EI, thanks for sharing the info about the Dallas housing market.
I can't explain the delay in UDF publishing the financials. But the UDF loans have been concentrated mostly in the best residential market in the country (Dallas). And the next two cities where most of the loans are located in top 10 housing markets in the country.
Many of the loans Bass highlighted were on deals Centurian purchased in 2012. Back in 2012, land prices were still depressed and in the last 6 years they have increased dramatically. In hot markets, residential land prices are up 2x-5x in the last several years.
That increase, along with getting the land entitled, should support good values in the loan portfolio.
What I can't explain is how UDF had loans to Buffington of $200 million that led to $140 million of losses. I have assumed if there had been those levels of losses in other funds, the SEC would have become aware. It's possible there are those kinds of losses in IV and that explains why IV hasn't paid dividends since 2016.
One of the main criticisms Bass had is that loans accrue interest for years while the land gets entitled. Maybe they are delaying the financials in part to get all the developments where there is visible activity, and thus, not give Bass any info to use against UDF.
News 
Market Data 
Discover 
