Thanks for the update! I agree with your views here. Now it all falls in the hands of the management team to allocate capital wisely. They are getting an incredible injection in the best time they could. They have three potential projects that could restart, or buy assets in the market.
Back of the envelope calculation, they could acquire 240M in assets (120M from MFG + 120 leverage), get a 6% yield, could make ±6M extra of PFPM (45% margin) ceteris paribus. They currently make ≈16M.
Comparing a potential multiple with the main real estate companies in the Nordics, I feel that Eastnine is still attractive.
If they pay as much as 6% cap rate for something now, I would be, to understate it, disappointed. I think they can generally borrow 60% of the initial price though.
Open question exactly how much money they can use safely right now. Will probably need more clarity on the refinancing of the bond first (and new bank loans, but I don't foresee any issues whatsoever there), whether they will have to decrease the size and put parts of it in banks, etc.
People can say and think what they want of course. But it would be nice if they could keep apart what I have written from their personal hopes and dreams.
Hey!
Thanks for the update! I agree with your views here. Now it all falls in the hands of the management team to allocate capital wisely. They are getting an incredible injection in the best time they could. They have three potential projects that could restart, or buy assets in the market.
Back of the envelope calculation, they could acquire 240M in assets (120M from MFG + 120 leverage), get a 6% yield, could make ±6M extra of PFPM (45% margin) ceteris paribus. They currently make ≈16M.
Comparing a potential multiple with the main real estate companies in the Nordics, I feel that Eastnine is still attractive.
If they pay as much as 6% cap rate for something now, I would be, to understate it, disappointed. I think they can generally borrow 60% of the initial price though.
Open question exactly how much money they can use safely right now. Will probably need more clarity on the refinancing of the bond first (and new bank loans, but I don't foresee any issues whatsoever there), whether they will have to decrease the size and put parts of it in banks, etc.
tigo is\was priced longterm cheap with POTENTIAL for short-term catalyst. trolls want gullible guarantees in real life? there is a twitter for that.
People can say and think what they want of course. But it would be nice if they could keep apart what I have written from their personal hopes and dreams.