• Steven Reiman
    $GPT...so lets see, $30.8M NOI from portfolio, $9.7M in pipeline NOI...levered remaining capacity of ~$160M @ 7.5% cap gets me ~$52.5M NOI
    10/7/13
    Reply (15)
    • Steven Reiman: back out MG&A of $13M, preferreds of $7.2M, $7M of interest for debt on balance sheet, ~$10M interest from future borrowings
      10/7/13
    • Steven Reiman: Come to 15.3...add 3.7M from asset management biz to get to $19M of AFFO. 70M shares gets us to $0.27/share of AFFO.
      10/7/13
    • Steven Reiman: 20X AFFO (5% dividend) gets us to 5.4 implied share price
      10/7/13
    • Steven Reiman: whoops did not include Philips JV NOI so bump portfolio NOI up 0.8M...implied share price at 5% yield is now $5.65.
      10/7/13
    • Steven Reiman: Once fully invested* Also, a 20x AFFO multiple is probably too optimistic to start off with.
      10/7/13
    • kitstricker: Triple net REIT are yielding 5-7% or base this on 1-1.2 x NAV
      10/7/13
    • Steven Reiman: Agreed..but you can get a well established triple net REIT like WPC for 5%...market might demand more from a smaller player
      10/7/13
    • kitstricker: Exactly, comps (STAG, NMR, OLP) put this at BEST 15x FFO with 6% yield
      10/7/13
    • Steven Reiman: That could very well be the case....counter argument would be that a smaller company offers a higher return as they expand the portfolio
      10/7/13
    • Steven Reiman: and scale up...their SG&A is far too high a percentage of NOI...that will provide high operational leverage as they grow their equity base
      10/7/13
    • EJT: Steve, how does this compare to your prior analysis? Do you feel the capital raise was justified at this price?
      10/7/13
    • HFI: The equity raise was definitely annoying. But the asset management side grew so that was nice.
      10/8/13
    • Steven Reiman: EJT - To be honest, the raise was disappointing. I could see it being justifiable if they needed the cash to do another BAC JV
      10/8/13
    • Steven Reiman: where they would get a 10% cap rate...but a raise just to do some 7.5% deals? I don't see what the major rush was to raise funds
      10/8/13
    • Steven Reiman: I'm also not a fan of raising money at 5% to invest in deals at 7.5%
      10/8/13