Rock Capital currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader finance space are FlexShopper, Inc. FPAY, SmartFinancial, Inc. SMBK and Paramount Group, Inc. PGRE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Headquartered in Boca Raton, FL, FlexShopper is a financial technology provider with a vast e-commerce presence. The Zacks Consensus Estimate for FPAY’s September-quarter bottom line indicates 140% year-over-year growth.Based in Knoxville, TN, SmartFinancial is a leading financial services provider for individuals and corporate clients. The Zacks Consensus Estimate for SMBK’s 2022 earnings indicates 18% year-over-year growth.New York-based Paramount Group works as a fully-integrated real estate investment trust. The Zacks Consensus Estimate for PGRE’s 2022 bottom line indicates 4.4% year-over-year growth. Zacks' Top Picks to Cash in on Electric Vehicles Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investorsSee 5 EV Stocks With Extreme Upside Potential >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Owl Rock Capital Corporation (ORCC): Free Stock Analysis Report Paramount Group, Inc. (PGRE): Free Stock Analysis Report SmartFinancial, Inc. (SMBK): Free Stock Analysis Report FlexShopper Inc. (FPAY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksAug 12th, 2022

Escobar: The Fugitive Who Tried To Spark A US-China War

Escobar: The Fugitive Who Tried To Spark A US-China War Authored by Pepe Escobar, Guo Wengui, also known as Guo Haoyun, and by his English names Miles Kwok and Miles Guo, is a politically connected, self-proclaimed exiled Chinese billionaire who tried to start a U.S.-China war. On Feb. 15, the billionaire filed for Chapter 11, personal bankruptcy protection in US Bankruptcy Court in Bridgeport, CT, listing assets of just $3,850 and liabilities between $100 million and $500 million. Guo’s declaration came after a Hong Kong money manager, Pacific Alliance Group, sued him over unpaid debts. That certainly didn’t add up. Only three months after filing for bankruptcy, Guo had spent nearly $2 million on legal fees. Yet on May 11, he filed a waiver of personal bankruptcy with the court through his lawyer, stating he had no more funds to pay his legal fees. During the bankruptcy hearing, Guo claimed he owned no house, no car, and no credit cards. That certainly didn’t square up with the lavish lifestyle he flaunted on social media – replete with mansion, private jet and yacht. So is this story really about bankruptcy? Or a very elaborate ruse? ‘I Wanna Be a Part of It, New York, New York’ Guo was born to a modest family in February 1967 in a rural area of Shandong province. According to the news site China Youth Network, he went through proverbial, eye-opening experiences as a teenager, such as skipping school, brawling and gambling. He married at 18; got his own brother killed for an argument revolving around a mere 7,000 yuan; and was sentenced to three years in prison and four years probation for fraud. Guo rose to fame by building a real estate empire in Beijing, which earned him titles such as “Capital Giant”, “Power Hunter” and “Pirate of the Caribbean” from awed Chinese netizens. In 2017, Interpol issued a Red Notice for Guo, who had already fled to the US in 2015 after being accused by the Chinese government of fraud, bribery, and money laundering. He denied all charges. Yet according to information publicly available, Guo committed a series of financial frauds, including a $539 million scam targeting small investors in the United States, a $470 million fraudulent loan in China, and a $43 million cryptocurrency Ponzi scheme. In recent years, Guo has had a quite active life online, amassing special notoriety for his fierce criticism of the Chinese Communist Party. According to China’s Chongqing Public Security Bureau, Guo has been building a case since August 2017 for political asylum in the US by concocting a series of online exposés. Some of these, revolving around Hunter Biden’s sex antics , caught the attention of US media. Guo’s central spin at the time was that “We have to express…the Chinese Communist Party used these to threaten Hunter and [Joe] Biden.” But he provided no proof of this. In 2017, Guo gained the attention of Foreign Affairs in an article co-written by Rush Doshi, who’s now senior director for China at the US National Security Council. The article focused on how Guo – without providing sources or conclusive evidence – threw lurid allegations at Chinese Vice President Wang Qishan, the head of President Xi Jinping’s anti-corruption campaign. “Guo Wengui, an expatriate Chinese billionaire, began to make explosive allegations on YouTube and Twitter about China’s leaders,” Doshi and co-author George Yin explained. “President Xi Jinping, Guo claimed, had sought incriminating information about Wang Qishan, Xi’s right-hand man and the chief of his anti-corruption campaign. The figure tasked with rooting out China’s official graft, Guo suggested, was himself corrupt — if not directly, then through his family’s alleged financial holdings. Guo’s claims seemed designed to sever China’s most important political relationship before this fall’s 19th Party Congress, where officials will determine Xi’s longevity as president and select members for China’s top decision-making bodies.” Guo’s patrons included disgraced Chinese security officials Ma Jian, Vice-Minister of Public Security 2006-2015 and Zhou Yongkang, Minister of Public Security 2002-2007. A powerful member of the Politburo’s Standing Committee, Zhou was expelled from the Communist Party in 2014 and sentenced to life in prison the following year. In 2018, Ma was sentenced to life in prison for taking bribes from Guo, according to court proceedings. Another of Guo’s handlers, Politburo member Sun Zhengcai, got a life sentence for bribery in 2018. Sun was the Communist Party boss in the western megacity Chongqing. After Sun’s disgrace, the supervision of Guo passed to China’s vice-minister of police Sun Lijun (no relation), and Justice Minister Fu Zenghua. Sun Lijun was convicted of corruption in July 2022 and awaits sentencing. Fu is under arrest and awaiting trial. What stands out is that throughout this period Guo acted as an agent of elements in China’s security services purged and convicted for corruption. Later, in 2021, Guo switched to promoting the allegation that Chinese hackers had shifted presidential election votes from Trump to Joe Biden. Guo’s politicking is just as intriguing as his business adventures. Especially because of his status as former protégé of the very powerful ex-Vice Minister of State Security Ma Jian, who was himself a mentor of security chief Zhou Yongkang, then a Politburo member. It’s not an accident that Guo fled China soon after Ma and Zhou were arrested as part of President Xi’s anti-corruption campaign. At the time, Guo was in a bitter business dispute with his former partner and politically connected tycoon Li You. That was bringing unwanted attention to his financial dealings. The central plot in this murky saga revolves around opaque developments inside the all-powerful Ministry of State Security (MSS) in the early 2010s, when Xi Jinping came to power. Guo’s intelligence handlers, Ma and Zhou, were allies of Ling Jihua, who was former President Hu Jintao’s chief of staff. The crucial link between Ma and Ling was provided by Sun Zhengcai, the former party secretary of Chongqing, also a Politburo member. As we’ve seen, Zhou, Ling, and Sun all ended up in jail – targets of Xi’s anti-corruption campaign. But, remarkably, not Guo – who according to former Chinese government officials was Ma’s MSS agent in charge of special ops overseas. Guo’s job in 2012 was to sabotage the ascension of Xi by spreading an array of fake news in China and among the Chinese diaspora. That failed. Nonetheless, Guo remained at work as an MSS agent until at least October 2021, according to well-placed Chinese sources. Considering his recent activities and the fact he was lavishly embraced by prominent US China hawks, it appears that his assignment was to cause maximum damage to US-China relations, arguably derailing them to a point of no return. How to Profit From Lavish Overseas Funds Guo impressed his American hosts with a show of vast wealth. After fleeing China he took up residence in New York in a $70 million apartment in the Sherry-Netherland Hotel on Fifth Avenue overlooking Central Park. His bragging rights included buying more than 200 custom-tailored suits a year; spending more than $20 million in legal fees around the world; smoking $10,000 cigars; and drinking limited editions of the Chinese liquor Moutai. All that, of course, neatly fit his claim to bankruptcy court of holding only $3,850 in personal assets. In his bankruptcy filing, Guo argued to the court that his expenses were funded by his family. The luxury apartment in New York was owned by the family company; a villa was owned by his wife’s company; daily expenses and all those customized suits were provided by Golden Spring, a New York-based company owned by his son Guo Qiang. Qu Guojiao, or Natasha Qu, Guo Wengui’s former financial