It is unlikely USR, is its current form, will be able to maintain a yield. The fund is to small and the running cost will absorb any free cash flow from the remaining properties. It costs a minimum of about $1M to run a listed REIT.
Something else is going on here. I suspect something is about to be reversed into the vehicle. Otherwise the return of capital made absolutely no sense. The other strategy maybe to privatise and have shareholders hold the investment directly in the North Carolina syndicate until it comes to term.
USR Price at posting:
34.0¢ Sentiment: Hold Disclosure: Held
