Kilroy Realty (KRC): Sale of the Exchange Confirms Massive Undervaluation
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On 3/8 Kilroy Realty announced it has agree to sell The Exchange, a downtown San Francisco office building for $1.1 billion (significant at 10% of KRC's enterprise value), a record setting $1,440 per foot. I estimate deal was done at a ~4% cap rate. Interestingly, the entire
Invitation Homes ->Buy Rental Houses at a Big Discount
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Note: this article was sent out to subscribers in advance of web publication. Wanna hear it first? Sign up to receive Private Eye Capital's FREE Actionable Investment Idea Newsletter. It's FREE! (brought to you by the Department of Redundancy Department). Unless you’ve been living under a rock for the
UPDATED: Cap rates, 4 yr expected IRRs for Apartment REITs
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Thought it was time for a quick update here as companies have reported and share prices have moved up a bit. Broadly speaking, the coastal/urban apartment REIT share prices have moved up. Unlike the wizards on the sellside who like to keep their price targets closely in-line with the
TJX results
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TJ Maxx reported 4Q/FY results. While TJX shares have done well since I first wrote about the company, this is the market starting to look forward to brighter days in 2022 and beyond. Current results remain weak due: -store closures overall stores were closed for 13% of the quarter
10 year Treasury hits one year high
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Last week, interest rates and inflation came back into focus as the 10 year treasury yield hit its highest levels in one year. The ten year treasury rate has doubled since I started this site a mere 6 or so months ago as inflation expectations have increased and market participants
More office results/Musings on Office/ Margin of safety
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I have been thinking about office real estate and office REITs more over the past couple of weeks. As noted in my piece highlighting the severe underweighting of apartment REITs in real estate indices/ETFs, office REITs are also significantly underweight (versus real commercial property weighting). Similarly office real estate
Kilroy Realty: $200+ million in NOI for FREE or... How bad is SF really?
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Note: this article was sent out to subscribers in advance of web publication. Wanna hear it first? Sign up to receive Private Eye Capital's FREE Actionable Investment Idea Newsletter. It's FREE! Headlines like this: San Francisco Office Vacancy Rate Eclipses Financial-Crisis HighSan Francisco Office Vacancy Rate Eclipses Financial-Crisis HighBloomberg QuintNoah
EQR Results; Expectations/Moods/Share Prices
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Equity Residential (EQR) reported results last week showing improved quarter over quarter occupancy. While rents declined year over year, concessions/incentives have declined and rents have stabilized versus last quarter. LA, Boston, Orange Country and San Diego rank are expected to show relative strength for 2021. Of course, SF and
