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Gramercy Property Trust (GPT +1%) moves about 3% off the session low as the earnings...

Gramercy Property Trust (GPT +1%) moves about 3% off the session low as the earnings call/business plan update reveals a management focused and executing on its plan to turn the company into a pure play equity REIT. The implied cap rate (pg. 27-31) of net lease companies (O, WPC, NNN, LXP, EPR, SRC, ARCP,GTY) of 5%-6.5% is far below the 7.5%-8.5% Gramercy is closing deals at - "(the) widest arbitrage in our experience."
Comments (4)
  • Chris DeMuth Jr.
    , contributor
    Comments (6283) | Send Message
     
    On track.
    9 May 2013, 01:11 PM Reply Like
  • toddro
    , contributor
    Comments (212) | Send Message
     
    Chris, what is the better play? GPT or the "preferred A shares"? Would only the A shares pay a div. if it is reinstated? Thanks.
    21 May 2013, 02:15 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (6283) | Send Message
     
    I own both. Both will have their dividends reinstated. Which is better? Prefs are fine for a tax-advantaged account but are not tax efficient when they pay off the accrued. Common probably has more upside from here.
    21 May 2013, 02:23 PM Reply Like
  • toddro
    , contributor
    Comments (212) | Send Message
     
    Ok. Thanks!
    21 May 2013, 04:14 PM Reply Like
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