Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Deep Value And Near-Term Catalysts Position Winthrop For Outperformance

The Buy Thesis

We believe that Winthrop Realty (NYSE:FUR) represents a superior risk to reward opportunity. At the lowest price/FFO of any diversified equity REIT, the market is pricing in substantial risk and limited upside. A deep dive into FUR's operations, however, reveals the perceived risk to be materially mitigated through clever positioning. Further, ample liquidity and the capability to find 20%+ cap-rate investments lend an unanticipated upside. The rest of this article will be dedicated to demonstrating FUR's outsized risk to reward opportunity, but first, let us explore how it's become so mispriced.

Origin of opportunity

At a current price of $11.05, FUR trades at a price to FFO of only 7.6 which we believe to be...

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