tag:blogger.com,1999:blog-2080506270244832638.post6592565420892900118..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: Northstar Realty Europe: CLNY Out, Reviewing Strategic AlternativesMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-2080506270244832638.post-62609094903157662172019-06-27T08:12:52.345-05:002019-06-27T08:12:52.345-05:00Colony is really dragging this one out, one more b...Colony is really dragging this one out, one more business day left on the management agreement unless they do a last minute extension. Frustrating that they haven't been more transparent with the public.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-23469633488752971092019-06-11T12:52:20.454-05:002019-06-11T12:52:20.454-05:00I don't think you missed it, would be curious ...I don't think you missed it, would be curious to hear if anyone else knows as well.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-7735618435149687182019-06-11T11:39:09.702-05:002019-06-11T11:39:09.702-05:00Any thoughts about the building in Issy Paris? I c...Any thoughts about the building in Issy Paris? I couldn't find any info about NRE signing a new lease with BNP. BNP currently leases the whole building but the lease has just a few months left on it. I assume with Paris vacancy being low that BNP will re-lease the building. Still, it would have been nice to see an update. Did I miss it?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-5649350390780213192019-06-11T09:35:05.891-05:002019-06-11T09:35:05.891-05:00PS - I still own it, trade around it a bit, but st...PS - I still own it, trade around it a bit, but still have my original position.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-63221971326617537322019-06-11T09:32:01.560-05:002019-06-11T09:32:01.560-05:00Sounds like they don't have a buyer for the ho...Sounds like they don't have a buyer for the holding company, only for individual assets so the process is taking longer than anticipated. No buyer for the holding company likely means more expenses in order to shut it down, I'm lowering my expectations to ~$17.50 or so. I still don't think it makes sense for them to internalize, they've already gone halfway down the liquidation path and can't really be convinced there is a shareholder base out there that wants European RE asset exposure in this form. Stock would drop $2-3 and they'd be shut out from growing, only real option is a sale at this point, but seems like the market is assuming a disappointing price.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-48758595583905586602019-06-11T07:46:56.035-05:002019-06-11T07:46:56.035-05:00any update on this? see agrmt w/ colony extended t...any update on this? see agrmt w/ colony extended to end of this mo; 18.50ish pf nav after colony costs vs 16.20 last; assume they've had tougher time selling remaining book given Brexit/European economyjj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-41571491554812604072019-02-28T10:16:01.835-06:002019-02-28T10:16:01.835-06:00If there is truly a $500 billion market for ground...If there is truly a $500 billion <a href="https://homeia.com/home-selling-guide/" rel="nofollow">market</a> for ground lease as Jay stated, SAFE's management fees to STAR could end up being a pretty significant asset for them down the road. Alice Grayhttps://www.blogger.com/profile/08455832208942839451noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-6311290438504196272019-01-11T10:12:27.477-06:002019-01-11T10:12:27.477-06:00I don't mind piecemeal liquidation as long as ...I don't mind piecemeal liquidation as long as they acknowledge that and return the capital as it's freed up. The fact they haven't makes me nervous they have another plan. jj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-62321272388723235102019-01-11T08:12:17.773-06:002019-01-11T08:12:17.773-06:00True - Maybe it is just dressing it up for a large...True - Maybe it is just dressing it up for a larger sale, hope it doesn't mean it'll be a piecemeal liquidation that gets drawn out for 6-9 months.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-73618932819339854562019-01-10T12:11:50.245-06:002019-01-10T12:11:50.245-06:00Mahbod Nia, NorthStar Realty Europe’s Chief Execut...Mahbod Nia, NorthStar Realty Europe’s Chief Executive Officer and President, commented: “We are pleased to have sold these non-strategic assets, realizing a significant premium to EPRA NAV while further enhancing the quality of our remaining portfolio. These sales are the latest demonstration of our ability to enhance asset value and crystalize that value for our stockholders.”<br /><br />Thought this was an interesting quote. Why would they care about enhancing the quality of the remaining portfolio? Perhaps to shrink it to a package that would be more attractive to a potential buyer, as an asset sale or a company sale. Also very bizarre and interesting that they haven't once mentioned use of proceeds for any of their asset sales. <br />jj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-47189323832363286042019-01-10T08:22:47.769-06:002019-01-10T08:22:47.769-06:00Right, I think it also validates your thesis on th...Right, I think it also validates your thesis on the remainder of the company being sold off as opposed internalization of management. I think risk from the point on is minimalized a bit more. ZHX523noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-57174795357460928232019-01-10T08:02:45.506-06:002019-01-10T08:02:45.506-06:00Thanks. A little bump in NAV, but more importantl...Thanks. A little bump in NAV, but more importantly, continues to validate NAV and increases the ex-cash discount to the remaining assets.