RE:RE:RE:RE:RE:2020 and Q4 results are inYou can't just reduce the value of the shares by 25% or 35% in order to come to a book value for the stock. You have to reduce the value of their portfolio, which is considerably larger, and which eats into the equity in the company, and then calculate your share price for there.
So far MRC has not considerably reduced the value of their overall holdings to reflect reality. And their cap rates, especially for office and commercial are lower than the average, which inflates their value.
Quick example of how to calculate the net equity:
At end of 2020 MRC had about $11b in total assets and $7b in total debt. This means that total equity is about $4b (all numbers rounded, but more or less accurate.
If you reduce the total assets by 25%, then the $11b becomes $8.25b, while the debt stays the same ($7b), and your net equity falls to only $1.25b. (which incidentally is the current market cap of the company).
So you see, a small change in the total asset value, completely destroyed the total equity in the company.
If you reduce assets by another 10%, your net equity is basically zero.
That is why the stock has always traded below net asset value, and why it is at $110 now, vs $200 a year ago.
As rates increase, it will be tougher for the company to overvalue inflate its assets. And by refinancing at higher rates with worse terms, there is a lot of risk.