United Development Funding IV fka UDFI

[Jh5142]

I believe they have until they file their tax return for 2017 to declare dividends this year but make them retroactive to last year.

In reading the documents in the lawsuit With bass, it seems like bass is trying to slow things down and drag them out. He does not seem eager to allow discovery which is something he claimed he welcomed. I believe udfi are in a position to release financials but are holding them back because if they publish them and confirms they had significant right downs in either normal portfolios for in related party dealing, It will give bass an advantage. Bass probably wants to see the financial filings before this lawsuit advances too much. Because he believes it may help His case.

I’m only guessing about this.

Given how the value of residential land has risen over the last few years I have to believe there is asset value above three doaalas er share.

Last year, or I should say 2016, they distributed about $.22 per share dividends. I would guess their legal and investigation cost are lower in 2017 versus 2016 so I hope that the distribution will be higher than that.

The dividend is based upon Taxable income. In other words it is 90% of taxable income which is not the same as 90% of gaap income. I don’t think we ever get to see their actual tax returns so it is hard to estimate.