Post by
materialsgirl on Jun 27, 2021 4:10pm
Is Choice a Retail REIT?
Well, currently it is;
Retail 77% will shrink a little over time
Office 7%.
Multi-res. 1% will grow to 5%
Industrial 15% may grow a bit
It is on the margins of being a Diversified REIT
It is trading at about a 6% cap rate.
For value investors there are two hidden gems.
The Industrial portfolio would be valued at a 4.25%
cap rate as a guess. The property values may in fact
be worth at least 50% more than the market ascribes.
Rents will balloon as soon as current leases expire ( 20%
to 100%?).
A sale or spinout of Industrial seems unlikely but at some
point they may have to look at it; for example if it unlocked
$1.50 per share in additional NAV
mat