Using Veritas to Construct the "Per…

29-04-2017 Hits:88582 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:82266 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:82158 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:86654 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:83086 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:85207 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:56311 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:84537 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:84245 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:84106 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:90595 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:88166 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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Posting will be light for the next 24 hours, due to engagements that will pull me away from a secure computing environment. In the meantime I will post a list of companies that we have looked at in the REIT space. I will try to get the first REIT analysis out by the end of the week to subscirbers, followed by another one by the end of next week. These are very laborious, consuming significant man hours. I have amassed the GGP property analysis as a downloadable pdf (excluding the property level valuations, which are too strenuous on my server at over a gigabyte in size) for anyone who wants to see how I go about analyzing the REITs - one property at a time, then rolling the results into an entity level model. You will have to zoom in and out to make the text legible - GGP advanced mini-sample GGP advanced mini-sample 2008-01-08 12:28:44 877.07 Kb

 Weingarten Realty Investors (WRI US Equity) 

Key Observations

·         The REIT primarily owns shopping and industrial centers. The stock has declined about 11% over the past one month and is down about 2% over the past one year. The current price as % of its 52 week high is 79.2%.

·         The stock is trading at cap rate (TTM NOI/ EV) of 7.7% and EV/TTM EBITDA of 13.3x.

·         The operational performance of the REIT has been significantly affected by downturn especially in retail segment. The rental income declined 9.6% (y-o-y) in 3Q09 and the NOI declined 10.6% (y-o-y). On TTM basis, rental income declined 3.8% (y-o-y) and NOI declined 7.7% (y-o-y). The depressed operational performance resulted in a quarterly dividend cut in 2Q09 from $0.525 to $0.25 per share

·         The LTV ratio (Debt to gross real estate investment) as of Sept, 2008 was 56.1%

·         We also did a preliminary cash flow analysis . Based on the scheduled maturities in 2009 and 2010 and the available cash, the Company will be able to meet debt obligations and the current cash distribution needs (if the operating cash flows remain stable).

 

Cash flow analysis (fig in $' 000)

1H08

2H08

1H09

2H09E

1H10E

2H10E

Cash flow from operation

         

 

Net income

113,810

37,871

92,996

92,996

92,996

92,996

Dep & Amortization

83,520

74,374

77,512

77,512

77,512

77,512

Amortization of deferred financing costs

6,516

5,208

7,074

6,266

6,183

6,508

Impairment loss

 

52,539

731

   

 

Other

-104,891

-48,797

-44,276

-44,276

-44,276

-44,276

Cash Flows from Operations

98,955

121,195

134,037

132,498

132,415

132,740

 

         

 

 

         

 

Investment in property

-161,100

-133,786

-62,901

0

0

0

Proceeds from sale and disposition of property,

174,986

90,435

105,331

0

0

0

Other

-57,420

-28,506

-3,939

0

0

0

Cash Flows from Investing activities

-43,534

-71,857

38,491

0

0

0

 

         

 

Common and preferred dividends paid

-107,075

-106,494

-92,249

-92,249

-92,249

-92,249

Debt repayment

-179,108

-217,794

-618,142

-13986

-57967

-57,967

Other

205,412

293,469

573,287

   

 

Cash Flows from financing activities

-80,771

-30,819

-137,104

-106,235

-150,216

-150,216

 

         

 

Cash and cash equivalents at the end

40,427

58,946

94,370

120,633

102,832

85,355

  ·         Looking at the property portfolio, the Company did acquire substantial portion of properties during 2004-2008.

Other companies we looked into:

 

SPG US Equity SIMON PROPERTY
VNO US Equity VORNADO RLTY TST
EQR US Equity EQUITY RESIDENTI
AMB US Equity AMB PROPERTY
SLG US Equity SL GREEN REALTY
WRI US Equity WEINGARTEN RLTY
CPT US Equity CAMDEN PROP TR
TCO US Equity TAUBMAN CENTERS
ELS US Equity EQUITY LIFESTYLE
EQY US Equity EQUITY ONE INC
PPS US Equity POST PROPERTIES
AVB US Equity AVALONBAY COMMUN
HPT US Equity HOSPITALITY PROP
BRE US Equity BRE PROPERTIES
HME US Equity HOME PROPERTIES
SSS US Equity SOVRAN SELF STOR
AKR US Equity ACADIA REALTY
MAC US Equity MACERICH CO
ALX US Equity ALEXANDER'S INC
HCP US Equity HCP INC
BXP US Equity BOSTON PROPERTIE
VTR US Equity VENTAS INC
HCN US Equity HEALTH CARE REIT
FRT US Equity FED REALTY INVS
DLR US Equity DIGITAL REALTY
NHP US Equity NATIONWIDE HLTH
LRY US Equity LIBERTY PROP
REG US Equity REGENCY CENTERS
CLI US Equity MACK-CALI REALTY
O US Equity REALTY INCOME
ARE US Equity ALEXANDRIA REAL
ESS US Equity ESSEX PROPERTY
OFC US Equity CORP OFFICE PROP
HIW US Equity HIGHWOODS PROP
NNN US Equity NATIONAL RETAIL
WRE US Equity WASH REAL ESTATE
SKT US Equity TANGER FACTORY
ACC US Equity AMERICAN CAMPUS
OHI US Equity OMEGA HEALTHCARE
HR US Equity HEALTHCARE RLTY
MAA US Equity MID-AMERICA APAR
LHO US Equity LASALLE HOTEL PR
EPR US Equity ENTERTAINMENT PR
KRC US Equity KILROY REALTY
PCH US Equity POTLATCH CORP
EGP US Equity EASTGROUP PROP
DFT US Equity DUPONT FABROS TE
BFS US Equity SAUL CENTERS INC