Commercial Real Estate tic.............tic,,, Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Commercial Real Estate tic.............tic,,,

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Smiling Bob who wrote (100)	12/7/2008 11:12:37 AM
From: Perspective	of 442

More on "O": They appear to have a decent balance sheet, 1.5B debt against The interesting part is cash flow. Their model has made substantial use of the capital markets, either for borrowing or stock issuance. So they are not cash flow generators. They have been borrowing money to keep the model going: finance.yahoo.com Remember when I asked which REITs had acquired a bunch of property near the bubble peak? Look at the balance sheet expansion in 2005-7: finance.yahoo.com So they're carrying a bunch of the commercial RE risk for a variety of large retail chains. Their margins are pretty wide; they cover interest like 4:1. I know there is a huge arbitrage because they are a diversified pseudo-retailer that can therefore borrow much more cheaply, but something tells me that the retailers are also doing this to offload a ton of risk from their shoulders. Wouldn't matter in normal times, but in a concerted consumer recession? They may not have imminent debt problems, but this looks like a nice commercial REIT short to me. `BC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next