Author Topic: TPHS - Trinity Place Holdings  (Read 292 times)

Saluki

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TPHS - Trinity Place Holdings
« on: May 23, 2018, 06:23:56 PM »
My first post!

A friend told me about this site, and while I'm new here, I have gotten a lot out of reading the analysis here on some of the positions I own. I wanted to contribute, so here is a position that I own and was talking about when I met some of you in Toronto:

 http://www.trinityplaceholdings.com/cms/wp-content/uploads/2018/04/TPHS-Investor-Presentation-April-2018-FINAL_2.pdf

Basically, it's the post-bankruptcy real estate of retailer Syms and Filene's basement.  They still own the intellectual property of both, which I value at $0. But they had a few legacy properties that they owned. They sold off all but 3 properties.

1 is now a walmart in florida,
1 is now leased to Restoration Hardware in New Jersey,
1 is a 5 story building in the financial district in manhattan.
and a couple of apartment buildings in brooklyn that they bought recently.

The Manhattan bldg has been approved for a 50 story luxury residential tower with waterfront views (this is like owning a unicorn in NYC).
It also has the bottom few floors rented to a future charter school who will pay for the buildout of their own space, and start paying rent upon delivery (i.e. cash coming in before the rest of building is completed).

TPHS has $230 million in NOL from their bankruptcy which they can use to shield future income from rents and sales of the luxury condos. 
Enterprise value is $240 million.

Michael Price owns a big slug of the common and I noticed he was buying on the dips (I noticed the purchases on Dataroma since he's a 10% owner and has to file 3 days after every purchase) so I pulled the 10-k and started digging.  The power point summarizes all the good points and now you don't have to read the 10-k like I did.

I'm not a fan of the 2 residential apartment buildings, but since they are new builds, one has a 15 year property tax abatement and the other has a 25 year tax abatement.  That, plus the huge NOL starts to look very interesting. 

The NYC tower is approved, construction has begun and they have $190million construction loan in place from MetLife with pretty favorable terms (they only pay interest on the loan as it's used, so it's like a line of credit).

If any of you have any thoughts (particularly if you think I'm wrong and am missing something) please let me know.