assistant, still living in China, revealed in an exclusive interview that in the space of over 20 years, Guo set up more than 100 companies in Hong Kong, China, the United Kingdom, the United States, the British Virgin Islands and the Cayman Islands. None of these were under his name, she said. Yet regardless of who and which company holds them, the ultimate flow of funds and shareholding arrangements always proceeded at Guo’s own discretion, Qu said. Guo is known to have amassed a huge fortune by colluding with corrupt Chinese powerbrokers and business tycoons: that’s the reason for his fame among Chinese netizens as a “Capital Giant”. Yet most of the funds came from unknown sources, and were never under his name. The Blair Connection As previously reported by the respected Chinese business newspaper Caixin Global, one of Guo’s main sources of money materialized with the help of former British Prime Minister Tony Blair. With Blair’s endorsement, Guo raised $3 billion from the Abu Dhabi royal family. Blair flew on a luxury private jet during a visit to the Middle East in 2013 when he was the U.N. Quartet’s Middle East envoy; he was accompanied by Guo, who was responsible for paying for the flight, according to Caixin. Guo won the Blairs’ favor when he bought 5,000 copies of Blair’s wife Cherie’s new autobiographical book in Chinese, Speaking for Myself, in August 2009. In 2013, Blair introduced Guo to a group of dignitaries from the Abu Dhabi royal family, the newspaper reported. In 2014 Guo, with the support of all-powerful Ma Jian, then Chinese vice minister of security, used Blair’s position as the Special Envoy to the Middle East Quartet to gain the trust of the Abu Dhabi royals. Guo ended up signing a contract with them in Macau on Dec. 16 that year, setting up a “China-Arab Fund,” according to China Daily. The first $1.5 billion was paid from Abu Dhabi’s Cayman Islands-registered company Roscalitar 2 to one of Guo Wengui’s bank accounts the following day. Guo’s assistant at the time, Qu, confirmed in the interview that the money was used to buy Hong Kong stocks, property, a yacht and other assets. (CAPTION: Voucher signed and authorized by Guo Wengui for the transfer of €25.2 million from Bravo Luck Ltd to DWF LLP for the balance of the purchase of the Lady May yacht) Natasha Qu stated: “In December 2014, the Abu Dhabi side transferred 1.5 billion to Guo Wengui, who immediately instructed her to transfer the money to HK International Funds Investment Ltd, a company controlled by Guo Wengui through her and Guo Qiang.” Guo, according to Qu, “asked to transfer a total of $520 million in two installments to the Bravo Luck Ltd account. Payments were then made through the Bravo Luck Ltd account to purchase the Lady May yacht, the luxury apartment in New York, and money was also transferred to Guo Qiang himself and to his controlled [company] Golden Spring” at its Hong Kong head office. (CAPTION: Voucher signed and authorized by Guo Wengui for transfer from Bravo Luck Ltd $62,990,741.85 to IVEY Barnum & O’Mara LLC for the balance of the apartment in the Sherry Netherland Hotel in New York) Natasha Qu adds: “Although Guo Wengui had more than a hundred companies in Hong Kong and the British Virgin Islands, none of them had any real business and there was basically no money in the company accounts. They were set up simply to raise and transfer money. All of Guo Wengui’s spending in those two or three years both at home and abroad came from this Abu Dhabi money.” There’s no information as to whether any of these funds are still left. What is clear is that Guo kept spending right up until and after his recent bankruptcy filing. After claiming he was flat broke, Guo hired three big-name lawyers from top US law firm Brown Rudnick LLP each charging more than $1,000 an hour, according to news reports of the bankruptcy filing. (Lawyers’ fees listed in the court papers submitted by Guo Wengui) Documents in Guo’s bankruptcy case show that the day before filing for bankruptcy, he sent $1 million to law firm Brown & Rudnick from Lamp Capital Ltd (Lamp Capital). In addition to this firm, Guo also hired the services of Stretto Insolvency Solutions and V&L Financial Services, according to court filings. In May 2022 Guo set up an $8 million loan from his own New York-based company Golden Spring to pay for insolvency administration and financial services. Should I Stay (Bankrupt) or Should I Go? It’s not clear how wealthy Guo Wengui really is, and what are his real assets. One of the most contentious assets in the years-long litigation between Hong Kong’s Pacific Alliance Group and Guo Wengui is the now-famous Lady May yacht, where federal officials had arrested Steve Bannon in 2020 for alleged fraud. Guo claimed that he sold the yacht to his daughter Guo Mei for $1, and that it is docked in a Spanish harbor. Natasha Qu reports that “the yacht was purchased in February 2015 by Guo Wengui for €28 million, with funds from the first US$1.5 billion released by the China-Arab Fund, in the name of Hong Kong International Fund Investment Ltd, and registered in the same name.” Qu says she transferred the ownership of Lady May to Guo Mei for US$1 on June 17, 2017, as instructed by Guo. Back in October 2014, Guo asked Natasha Qu to sign a Declaration of Trust to hold Hong Kong International Fund Investment Limited for him, after which the company was transferred to Natasha Qu to hold on his behalf for the price of HK$1. The Declaration of Trust made it clear that all actions of the trustee, Natasha Qu, in relation to the shareholding of the company were to be done in accordance with the instructions of the beneficiary, Guo Wengui. After Qu signed the Declaration of Trust, she said the document was taken away by Guo and kept by his lawyer. As Natasha Qu explains, “When the Hong Kong police investigated Guo Wengui for money laundering in 2017, Guo asked me to prepare the paperwork for a trip to the United States to transfer the entirety of Hong Kong International Fund Investment Limited to Guo Mei.” (CAPTION: Declaration of trust signed by Natasha Qu to hold Hong Kong International Fund Investment Limited for Guo Wengui). After he fled to the US, Guo tried his best to package himself as deeply hostile to Beijing. Guo’s patrons in the security services were convicted of major crimes or under investigation, and he feared arrest under corruption charges. According to the New York Times, Guo was on China’s most-wanted list for bribery, fraud and money laundering. Guo spent lavishly to win the support of associates of President Donald Trump. He hired former White House strategist Steve Bannon for a $1 million a year retainer. In 2020, alongside Bannon, Guo announced the creation of the “New Federal State of China,” supposedly to overthrow China’s Communist Party. The “Federal State” held an event in New York on June 4, 2022, with Bannon and a group of former senior Trump aides, including White House trade advisor Peter Navarro and speechwriter Jason Miller. Before the “Federal State” adventure, Guo set up the Rule of Law Foundation in 2018; launched a G series of investment projects such as GTV and G Coin, as well as farm loans, G-Club cards and Xi Coin. These ventures brought in hundreds of millions of dollars in sales and donations, but landed him in legal trouble. In May 2020, the Securities and Exchange Commission (SEC) imposed a $539 million penalty for Guo’s US$487 million in illegal private placements of GTV and G Coin. The remaining projects are also being investigated to varying degrees, including a “farm loan” of almost US$200 million at the end of 2020 and over US$100 million from the sale of one billion H-coins in 2021. The whereabouts and use of these funds are a complete mystery. Guo Wengui’s personal bankruptcy case is still pending. Under court order, Guo, as the owner of the Lady May yacht, promised on April 6 to allow the yacht to return to the US by July 15 and to post a US$37 million bond. On April 17, the bankruptcy court held Guo in contempt for hiding his yacht overseas. On May 11, Guo voluntarily filed to dismiss his personal bankruptcy case. This bizarre behavior caught the attention of major news media. Bankruptcy Court Acts On June 16, the Connecticut Bankruptcy Court noted that Guo Wengui and his family had interests in numerous limited liability companies and allegedly hid assets and defrauded creditors by depositing substantial personal assets among numerous subordinates and family members. The court ultimately denied Guo’s motion to dismiss, appointed a trustee for the bankruptcy assets, continued the bankruptcy proceedings, and appointed a trustee to conduct a worldwide investigation into Guo’s assets and whether Guo had acted in good faith in filing for bankruptcy. If creditors pursuing their investigation find that Guo has hidden assets and filed for bankruptcy, he may be found guilty of violating US bankruptcy laws as well as bankruptcy fraud. That would land him in serious legal trouble. And this time there won’t be any powerful Ministry of State Security patrons to lend a helping hand. Tyler Durden Wed, 08/10/2022 - 02:00.....»»

