alertmeipp Posted October 4, 2013 Share Posted October 4, 2013 Interesting protection for buyers "Pursuant to the Purchase Agreement, the Company agreed to enter into contingent value rights agreements (the "CVR Agreements") with the Purchasers at the closing of the sale of Common Shares. Pursuant to each CVR Agreement, the Company will issue to each Purchaser such number of contingent value rights equal to the number of Common Shares purchased by each such Purchaser pursuant to the Purchase Agreement or Joinder Agreement, as the case may be. On March 25, 2014 (the "CVR Test Date"), the Company will calculate the volume-weighted average price ("VWAP") for the Common Shares for the 10 trading days period ending on, and including, March 25, 2014 (the "CVR Period VWAP"). On April 1, 2014, the Company will pay to the holder of the contingent value rights, in immediately available funds, an amount in cash, equal to (a) the number of contingent value rights held by the holder on the CVR Test Date multiplied by (b) the amount, not to exceed $0.46 (subject to certain exceptions), equal to the difference between $4.11 (the Per Share Purchase Price), as may be adjusted from time to time, and the CVR Period VWAP" Link to comment Share on other sites More sharing options...
CorpRaider Posted October 11, 2013 Share Posted October 11, 2013 The equity raise was known but not sure the reinstatement of the preferred and pipeline info was out there, prior to this release: Gramercy Property Trust Raises $47.4 Million in Equity Private Placement, Identifies a $130 Million Investment Pipeline and Announces Intention to Reinstate Preferred Dividend http://finance.yahoo.com/news/gramercy-property-trust-raises-47-123000567.html Link to comment Share on other sites More sharing options...
Myth465 Posted October 14, 2013 Share Posted October 14, 2013 Didnt like the raise on first hearing about it, but really like the conference call. Management has a very good story to tell and is very incentivized. I will hold for now. Link to comment Share on other sites More sharing options...
CorpRaider Posted November 22, 2013 Share Posted November 22, 2013 Nice two day move, eh? ;D Link to comment Share on other sites More sharing options...
Myth465 Posted November 22, 2013 Share Posted November 22, 2013 Yes there has to be more than a buyback Link to comment Share on other sites More sharing options...
heth247 Posted December 25, 2013 Share Posted December 25, 2013 I noticed that NCT today announced that they closed their $1BB purchase of senior housing for a weighted 4.15% mortgage rates, and they are putting only 30% down and borrow 70%. I wonder why they are able to get such a good deal while GPT is expecting 5% mortgage rate with LTV of only 50%. Is it because of the size of the deal? Anybody familiar with the capital market care to comment? http://finance.yahoo.com/news/newcastle-completes-1-billion-acquisition-131300341.html Link to comment Share on other sites More sharing options...
CorpRaider Posted December 25, 2013 Share Posted December 25, 2013 Could be senior housing/tenant credit quality. The reits in the area tend to command a premium so it would make sense the credits do as well. Link to comment Share on other sites More sharing options...
CorpRaider Posted March 13, 2014 Share Posted March 13, 2014 Any of you guys still long this one? AFFO for Q1 $.05; Divy $.035. If it sells down to get to a decent yield, I will probably pick some up. I love the management. Link to comment Share on other sites More sharing options...
heth247 Posted March 13, 2014 Share Posted March 13, 2014 Any of you guys still long this one? AFFO for Q1 $.05; Divy $.035. If it sells down to get to a decent yield, I will probably pick some up. I love the management. It is still my largest position. Link to comment Share on other sites More sharing options...
Olmsted Posted March 14, 2014 Share Posted March 14, 2014 Out. Had been selling steadily one it crossed $4, sold the very last shares around a month or two ago at $6ish. Great management, but this is a steady income REIT now, and I am not the constituency for that kind of stock. Link to comment Share on other sites More sharing options...
heth247 Posted March 14, 2014 Share Posted March 14, 2014 Out. Had been selling steadily one it crossed $4, sold the very last shares around a month or two ago at $6ish. Great management, but this is a steady income REIT now, and I am not the constituency for that kind of stock. Any recommendation for other good ideas? thanks. Link to comment Share on other sites More sharing options...
Olmsted Posted March 14, 2014 Share Posted March 14, 2014 Well my current 'deep value, confusing balance sheet, management working to unlock value' play is MMAB. Link to comment Share on other sites More sharing options...
heth247 Posted March 14, 2014 Share Posted March 14, 2014 Well my current 'deep value, confusing balance sheet, management working to unlock value' play is MMAB. Thanks, will check it out. Is there a message board for it or a good write up on it that helps to get up to speed? Link to comment Share on other sites More sharing options...
Olmsted Posted March 16, 2014 Share Posted March 16, 2014 It's far from a good writeup, but I started a thread here, just search "MMAB." Link to comment Share on other sites More sharing options...
doc75 Posted November 6, 2014 Share Posted November 6, 2014 It's far from a good writeup, but I started a thread here, just search "MMAB." Olmsted: Looks like you enjoyed a nice bump in MMAB. I haven't looked into it. I'm just posting here to see if anyone is still following GPT. Certainly GPT is a much more "boring" business now, but I really like the new management. I sold a bunch after the big run-up from $2 to $4+. Then I was listening to the quarterly calls and following what they were doing really liked what I saw. So I built back a position and intend to keep it for the long term. I think these guys really know what management honesty/transparency means. They're highly incentivized and they seem to have a pretty solid focus on shareholder value. I like that they're buying properties not just based on current cap rate but also on long-term value (particularly their "covered land plays"). Hmmm, apparently I have a crush on management. The biggest con is the obvious substantial interest rate risk for the whole industry. But I trust that these guys are building some very durable cash flows. Link to comment Share on other sites More sharing options...
