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CommonWealth Reit Message Board

  • infinitidrivr infinitidrivr May 4, 2013 11:01 AM Flag

    RMR vs. Corvex, etc.

    CWH has been around a long time. The commercial office building market has been in the doldrums for many years also. CWH and RMR unfairly get the blame for what has been a terrible market environment for office buildings. In order to infuse capital into CWH, maintain credit rating, buy buildings, during this long period of time, they have spun off companies. SNH, HPT, and GOV are in better market environments and it would be unfair to make comparisons. GOV, HPT, SNH have some aspects that may be also suspect over the intermediate future. And it remains to be seen if SIR can function over the long term unless overall markets improve. SIR is riding a wave of attractive Hawaii renewals and a very attractive acquisition market. But unless office conditions improve, it is a lessees market...i.e. rent elsewhere, buy, because of the massive vacancies and empty buildings, not to mention downsizing. Accounting and legal staffs will continue to shrink as tax simplification occurs and there will be more arbitration clauses....these staffs are suffering. Corporate office staffs, government staffs will also shrink. And there is only so many seniors in U.S. that can afford private pay.

    Most of my RMR holdings are in CWH pfd D, SNH, HPT. If the takeover occurs, I will get out of all of these because the pattern of these takeover artists is to sell the plums, pocket most the the cash and then bankrupt the companies, ultimately again. And it is all very legal.

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    • Total and complete BS. Today's conference call only allowed analysts to participate and ask questions - two selected questions below.

      Why didn't they just stick with selling assets to improve the balance sheet? Real answer - because RMR would see lower fees. Better to screw the shareholders.

      Why doesn't CWH provide the same data set as other REITs? Real Answer - Because if we did it would be obvious to all that we have spent years selling any and all assets that appreciate in value and buying anything at a higher price that will increase RMR fees - irregardless of the impact to long term cash flow, tenant quality, location, etc.

      The recent moves are simply unethical. Designed to protect the Portney's family cash cow that is RMR and screw shareholders.

      Exhibit A of why our corporate governance system is hopelessly outdated and in dire need of change.

      How many shares of all the spin offs did shareholders receive? I can answer that because I've been a shareholder - ZERO. They sell off anything that appreciates so they can buy more assets and pump up the RMR management fees. Plain and simple. RMR wins, shareholders lose.

      • 1 Reply to davidbdc2001
      • Not completely true about the shares of the spinoffs. But, you need to delve into ancient history.

        "Newton, MA (October 13, 1999): HRPT Properties Trust (NYSE: HRP) today announced that it has completed the spin-off of a majority of its senior housing subsidiary, Senior Housing Properties Trust (NYSE: SNH), to HRP's current shareholders. One share of SNH has been distributed to HRP shareholders for every 10 shares of HRP owned on the record date of October 8, 1999."

        They had originally planned to IPO SNH.

        "August 2, 1999

        NEWTON, Mass. – HRPT Properties Trust (NYSE: HRP) said the weak market for senior housing properties has prompted it to rethink its plan to spin off Senior Housing Properties Trust through an initial public offering of stock.

        The REIT said it still plans to separate its office properties from its senior housing and healthcare real estate. But instead of having an IPO for its senior housing assets, HRPT Properties will spin off the unit by giving its existing shareholders one share of Senior Housing Properties for every 10 shares of HRPT that they own."

        I agree with the rest of the sentiment of your post.

    • Infiniti is a company shill or as was suggested..."jackass" !

    • Stop posting Portney

    • If you really are a shareholder, which I doubt, then you wouldn't logically believe that RMR is doing a good job. The company has over 7 Billion in asset value, 3 billion in debt, and a market value of under 2 billion, why do you think the stock is depressed? It's depressed because the board completely fails at their fiduciary duty which is to enhance shareholder value. For you to buy into their thesis that they are in "Transition" is completely bogus.
      The company does an equity offering at $19.00 per share, meanwhile turns down and doesn't even choose to negotiate a $24.50 per share offer. How do you figure they couldn't at the very least come to the table and discuss a buyout with Corvex/Related.
      You are a fraud in the highest degree to think that RMR has shareholder best interests, look at what they do to their bylaws, look at their ratings via corporate governance watchdogs, they are bogus, end of story! There is nothing to like with CWH except for the chance at reform, which can only come from throwing out the board. Once they are gone and your shares appreciate in value, sell your stake, and move on if you seriously think Corvex/Related will "Ruin the company." You will then have more money to reinvest in another poorly run Reit as this seems to be your philosophy.
      Grow up, and use your brain instead of preaching complete jackass thoughts!

    • And it is important to note that State and local governments in the U.S. will give anything to attract or keep a potential employer....give/subsidize for them a building, waive taxes, etc.

      • 1 Reply to infinitidrivr
      • What is your point? This isn't about employment it's about a public company that doesn't act like a public company. If RMR managed CWH or any other company efficiently then there wouldn't be this issue. There isn't any possible way you're not affiliated with RMR. The only way you win in this is if the judicial system fails which would be an atrocity considering the circumstances. When you invest do you want your investments to increase in value or decrease? If you honestly answer with the latter then well you should be admitted to a psych ward! Nothing you say makes any sense, and if you are affiliated with RMR then maybe you should try changing your tune and seek ways to increase shareholder value and maybe just maybe you won't lose your business! But I hope RMR does fail because they are absolutely unethical.