Daniel Boege’s Post

💼 #REIT Headlines -- April 10, 2024 📈 📈 Piper Sandler Upgrades UDR - Opening Doors to your future: * Upgrades from Underweight to Neutral * Raises price target by $6 to $40 📉 Colliers Securities Downgrades Medical Properties Trust, Inc.: * Colliers downgrades MPW to Neutral from Buy * Lowers price target by $5.75 to $4.25 💰 Public Storage Prices $1 Billion Senior Notes: * $700 million floating rate senior notes due 2027 * $300 million of 5.35% notes due 2053 * Net proceeds allocated for repayment of outstanding debt, investments in self-storage facilities, and general corporate purposes 📊 Terreno Realty Corporation Reports Q1 2024 Activity: * Operating portfolio: 96.2% leased * Issued 2,353,278 shares of common stock at $64.00 per share through its ATM program raising gross proceeds of $150.6 million 💰 Medical Properties Trust, Inc. Completes Facility Sale and Lease Agreement: * Sold five facilities to Prime Healthcare for $350 million * Agreed to a new 20-year master lease with a $260 million purchase option ⚖️ Blackwells Capital Files Braemar Hotels & Resorts (BHR) Proxy Statement: * Blackwells Capital LLC filed a definitive proxy statement with the SEC in connection with its nomination of four highly qualified candidates—Jennifer M. Hill, Betsy L. McCoy, Steven J. Pully and Michael Cricenti—for election to the board of directors of BHR at the Company’s 2024 annual meeting of shareholders to be held on May 15, 2024

🚨 Public Storage’s Latest Results Are In – Here’s What Investors Need to Know! 🚨 Public Storage (NYSE: PSA) just released its Q3 2024 earnings, offering a snapshot of where the self-storage giant stands in a competitive market. 📊 Let’s dive into the numbers that matter – and what they might mean for the rest of 2024 and beyond. Key Insights: Same Store Revenue: Down by 0.77% year-to-date and 1.31% in Q3 alone – a reflection of both decreased occupancy and slightly lower rental rates. Marketing Spend: Up by 21.3% over the first nine months of 2024, yet not boosting revenue as much as hoped. A substantial increase in investment, but why? 🤔 Core FFO: Core Funds From Operations fell 3% year-over-year in Q3, from $4.33 to $4.20 per share. This decrease is slight but signals the impact of current economic pressures. What Does This Mean for Investors? 💡 Despite increased spending on marketing, Public Storage saw revenue from its established locations (Same Store facilities) decline. This suggests the company is navigating a challenging balance of attracting customers while maintaining profitability amidst fierce competition. However, Public Storage is actively expanding, with new facilities expected to add 4 million square feet to its portfolio over the next two years. That’s a bold move, reinforcing their position as a market leader prepared to capture market share as demand stabilizes. Outlook for Q4 2024 and 2025: Revenue Stabilization: We expect Same Store revenues to stabilize as occupancy normalizes, especially if the broader economic environment improves and residential mobility picks up. Expansion-Focused Growth: Public Storage’s strategic acquisitions and development projects will likely boost revenues significantly in 2025. These additions could drive Core FFO growth, improving the dividend outlook. Competitive Landscape: As competition heats up, expect continued marketing investments to defend and grow PSA’s share of the market. This will be crucial, as underperformance in revenue against rising costs could challenge returns. 🔍 Future Take: Public Storage is positioning for growth, and while the near-term is filled with challenges, 2025’s outlook seems promising. Investors with a long-term horizon could see these expansions turn into strong revenue drivers. But near-term, they’ll want to watch for stabilization in Same Store revenues to confirm the strategy is paying off. 📈 #Investing #PublicStorage #Earnings #RealEstate #SelfStorage #FFO https://lnkd.in/g4JmpYaD

Partition Focus Friday: While the partition is a right between co-owners, there are potential defenses and alternatives: 1. Equitable Defenses: In certain scenarios, equitable defenses might be available to co-owners. 2. Buy-out Options: The Uniform Partition of Heirs Property Act offers provisions on how one co-owner can legally buy out the interests of the other co-owners. 3. Settlement Options: Before resorting to a lawsuit, co-owners can explore settlement options. This could involve agreeing to sell the property and determining how to split the proceeds or opting for a buyout.

