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3/13/24 12:34PM
Re: Re: Re: Worth Revisiting
11
Surprisingly mild reaction today in response to an activist showing up: https://www.businesswire.com/news/home/20240313833721/en/Land-Buildings-Calls-on-Equity-Commonwealth-to-Take-Long-Overdue-Step-of-Liquidating-Remaining-Assets-and-Returning-Capital-to-Shareholders
From $19.25, I still see a mid-to-high-teens one-year IRR to liquidation. NCAV just under $19. Upside isn't crazy, but very attractive for the risk, IMO.
I think it's more nuanced than that. First, they are unlikely to buy office, so I think the strict inverse correlation there doesn't quite make sense.
They are most likely to buy industrial or residential. So... login to read the rest
For most of the last five years, we have found EQC to have an unattractive asymmetry: not much upside if it liquidates, and a likely negative market reaction if it finds a deal in a... login to read the rest
This entity exists to pay management and for Sam Zell to keep his overhead off-balance sheet.
It does $35mm in NOI and has $30mm in G&A. CEO pays himself >$5mm/year in that $30mm G&A number.
What do... login to read the rest
At least according to EQC's press release, the distribution is, as blaueskobalt says, driven primarily by REIT taxation requirements.
Regarding acquisition targets, I think that multifamily and office should both be on the table. Multifamily is... login to read the rest
Thanks, that makes sense on tax/REIT rule.
Office is getting sold off pretty hard. Maybe this is the market slowly realizing that these big office players are hosed because the world has changed, but it seems... login to read the rest
I think the distribution is mainly driven by tax/REIT rule requirements.
Another interesting point here is that the AFFO yield is north of 4%, given how much they can make on their cash now. Thus, the... login to read the rest
What's with the $4.25/share dividend? Seems odd. If you are going to liquidate this thing, then liquidate it.
There is finally starting to be some real carnage in the RE space, ironically, given the history here. ... login to read the rest
Thanks for the write-up Felton.
1) What is NOI on the remaining properties?
2) What is cash G&A burn annualizing now?
3) Do you get any sense they are finding things to do? Real estate market hit the... login to read the rest
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