We did not have sex with that Pension Board!
1 post • Page 1 of 1
The board of CCPT has urged shareholders to reject a $4.65 tender offer for 600,000 shares. The offer essentially represents a chance for shareholders to redeem some shares at roughly 1x book value. Given that the average remaining lease term of this portfolio is now less than 8 years and Rite Aid represents 24% of the rental income the tender price does not seem preposterous. Furthermore, these assets were acquired at the peak of the market and are worth nothing close to what was paid for them. Why the board urged shareholders to reject the offer completely is bewildering given that time is clearly not on the investors' side. As more time burns off the leases and debt maturities loom I'm starting to wonder if $4.65 was too rich. The all-knowing CCPT board has this portfolio valued at $7.95...talk about preposterous.