Category: dealsSource: nytAug 10th, 2022

Still time to save: Today’s 30-year mortgage refinance rates dip further below 5% | August 5, 2022

Check out the mortgage refinancing rates for August 5, 2022, which are mixed from yesterday. Based on data compiled by Credible, mortgage refinance rates are mixed since yesterday, with two rates falling, one rising, and a fourth holding steady. Rates last updated on August 5, 2022. These rates are based on the assumptions shown here. If you’re thinking of doing a cash-out refinance or refinancing your home mortgage to lower your interest rate, consider using Credible. Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes. What this means: Rates for a 30-year refinance edged down today, bringing this popular term further below the 5% mark. Meanwhile, 20-year rates held steady, and 10-year rates surged to hit 4.750%. Homeowners who can manage higher monthly payments may want to consider 15-year rates – at 4.5%, they’re currently the lowest available. With rates for all repayment terms below 5%, homeowners who have been waiting to refinance might consider locking in a rate today. Homeowners who want to make home improvements can save more on interest with a cash-out refinance than they would by funding those improvements with credit cards or personal loans. WHAT IS CASH-OUT REFINANCING AND HOW DOES IT WORK? Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac – 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years. The historic drop in interest rates means homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing with one of today’s lower interest rates. If you’re ready to take advantage of current mortgage refinance rates that are below average historical lows, you can use Credible to check rates from multiple lenders. If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance, so you can find the best rate for your situation. Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac. Be sure to shop around and compare current mortgage rates from multiple mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible's free online tool and see your prequalified rates in only three minutes. Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible. The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%. Credible mortgage refinance rates reported here will only give you an idea of current average rates. The rate you receive can vary based on a number of factors. Think it might be the right time to refinance? Be sure to shop around and compare rates with multiple mortgage lenders. You can do this easily with Credible and see your prequalified rates in only three minutes. Negotiation is often possible in real estate transactions, and you may be able to work with your lender to negotiate a lower refinance rate. Having a good to excellent credit score, low debt-to-income ratio, and good income may help in negotiations. Being open to compromise may also help. For example, your lender may agree to a lower interest rate if you’re willing to pay mortgage discount points upfront. The best way to ensure you get the lowest possible interest rate is to compare rates and loans from multiple mortgage lenders. Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.  As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more......»»

Category: personalSource: foxnewsAug 8th, 2022

HEI REPORTS SECOND QUARTER 2022 RESULTS

2Q22 Net Income of $52.5M and Diluted Earnings Per Share (EPS)1 of $0.48 Utility Performing Well Despite Inflationary Environment Bank Results Reflect Strong Loan Growth, Expanding Net Interest Margin, Favorable Credit Trends and More Normalized Provision HONOLULU, Aug. 8, 2022 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE:HE) (HEI) today reported consolidated net income for common stock for the second quarter of 2022 of $52.5 million and EPS of $0.48 compared to $63.9 million and EPS of $0.58 for the second quarter of 2021. The lower net income was due primarily to the prior year's negative provision for credit losses at American Savings Bank, and the return to a more normalized provision expense due to strong loan growth. "Our consolidated second quarter results reflect solid performance across our enterprise," said Scott Seu, HEI president and CEO. "The utility continues to execute well under performance-based regulation, and will continue to focus on cost control to moderate the impacts of inflation and high fuel costs on customer bills. We did see higher maintenance expenses due to purposeful acceleration of work on our generating units to reduce downtimes and ensure reliable service to our customers as we completely transition off of coal and one of the largest power plants in the state on September 1. Our bank results reflect good execution from the team and an earnings level that is driven by a more normalized provision in comparison to recent periods. The bank saw strong loan growth during the quarter, and credit quality is trending favorably. Our bank continues to progress its digital transformation, and launched Zelle during the quarter, providing a fast and easy way for customers to send and receive money. "We know that our communities and customers are feeling financially challenged, and we are continuing to provide options to help manage their utility bills, while our bank continues working to help meet customers' financial needs," said Seu. 1 Unless otherwise indicated, throughout this release earnings per share (EPS) refers to diluted earnings per share. HAWAIIAN ELECTRIC COMPANY (HAWAIIAN ELECTRIC) EARNINGS2Hawaiian Electric's net income for the second quarter of 2022 was $44.1 million, compared to $41.9 million in the second quarter of 2021, with the increase primarily driven by the following after-tax items: $7 million higher Annual Revenue Adjustment revenues; $1 million related solely to a change in the timing for revenue recognition within the year for Maui County operations that eliminates seasonality in recognizing target revenues and results in recognizing revenues evenly throughout the year, with target revenues recognized on an annual basis remaining unchanged; and $1 million in higher major project interim recovery revenues related to grid modernization. These items were partially offset by the following after-tax items: $5 million in higher operations and maintenance expenses, including $6 million driven by more generating facility overhauls and maintenance performed and $1 million related to higher bad debt expense, partially offset by $2 million in lower expenses compared to last year from (i) last year's write-off due to termination of an agreement relating to a combined heat and power unit and (ii) higher 2021 expenses for environmental reserves; $1 million higher depreciation expense due to increasing investments to integrate more renewable energy and improve customer reliability and system efficiency; and $1 million in higher interest expense. 2 Note: Utility amounts indicated as after-tax in this earnings release are based upon adjusting items using a current year composite statutory tax rate of 25.75%. AMERICAN SAVINGS BANK (ASB) EARNINGSASB's second quarter of 2022 net income was $17.5 million, compared to $23.9 million in the first quarter of 2022 and $30.3 million in second quarter of 2021. The decrease in net income compared to the linked and prior year quarters primarily reflected a return to a more normalized provision due to strong loan growth, following five consecutive quarters of provision releases.    Total earning assets as of June 30, 2022 were $8.7 billion, up 2.6% from December 31, 2021. Total loans were $5.4 billion as of June 30, 2022, up 4.2% from December 31, 2021, reflecting growth across nearly the entire portfolio and driven by strong growth in commercial real estate loans.      Total deposits were $8.3 billion as of June 30, 2022, an increase of 1.0% from December 31, 2021. For the second quarter of 2022, the average cost of funds was 0.05%, flat versus the linked quarter and down two basis points versus the same quarter last year.          ASB's return on average equity3 for the second quarter of 2022 was 12.2%, compared to 13.7% in the linked quarter and 16.8% in the second quarter of 2021. Return on average assets was 0.76% for the second quarter of 2022, compared to 1.04% in the linked quarter and 1.38% in the same quarter last year. In the second quarter of 2022, ASB paid dividends of $12.0 million to HEI. ASB had a Tier 1 leverage ratio of 7.7% as of June 30, 2022. 3 Bank return on average equity calculated using daily average common equity. HOLDING AND OTHER COMPANIESThe holding and other companies' net loss was $9.1 million in the second quarter of 2022 compared to $8.3 million in the second quarter of 2021. The higher net loss was primarily due to higher interest expense, principally due to higher borrowings, and higher general and administrative expenses, including higher charitable contributions (due to timing), partially offset by increased charitable contribution expense in the second quarter of 2021 related to a settlement agreement associated with an executive transition. BOARD DECLARES QUARTERLY DIVIDENDOn August 4, 2022, HEI announced that the Board of Directors declared a quarterly cash dividend of $0.35 per share, payable on September 9, 2022 to shareholders of record at the close of business on August 18, 2022 (ex-dividend date is August 17, 2022). This quarterly dividend is equivalent to an annual rate of $1.40 per share. Dividends have been paid on an uninterrupted basis since 1901. At the indicated annual dividend rate and based on the closing price per share on August 4, 2022 of $42.51, HEI's dividend yield is 3.3%. WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND 2022 GUIDANCEHEI will conduct a webcast and conference call to review its consolidated results and 2022 earnings guidance and outlook on Monday, August 8, 2022 at 10:15 a.m. Hawaii time (4:15 p.m. Eastern). To listen to the conference call, dial 1-844-200-6205 (U.S.) or +1-929-526-1599 (international) and enter passcode 638186. Parties may also access presentation materials and/or listen to the conference call by visiting the conference call link on HEI's website at www.hei.com under "Investor Relations," sub-heading "News and Events — Events and Presentations." A replay will be available online and via phone. The online replay will be available on HEI's website about two hours after the event. An audio replay will also be available about two hours after the event through August 22, 2022. To access the audio replay, dial 1-866-813-9403 (U.S.) or +44-204-525-0658 (international) and enter passcode 484022. HEI and Hawaiian Electric intend to continue to use HEI's website, www.hei.com, as a means of disclosing additional information; such disclosures will be included in the Investor Relations section of the website. Accordingly, investors should routinely monitor the Investor Relations section of HEI's website, in addition to following HEI's, Hawaiian Electric's and ASB's press releases, HEI's and Hawaiian Electric's Securities and Exchange Commission (SEC) filings and HEI's public conference calls and webcasts. Investors may sign up to receive e-mail alerts via the "Investor Relations" section of the website. The information on HEI's website is not incorporated by reference into this document or into HEI's and Hawaiian Electric's SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms to review documents filed with, and issued by, the PUC. No information on the PUC website is incorporated by reference into this document or into HEI's and Hawaiian Electric's SEC filings. ABOUT HEIThe HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawaii. HEI's electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawaii's population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, ASB, is one of Hawaii's largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial fitness. HEI also helps advance Hawaii's sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com. FORWARD-LOOKING STATEMENTSThis release may contain "forward-looking statements," which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as "will," "expects," "anticipates," "intends," "plans," "believes," "predicts," "estimates" or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance. Forward-looking statements in this release should be read in conjunction with the "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" discussions (which are incorporated by reference herein) set forth in HEI's Annual Report on Form 10-K for the year ended December 31, 2021 and HEI's other periodic reports that discuss important factors that could cause HEI's results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, ASB and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME DATA (Unaudited) Three months ended June 30 Six months ended June 30 (in thousands, except per share amounts) 2022 2021 2022 2021 Revenues Electric utility $      818,873 $      601,879 $  1,527,665 $  1,166,743 Bank 75,324 77,260 150,439 154,391 Other 1,410 1,118 2,571 2,069 Total revenues 895,607 680,257 1,680,675 1,323,203 Expenses Electric utility 747,719 534,195 1,382,916 1,029,945 Bank 53,401 37,454 98,486 79,289 Other 7,819 6,752 13,329 14,082 Total expenses 808,939 578,401 1,494,731 1,123,316 Operating income (loss) Electric utility 71,154 67,684 144,749 136,798 Bank 21,923 39,806 51,953 75,102 Other (6,409) (5,634) (10,758) (12,013) Total operating income 86,668 101,856 185,944 199,887 Retirement defined benefits credit—other than service costs 1,246 1,216 2,489 3,651 Interest expense, net—other than on deposit liabilities and other bank borrowings (24,965) (23,317) (49,314) (47,053) Allowance for borrowed funds used during construction 798 812 1,576 1,559 Allowance for equity funds used during construction 2,470 2,377 4,879 4,568 Gain on sales of investment securities, net and equity-method investment — — 8,123 528 Income before income taxes 66,217.....»»