💼 #REIT Headlines -- April 10, 2024 📈 📈 Piper Sandler Upgrades UDR - Opening Doors to your future: * Upgrades from Underweight to Neutral * Raises price target by $6 to $40 📉 Colliers Securities Downgrades Medical Properties Trust, Inc.: * Colliers downgrades MPW to Neutral from Buy * Lowers price target by $5.75 to $4.25 💰 Public Storage Prices $1 Billion Senior Notes: * $700 million floating rate senior notes due 2027 * $300 million of 5.35% notes due 2053 * Net proceeds allocated for repayment of outstanding debt, investments in self-storage facilities, and general corporate purposes 📊 Terreno Realty Corporation Reports Q1 2024 Activity: * Operating portfolio: 96.2% leased * Issued 2,353,278 shares of common stock at $64.00 per share through its ATM program raising gross proceeds of $150.6 million 💰 Medical Properties Trust, Inc. Completes Facility Sale and Lease Agreement: * Sold five facilities to Prime Healthcare for $350 million * Agreed to a new 20-year master lease with a $260 million purchase option ⚖️ Blackwells Capital Files Braemar Hotels & Resorts (BHR) Proxy Statement: * Blackwells Capital LLC filed a definitive proxy statement with the SEC in connection with its nomination of four highly qualified candidates—Jennifer M. Hill, Betsy L. McCoy, Steven J. Pully and Michael Cricenti—for election to the board of directors of BHR at the Company’s 2024 annual meeting of shareholders to be held on May 15, 2024

Partition Focus Friday: While the partition is a right between co-owners, there are potential defenses and alternatives: 1. Equitable Defenses: In certain scenarios, equitable defenses might be available to co-owners. 2. Buy-out Options: The Uniform Partition of Heirs Property Act offers provisions on how one co-owner can legally buy out the interests of the other co-owners. 3. Settlement Options: Before resorting to a lawsuit, co-owners can explore settlement options. This could involve agreeing to sell the property and determining how to split the proceeds or opting for a buyout.

Market Update Despite a slower overall M&A market, we are noticing increasing engagement & activity in the small business sector (EBITDA < $3 million) with interest from both the buy & sell side of transactions. We are getting calls on a regular basis from business owners in this demographic that are looking for exit/transition options. Many of our opportunities are being referred to us by wealth advisors and accountants that are helping their clients determine their retirement options and sale of the business is one of their largest considerations. We’re attributing this increase in the lower end of the market (as opposed to mid level) to the key-man dependency dilemma & aging demographics. Smaller businesses often don't have a deep team in place to immediately replace ownership's management responsibilities & need help from outside resources provided by investors and larger organizations. We have noticed deal times are slowing down with increased due diligence and delays in bank financing approvals when needed. However, the “roll-up” approach is still in high demand for strategic buyers, as a fast way to grow market share &/or expand capabilities. Please see details on our upcoming presentation below... https://lnkd.in/gfz7NJNa Ian Wick Ross Jones Jeremy Bridger Ryan Irving Transition Architects M&A Advisors #mergersandacquisitions #businesstransitions #businessforsale #wealthmanagement