CorpRaider Posted November 6, 2014 Share Posted November 6, 2014 I like management a lot too and enjoy the calls. They don't just focus on the current yield, as you say, but are looking at the residual values and seem more nuanced than a lot of other REITs. A longer-term perspective with some value investing philosophy. I don't like that they keep issuing stock, however, just like a normal REIT where management wants to build assets under management to pump up their compensation. When they set the payout ratio low, I thought they intended to minimize the issuances. I'm planning to buy some if it ever gets below where they did the last big secondary (~$5), but I don't own any now. Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted November 6, 2014 Share Posted November 6, 2014 SELF could be interesting. $4.86 NAV and trades below $4. Should have special dividend of $1 coming in next few quarters to bring cost down to $3 vs. $3.86 NAV. On going dividend should be ~$0.25 - 0.30. Link to comment Share on other sites More sharing options...
doc75 Posted November 6, 2014 Share Posted November 6, 2014 I like management a lot too and enjoy the calls. They don't just focus on the current yield, as you say, but are looking at the residual values and seem more nuanced than a lot of other REITs. A longer-term perspective with some value investing philosophy. I don't like that they keep issuing stock, however, just like a normal REIT where management wants to build assets under management to pump up their compensation. When they set the payout ratio low, I thought they intended to minimize the issuances. I'm planning to buy some if it ever gets below where they did the last big secondary (~$5), but I don't own any now. In this case I don't mind the stock issuance. I don't view it as a push to increase AUM just to line their pockets. They've been clear they're in high growth mode and they need capital to build scale; the issuances have been well telegraphed. I actually appreciate the fact that they're relying on equity and keeping leverage very reasonable even in this low rate environment. If I recall, management gets a substantial bonus if the stock trades over $9 by 2016. (Or something like that.) The easiest way to get there would be to lever up today, juice the cash flows and crank the dividend. Instead they seem really focused on durable cash flows and underlying asset value, a fantastic mix. Not sure if you listened to the recent call, but it was interesting to hear Dugan's comments about the durability of WPC's cash flows through the financial crisis, and their excitement about the few "speciality" assets they've been able to snag. I should add that I also appreciate how transparent they are about the stock issuance. They've clearly indicated they intend to do another marketed offering in the not-far-off future, if there are investment opportunities that warrant it. Aside from interest rate risk, my big worry is that REITs (especially small REITs) have a naturally acquisitive growth model, so you really have to trust management that they're not pursuing growth at any cost. I trust this team. I think they've been pretty open about the cap rate compression they've been seeing in the market, and they have the experience to recognize good/bad market dynamics. You'll notice there are a number of questions on the CCs regarding lower cap rates as compared to earlier purchases; but you'll also notice that management clearly stated early on that they thought their BofA deal was outlandishly good, and they would *not* replicate those cap rates going forward. All this said, I must admit that my investment here is based a little more on trust than it should be. Damn that Kool-Aid tastes good. ;) If this retrenches to $5 I'll be fighting you for shares. :) Link to comment Share on other sites More sharing options...
Olmsted Posted November 10, 2014 Share Posted November 10, 2014 It's far from a good writeup, but I started a thread here, just search "MMAB." Olmsted: Looks like you enjoyed a nice bump in MMAB. I haven't looked into it. I'm just posting here to see if anyone is still following GPT. Certainly GPT is a much more "boring" business now, but I really like the new management. I sold a bunch after the big run-up from $2 to $4+. Then I was listening to the quarterly calls and following what they were doing really liked what I saw. So I built back a position and intend to keep it for the long term. I think these guys really know what management honesty/transparency means. They're highly incentivized and they seem to have a pretty solid focus on shareholder value. I like that they're buying properties not just based on current cap rate but also on long-term value (particularly their "covered land plays"). Hmmm, apparently I have a crush on management. The biggest con is the obvious substantial interest rate risk for the whole industry. But I trust that these guys are building some very durable cash flows. Thanks. I really like GPT management too and think the future is bright, but it's just not my game any more. Link to comment Share on other sites More sharing options...
CorpRaider Posted November 10, 2014 Share Posted November 10, 2014 Thanks for the reply doc. I didn't listen to the most recent one yet, but I will be sure to do so given your recommendation. I hope we get to have that contest for the shares! Link to comment Share on other sites More sharing options...
CorpRaider Posted May 7, 2018 Share Posted May 7, 2018 Selling to Blackstone for $27.50 in cash. I had a tickler set for $29, since they were just issuing units at that price in private upreit transactions. Meh. My CB is like $24.60, but I'm only long like 3 months, so the CAGR would be pretty, pretty, pretty good (but probably attributable mostly to luck). Looks like they are targeting October 15th as a pretty firm close date. Kind of validates the private to public RE arbitrage theory, at least in industrial. I don't see what the deal termination fee is. Will have to dig around for it. http://ir.gptreit.com/file/Index?KeyFile=393364099 Link to comment Share on other sites More sharing options...
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