@AdvisorsMidwest Agree with this sentiment. I would venture to guess that $CSR received a bid in the low 70s (mid-6 cap) and decided to sell the least liquid assets at mid-6 cap. It is notable that they are (for once) not recycling into more Colorado exposure.
🏢 Centerspace Reportedly Weighs a Potential Sale
Centerspace $CSR — a multifamily REIT focused on apartment communities across the U.S. Midwest and Mountain West — is exploring strategic options, including a possible sale, according to sources familiar with the matter.
💼 Key Details
* Exploring strategic options: The company is working with advisers to review takeover interest.
* No final decision yet: Talks are in the early stages, and Centerspace could still decide to remain independent.
* Market reaction: Shares rose 2.5% to $60.22 on Tuesday following the report.
🏘️ Portfolio Snapshot
* 13,000 apartment units across 85+ properties.
* Core markets: Minneapolis, Denver, and Salt Lake City.
* Secondary markets: Grand Forks (ND), Billings (MT), Rapid City (SD), and other smaller Western cities.
* Strategy: Focused on stable, workforce-oriented housing in mid-sized and overlooked growth markets.
* Market cap: Roughly $1 billion.
📉 Recent Performance
* Shares are down 9% year-to-date, underperforming the broader apartment REIT sector.
* Faces similar headwinds as other multifamily REITs — rising financing costs, soft rent growth, and limited transaction liquidity.
🧭 Why It Matters
* A sale would mark one of the first major mid-cap apartment REIT takeovers since interest rates surged in 2022.
* Centerspace’s Midwest and Mountain West footprint could appeal to private equity or larger REITs seeking diversification outside high-cost coastal markets.
* As capital markets stabilize, multifamily M&A is expected to pick up — positioning Centerspace as a possible early mover.
https://t.co/fJMhZOQQDy
Huge disappointment with $CSR strategic review, tiny deal, cap rate not disclosed (suggestive of FFO dilutive deal). Seems like institutional appetite for multi-family is possibly tapped out.
Theoretically $CSR should be sold at up to $90/sh (high 5s), but given recent precedents, I would expect a valuation closer to $75-80/sh (low to mid 6s) reflecting a 25-33% deal premium.
PE bros at Jardine are back to acquiring random assets. NAV discount should widen to historical levels to reflect empire building. I’ve rotated my Jardine / HK Land positions into Swire B class shares, which offer much better value.
Controversial opinion but I believe that Swire Pacific https://t.co/lXWJXlFbiv (46% NAV disc) is way better value vs. Jardine Matheson https://t.co/TQvgSjsN7M (20% NAV disc).
Swire Pacific https://t.co/7bNIui4i9o / https://t.co/lXWJXlFbiv quietly announces a 13% dividend hike, B-Class shares still trade at >50% NAV discount and with ~6% dividend yield, even after significant recent share price appreciation.
@MikeFritzell@GlobalStockPick Gelfond is 70 years old. If / when he decides to sell https://t.co/xokaqgJLAx there is a chain rule which would trigger a general offer of https://t.co/LHpYOI0n9v at the same multiple. My hypothesis is that $MS gave bad advice on take private valuations.
$IMAX finally up for sale, its China sub $1970.HK accounts for ~50% of group NPAT, nearly 100% of historical cumulative FCF, trades at low single digit EBITDA mul vs. Parentco trading at a mid-teens mul. Chain rule applies to HKSE companies making the situation highly asymmetric.
$IMAX is discussing its China subco and share buybacks at great length on its quarterly call. Just a reminder that IMAX China (https://t.co/Ovzj7giFcY) has zero debt, cash equal to 40% of market cap, and trades at sub 4x EBITDA.