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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details