The short of it is that CSE will recognize an additional profit of about $40m. All the other profit in the Health Care assets had already been included in book value. While CSE may have made a total profit in the 100's of millions on the HC assets, again most of the profit was already included in CSE's current book value. And some may not have been profit but instead paid down principal recognized in CSE's book value.
there was debt linked to the HC assets but that debt will be assumed by the buyer.
"Another source of value for CapitalSource is its Healthcare REIT. The healthcare portfolio consists of 180 nursing homes located across the United States. Each of these facilities is leased triple-net leased on a long-term basis. Total investments in this portfolio totaled $990 million at year-end. Mortgage debt on the portfolio was $330 million. Total equity in this portfolio is approximately $650 million."
For sake of speed, Q4 Chairman and CEO John. But have checked that info before in other sources. And yes, that is after debt.
"We do believe there is significant value in our business, certainly more value than the market currently is giving us credit for…. When you add it all up, we have $916 million of equity in the bank, approximately $650 million of equity and related party debt in CS healthcare REIT. $910 million of equity in the securitizations, and $1.2 billion of equity in the parent company loans pledged to credit facilities. That is how we think about the value of the business."
The equity in the bank and securitizations have taken a hit, and I have been following the CCs for over a year. But I am not willing to do the homework for people that when you ask a question, call you name or give worthless advice instead of answering.
As a long investor in both OHI and CSE, I'm glad to see the sale so CSE can be more focused, and so that OHI can do what it does well.
Since this deal involves cash, debt, and stock, will CSE keep the OHI stock in its coffers? or distribute it to the CSE investors?
Yes - u r wrong.
CSE already booked the book profit - hence the name. In addition on the conf call couple of days ago mngmnt said CSE realized an additional profit...i believe they said @ extra $40M profit.
Get a pencil and listen to the cc and read the online presentation - tis all there.
Agree jdb.....Delany is posturing for a offensive move. His is not done by far! This move was to release the pressure of liquidity even more and pay down huge chucks of debt. keep in mind that the debt associated with the healthcare section is moving along with it. I would like to see the financials after this move is completed and the remaining 38 healthcare locations also get sold.