Category: earningsSource: benzingaAug 8th, 2022

AllianceBernstein Closes US Commercial Real Estate Debt Fund IV

AllianceBernstein Holdings L.P. (“AB”) (NYSE: AB), a leading global investment and research management firm, has announced the final closing of US Commercial Real Estate Debt Fund IV (“Fund IV”), securing commitments of $1.3 billion from global institutional investors.  Fund IV is a continuation of the successful value-add transitional lending strategy... The post AllianceBernstein Closes US Commercial Real Estate Debt Fund IV appeared first on Real Estate Weekly. AllianceBernstein Holdings L.P. (“AB”) (NYSE: AB), a leading global investment and research management firm, has announced the final closing of US Commercial Real Estate Debt Fund IV (“Fund IV”), securing commitments of $1.3 billion from global institutional investors.  Fund IV is a continuation of the successful value-add transitional lending strategy AB has been overseeing for the past nine years. Alongside Fund IV, the platform has grown substantially over the past 18 months with new segregated mandates focused on core-plus and fixed rate lending, and the launch of AB’s first private commercial mortgage REIT which has quickly grown to over $400 million in committed equity since accepting its first commitments in Q4 2021. The CRED IV closing is the latest milestone in a period of considerable growth for AB’s US Commercial Real Estate Debt platform, which has cumulatively secured new capital commitments of over $4.5 billion since December 2020. Total assets for the US Commercial Real Estate Debt platform, raised from investors worldwide since inception of the platform in 2013, currently amount to $10.5 billion with $9.0 billion of that AUM under active management today. The team has deployed $8.6 billion of capital to over 130 loans since inception.  “Attracting over $4.5 billion of new capital commitments for our US CRED platform is reflective of the successful deployment and management of our portfolio over the past decade, including navigating the COVID-19 pandemic,” said AB’s US Commercial Real Estate Debt Chief Investment Officer Peter Gordon. “The expansion in the cost and tenor of capital – combined with having access to both levered and unlevered strategies – enables us to deliver broader solutions to our clients and be more innovative and relevant to our borrowers. With nearly half of our transactions coming from repeat borrowers, we believe that this will continue to further differentiate the platform in the years to come.”  The continued expansion of AB’s US Commercial Real Estate debt platform is consistent with AB’s strategy of growing its private markets platform, in partnership with Equitable, to meet client needs. On July 1, AB completed its acquisition of CarVal investors, which expands AB’s private markets platform to $54 billion in AUM. CarVal brings investment expertise across opportunistic and distressed credit, renewable energy infrastructure, specialty finance and transportation investments. These strategies, combined with AB’s existing businesses focused on corporate direct lending and commercial real estate lending, provide clients with an array of alternative investment solutions. The post AllianceBernstein Closes US Commercial Real Estate Debt Fund IV appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyAug 7th, 2022

