tag:blogger.com,1999:blog-2080506270244832638.post4505514534807688661..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: Spirit MTA REIT: ShopKo Files Chapter 11, Plan AcceleratedMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger106125tag:blogger.com,1999:blog-2080506270244832638.post-39498932257659198382019-06-03T15:53:02.909-05:002019-06-03T15:53:02.909-05:00Yeah - 75ish, I just created a new post, have a sc...Yeah - 75ish, I just created a new post, have a screen shot of the term loan on there.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-70776396431653989432019-06-03T15:51:36.938-05:002019-06-03T15:51:36.938-05:00Is the bid ask for Academy debt still low 70s? Is the bid ask for Academy debt still low 70s? Dave Ahttps://www.blogger.com/profile/06197754376138046678noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-41249655865677318812019-06-03T12:00:22.720-05:002019-06-03T12:00:22.720-05:00Yeah especially given that the proceeds were suffi...Yeah especially given that the proceeds were sufficient to pay off prefs held by SRC, the opinion of whose shareholders he cares most about (due to their power, through the board, to fire him and arrest the massive annual paycheck he receives merely for breathing; I don't mean to be unkind, I just have long experience in sell-side banking and know the archetype well). <br /><br />p.s. At current SMTA prices, Indaba & Co haven't really made any money on the stock, but it has served one bit purpose: insulating their portfolios somewhat from broader market volatility. That said, both institutions have relatively large commitments in SMTA, so I doubt they expected to merely break even on the trade. We'll see if they comment.Ben's Jaminhttps://www.blogger.com/profile/01036316291484037538noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-84626974310459640062019-06-03T10:41:35.954-05:002019-06-03T10:41:35.954-05:00Link to MTA purchaser's deck re: the transacti...Link to MTA purchaser's deck re: the transaction from earlier today: https://s2.q4cdn.com/208827006/files/doc_presentations/2019/06/HPT-Acquires-Net-Lease-Portfolio-for-2.4B-presentation_vFINAL.pdfDave Ahttps://www.blogger.com/profile/06197754376138046678noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-55849043046740511972019-06-03T10:06:55.353-05:002019-06-03T10:06:55.353-05:00They're collapsing the structure right? So ap...They're collapsing the structure right? So apparently they don't value it at all. Yeah, maybe that's why he gave up the promote, going to be some costs to wrap up the HoldCo and get this done without a fight from Indaba/Mangrove?MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-39429619023057485542019-06-03T10:01:27.090-05:002019-06-03T10:01:27.090-05:00Their strikes will be reduced by some specials ove...Their strikes will be reduced by some specials over the next few months, but yeah my point was the timing risk pertains more to those under-water calls than SMTA stock itself or ITM calls. <br /><br />Btw, I guess HPT didn't really pay much value for the MTA structure itself? Makes me wonder how hard Hsieh pushed negotiations to get full value for the MTA asset....Ben's Jaminhttps://www.blogger.com/profile/01036316291484037538noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-88189545997865820962019-06-03T09:49:45.796-05:002019-06-03T09:49:45.796-05:00Something like that, the Shopko loan is $0.75 of t...Something like that, the Shopko loan is $0.75 of that. Academy DC could be anywhere from $0 (unlikely in my view) to $1.40, I think it's worth 8.5% cap minimum which would be $0.67/share, then the remaining workout assets - what are those worth? They re-leased a couple of the dark properties and contributed them to the MTA for cash according to the Q1 call, what cap rate do you put on $6.5MM? 10%?MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-9090604180973334382019-06-03T09:45:09.108-05:002019-06-03T09:45:09.108-05:00So you are assigning $3-$3.50 per share for the re...So you are assigning $3-$3.50 per share for the remainder of the assets?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-74454379312952214452019-06-03T09:35:10.258-05:002019-06-03T09:35:10.258-05:00Timing seems a bit tight on those, optimistically ...Timing seems a bit tight on those, optimistically we see a $10 special in Q3? But could leak past the Oct expiration, but interesting idea.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-78581243615442015172019-06-03T09:26:47.295-05:002019-06-03T09:26:47.295-05:00Earlier in the thread there are few links to liqui...Earlier in the thread there are few links to liquidation plan, recovery seems like a near certainty. MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-7643774174901185022019-06-03T09:23:28.766-05:002019-06-03T09:23:28.766-05:00ahh ty; also im missing value of shopko term loan;...ahh ty; also im missing value of shopko term loan; any confidence in any value for that?jj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-52391458806818527622019-06-03T09:21:28.276-05:002019-06-03T09:21:28.276-05:00But the July dividend hasn't gone ex yet, ex-d...But the July dividend hasn't gone ex yet, ex-date is 6/28MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-74972149530946913832019-06-03T09:08:03.009-05:002019-06-03T09:08:03.009-05:00dvds payable is 28 for april and july…$7.60; so va...dvds payable is 28 for april and july…$7.60; so value above 7.60 comes from academy equity and workout assets<br />jj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-15497896611931929022019-06-03T09:01:53.812-05:002019-06-03T09:01:53.812-05:00$450 MTA + $108 cash -$14MM for april dividend -$2...