| | | CIO. I'll go for some here too.
As I understand it, company sold its San Diego real estate - for over $500M cash. Stock subsequently moved up to about a double. With the cash, the company bought office buildings in "good/growing" markets. However that being "Office buildings" - ugh), the stock fell back to about $9-10. The properties bought were new buildings, and the deals apparently closed around 12/21.
Office buildings have been out of favor for maybe several years now with the work-at-home effect. So I will guess the new office buildings CIO bought were bought with market supply/demand prices reflecting that. And now it's about a year later, and office properties are still not seen positively by the market, I believe. While CIO stock has dropped in half, is it likely - I ask myself - that the value of CIO's $500M property buys have also fallen this much in a year? I'll say no, and guess that these new buildings are maybe worth almost as much now, a year later, as when bought. To me this would make CIO's stated book value as solid number.
So some margin of safety there, a greater than 7% dividend yield, and a management team that shown it's willing to make big changes to try to enhance shareholder value. |
|
