MVC ROFR always seems somewhat random and unpredictable. All deals must be submitted for review and then they decide to either waive or exercise.
Based on comments made by executive management in their investor presentations, it seems they have a target that roughly 33% of their inventory investment should be repurchases, and 67% new development, and they want 1.5 to 2 years of inventory on hand at any given time to support sales. My suspicion is the variability we see in ROFR may be related to week-to-week or month-to-month adjustments they need to make to hit those targets. In other words, if within a given time period they get a lot of deals presented that are attractive for them to exercise ROFR, and their inventory builds a bit, maybe they might slow down on ROFR and let some deals go through that they might have ordinarily exercised, so as not to accumulate too much inventory on their books. New development has a long lead time but a more predictable run rate of new inventory coming into the Trust, whereas they can turn the ROFR spigot on or off (maybe more accurate to say fast or slow) as needed to maintain their desired inventory mix and levels.
