OTCPK:HBAYF - Post by User
Comment by
seatleslimon Jun 13, 2019 1:26pm
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Post# 29823141
RE:At the call this AM drugstorediva had very little about SAKS
RE:At the call this AM drugstorediva had very little about SAKSFlagship was appraised at $3.7B USD in 2014 vs $1.25B in mortgage debt. Net equity is that building is $2.5B USD or over $13/share CAD.
Other than the flagship loan, the compay doesn't have much debt other than ABL that ramps into holiday to fund inventory. Only other debt is non recourse mortgage debt in Simon and RioCan JV's.
Standing alone and seperate form noise at The Bay and L&T, Saks is a decent credit. As retailers go HBC is actually healthy, even if there is work to be done at L&T. But worst case that's just going to be wound down and related real esate will be harvested. Virtually everyone of those locations is an "A" mall. Listen to Simon narrative around a property like King of Prussia (oened in HBS JV), or consider Stamford, CT. most of these boxes are worth something -- thier not dept boxes in secondary markets.