Written by Summary ILPT is trading at a very deep discount to its peers, due to various reasons, including the bad reputation of the company’s external manager. The company is very leveraged but tries to keep financing costs down by securing interest rate caps. I believe that the high debt issue will be tackled by a combination of asset sales and share offerings. The external management deal has clauses that link the manager’s remuneration directly to market cap, in a positive manner. Thus, a speculative investment in ILPT could make sense, at least until the P/FFO gap closes by 200 bp. gremlin It is no secret to people that have been investing for more than 15 years that the stock exchange is full of stories of greed and conflict of interest. Future readers should specifically read the story of Industrial Logistics Properties Trust (NASDAQ: ILPT ). It is a story of a high quality industrial REIT that is caught in the storm due to an unwise decision: The decision to get severely leveraged. And when a banker knocks on your door, the first thing to do is to slice your dividend. A few months ago, I had written an […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