$450 MTA + $108 cash -$14MM for april dividend -$203MM to SRC = $7.91, so not quite $0MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-38231732778007422019-06-03T08:58:30.108-05:002019-06-03T08:58:30.108-05:00The $9.67 calls for instance, timing could place t...The $9.67 calls for instance, timing could place them at risk of maturing worthless if those other non-MTA assets aren't liquidated prior to expiration (i.e. assuming the market continues being weird and needing time to see assets liquidated before assigning them proper value). Ben's Jaminhttps://www.blogger.com/profile/01036316291484037538noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-22298246469904274512019-06-03T08:52:18.391-05:002019-06-03T08:52:18.391-05:00450+cash-term fees-dvds payable-pfd = 7.60/shr; so...450+cash-term fees-dvds payable-pfd = 7.60/shr; so trading in low 8s assumes equity for academy and/or some value for workout assets; what am I missing?<br />jj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-16364072639433136292019-06-03T08:49:24.002-05:002019-06-03T08:49:24.002-05:00Could you elaborate? I do have a slug of the $7.1...Could you elaborate? I do have a slug of the $7.17 Oct calls.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-4572416575035236802019-06-03T08:46:52.427-05:002019-06-03T08:46:52.427-05:00Only a risk if one is long under-water (i.e. lower...Only a risk if one is long under-water (i.e. lower than one's estimate of MTA + other NAV) calls, no? Otherwise, time is technically our friend, given the incredible IRR associated with current purchase prices assuming $11.40 is feasible for example. Ben's Jaminhttps://www.blogger.com/profile/01036316291484037538noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-18775094341995760292019-06-03T08:34:13.704-05:002019-06-03T08:34:13.704-05:00I'm buying more today, in the low $8s, basical...I'm buying more today, in the low $8s, basically no value being assinged to anything but the MTA and cash.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-57704357852061693352019-06-03T08:27:18.777-05:002019-06-03T08:27:18.777-05:00I'll take $11.40 a share.I'll take $11.40 a share. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-39629967158711127302019-06-03T08:23:11.307-05:002019-06-03T08:23:11.307-05:00Timing might be a risk here, since HPT is not buyi...Timing might be a risk here, since HPT is not buying the HoldCo, there will be some expenses and time to wind it down, maybe we get 90% of the value end of Q3 and then there is a tail to the rest.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-3904504005296336292019-06-03T08:20:44.133-05:002019-06-03T08:20:44.133-05:00I get higher.
MTA = $450MM
Academy CMBS = $29MM (...I get higher.<br /><br />MTA = $450MM<br />Academy CMBS = $29MM (8.5% cap rate, industrial assets go for much cheaper - see the recent Blackstone deal over the weekend, yes, Academy is distressed, but this DC also serves as their headquarters<br />Workout Assets = $74MM (some of these have already been re-leased)<br />Cash = $108MM<br />Shopko B-1 Loan = $33MM<br />Total to SRC = -$203MM<br /><br />=~$11.40MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-31050588923967529402019-06-03T08:10:45.469-05:002019-06-03T08:10:45.469-05:00I get to around $8.50-$9.00/shr pro-forma assuming...I get to around $8.50-$9.00/shr pro-forma assuming no Academy equity and workout assets worth $1/shr<br />http://investors.spiritmastertrust.com/file/Index?KeyFile=398169006<br />jj1980https://www.blogger.com/profile/15950271394199668957noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-48085887778061067462019-06-03T07:40:51.496-05:002019-06-03T07:40:51.496-05:00From the press release:
Purchase Price (Incl. Ma...From the press release: <br /><br />Purchase Price (Incl. Make-Whole Payment) (1) $ 2,417<br />Implied Cap Rate (Incl. Make-Whole Payment) 7.1%<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-62337442479205545382019-06-02T20:47:10.658-05:002019-06-02T20:47:10.658-05:00https://www.reuters.com/article/us-spirit-mta-reit...https://www.reuters.com/article/us-spirit-mta-reit-m-a-hospitality-ma-ex/exclusive-hospitality-properties-nears-2-4-billion-acquisition-of-spirit-mta-assets-sources-idUSKCN1T400B<br /><br />Sounds like just for the MTA, would equate to about a 7.5% cap rate, let's hope its accurate!MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.com