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CommonWealth REIT (CWH): Q4 FFO of $0.82 misses by $0.04. Revenue of $264.7M beats by $1.14M. (PR)

CommonWealth REIT (CWH): Q4 FFO of $0.82 misses by $0.04. Revenue of $264.7M beats by $1.14M. (PR)
Comments (2)
  • toomuchgas
    , contributor
    Comments (535) | Send Message
     
    Have they ever not missed on earnings?
    25 Feb 2013, 11:18 AM Reply Like
  • Davephd
    , contributor
    Comments (688) | Send Message
     
    And they mismanaged so much that this has happened:

     

    By Tess Stynes

     

    Corvex Management LP and Related Fund Management LLC said they sent a letter to CommonWealth REIT (CWH) threatening to push to oust the board and acquire all the company's shares at a "significant premium," if the company doesn't respond to its demands to call off a planned stock offering and debt repurchase.
    New York-based hedge fund Corvex Management LP and investment firm Related Fund Management LLC disclosed a combined 9.8% stake in the real-estate investment trust, which primarily owns office properties. They maintain that CommonWealth REIT's real-estate assets are "significantly undervalued due to the misalignment of incentives between the company and its externally advised management structure, and track record of underperformance."
    CommonWealth REIT shares were up 18% at $18.70 in recent premarket trading.
    A representative from CommonWealth REIT wasn't immediately available to comment.
    The activist shareholders said in the letter that a property-by-property analysis led the group to conclude that CommonWealth REIT's net-asset value was $40 a share as of Monday, compared with Monday's closing price of $15.85. The firms said if CommonWealth implemented, among other changes, an internal management structure, basic operating performance enhancements and a more shareholder-friendly capital allocation policy, its shares could reach more than $50 a share over a two-year period.
    CommonWealth REIT on Monday had unveiled plans to sell 27 million shares to raise funds to repurchase as much as $450 million of senior notes that mature between next year and 2016.
    In the letter, the firms said, "The proposal to raise equity when the stock trades at such a large discount to its intrinsic value is absurd."
    26 Feb 2013, 11:25 AM Reply Like
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