Post by
DanielDarden123 on Feb 15, 2023 4:51pm
SLAM
First, I have no reason to defend SLAM but upon viewing all the info released today I believe that some of the criticism levelled here is misplaced for the following reasons:
1) The NAV/u has improved substantially despite the rising rates;
2) The weighted average cap rate has dropped from 7.20% to 6.8%, showing that they have not overpaid for properties. These are. audited #s!;
3) The return on the cost for redevelopments is double digits;
4) Despite covid they have maintained occupancy; and
5) AFFO/u has not declined with higher rates.
Of course, improved AFFO/u would be welcomed but is that realistic when trying to maintain high occupancy levels? Many businesses were in recovery mode and still are. A prudent approach to rent increases was necessary.
The internal/external debate is constant because all possible conflicts add to the risk of investing. However, when an external manager makes the right decisions it is more worthy of praise than an internal manager who does not.