STWD - HCFT: Dividend Increases And P/B Re-Rating Coming
For those that haven't the space, HCFT is the new ticker for the re-branded OAKS mortgage REIT. OAKS was dying a slow death and down over 70% in price terms following their IPO.
HCFT has a different strategy than OAKS (levering Agency Hybrid ARMs). HFCT levers commercial real estate loans via CRE CDOs, which is a generally a higher risk, higher reward proposition.
HCFT currently trades around 75% P/B, which is an outlier compared to other externally managed REIT vehicles which are trading near 100% and above P/B. This makes HCFT relatively attractive to its