Radius Global Infrastructure: Sale Likely Off, Stock Now On Sale

Weighing Machine profile picture
Weighing Machine
2.75K Followers

Summary

  • In early May it was reported that Radius was considering a sale of the company. The financing environment has weakened and it is unlikely Radius will be sold near-term.
  • Shares are now trading about 30% below where they were prior to sale rumors. The implied cap rate is now roughly 6.5%.
  • With inflation top of mind, investors should find comfort knowing that the vast bulk of Radius's leases have CPI linked escalators.
  • Assuming a 4.5% cap rate, Radius shares look to have a fair value of $16+ per share, offering long-term shareholders the opportunity to nearly double their investment.
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Radius Global Infrastructure (NASDAQ:RADI) shares have been on a wild ride thus far in 2022. Early in the year, the stock sold off along with the broad decline in the market before rebounding strongly in May as sale

This article was written by

Weighing Machine profile picture
2.75K Followers
Former global buyside analyst/PM doing fundamental research for over a decade (2001-2012). Long term (5 year) time horizon when investing.

Disclosure: I/we have a beneficial long position in the shares of RADI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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