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CommonWealth Reit Message Board

  • richardleeds richardleeds Jan 9, 2012 4:22 PM Flag

    sad financial metrics for cwh

    I have held shares in this company for about a decade and a dismal decade it has been.

    In the last year things were only made worse by the issuance of a quarter of a billion dollars in preferred stock and another $100 million in common stock and a significant increase in debt.

    The Yahoo consensus rating on the stock is 3.6 which is a sell signal.

    Generally a pile of negatives for CWH.

    Of course more preferred shares, more debt and more common shares creates much more income for the management company. The only constant with this REIT.

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    • Anytime these guys give you a hard time about CWH, just send them to the CWH website, click on the investor section, then financial reports, then 10Q, which is the quarterly financail stmt., that is submitted to the SEC. 10Q is an SEC numbered form. Once you start quoting page and line of the 10Q they get real quiet, all their attitude ends.
      Just go to the 10Q on the CWH website, begin reading, it isn't that long.
      You will see how CWH administration is selling properties, and issuing shares and debt in a mad dash to stay afloat.
      This company is a sinking ship in the hands of looters. The people being looted are the current shareholders. It's right there in the 10Q's in black and white.
      If you get even or even close get out! Move on.

      • 1 Reply to bluelivermore
      • Oh really? I return the same comment back at you with one minor addition. Have you read and *UNDERSTOOD the 10Q? Understood is the operative word here.

        So here is how it reads to me:

        NET RENTAL INCOME IS UP almost 24% across the board in every state however it is buried under all the financials from RE transactions. (you have to remove profit from sales to note the huge increase in net income). Unfortunately we have been diluted by 22% :-(

        They sold a lot of properties but purchased a lot more than they sold. Most of their sales were industrial and office. Almost all their pickups were office, mostly CBD (prime location) offices and about 30% suburban offices. Other sales went to SNH as per prior agreement and as originally planned. One thing many bears on this forum forget is that SNH was a spinoff that gave HRP shareholders shares of SNH. When they sell stuff to SNH it actually makes no monetary difference to longs that held HRP since the spinoff. They fail to account for that in many arguments they make.

        They funded the purchases with a SO that brought in $264m. Most of the loans on purchased properties were very good at or below 6%.

        Equity in GOV is up despite SO. Income provided from GOV us up about 15% over the last 9 months.

        They paid down $168m maturity + $23m @ 8.05% + $29m @7.435 = $220m
        They issued $265m @ 7.25% (lower than the stuff they paid down)

        They reduced the interest rate on several large loans and eliminated several penalties.

        End of year their divs were 75% profit and 25% RoC which includes dep.

        They converted a lot of D series to common stock which is good since we no longer need to pay them interest but not so good since they got shares in Sept at a low price.

        Rent % is down about 2.3% yoy which is not good but not disastrous given that net is up.

        With exception to Office Depot which makes up 1.1% of their leased space, their top 14 lessees are very strong and profitable.

        Debt maturities over the next 5 years are almost a non-issue. The 2012 debt is actually the highest interest rate thus will help us once paid down since we can reissue for a full point less.


        So now tell me what you saw.

    • A new short, how nice. Welcome aboard. Almost dividend time. Did anyone tell you that you will have to pay the dividend to the person whose shares you shorted? Or are you naked?

      • 1 Reply to takemebacktooxmoon2
      • richard has a right to say the things that he said about this company if he indeed owns it and has for this number of years. I am in the same boat and know how they operate. This is perhaps my biggest loss. Why haven't I sold? It would be a tax loss. The dividend for the amount I would get is about as good as I would get with a reinvestment. If you bought in at the right time you of course feel good about this stock but they aren't looking out for the stock holder!