Author Topic: NYRT - New York REIT  (Read 8953 times)

MikeTheCannon

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NYRT - New York REIT
« on: May 07, 2017, 07:31:10 PM »
Anyone else following New York REIT's liquidation? Currently trades ~$9.50 but I've seen NAV estimates hanging around $11 to $13. I've bought some for my (small) portfolio.

Here's the VIC write up: https://www.valueinvestorsclub.com/idea/NEW_YORK_REIT_INC/139227

And one from seekingalpha: https://seekingalpha.com/article/4054483-new-york-reit-timing-everything
« Last Edit: May 07, 2017, 08:01:05 PM by MikeTheCannon »


peripatetic

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Re: NYRT - New York REIT
« Reply #1 on: May 07, 2017, 10:43:15 PM »
I like the odds and took a position here back in February. Would have added more in recent weeks if only I could make sense of the director resignations...

mttddd

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Re: NYRT - New York REIT
« Reply #2 on: May 08, 2017, 06:05:34 AM »
The director situation scared me off tbh, i definitely think they are trading under NAV but i think the spread is due to market concerns about their ability to liquidate in a timely manner

wachtwoord

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Re: NYRT - New York REIT
« Reply #3 on: May 08, 2017, 06:22:34 AM »
I own this as well since the start of February. I haven't added because there's not much more information and it hasn't dropped much in price.
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

MRCR - FELP - ALS.TO - PDER - COMX - WWIB.OL -
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glorysk87

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Re: NYRT - New York REIT
« Reply #4 on: May 08, 2017, 06:54:02 AM »
jesus, this again? this is like the most pitched name of 2017.

one comment here - every single write up i see on this name is using optimistic (and in my view unrealistic) cap rates.

for anyone who's going to put together a liquidation model for this - do yourself a favor and be conservative with the cap rates you use. or even better, use a cap rate based off actual transactions that have occurred in the last 3 months.

BG2008

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Re: NYRT - New York REIT
« Reply #5 on: May 08, 2017, 07:50:45 AM »
Totally agree that everyone knows about this name. 

FWIW, I think very highly of the people involved.  I don't think highly of the assets that they own.  The cap rates are low and they are likely market rate.  But if the cap rate were to increase by 50bps to 100 bps, it can have very significant impacts to the NAV.  The leverage plays a big role here as well. 

atbed

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Re: NYRT - New York REIT
« Reply #6 on: May 08, 2017, 02:36:27 PM »
one comment here - every single write up i see on this name is using optimistic (and in my view unrealistic) cap rates.

for anyone who's going to put together a liquidation model for this - do yourself a favor and be conservative with the cap rates you use. or even better, use a cap rate based off actual transactions that have occurred in the last 3 months.

~4.75 seems more appropriate

MikeTheCannon

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Re: NYRT - New York REIT
« Reply #7 on: May 08, 2017, 04:10:09 PM »
Thanks for all the thoughts!

A quick (rookie) question about the cap rates: the Fed is looking at a June interest rate hike. Would this be built into the cap rates being offered in the market today? I would imagine it is, but my experience is rather limited in this field.

atbed

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Re: NYRT - New York REIT
« Reply #8 on: May 09, 2017, 08:05:26 AM »
Thanks for all the thoughts!

A quick (rookie) question about the cap rates: the Fed is looking at a June interest rate hike. Would this be built into the cap rates being offered in the market today? I would imagine it is, but my experience is rather limited in this field.

All these pension funds and real money guys are risk adverse. They just keep buying fixed income. We've had three rate hikes since the end of 2015, and the TLT is flat. You would think it is priced in and that the markets are efficient, but is it?

glorysk87

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Re: NYRT - New York REIT
« Reply #9 on: May 10, 2017, 02:28:51 PM »
well, the news out today of the $9.25 liquidation value is why i suggested using a more conservative cap rate.