Starwood Property Trust Reports Results for Quarter Ended June 30, 2022

– Quarterly GAAP Earnings of $0.67 and Distributable Earnings (DE) of $0.51 per Diluted Share – – $3.8 Billion of Investment Activity, Including $2.2 Billion in Commercial Lending – – Undepreciated Book Value Increased 26% Year-over-Year to $21.51 - – Paid Dividend of $0.48 per Share – GREENWICH, Conn., Aug. 4, 2022 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE:STWD) today announced operating results for the fiscal quarter ended June 30, 2022.  The Company's second quarter 2022 GAAP net income was $212.3 million, or $0.67 per diluted share, and Distributable Earnings (a non-GAAP financial measure) was $162.5 million, or $0.51 per diluted share. GAAP net income reflects unrealized increases in fair value of the Woodstar Fund's affordable housing investments, net of non-controlling interests.  It also reflects unrealized reductions in the fair value of residential lending investments, which together resulted in a net  increase to undepreciated book value in the quarter of $0.25(*).  "Our diversified platform delivered strong performance this quarter despite a turbulent equity and credit market backdrop. We closed on nearly $4 billion of new investments, growing our portfolio to a record of $27 billion. Book value increased again this quarter, driven in large part by our affordable housing assets which appreciated due to continued robust rent growth. Today, our commercial loan portfolio LTV stands at just 61%, a major cushion to possible adverse movements in equity cap rates, and is 99% floating rate, providing upside to higher rates. Moreover, the commercial loan book has dramatically changed in its constitution, from 13% in the resilient multifamily sector pre-COVID to more than one third multifamily at quarter end. Similarly, the proportion of loans in the more challenged office asset class has dropped from almost 40% to roughly half that today," stated Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "There are great opportunities for our enterprise as the banks take steps back from the lending market but we must be, as we have through each cycle since we created STWD in 2009, careful to balance growth against a cushion that is prudent in this volatile and uncertain world right now. In addition to our available funds, we believe we can access incremental capital through partial or full sales of our owned property assets or obtaining leverage on our unencumbered asset portfolio. As we always do, we will continue to balance growth and liquidity preservation for the remainder of the year," added Jeffrey DiModica, President of Starwood Property Trust. (*) These fair values represent estimates and are subject to change.  The fair value of the Woodstar Fund's investments is an estimate that is subject to future increases or decreases as property values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates.  Similarly, residential lending investments are impacted by changes in interest rates and credit spreads, which could cause increases or decreases to fair value. Supplemental Schedules The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders.  Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com. Webcast and Conference Call Information  The Company will host a live webcast and conference call on Thursday, August 4, 2022, at 10:00 a.m. Eastern Time.  To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.  The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website.  The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in.  To Participate via Telephone Conference Call:Dial in at least 15 minutes prior to start time.Domestic:  1-877-407-9039 International:  1-201-689-8470 Conference Call Playback:Domestic:  1-844-512-2921International:  1-412-317-6671Passcode:  13730650The playback can be accessed through August 11, 2022. About Starwood Property Trust, Inc. Starwood Property Trust (NYSE:STWD) is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. An affiliate of global private investment firm Starwood Capital Group, the Company has successfully deployed over $91 billion of capital since inception and manages a portfolio of $27 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com. Forward-Looking Statements Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions.  Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, the severity and duration of economic disruption caused by the COVID-19 global pandemic (including the emergence of new strains of the virus), completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022. In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur. Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise. Additional information can be found on the Company's website at www.starwoodpropertytrust.com. Contact:Zachary TanenbaumStarwood Property TrustPhone: 203-422-7788Email: ztanenbaum@starwood.com   Starwood Property Trust, Inc. and Subsidiaries Condensed Consolidated Statement of Operations by Segment For the three months ended June 30, 2022 (Amounts in thousands) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Subtotal Securitization VIEs Total Revenues: Interest income from loans $            227,555 $           30,096 $              — $           3,499 $              — $      261,150 $                 — $        261,150 Interest income from investment securities 22,591 1,173 — 20,990 — 44,754 (29,448) 15,306 Servicing fees 142 — — 15,616 — 15,758 (3,205) 12,553 Rental income 1,044 — 22,628 7,852 — 31,524 — 31,524 Other revenues 61 90 48 4,854 3 5,056 (3) 5,053 Total revenues 251,393 31,359 22,676 52,811 3 358,242 (32,656) 325,586 Costs and expenses: Management fees 254 — — — 31,370 31,624 — 31,624 Interest expense 88,226 15,001 7,074 6,391 36,142 152,834 (216) 152,618 General and administrative 11,845 3,631 975 23,114 5,342 44,907 98 45,005 Acquisition and investment pursuit costs 738 — 2 (223) — 517 — 517 Costs of rental operations 1,826 — 5,216 3,556 — 10,598 — 10,598 Depreciation and amortization 1,183 104 8,179 2,774 — 12,240 — 12,240 Credit loss provision, net 7,925 513 — — — 8,438 — 8,438 Other expense 1,251 — — 7 — 1,258 — 1,258 Total costs and expenses 113,248 19,249 21,446 35,619 72,854 262,416 (118) 262,298 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 8,373 8,373 Change in fair value of servicing rights — — — 543 — 543 (908) (365) Change in fair value of investment securities, net (19,312) — — (8,150) — (27,462) 26,217 (1,245) Change in fair value of mortgage loans, net (121,356) — — 7,876 — (113,480) — (113,480) Income from affordable housing fund investments — — 307,165 — — 307,165 — 307,165 Earnings (loss) from unconsolidated entities 2,786 394 — 1,748 — 4,928 (1,063) 3,865 Gain on sale of investments and other assets, net 138 — — — — 138 — 138 Gain (loss) on derivative financial instruments, net 127,140 265 5,354 9,007 (13,183) 128,583 — 128,583 Foreign currency (loss) gain, net (78,331) (289) 18 — — (78,602) — (78,602) Other loss, net (33,809) — — — — (33,809) — (33,809) Total other income (loss) (122,744) 370 312,537 11,024 (13,183) 188,004 32,619 220,623 Income (loss) before income taxes 15,401 12,480 313,767 28,216 (86,034) 283,830 81 283,911 Income tax (provision) benefit (557) 1 — (1,650) — (2,206) — (2,206) Net income (loss) 14,844 12,481 313,767 26,566 (86,034) 281,624 81 281,705 Net income attributable to non-controlling interests (4) — (67,482) (1,851) — (69,337) (81) (69,418) Net income (loss) attributable to Starwood Property Trust, Inc. $              14,840 $           12,481 $      246,285 $          24,715 $       (86,034) $      212,287 $                 — $        212,287 Definition of Distributable Earnings Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT.  For the Company's purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs from successful acquisitions, depreciation and amortization of real estate and associated intangibles and any unrealized gains, losses or other non-cash items recorded in net income for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors.  Reconciliation of Net Income to Distributable Earnings For the three months ended June 30, 2022 (Amounts in thousands except per share data) Commercial and Residential Lending Segment Infrastructure Lending Segment Property Segment Investing and Servicing Segment Corporate Total Net income (loss) attributable to Starwood Property Trust, Inc. $                          14,840 $                          12,481 $                       246,285 $                          24,715 $                        (86,034) $                       212,287 Add / (Deduct): Non-controlling interests attributable to Woodstar II Class A Units — — 4,691 — — 4,691 Non-controlling interests attributable to unrealized gains/losses — — 60,043.....»»

Category: earningsSource: benzingaAug 4th, 2022

PennantPark Investment Corporation Announces an Increase of Its Quarterly Distribution to $0.15 per Share and Its Financial Results for the Quarter Ended June 30, 2022