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-67179032034535963182019-01-10T06:27:53.298-06:002019-01-10T06:27:53.298-06:00Looks like they're going to sell off pretty mu...Looks like they're going to sell off pretty much all their assets, it's great that they sold for a premium. Looking good so far.<br /><br />NorthStar Realty Europe Completes Sale of Three U.K. Assets and Executes Definitive Sale and Purchase Agreements to Sell a Further Three German Assets at an Aggregate 27% Premium to EPRA NAV<br /><br />https://www.businesswire.com/news/home/20190110005290/en/ZHX523noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-53751968012399344042018-12-08T13:04:31.118-06:002018-12-08T13:04:31.118-06:00All fair points, and I agree with you that the sit...All fair points, and I agree with you that the situation is ripe for an activist- lots of levers they could pull to generate big profits here. Hopefully someone will step up to the plate.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-73371517771410982442018-12-08T11:44:24.815-06:002018-12-08T11:44:24.815-06:00The right thing to do is to simplify STAR into wha...The right thing to do is to simplify STAR into what it looked like pre-crisis, a credit REIT. Sugarman deserves some credit for navigating them through the crisis, essentially surviving, but its been 10 years now, the path forward should be pretty obvious but for some reason they're not doing it. They don't want to be a vanilla REIT, it would be one thing if it traded at a premium, but they don't have that luxury when it trades at such a discount. Maybe the value discount isn't really there (their disclosures could use some work) or maybe its just an incentive problem, being a developer is sexier, lending to prominent condo projects probably results in invites to fun parties, etc. Its been a few years of "reduce G&A" talk, never really happens, instead we hire additional C-Suite executives. An activist would help here, there's no controlling shareholder, someone could really create their own catalyst.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-57528629952192683702018-12-08T09:26:35.031-06:002018-12-08T09:26:35.031-06:00The credit rating upgrade a few days ago struck me...The credit rating upgrade a few days ago struck me as a potential forward catalyst for the stock price, as they enjoy the benefits of a lower cost of capital, which then materializes favorably in future operations. The dividend yield is nothing to get excited about but at least it "normalized them" a bit and gives them a logical base of investors (dividend investors/retirees/etc.) With a low payout ratio, it looks highly likely to be grown steadily.<br /><br />I understand your position on SAFE, although it does seem to be gaining traction with the targeted audience, with several recent Seeking Alpha write-ups from some widely followed contributors (admittedly not all bullish). Visibility for/excitement over SAFE also draws attention to STAR and it's cheapness. If there is truly a $500 billion market for ground lease as Jay stated, SAFE's management fees to STAR could end up being a pretty significant asset for them down the road. <br /><br />Your point on NYC construction loan exposure is well taken- I know enough about OZK to give it a wide berth. Wildly aggressive bank = bull in the china shop!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-70483053136824376802018-12-07T15:00:52.987-06:002018-12-07T15:00:52.987-06:00I agree that an outright sale is preferable.
On S...I agree that an outright sale is preferable.<br /><br />On STAR - I've soured a bit on it and may consider trimming or jettisoning it completely. You're right, there appears to a big gap between the trading price and intrinsic value but I've lost confidence in Jay Sugarman's desire to close it. You mention SAFE, it seems more like a distraction or a second chance at glory for Jay, he's out there promoting the shares (to be fair, he needs to in order to grow it) when its a fairly insignificant asset for STAR. I also worry a little bit about the CRE finance book, a lot of those loans are construction and development loans to high rise condos in cities like NYC where the market is softening. We saw what the market did to OZK. The dividend was smaller than I expected and didn't create much of a catalyst. If one wants to own undervalued land/development assets and undervalued net lease assets, probably pairing something like HHC and SRC together will generate better results, have more confidence in those management teams compared to STAR.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-60245480773929651152018-12-07T13:40:11.614-06:002018-12-07T13:40:11.614-06:00Hi, thank you for sharing this idea. Between your ...Hi, thank you for sharing this idea. Between your post and the near simultaneous write up by Yet Another Value Blog, I have learned a lot. Would you say it is more likely that NRE is bought out completely, or sold off in pieces? I would assume management is aiming for an outright sale to one bidder, as it would be faster and cleaner. <br /><br />I was also wondering if you would provide an update on STAR? I know that this is one of your larger holdings. After cutting through the complexity, SOTP suggests a very large gap between trading price and IV, even when factoring in some interest rate headwinds. If nothing else, SAFE looks like an interesting move. Thank you in advance.Anonymousnoreply@blogger.com