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Americold REIT not good for investors, compare book values to Excel Realty Trust & Piedmont Office REIT

|Includes: Ares Commercial Real Estate Corporation (ACRE), EXL, PDM, PNG

Americold Realty Trust (NYSE:ACRE)
$645mm IPO scheduled for Wed, May 5

This is not a good deal for IPO investors
ACRE is a newly formed partnership is a REIT incorrectly priced at 1.7 times book value and 2.3 times tangible book value, with a one quarter annualiized payout 5%
Valuation comparison
ACRE is more like Excel Trust (NYSE:EXL), REIT, which priced at $14 April 22 and is down 8% and sells for 1X book.

On the other hand, Piedmont Office Realty Trust (NYSE:PDM) is up 40% from it’s February 9 IPO price of $14.50, but it still sells at only 1.2 X book.

ACRE’s investment bankers would have you believe ACRE is worth 1.7x book, and more comparable to PNG, PAA Natural Gas (PNG IPOreport), which priced at $21.50 April 29 and us up 9.5%.  

It’s true that ACRE is building more temperature controlled warehouses, but ACRE’s rate of visible expansion is not close to PNG’s, which expects to pay 6.5% on the IPO price.  ACRE expects to pay an annualized rate of 5% on the IPO price.

The ACRE IPO is structured to benefit Yucaipa American Management, founded in 1986 by Ron Burkle, the firm has completed mergers and acquisitions valued at more than $30 billion.  See USE OF PROCEEDs in
ACRE IPOreport

Disclosure: none