Another value investor

Event Driven, Deep Value w/ Catalyst, Real Assets, EM. 中文/Eng

[Another value investor @RecoveryTrade]

@FirstSquawk Maybe that and high interest rates, elevated new supply, and exorbanant prices

[Another value investor @RecoveryTrade]

@JeffBeckMadDog This is where you add subjective analysis on likelihood of further disappointment.

[Another value investor @RecoveryTrade]

@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.

[Another value investor @RecoveryTrade]

Spectacular news for $CSR shareholders. Which mid-cap REIT is next?
https://t.co/Xm57CkgVWj

[David Auerbach ⭕️ @DailyREITBeat]

🏢 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

[Another value investor @RecoveryTrade]

@AdvisorsMidwest Scratching my head over why this deal warranted a strategic review.

[Another value investor @RecoveryTrade]

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.

[Another value investor @RecoveryTrade]

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.

[Another value investor @RecoveryTrade]

@jayparsons REIT mergers are motivated by management interests self preservation.

[Another value investor @RecoveryTrade]

@rhunterh Seems like they are pumping for an eventual sale to retail investors.

[Another value investor @RecoveryTrade]

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.

[Another value investor @RecoveryTrade]

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).

[Another value investor @RecoveryTrade]

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.

[Another value investor @RecoveryTrade]

@TrashBoat0000 @BlackLabelAdvsr wow year 2000 so much different

[Another value investor @RecoveryTrade]

@jayparsons Looks like buybacks no longer on the table.

[Another value investor @RecoveryTrade]

@AndrewYNg Should install nets under the windows.

[Another value investor @RecoveryTrade]

@JeffMacke Buyer will also be required to make an offer for IMAX’s listed China subsidiary https://t.co/LHpYOI0UZ3

[Another value investor @RecoveryTrade]

@one_foothurdle @AndrewRangeley Mandatory takeover as a result of the chain rule.

[Another value investor @RecoveryTrade]

@ChineseWSJ IMAX有中国的下属公司https://t.co/LHpYOI0UZ3

[Another value investor @RecoveryTrade]

@GerberKawasaki Also has a listed subsidiary in Hong Kong https://t.co/LHpYOI0UZ3

[Another value investor @RecoveryTrade]

@MikeFritzell @GlobalStockPick “Serious bout of pneumonia”

[Another value investor @RecoveryTrade]

@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.

[Another value investor @RecoveryTrade]

$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.

[Another value investor @RecoveryTrade]

$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.

[Another value investor @RecoveryTrade]

@InsideArbitrage @benfritz @jtoonkel @WSJ Chain rule applies to IMAX China https://t.co/LHpYOI0UZ3.

[Another value investor @RecoveryTrade]

@jayparsons My theory is that the $EQR / $AVB merger is to protect entrenched management from a $BX bid

[Another value investor @RecoveryTrade]

@RealAssetsValue Seems like every year, the “office turning a corner” narrative is recycled. Many sellers and promoters, few buyers.