MIAMI, Aug. 03, 2022 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (NYSE:PNNT) announced today financial results for the third fiscal quarter ended June 30, 2022. HIGHLIGHTS     Quarter ended June 30, 2022     ($ in millions, except per share amounts)     Assets and Liabilities:     Investment portfolio(1) $ 1,314.8 Net assets $ 631.5 GAAP net asset value per share $ 9.65 Quarterly decrease in GAAP net asset value per share   3.9% Adjusted net asset value per share(2) $ 9.57 Quarterly decrease in adjusted net asset value per share(2)   4.8%       Credit Facility $ 412.0 2026 Notes $ 146.3 2026 Notes-2 $ 161.2 SBA Debentures $ 27.0 Regulatory Debt to Equity   1.16x Regulatory Net Debt to Equity(3)   1.12x GAAP Net Debt to Equity(4)   1.14x       Weighted average yield on debt investments at quarter-end   9.3%       Operating Results:     Net investment income $ 10.6 Net investment income per share (GAAP) $ 0.16 Distributions declared per share $ 0.145       Portfolio Activity:     Purchases of investments $ 326.3 Sales and repayments of investments $ 799.4       PSLF Portfolio data:     PSLF investment portfolio $ 608.4 Purchase of Investments $ 200.5 Sales and repayments of investments $ 35.1 _______________ (1)  Includes investments in PennantPark Senior Loan Fund, LLC, or PSLF, an unconsolidated joint venture, totaling $141.1 million, at fair value.(2)  This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company's financial performance excluding the impact of the $10.9 million unrealized loss on our multi-currency, senior secured revolving credit facility with Truist Bank, as amended, or the Credit Facility, and, together with our credit facility with BNP Paribas, as amended, the Credit Facilities. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. (3)  This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company's financial performance net of $29.5 million of cash and cash equivalents. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.(4)  This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company's financial performance including the impact of the $10.9 million unrealized loss on the Credit Facility, and net of $29.5 million of cash and cash equivalents. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. CONFERENCE CALL AT 12:00 P.M. ET ON AUGUST 4, 2022 PennantPark Investment Corporation ("we," "our," "us" or the "Company") will also host a conference call at 12:00 p.m. (Eastern Time) on Thursday, August 4, 2022 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (800) 289-0720 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8073. All callers should reference conference ID #9289526 or PennantPark Investment Corporation. An archived replay of the call will be available through August 18, 2022, by calling toll-free (888) 203-1112. International callers please dial (719) 457-0820. For all phone replays, please reference conference ID #9289526. INCREASE OF QUARTERLY DISTRIBUTION TO $0.15 PER SHARE The Company declares an increase of its fourth fiscal quarter 2022 distribution to $0.15 per share, payable on October 3, 2022 to stockholders of record as of September 19, 2022. The distribution is expected to be paid from taxable net investment income. The final specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company's periodic report filed with the Securities and Exchange Commission. PORTFOLIO AND INVESTMENT ACTIVITY "We are pleased with the continued solid credit performance of the Company and its positioning to grow Net Investment Income over time" said Art Penn, Chairman and CEO. "We believe that the combination of rising base rates, higher spreads on new loan originations, a growing PSLF joint venture and the potential to rotate equity proceeds into cash paying loans present the company with multiple avenues of income growth." As of June 30, 2022, our portfolio totaled $1,314.8 million, which consisted of $721.8 million of first lien secured debt, $129.7 million of second lien secured debt, $121.2 million of subordinated debt (including $88.0 million in PSLF) and $342.2 million of preferred and common equity (including $53.1 million in PSLF). Our debt portfolio consisted of 96% variable-rate investments and 4% fixed-rate investments. As of June 30, 2022, we had one portfolio company on non-accrual, representing 0.9% and 0.5% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $64.9 million as of June 30, 2022. Our overall portfolio consisted of 118 companies with an average investment size of $11.1 million, had a weighted average yield on interest bearing debt investments of 9.3% and was invested 55% in first lien secured debt, 10% in second lien secured debt, 9% in subordinated debt (including 7% in PSLF) and 26% in preferred and common equity (including 4% in PSLF). As of June 30, 2022, all of the investments held by PSLF were first lien secured debt. As of September 30, 2021, our portfolio totaled $1,255.3 million and consisted of $552.5 million of first lien secured debt, $176.9 million of second lien secured debt, $121.2 million of subordinated debt (including $64.2 million in PSLF) and $404.7 million of preferred and common equity (including $41.2 million in PSLF). Our debt portfolio consisted of 92% variable-rate investments and 8% fixed-rate investments. As of September 30, 2021, we had no portfolio companies on non-accrual. Overall, the portfolio had net unrealized appreciation of $34.2 million as of September 30, 2021. Our overall portfolio consisted of 97 companies with an average investment size of $12.9 million, had a weighted average yield on interest bearing debt investments of 9.0% and was invested 44% in first lien secured debt, 14% in second lien secured debt, 10% in subordinated debt (including 5% in PSLF) and 32% in preferred and common equity (including 3% in PSLF). As of September 30, 2021, all of the investments held by PSLF were first lien secured debt. For the three months ended June 30, 2022, we invested $326.3 million in 11 new and 36 existing portfolio companies with a weighted average yield on debt investments of 8.7%. Sales and repayments of investments for the three months ended June 30, 2022 totaled $198.3 million. For the nine months ended June 30, 2022, we invested $799.4 million in 35 new and 95 existing portfolio companies with a weighted average yield on debt investments of 8.2%. Sales and repayments of investments for the nine months ended June 30, 2022 totaled $736.0 million. For the three months ended June 30, 2021, we invested $133.4 million in seven new and nine existing portfolio companies with a weighted average yield on debt investments of 7.9%. Sales and repayments of investments for the three months ended June 30, 2021 totaled $191.0 million. For the nine months ended June 30, 2021, we invested $276.4 million in 14 new and 32 existing portfolio companies with a weighted average yield on debt investments of 8.4%. Sales and repayments of investments for the nine months ended June 30, 2021 totaled $358.6 million. PennantPark Senior Loan Fund, LLC As of June 30, 2022, PSLF's portfolio totaled $608.4 million, consisted of 72 companies with an average investment size of $8.5 million and had a weighted average yield on debt investments of 7.9%. As of September 30, 2021, PSLF's portfolio totaled $405.2 million, consisted of 47 companies with an average investment size of $8.6 million and had a weighted average yield on debt investments of 7.2%. For the three months ended June 30, 2022, PSLF invested $200.5 million (of which $176.0 million was purchased from the Company) in 14 new and 17 existing portfolio companies with a