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Subject:  Re: NRF dividend announcement Date:  8/17/2014  6:38 PM
Author:  Reitnut Number:  77216 of 83894

I suspect that NRF common would trade at a higher price if they would significantly slash their debt leverage (although that would reduce FFO to some extent, and perhaps even require a cut in the dividend). Unless and until they do that, NRF will occupy a special niche in REITdom, perhaps of interest mainly to speculators and yield-seekers.

I have a very modest position in NRF but won't add to it given the complexity of the company and its high debt leverage and high cost of capital. That said, my investment in NRF has performed quite well, and so perhaps it's unfair of me to criticize Mr. Hamamoto. Good investments come in all shapes and sizes, and investors need to determine their taste for risk and potential reward.

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