TSX:SOT.DB - Post by User
Comment by
Malpeque2on Nov 04, 2022 10:16am
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Post# 35072848
RE:Chicago acq
RE:Chicago acqGet a clue. The cap rate on the equity is 10% at 10 times FFO, and that is after all fees and expenses. The Cap Rate on Chicago is 8.5 based on NOI, before fees and expenses to run the Organization.
A bunch of analysts say in these 3 Q reports that SOT discount at P/FFO is at the high end because of higher than average debt/equity than the peers. And trade at this discount to NAV.
You think somehow they got this property below market? Chicago demographics/crime has got to be one of the worst cities in the US. Not far behind Detroit, Milwaukee, Philly, LA .
Joe Buyem is on his farwell tour for the Senate majority this weekend. Guess where he is going?
Calif, Illinois, Pa. He can't hurt anyone in these states. Solidly Blue Socialista anti Business......It's about the last place in America to buy property IMO in the long run!!
So they sell Toronto to raise cash, and instead of reducing debt and buying back equity at 10% Cap rate they recycle into Chicago .........to earn the acquisition fees for the outside manager SLAM.