Chambers Street Properties (NYSE:CSG) proves that 2+2 can be only 3 in the eyes of the market. This diversified REIT is part office, part industrial yet it trades at a steep discount to both.
The Buy Thesis
Purchase of CSG at its presently discounted market price ($8.03/share) has outsized reward for its risk. It gives the investor the ability to participate in the strong fundamental environment for industrial property without having to pay the associated premium. As the market begins to understand that CSG is in fact an industrial and office REIT, its trading multiple should approach the medians of the two sectors. Industrial REITs trade at 16.7X forward FFO on average, while office REITs pull in a...
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