weighted average yield on debt investments of 7.3%. PSLF's sales and repayments of investments for the same period totaled $35.1 million. For the nine months ended June 30, 2022, PSLF invested $278.6 million (of which $235.6 million was purchased from the Company) in 29 new and 19 existing portfolio companies with a weighted average yield on debt investments of 7.3%. PSLF's sales and repayments of investments for the same period totaled $73.0 million. For the three months ended June 30, 2021, PSLF invested $54.1 million (of which $54.1 million was purchased from the Company) in six new and two existing portfolio companies with a weighted average yield on debt investments of 7.1%. PSLF's sales and repayments of investments for the same period totaled $50.9 million. For the nine months ended June 30, 2021, PSLF invested $117.8 million (of which $91.9 million was purchased from the Company) in 12 new and eight existing portfolio companies with a weighted average yield on debt investments of 7.3%. PSLF's sales and repayments of investments for the same period totaled $91.6 million. RESULTS OF OPERATIONS Set forth below are the results of operations for the three and nine months ended June 30, 2022 and 2021. Investment Income Investment income for the three and nine months ended June 30, 2022 was $23.3 million and $76.0 million, respectively, which was attributable to $17.6 million and $52.2 million from first lien secured debt, $2.9 million and $13.7 million from second lien secured debt, $0.3 million and $2.6 million from subordinated debt and $2.5 million and $7.4 million from preferred and common equity, respectively. This compares to investment income for the three and nine months ended June 30, 2021 of $20.5 million and $58.5 million, respectively, which was attributable to $11.8 million and $33.9 million from first lien secured debt, $5.2 million and $15.8 million from second lien secured debt, $1.8 million and $5.2 million from subordinated debt and $1.7 million and $3.6 million from preferred and common equity, respectively. The increase in investment income compared to the same periods in the prior year was primarily due to the increase in the size of our debt portfolio. Expenses Expenses for the three and nine months ended June 30, 2022 totaled $12.8 million and $41.3 million, respectively. Base management fee for the same periods totaled $4.9 million and $15.0 million, performance base incentive fee for the same periods totaled zero and $2.7 million, debt related interest and expenses totaled $6.7 million and $20.1 million, general and administrative expenses totaled $1.0 million and $3.0 million and provision for taxes totaled $0.2 million and $0.6 million, respectively. This compares to expenses for the three and nine months ended June 30, 2021 that totaled $12.3 million and $33.2 million, respectively. Base management fee for the same periods totaled $4.4 million and $12.8 million, debt related interest and expenses totaled $6.9 million (including a one-time $1.1 million payment, which is related to the early repayment of SBA Debt) and $16.8 million, general and administrative expenses totaled $0.9 million and $3.2 million and provision for taxes totaled $0.2 million and $0.5 million, respectively. The increase in expenses for the three months ended June 30, 2022 compared to the same period in the prior year was primarily due to increased financing costs. Net Investment Income Net investment income totaled $10.6 million and $34.8 million, or $0.16 and $0.52 per share, for the three and nine months ended June 30, 2022, respectively. Net investment income totaled $8.1 million and $25.2 million, or $0.12 and $0.38 per share, for the three and nine months ended June 30, 2021, respectively. The increase in net investment income compared to the same period in the prior year was primarily due to increased investment income. Net Realized Gains or Losses Sales and repayments of investments for the three and nine months ended June 30, 2022 totaled $198.3 million and $736.0 million, respectively, and net realized gains (losses) totaled $(34.3) million and $82.4 million, respectively. Sales and repayments of investments for the three and nine months ended June 30, 2021 totaled $191.0 million and $358.6 million, respectively, and net realized gains (losses) totaled $41.7 million and $24.4 million, respectively. The change in realized gains was primarily due to changes in the market conditions of our investments and the values at which they were realized. Unrealized Appreciation or Depreciation on Investments and the Credit Facilities For the three and nine months ended June 30, 2022, we reported net change in unrealized appreciation (depreciation) on investments of $5.6 million and $(99.1) million, respectively. For the three and nine months ended June 30, 2021, we reported net change in unrealized appreciation (depreciation) on investments of $(16.3) million and $110.4 million, respectively. As of June 30, 2022, and September 30, 2021, our net unrealized appreciation (depreciation) on investments totaled $(64.9) million and $34.2 million, respectively. The net change in unrealized depreciation on our investments compared to the same period in the prior year was primarily due to the reversal of the unrealized appreciation of PT Network Intermediate Holdings, LLC associated with the realization of the investment. For the three and nine months ended June 30, 2022, the Truist Credit Facility had a net change in unrealized depreciation of $8.9 million and $9.2 million, respectively. For the three and nine months ended June 30, 2021, the Truist Credit Facility had a net change in unrealized appreciation of $1.6 million and $18.5 million, respectively. As of June 30, 2022, and September 30, 2021, the net unrealized depreciation on the Truist Credit Facility totaled $10.9 million and $1.7 million, respectively. The net change in unrealized depreciation compared to the same periods in the prior year was primarily due to changes in the capital markets. Net Change in Net Assets Resulting from Operations Net change in net assets resulting from operations totaled $(18.5) million and $10.2 million, or $(0.28) and $0.15 per share, for the three and nine months ended June 30, 2022, respectively. Net change in net assets resulting from operations totaled $31.9 million and $141.5 million, or $0.48 and $2.11 per share, for the three and nine months ended June 30, 2021, respectively. The decrease in the net change in net assets from operations for the three and nine months ended June 30, 2022 compared to the same periods in the prior year was primarily due to a decrease in unrealized appreciation. LIQUIDITY AND CAPITAL RESOURCES Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives. The annualized weighted average cost of debt for the nine months ended June 30, 2022 and 2021, inclusive of the fee on the undrawn commitment and amendment costs on the Truist Credit Facility and amortized upfront fees on SBA debentures, was 4.0% and 3.5%, respectively. As of June 30, 2022, and September 30, 2021, we had $42.1 million and $118.5 million of unused borrowing capacity under the Truist Credit Facility, respectively, subject to leverage and borrowing base restrictions. As of June 30, 2022, and September 30, 2021, we had $422.9 million and $316.5 million, respectively, in outstanding borrowings under the Truist Credit Facility. The Truist Credit Facility had a weighted average interest rate of 3.9% and 2.4%, respectively, exclusive of the fee on undrawn commitments, as of ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaAug 3rd, 2022

