There seems to be this trend like Blackrock is doing. Buying up residential properties for over asking price then immediately leasing them out. Is PMZ seeing an opportunity to get into this game early?
"H&R traded sharply down on the news, falling from a close of $16.25 per share on December 31 to ending the week at $13.29 per share.
That’s a decline of just 18%, well under the 25% you’d expect from such a transaction. In other words, if you spin out the crap it’s beneficial to the rest of the company. Who woulda thunk that?"
If you start with a whole HR, divide it into 5 pieces, then take 4 of those pieces and call it the new HR, and you then take the remaining piece and call it PMZ, wouldn't the 4 pieces making up the new HR be worth 80% of the initial whole HR?
Isn't that what the spinoff of PMZ done here?
So, one would expect the new HR to trade 20% down from the initial whole HR. That the new HR is trading down 18% is pretty close to that expected 20%.
Great write up! Do you know how many of the "redevelopment sites" outlined in the screen shot are designated as residential/high density in the local OCP's? Those ones might be a straight shot towards rezoning, whereas sites that require an OCP amendment are more challenging to execute.
There seems to be this trend like Blackrock is doing. Buying up residential properties for over asking price then immediately leasing them out. Is PMZ seeing an opportunity to get into this game early?
Thanks for the update. Just a thought, you wrote:
"H&R traded sharply down on the news, falling from a close of $16.25 per share on December 31 to ending the week at $13.29 per share.
That’s a decline of just 18%, well under the 25% you’d expect from such a transaction. In other words, if you spin out the crap it’s beneficial to the rest of the company. Who woulda thunk that?"
If you start with a whole HR, divide it into 5 pieces, then take 4 of those pieces and call it the new HR, and you then take the remaining piece and call it PMZ, wouldn't the 4 pieces making up the new HR be worth 80% of the initial whole HR?
Isn't that what the spinoff of PMZ done here?
So, one would expect the new HR to trade 20% down from the initial whole HR. That the new HR is trading down 18% is pretty close to that expected 20%.
Great write up! Do you know how many of the "redevelopment sites" outlined in the screen shot are designated as residential/high density in the local OCP's? Those ones might be a straight shot towards rezoning, whereas sites that require an OCP amendment are more challenging to execute.