OLP
by cccbill | March 17, 2020 11:33 pm
Anybody have an opinion on One Liberty Partners. I own and am considering more but have concerns over why it’s fallen off the cliff.
Source URL: https://www.stockgumshoe.com/2020/03/microblog-olp-2/
OLPby cccbill | March 17, 2020 11:33 pm
Anybody have an opinion on One Liberty Partners. I own and am considering more but have concerns over why it’s fallen off the cliff.
Source URL: https://www.stockgumshoe.com/2020/03/microblog-olp-2/
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It’s a tough one, essentially all of their tenants are currently closed so the question is whether or not those tenants (movie theaters, fitness clubs, restaurants, etc.) can survive the coronavirus shutdown and pay their rent. Whether the stock downturn exaggerates that risk or not is a judgement call, and we’re all really guessing at this point.
This REIT, from what i’ve read , concentrates on NNN properties, and has been diversifying into more and more industrial and warehouse space . They really don’t seem to have that many mom and pop shops. https://1liberty.com/properties .Renaissance Technologies was recently disclosed as a large investor, as well as Blackrock securities. They are now selling at about a third of the market high, Unless the pandemic is going to be multi year and all the gov. aid being discussed fails to materialize, or the dividend is slashed or suspended, I think this could be a 2x or 3x in 12 months. I currently own and am looking to buy more.
Maybe that’s part of the reason it has fallen sharply, I haven’t been following them and didn’t know they had moved away from those entertainment/dining properties into more industrial stuff, though they still have a lot of restaurant properties. Will be an interesting few months, but the industrial/distribution stuff should be more solid.
Looks like FFO dropped last year, probably due to the move to industrial properties (which were popular last year), and they haven’t raised the dividend in a couple years, but the dividend is just barely covered by AFFO so is probably relatively safe, and it’s very high after the price drop at about 14% now. Sounds pretty compelling, though these days almost everything sounds pretty compelling. Thanks for following up.