Computer Task Group CTG
February 14, 2022 - 4:00pm EST by
member
| 2022 | 2023 | ||||||
| Price: | 8.30 | EPS | 0.66 | 0.73 | |||
| Shares Out. (in M): | 15 | P/E | 12 | 11 | |||
| Market Cap (in $M): | 124 | P/FCF | 12 | 11 | |||
| Net Debt (in $M): | -30 | EBIT | 14 | 15 | |||
| TEV (in $M): | 94 | TEV/EBIT | 6.9 | 6.3 | |||
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Description
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| 136 | |
18% NOI growth (all same store) driven by flat to down costs, new leases saw 4.6% rent increases, 5.3% on renewals. Trading at a 9%+ cap rate. | |
| 134 | |
Hi Eigen. Appreciate your comments on this name. Im going to be in Boston next week for a meeting and figured I would go meet these guys. They keep ghosting me though. Emailed once. Called... login to read the rest | |
| 133 | |
Q2 2024 saw $10.82MM in EBITDA up from $8.7MM and on an organic basis up 18.9%. Pro-rata share of joint ventures = $1.722MM up from $1.54MM. Revenues up 10.8%, operating expenses up 1.1%. Excluding acquisition... login to read the rest | |
| 132 | |
a) Revenues up 13%, EBITDA up 21%. On a same store basis, revenues up 8.7%, expenses up 3.2%
b) Joint ventures saw 8.7% revenue and 11% EBITDA growth
c) Vacancy rate: joint ventures = 1.3% on 05/02/2024... login to read the rest | |
| 131 | |
On this point, I don't know if the fact that its a partnership makes any difference in the Massachusetts laws around appraisal rights -
Anyway, to your point they will first tender - but I'd think | |
| 130 | |
Yes, you are right, but there are a few people who own one percent of the company or more, and who would presumably sue. I told them before that I would not tender at less... login to read the rest | |
| 129 | |
I guess the question is what they’d tender at, and then how aggressive they’d be squeezing out minorities (reverse splits, and forcing tender of fractional shares, etc). If you own enough can sue for appraisal... login to read the rest | |
| 128 | |
So I do not know how the termination would look like. In theory a liquidation, however I would put a less than 1% probability on it. My guess is that the family will continue to... login to read the rest | |
| 127 | |
Can you remind me what termination would look like? I guess they’d sell everything and distribute proceeds?
I think they’d try very hard to take private before that. But it’s 30 years from now, no?
If they... login to read the rest | |
| 126 | |
10-K came out on Thursday and I had a call with the company today.
a) 2023 EBITDA, adjusting for the two acquisitions was roughly flat vs 2022 levels, despite 6.14% renewal and 8.9% new leases. For... login to read the rest | |
| 125 | |
Company announced a special distribution of $1.60 per depositary receipt and $0.40 regular quarterly. This means the annual run-rate is now $3.20 up from $2.56 in 2022 and 0.933 in 2009, so distribution per depositary | |
| 124 | |
https://www.boston.com/real-estate/renting/2024/03/08/in-depth-look-mass-rental-market-march-2/
Looks like rents are continuing to rise strongly | |
| 123 | |
Company bought back ~ 18K depositary receipts in the quarter, or roughly 0.5% of outstanding. | |
| 122 | |
Operations
a) EBITDA = $9.325MM in the quarter + $1.75MM joint ventures = $44MM annualized. Marking leases to market, EBITDA should be on a $52-54MM run-rate, including pro-rata share of joint ventures.
Excluding acquisitions, Q3 saw 7.3%... login to read the rest | |
| 121 | |
a) In Q2 2023, rents rose 6.8% for renewals and 7.8% for new leases. For the balance of 2023, Management expects strong rental market with continued rent growth. b) Vacancy rate for partnership properties was... login to read the rest | |
| 120 | |
Borrowers who are squeezed by higher interest rates offer entities like NEN the opportunity to buy attractive properties. I am happy to see the company making use of its liquidity. | |
| 119 | |
https://www.bostonglobe.com/2023/06/11/metro/bostons-brutal-rental-market-final-insult-has-arrived-bidding-wars/?et_rid=530516646&s_campaign=todaysheadlines:newsletter | |
| 118 | |
Thanks, I did request from her - I read section 1.4 as saying there isn't an option to extend partnership beyond 2057 (maybe they could hold a vote to amend agreement and extend?), but then... login to read the rest | |
| 117 | |
The CFO just emailed me the agreement. If you want you can either email her, or provide an email address and I can email it to you. | |
| 116 | |
The good news is that distributions have tripled since 2009. I cannot find my copy of the partnership agreement, I emailed the CFO for a new copy. | |
| 115 | |
Right - maybe dividends are the most realistic form of capital return.
Know it's outside the relevant investment horizon, but do you know what the options are at the end of the partnership agreement in 30+ | |
| 114 | |
I have. I was told that it was a one time deal right next to a property that they owned. The problem with the stock buy-back is liquidity. If you own 200K shares and call | |
| 113 | |
Have you asked them about the $10 million purchase at 653 Worcester Road? I googled it and looked like a single purpose Walgreens. Curious what cap rate they project on it - probably makes sense... login to read the rest | |
| 112 | |
a) Regular quarterly distribution raised to 40 cents from 32 cents before
b) Company bought back ~ 0.36% of s/o in Q1 2023
c) Vacancies up to 2.1% on May 1st 2023 from 2.0% on May 1st... login to read the rest | |
| 111 | |
Right, and eventually they'll have to figure out what to do with all the cash. At the moment I think they are getting a modestly positive spread on treasuries vs average cost of debt, so | |
| 110 | |
I agree with you. The only saving grace is that they are repurchasing stock - 12,285 in Q1 2023 or on a run-rate to buy 1.5% of the s/o this year. | |
| 109 | |
I think minority/majority alignment here is the biggest problem. I don't see that they esp. care about stock price, and why would they - as I mentioned, an eventual tender would make some sense, and... login to read the rest | |
| 108 | |
You are welcome. The company is being niggardly with the capital returns. In 2008, the company returned 12 months of rent via buy-backs and distributions, when it was trading at 7.1x rent roll and 14x... login to read the rest | |
| 107 | |
You may be right, however try to go and buy some apartment buildings in and around Boston. I do not believe that you will be able to buy them at cap rates north of 5%.... login to read the rest | |
| 106 | |
5%. Weren’t t-bills 5% just a couple weeks ago? I don’t know it seems so hard to put cap rates on R/E with confidence. I’m old enough to remember when I wouldn’t look at a... login to read the rest | |