PennantPark Floating Rate Capital Ltd. Announces Financial Results for the Quarter Ended June 30, 2022

MIAMI, Aug. 03, 2022 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) (TASE: PFLT) announced today financial results for the third fiscal quarter ended June 30, 2022. HIGHLIGHTSQuarter ended June 30, 2022($ in millions, except per share amounts) Assets and Liabilities:     Investment portfolio(1) $ 1,226.4   Net assets $ 504.9   GAAP net asset value per share $ 12.21   Quarterly decrease GAAP net asset value per share   3.2 % Adjusted net asset value per share(2) $ 12.02         Credit Facility $ 253.6   2023 Notes $ 94.7   2026 Notes $ 182.1   2031 Asset-Backed Debt $ 225.8   Regulatory Debt to Equity   1.55x   Regulatory Net Debt to Equity(3)   1.45x   GAAP Net Debt to Equity(4)   1.42x         Weighted average yield on debt investments at quarter-end   8.5 % Operating Results:       Net investment income $ 11.8   Net investment income per share $ 0.29   Distributions declared per share $ 0.285           PFLT Portfolio Activity:       Purchases of investments $ 104.8   Sales and repayments of investments $ 55.0           PSSL Portfolio data:       PSSL investment portfolio $ 746.8   Purchase of Investments $ 31.5   Sales and repayments of investments $ 13.5   ________________________(1)  Includes investments in PennantPark Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint venture, totaling $248.9 million, at fair value.(2)  This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company's financial performance excluding the impact of the $8.5 million unrealized loss on our multi-currency senior secured revolving credit facility, as amended and restated, with Truist Bank (formerly SunTrust Bank) and other lenders, or the Credit Facility, and our 4.3% Series A notes due 2023, or the 2023 Notes. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.(3)  This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company's financial performance net of $40.6 million of cash and cash equivalents. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.(4)  This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company's financial performance including the impact of the $8.5 million unrealized loss on the Credit Facility and the 2023 Notes net of $40.6 million of cash and cash equivalents. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. CONFERENCE CALL AT 9:00 A.M. ET ON AUGUST 4, 2022 PennantPark Floating Rate Capital Ltd. ("we," "our," "us" or the "Company") will also host a conference call at 9:00 a.m. (Eastern Time) on Thursday August 4, 2022 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (800) 289-0720 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8073. All callers should reference conference ID #1561290 or PennantPark Floating Rate Capital Ltd. An archived replay of the call will be available through August 18, 2022, by calling toll-free (888) 203-1112. International callers please dial (719) 457-0820. For all phone replays, please reference conference ID #1561290. PORTFOLIO AND INVESTMENT ACTIVITY "We are pleased with our strong credit performance this quarter. With our primary focus on lower risk, first lien senior secured floating rate loans to U.S. companies, we are positioned to preserve capital and protect against rising inflation and interest rates," said Art Penn, Chairman and CEO. "We believe that the combination of rising base rates, higher spreads on new loan originations, and a growing PSSL joint venture create multiple pathways for income growth." As of June 30, 2022, our portfolio totaled $1,226.4 million, and consisted of $1,062.4 million of first lien secured debt (including $190.2 million in PSSL), $0.7 million of second lien secured debt and $163.4 million of preferred and common equity (including $58.8 million in PSSL). Our debt portfolio consisted of 100.0% variable-rate investments. As of June 30, 2022, we had two portfolio companies on non-accrual, representing 0.9% and 0.1% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized appreciation of $7.7 million. Our overall portfolio consisted of 123 companies with an average investment size of $10.0 million, had a weighted average yield on debt investments of 8.5%, and was invested 87% in first lien secured debt (including 16% in PSSL), less than 1% in second lien secured debt and 13% in preferred and common equity (including 5% in PSSL). As of June 30, 2022, 100.0% of the investments held by PSSL were first lien secured debt. As of September 30, 2021, our portfolio totaled $1,081.6 million, and consisted of $934.4 million of first lien secured debt (including $140.9 million in PSSL), $8.9 million of second lien secured debt and $138.3 million of preferred and common equity (including $44.9 million in PSSL). Our debt portfolio consisted of 99% variable-rate investments. As of September 30, 2021, we had two portfolio companies on non-accrual, representing 2.7% and 2.6% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $11.0 million. Our overall portfolio consisted of 110 companies with an average investment size of $9.8 million, had a weighted average yield on debt investments of 7.4%, and was invested 86% in first lien secured debt (including 13% in PSSL), 1% in second lien secured debt and 13% in preferred and common equity (including 4% in PSSL). As of September 30, 2021, 99% of the investments held by PSSL were first lien secured debt. For the three months ended June 30, 2022, we invested $104.8 million in six new and 39 existing portfolio companies with a weighted average yield on debt investments of 8.1 %. Sales and repayments of investments for the three months ended June 30, 2022 totaled $55.0 million. For the nine months ended June 30, 2022, we invested $553.1 million in 29 new and 104 existing portfolio companies with a weighted average yield on debt investments of 7.7%. Sales and repayments of investments for the nine months ended June 30, 2022 totaled $397.2 million. For the three months ended June 30, 2021, we invested $248.3 million in 10 new and 16 existing portfolio companies with a weighted average yield on debt investments of 7.5%. Sales and repayments of investments for the three months ended June 30, 2021 totaled $283.3 million. For the nine months ended June 30, 2021, we invested $475.5 million in 19 new and 50 existing portfolio companies with a weighted average yield on debt investments of 7.5%. Sales and repayments of investments for the nine months ended June 30, 2021 totaled $565 million. PennantPark Senior Secured Loan Fund I LLC As of June 30, 2022, PSSL's portfolio totaled $746.8 million and consisted of 89 companies with an average investment size of $8.4 million and had a weighted average yield on debt investments of 8.2%. As of September 30, 2021, PSSL's portfolio totaled $564.8 million and consisted of 74 companies with an average investment size of $7.6 million and had a weighted average yield on debt investments of 7.1%. For the three months ended June 30, 2022, PSSL invested $31.5 million (including $16.8 million purchased from the Company) in four new and seven existing portfolio companies with a weighted average yield on debt investments of 8.8%. Sales and repayments of investments for the three months ended June 30, 2022 totaled $13.5 million. For the nine months ended June 30, 2022, PSSL invested $228.6 million (including $225.2 million purchased from the Company) in 25 new and 15 existing portfolio companies with a weighted average yield on debt investments of 7.9%. Sales and repayments of investments for the nine months ended June 30, 2022 totaled $69.2 million. For the three months ended June 30, 2021, PSSL invested $133.7 million (including $98.9 million purchased from the Company) in six new and 15 existing portfolio companies with a weighted average yield on debt investments of 7.0%. Sales and repayments of investments for the three months ended June 30, 2021 totaled $88.8 million. For the nine months ended June 30, 2021, PSSL invested $277.8 million (including $224.1 million purchased from the Company) in 30 new and 26 existing portfolio companies with a weighted average yield on debt investments of 7.2%. Sales and repayments of investments for the nine months ended June 30, 2021 totaled $163.1 million. RESULTS OF OPERATIONS Set forth below are the results of operations for the three and nine months ended June 30, 2022 and 2021. Investment Income Investment income for the three and nine months ended June 30, 2022 was $25.7 million and $76.7 million, respectively, which was attributable to $21.1 million and $64.0 million from first lien secured debt and $4.6 million and $12.7 million from other investments, respectively. This compares to investment income for the three and nine months ended June 30, 2021 of $20.9 million and $61.1 million, respectively, which was attributable to $18.2 million and $53.5 million from first lien secured debt and $2.7 million and $7.6 million from other investments, respectively. The increase in investment income compared to the same periods in the prior year was primarily due to an increase in the size of our portfolio. Expenses Expenses for the three and nine months ended June 30, 2022 totaled $13.9 million and $40.8 million, respectively. Base management fee for the same periods totaled $3.1 million and $8.9 million, performance-based incentive fee totaled $2.6 million and $8.5 million, debt related interest and expenses totaled $7.4 million and $20.7 million and general and administrative expenses totaled $0.8 million and $2.4 million, respectively. This compares to expenses for the three and nine months ended June 30, 2021 that totaled $10.6 million and $30.8 million, respectively. Base management fee for the same periods totaled $2.6 million and $8.0 million, performance-based incentive fee totaled $1.7 million and $4.7 million, debt related interest and expenses totaled $5.9 million and $16.0 million and general and administrative expenses totaled $0.4 million and $1.8 million, respectively. The increase in expenses for the three and nine months ended June 30, 2022 compared to the same period in the prior year was primarily due to an increase in performance-based incentive fees and debt-related interest and expenses. Net Investment Income Net investment income totaled $11.8 million and $35.9 million, or $0.29 and $0.90 per share, for the three and nine months ended June 30, 2022, respectively. Net investment income totaled $10.3 million and $30.3 million, or $0.27 and $0.78 per share, for the three and nine months ended June 30, 2021, respectively. The increase in net investment income compared to the same periods in the prior year was primarily due to an increase in the size of our portfolio. Net Realized Gains or Losses Sales and repayments of investments for the three and nine months ended June 30, 2022 totaled $55.0 million and $397.2 million, respectively, and net realized gains (losses) totaled $0.7 million and $(11.6) million, respectively. Sales and repayments of investments for the three and nine months ended June 30, 2021 totaled $283.3 million and $565.5 million, respectively, and net realized losses totaled $13.0 million and $15.3 million, respectively. The change in realized gains/losses was primarily due to changes in the market conditions of our investments and the values at which they were realized. Unrealized Appreciation or Depreciation on Investments, the Credit Facility and the 2023 Notes For the three and nine months ended June 30, 2022, we reported net change in unrealized depreciation on investments of $17.7 million and $3.7 million, respectively. For the three and nine months ended June 30, 2021, we reported net change in unrealized appreciation on investments of $14.2 million and $48.8 million, respectively. As of June 30, 2022, and September 30, 2021, our net unrealized appreciation on investments totaled $7.7 million and $11.0 million, respectively. The net change in unrealized appreciation on our investments compared to the same period in the prior year was primarily due to changes in the market conditions of our investments and the values at which they were held. For the three and nine months ended June 30, 2022, the Credit Facility and the 2023 Notes had a net change in unrealized depreciation of less than $0.1 million and $1.3 million, respectively. For the three and nine months ended June 30, 2021, the Credit Facility and the 2023 Notes had a net change in unrealized depreciation (appreciation) of $3.2 million and $(11.3) million, respectively. As of June 30, 2022, and September 30, 2021, the net unrealized depreciation on the Credit Facility and the 2023 Notes totaled $8.5 million and $7.2 million, respectively. The net change in net unrealized depreciation compared to the same period in the prior year was primarily due to changes in the capital markets. Net Change in Net Assets Resulting from Operations Net increase (decrease) in net assets resulting from operations totaled $(5.1) million and $16.6 million, or $(0.12) and $0.42 per share, respectively, for the three and nine months ended June 30, 2022. Net increase in net assets resulting from operations totaled $14.7 million and $52.5 million, or $0.38 and $1.35 per share, respectively, for the three and nine months ended June 30, 2021. The decrease in the net change in net assets from operations for the three and nine months ended June 30, 2022 compared to the same period in the prior year was primarily due to a lower realized and unrealized change in our investment and debt. LIQUIDITY AND CAPITAL RESOURCES Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives. The annualized weighted average cost of debt for the nine months ended June 30, 2022 and 2021, inclusive of the fee on the undrawn commitment on the Credit Facility, amendment costs and debt issuance costs, was 3.7% and 3.4%, respectively. As of June 30, 2022 and September 30, 2021, we had $40.7 million and $80.6 million of unused borrowing capacity under the Credit Facility, as applicable, ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaAug 3rd, 2022