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Dane Bowler

 
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  • RAIT Financial's Asset Management Capabilities Could Unlock Material Value [View article]
    Lochner,

    I agree that it is an aggressive approach and I stated in the article that $3B in assets would be the bull scenario.

    The reason I feel comfortable speculating like that is because there is no downside to the fee stream as the market is seemingly not attributing value to it.
    Jul 10 10:42 AM | Likes Like |Link to Comment
  • An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties [View article]
    Toneguru,

    I think the data you looked at might be for general stocks and not applicable to REITs.

    CSG's debt load is moderately high but well within the normal range for REITs. Their EBITDA debt coverage is 3.4X which is also within the normal range and not particularly concerning.

    P/E ratio for REITs is almost always going to be high because REITs don't always generate earnings due to high depreciation at an accounting level. The REIT equivalent metric is P/FFO and in this regard CSG is very low.

    In terms of the dividend payout ratio, CSG pays out about 82% of FFO which is quite sustainable given the contractual nature of its revenues.

    I hope this helps to clarify and thank you for reading
    Jul 9 11:44 AM | 7 Likes Like |Link to Comment
  • An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties [View article]
    Steve,

    What I meant by the mixed bag comment is that while management seems to be experienced and is generally making good decisions, CSG's performance has been quite poor. This raises doubts that management might not be as strong behind the screen as they publicly appear.

    Of course it is also possible that the underperformance was a timing or macro thing, but I think most investors would be more trusting of management with a stronger track record.

    I hope this helps to clarify and thank you for reading.
    Jul 9 10:07 AM | 2 Likes Like |Link to Comment
  • An Office And Industrial REIT Positioned To Deliver Alpha - Chambers Street Properties [View article]
    Brad,

    Thanks for the opportunity to clarify that statement. My guess would be that CSG's price has been held down by an outflow of investors who owned it before it was listed. Many of these investors lost money with CSG so they are likely spreading negative sentiment in addition to selling their shares. I do believe, however, that the pace of outflow is slowing as CSG has been public for a while now so the demand for shares can now surpass the supply. With these more transitory trading elements beginning to fade, CSG should trade closer to its fundamental value.

    In terms of the office exposure, I echo your thoughts that it is not as strong as their industrial portfolio, but office REITs still trade at an average of 14.6X forward FFO. CSG's properties are arguably superior to some of their competitors so they really shouldn't be so discounted.

    Thanks for reading,
    Dane
    Jul 9 10:04 AM | 5 Likes Like |Link to Comment
  • Farmland Is The Next Big Thing In REITs [View article]
    WMhilger,

    I apologize if it was misleading in the article, but you have some of those facts reversed.

    The $360 annual rent/acre was for the initial portfolio which is valued at roughly 10,000 per acre. The more recent land bought around $2,000 per acre has substantially lower rent. I hope this clarifies.
    Jun 30 05:22 PM | Likes Like |Link to Comment
  • Farmland Is The Next Big Thing In REITs [View article]
    The 7000 acre figure you are quoting was their IPO acreage. FPI now has closer to 23,000.

    Thanks for reading
    Jun 30 10:40 AM | 1 Like Like |Link to Comment
  • 3 Warnings For Those Seeking Demand Growth Stories [View article]
    David,

    I'm long VTR because the price has dropped more than it should have in my opinion. Back when it was over $80 it was likely overpriced, but now that its sold off to the low $60s, its a pretty good deal for bluechip quality. My bet is that a couple dividend raises will bring it back into favor.
    Jun 19 10:14 AM | Likes Like |Link to Comment
  • The Perfect REIT For Gamblers [View article]
    Adam,

    It appears i'm a bit late to the game in this comment stream, but I just began following GLPI. Thanks for a highly informative article.
    Jun 16 02:06 PM | Likes Like |Link to Comment
  • Lexington Realty Trust Is Deeply Undervalued With 30% Upside Potential Within A Year [View article]
    reader,

    While I haven't heard any talk about it getting bought out, it seems plausible. A larger REIT with higher priced shares such as Realty Income (O) could potentially buy LXP accretively. ARCP would also be a potential buyer if it can get its market valuation up.
    Jun 3 01:40 PM | Likes Like |Link to Comment
  • Lexington Realty Trust Is Deeply Undervalued With 30% Upside Potential Within A Year [View article]
    jeff6780,

    Unfortunately I have no basis of information from which to judge RUF-U. Most of my work is in relative valuation within an exchange so it becomes difficult for me to comprehend a stock's value on a different exchange.

    While its operations are based in the US, I would have to analyze it like a foreign company which is a bit outside my wheelhouse.

    It sounds like you have a fair amount of conviction on this idea (based on the pm) so I would encourage you to consider writing about it. The SA editors are a great resource.
    Jun 1 10:27 AM | Likes Like |Link to Comment
  • Lexington Realty Trust Is Deeply Undervalued With 30% Upside Potential Within A Year [View article]
    alschroed,

    In my opinion, shareholders are more than compensated for the extra risk with an FFO yield that is nearly double that of O or NNN.
    May 31 11:07 AM | 2 Likes Like |Link to Comment
  • Lexington Realty Trust Is Deeply Undervalued With 30% Upside Potential Within A Year [View article]
    the long tail of finance,

    Hmm, I'm not sure where bloomberg is getting their figure from, but FactSet consensus estimate for NTM FFO is $1.14, so with a current market price of ~$11.40 its at almost exactly 10XFFO. This $1.14 figure is also in-line with company guidance and LXP is on track to hit it.

    Hope this helps,
    Dane
    May 31 11:04 AM | 1 Like Like |Link to Comment
  • Macro Scale REIT Valuation: Is The Sector Becoming Too Expensive? [View article]
    CBL is still cheap in my opinion
    May 31 11:01 AM | Likes Like |Link to Comment
  • Armada Hoffler: Developing A Path To Outperformance [View article]
    Sajit,

    There are probably accounting based reasons for it being mostly return of capital with which I am not familiar. However, if your question is about the sustainability of the dividend, there is little reason to worry about that. AHH is easily earning their dividend in FFO and actually maintains a fairly conservative payout.
    May 29 03:01 PM | Likes Like |Link to Comment
  • Assessing Health Care REIT Valuations Part 2 [View article]
    Factoids,

    Thank you for the very interesting article. While I appreciate the logical presentation, one step in the process gave me pause.

    The RRR methodology assumes that cap rates are directly related to riskiness of the asset. This, in my opinion, is not necessarily true.

    In recent months/years cap rates among health care properties have compressed significantly. This is NOT consequent to the assets somehow becoming less risky, but rather a product of bidding wars among too many REITs (public and non-traded) artificially raising acquisition prices.

    I would appreciate your thoughts on this matter and thanks again for the interesting article
    May 29 02:36 PM | Likes Like |Link to Comment
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588 Comments
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