Showing posts with label ML. Show all posts
Showing posts with label ML. Show all posts

Wednesday, June 24, 2009

Merrill's New REIT Teams Marks REIT Territory

The brand spanking new team (and legacy boy Craig Schmidt) that Merrill recently acquired from some ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r bank (I wrote about this, but frankly don't remember where cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365se clowns came from nor do I care), just went to town all over cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 REIT bathroom and marked cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir territory effusively. ML in fact distributed a 45 page reinitiation report, which I have no intention of ever reading. The summary ratings and price targets are below.



Is it just me or does Merrill have a Sell (and $4.50 price target) on recent Goldman Conviction Buy List and Greatest REIT Pick Ever CBL & Associates? Oh wait, Goldman in fact had some nice rah-rahish words on CBL earlier today did it not.

So... same company and yet: Merrill at Sell - $4.50 PT, Goldman at Buy - $10.00 PT. That's a pretty wide differential, and indicative again that nobody has any idea what cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 hell is going on with REITs (except for State Street of course which is still making shorting of REITs impossible).

We venture to guess: Goldman prop desk is very heavy with big CBL exposure cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y need to offload: Merrill - vice versa. Sounds like some great synergies can be extracted here. Goldman prop - meet Merrill prop (or cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 3 traders that are still left cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re).

And, indeed, GS still has about 370k shares it needs to offload (to join cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 500k or so it already sold last quarter).



hat tip Ed Sphere: Related Content

Tuesday, April 28, 2009

In Anticipation Of DDR's Equity Raise

Deverloper Diversified Realty Corp. which has over $5 billion in debt, and announced results last week, just got cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 gentle nudge from a Merrill Lynch analyst, who raised his price target on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company by almost 100%, from $2 to $3.50, as cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company "continues to make progress towards deleveraging its balance sheet." Of course, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 chicken or egg nature of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 problem is unmistakable as DDR will likely need to raise outside equity (presumably with certain Bank Of America entities' assistance) in order to deleverage its balance sheet. Eicá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r way, expect DDR to come to market with an equity raise announcement any minute as cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 "rally" is starting to act in some unpredictable ways, and with DDR only having 10 million shares short left to squeeze (of which quite a few likely covered in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 last two weeks), timing is of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 essence.



The company is, of course, feverishly trying to raise capital by all ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r means possible as well, in which cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Otto family bought 15 million shares for $3.50 (cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 wholesale burning of new money chasing old, deep underwater REIT investments is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 new black), and also giving away warrants struck at $6. That's not all. As Mr. Schmidt himself points out:
In addition, a $60 million five-year loan provided by an affiliate of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Otto family replacing cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 $60 million bridge loan entered into last month with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Otto family will close along with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r debt and equity closings. Proceeds from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bridge loan and asset sales were used to purchase more than $150 million of DDR’s bonds in March when discounts to par were attractive.

DDR also sold more than $67 million of assets in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 first quarter at a weighted average cap rate of 8% and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y currently have over $175 million of assets under contract or subject to letter of intent, which should result in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company being able to hit its target of $200mn of asset sales in 2009.

In addition to cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 $112mn of equity DDR raised from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Otto family, DDR has in place a continuous equity programming [sic] and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y have cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 capacity to issue over $150 million worth of new shares.
ZH presume cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 "programming" was merely a Freudian slip here. Bottom line is that it is likely only a matter of time before ML manages to sell this fabulous "story" to some more naive investors after cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y generate some solid additional reverse inquiry from one or less seed investors.

And lastly, let's not forget that it was none ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r than DDR's CIO David Oakes who disclosed on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 very same April 24th conference call this very cryptic implicit support from Mr. Bernanke himself:
"And I would like to add – to chime in here too, Jim, that I was at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 real estate roundtable meeting cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r day and we spent a few hours with Ben Bernanke, and he's pretty confident that we're going to see this help program for CMBS up and running within a few weeks; and very helpful that that's going to start to create a little bit of liquidity in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 CMBS market, and we're in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 queue with one of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 major investment banks to do a significant self-financing when that becomes available."
All is good, especially when one considers that before his current post at DDR, David Oakes was a portfolio manager at ... Cohen and Steers. Sphere: Related Content