Post by
SNAKEYBOY on Jun 13, 2022 9:52pm
I REALLY HOPE MANAGEMENT GETS CREATIVE
I've never seen a REIT that had debt of 28% (most are 40-55%) and a unit price that is 40% off. It makes sense to me to just borrow 400 million to a 45% debt (which is still very good), and retire about 1/3rd of the float in one shot (10% premium to trading price)
Comment by
SNAKEYBOY on Jun 13, 2022 9:58pm
And/or sell one property that could fetch close to FMV for 200 million
Comment by
Frankie10 on Jun 14, 2022 11:00am
Then the market dumps on you and you look silly. The only deal here is for this to go private - HOOPP buys back everything at a discount after selling it at FMV (lol) and gets management to manage the assets for them. Similar to what Brookfield did (genius).
Comment by
SNAKEYBOY on Jun 14, 2022 11:09am
The SP could go back down after a major SIB but it still is cancelled at 40% discount to NAV and bumping it to $25/share. Then when sentiment improves it gaps up big time
Comment by
Frankie10 on Jun 14, 2022 12:05pm
In that scenario, you fail to see that the market would be signaling that NAV is incorrect. You wouldn't want that buddy.