From Profit to Bankruptcy: How 1847 Holdings Looted Polished When Albert Fouerti independently ran Appliances Connection the company was profitable. Yet, within three years of its acquisition by 1847 Holdings LLC (NYSE American:EFSH) and rebranding as Polished, it filed for bankruptcy despite a $400 million cash infusion. By the time Bank of America seized control, only $1.99 million remained in its account. This wasn’t a case of poor market conditions or operational failure—it was a systematic looting designed to enrich insiders at the expense of stakeholders. How a Profitable Business Was Drained 1. Loans Leveraged Against the Subsidiary’s Assets After the acquisition, Polished drained Appliances Connection resources, taking out loans secured by the subsidiary’s assets and funneling the money back to the parent company under the guise of “management fees” and “reimbursements.” 2. $400 Million Infusion Disappeared Though a $400 million infusion was meant for growth, much of it was redirected to enrich insiders. The business was left financially hollow, creating the illusion of growth while ensuring collapse. 3. Material Weaknesses in Financial Reporting As with every 1847 Holdings subsidiary, material weaknesses in financial controls were exploited to obscure the flow of funds and prevent accountability. The Pattern: Acquire, Loot, and Discard Polished’s story is part of a broader pattern. 1847 Holdings acquires businesses not to grow them but to strip their assets and burden them with debt. Once hollowed out, subsidiaries are abandoned through bankruptcy, leaving creditors and investors to absorb the losses while insiders walk away enriched. A Call for Accountability Polished’s collapse underscores the urgent need for an independent forensic audit of 1847 Holdings and its subsidiaries. Where did the $400 million go? How did a thriving business fall into bankruptcy so quickly? Stakeholders, regulators, and media must demand answers. The systematic looting of companies like Polished must end, and those responsible must be held accountable. Justice for Polished and all defrauded stakeholders starts with exposing the truth. To understand how the business was portrayed before its collapse, view this 2021 article that details its operations and growth ambitions: Seeking Alpha Article. #1847Holdings #PolishedBankruptcy #FinancialFraud #CorporateAccountability #ExposeTheScam

#Estate and #gift business valuations for #attorneys parts 1 and 2 are now available on my Horn Valuation YouTube channel. I'll post the links in the comments. Consider subscribing to my channel. Thank you! Part 1: -> Sunset & Risk of No Estate Planning -> Date, Standard, and Premise of Value -> IRS Revenue Ruling 59-60 -> Due Dates and Your Calendar -> IRS and States -> Operating vs. Holding Companies Part 2: -> Discount for Lack of Control (DLOC) -> Discount for Lack of Marketability (DLOM) -> Three-Legged Stool -> Turn Past Estate Disasters into Future Opportunities -> Create Your Action List -> How to Get Started on a Business Valuation for Estate/Gift

For anyone wanting a quick summary of what the new listing regime may mean for their business or client, check out this discussion at our recent IPO forum led by Charlie Walker with Svetlana Marriott, Mandy Gradden, Lyle Schwartz and Michael Jacobs. There are nuances so please get proper advice including from some of the folks here. They are more reliable and friendlier than ChatGPT or Perplexity.ai and may even come with good coffee. Some highlights for me: - Over the summer, the Financial Conduct Authority executed a generational change in the UK listing rules (most significant change in 30/40 years!) and with further potential changes to the Prospectus regime, there's more to come which will help companies make forward-looking statements and facilitate more retail share ownership. - For us, some of this change is about simplification. We go from a choice between AIM or which segment of the Main Market (Premium, High Growth, or Standard) to a simpler choice between AIM and the Main Market for any new company IPO - While the FCA had permitted companies to join what was then the Premium Segment with 10% vs. 25% free float and dual class shares with FTSE Russell, An LSEG Business, following to allow these companies into the FTSE UK Series (All-Share, 350, 250, 100 etc.), the FCA now permit even greater flexibility around those dual-class shares, so you'll likely see more tech, tech-enabled and growth companies that ended up on the old Standard segment, join the new Main Market and potentially enter the FTSE 100 also - As Julia Hoggett says, "a listing is for life and not just for Christmas." These new rules make it easier to transact when you're a public company. Many of us will have heard stories like the one when Pace Micro was competing with Google to acquire Motorola's set-top box business but unable to move fast enough. Mandy referenced Ascential – Part of the Informa Group being excluded from US auction processes as M&A sellside bankers feared a UK PLC might not be able to move fast enough. Those days are over ... now companies don't need to issue circulars and call EGMs to approve class 1 (major) transactions. They can also in theory issue up to 75% of their issued share capital (increased from 20%). - Charlie and I worked together with Wise and its advisors on their July 2021 direct listing and it was interesting to hear Lyle and Michael's take that lower free float requirements may attract more large profitable companies with 1000+ shareholders to explore direct listings. Wise's transaction took a lot of work and people but the good news is that we're ready this time. Now culture will need to change but at least the rules aren't the blocker. Exciting times! #CapitalRaising #London #IPOs #DirectListings #LifeAsAPublicCompany