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Gramercy Capital – This Ain't Your Daddy's Net-Net

December 08, 2011 | About:
whopper investments

whopper investments

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whopper investments
Whopper investments - 2 years ago
I've posted additional analysis here if anyone's interested
jhodges72
Jhodges72 - 2 years ago
You're right about GKK and wrong about ASFI.
panapet
Panapet - 2 years ago
Thank you for the post. I have a few questions. Also, please follow my calculations and tell me where (or if) I am wrong.

Net cash + restricted cash: $163.4 million

less true liabilities: ($40.5 million)Equals net cash: $122.9 million

less preferred claims: ($109.0 million)Equals net cash to common: $13.9 million (or $0.28/share based on 50.16 million shares o/s)

Plus real estate etc. $80.3 million (or $1.60/share)

Equals NAV $94.2 million (or $1.88/share)

First question: What kind of comfort do we have that the book value of "real estate etc." is anywhere near the market value? (Also, not to nitpick, but please note that my calculations yield a pre-additional value NAV of $1.88/share, not the $2-$3 share you indicate in early in your discussion and $2.40-$3 later in the discussion - am I missing anything?).

Second question: You are applying a multiple to this year's CDO equity dividends of $50 million in order to arrive at a rough estimate of value for the CDO equity portfolio. While I am no CDO expert, and while the multiple you are using sounds low at 2x, I am not sure if I should be comfortable with this given the nature of CDO equity dividends; how have these payments for each tranche trended over the past couple of years?

Look forward to your thoughts.

Thanks.

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