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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (71484)	11/1/2022 12:19:42 AM
From: Madharry	Respond to of 78702

cio reporting results and having a conference call on november 7. should be an interesting listen.

To: E_K_S who wrote (71484)	11/1/2022 12:01:32 PM
From: Paul Senior	1 Recommendation Recommended By Spekulatius Respond to of 78702

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.

To: E_K_S who wrote (71484)	11/1/2022 1:34:47 PM
From: Grommit	1 Recommendation Recommended By E_K_S Respond to of 78702

Office REIT data here is some CIO data with some other office reits. the P/FFOs are related to the debt levels. except for CIO. This rule holds for more than just the REITs listed here and appears to be a general rule. (i.e. also true for FSP, BXP, ESRT, KRC, PGRE...) Yellow -- office reits with higher leverage have P/FFO around 5. Green -- reits with lower leverage have P/FFO 7-9. except CIO - an outlier -- higher debt but PE with the lower debt group. So there are better value plays. I'd also I'd prefer more substantial mkt cap size.