Author Topic: ESRT- Empire State Realty Trust  (Read 7348 times)

fareastwarriors

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changegonnacome

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Re: ESRT- Empire State Realty Trust
« Reply #41 on: June 29, 2020, 02:49:18 PM »
Empire State building alone I think could fetch the current EV of ESRT- given the iconic address alone with the added attraction business attached.......its inflation protected bond like income stream would possibly warrant a 25x multiple. The rent roll on the Empire State building a 20x rate.

The remaining assets sit at higher end of Class B Manhattan / Metro area RE........lets call them B+ with a descent environmental/sustainability footprint.

The downside is protected here.........the risk appears in the management teams contrarian instinct to now lever up and do some deals. The ability to lever up against an asset like the ESB is tempting & easily done...........what bank/bond holder wouldn't mind taking delivery of an iconic asset if they had to and selling it to China or Qatar.
« Last Edit: June 29, 2020, 03:01:42 PM by changegonnacome »

Gregmal

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Re: ESRT- Empire State Realty Trust
« Reply #42 on: June 29, 2020, 02:59:33 PM »
I do agree, but on the flip side, I think they've proven disciplined, certainly have a financial alignment, and I think given those two things, have earned the opportunity to "take a shot", especially during a time in which it may be wise to "start shooting".

fareastwarriors

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Re: ESRT- Empire State Realty Trust
« Reply #43 on: July 06, 2020, 03:37:23 PM »
Commercial mortgage delinquencies surged at record monthly rate in June

https://www.cnbc.com/2020/07/06/commercial-mortgage-delinquencies-surged-at-record-monthly-rate-in-june.html

Delinquencies in commercial mortgage-backed securities jumped by 213 basis points in June to 3.59% from 1.46%.

It was the largest one-month spike since Fitch Ratings began tracking the metric nearly 16 years ago.

The hotel and retail sectors are seeing the worst delinquencies, as the coronavirus has been especially hard on those industries.

Gregmal

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Re: ESRT- Empire State Realty Trust
« Reply #44 on: July 06, 2020, 04:49:12 PM »
This is where having low leverage and nearly 80% of SF unencumbered plays into their hands. They are definitely well positioned should the CMBS issues prompt further softness in the market.