Post by
Northforce13 on Nov 15, 2024 3:53pm
Out for me
1: Past stated concerns that management chases the current hot sector while such approach can be destructive because of the long lead time required to pivot sectors. This approach = trim assets in unpopular sectors (office), which = sell at the bottom, while expanding into the current hot sectors (multi family, industrial) = buy/build at the top.
Their multi family expansion train is running into a softening market. Significant capacity is coming on line in the U.S. sunbelt market. A point to ponder is imminent immigration policy changes; may affect U.S. population growth.
I personally prefer to buy things when no one wants them, at a commesurate price, and sell things when everyone wants to buy them, if so fortunate.
2: Constant NAV decline. Shareholders would be better served if HR stopped empire building and instead sold assets at NAV, redirecting capital to buying back shares at current steep discount to NAV. If the CEO were ousted and one took the job and issued a press release stating HR would be selling everything it can at NAV or above and return all capital to share holders... I suspect the SP would move in violent fashion.
HR has a lot of good points going for it, it is good value for the money and could reprice at some point if their portfolio gradually transforms and multifamily value remains where it is. Share holders could do well. My exit is primarily driven by personal distaste for the two points above.
Wishing the best to all longs, it's a good stock, just not for me.
GLTA