December 28, 2007
If you purchased or have followed NRI since I recommended it back in May, you know it has suffered along with the rest of the industry in the real estate sector. At the time it was a little over $25/share and now is just under $16/share. One thing to take note of. The fund has paid out $1.42/share in dividends over the past 7 months. In addition, a special dividend of $1.57/share will be paid out on Dec. 31. The share price already reflected that distribution at the close of business on Dec.13th. So that is right at $3/share. Now NRI has announced that the $.20335/share monthly dividend will continue to be paid in Jan, Feb and March under its stated level distribution policy thereby bringing the dividend payout to approximately $3.60/share over 10 months. That doesn't bring us whole if you purchased at that price but it does help.
As I have mentioned in previous emails, there are $400-$500 billion in resets coming in 2008. It could potentially be a devastating year. My hope is since it is also an election year, anyone interested in keeping their jobs in Washington, will work on finding a way to ameliorate this pending crisis.
As I have also mentioned repeatedly, the pendulum swings from one extreme to the other. Eventually the real estate market will stabilize but not without some pain along the way. We still haven't seen everyone come clean as yet with what they are holding in their inventory. I'd like to shoot a few people but I don't have enough money for all the ammunition I'd have to buy. I hope you have a good weekend.
Pete Lipke
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