Intrinsic value of $4.80
Potential $7.50 to $9 a share after cash deployment and the issuance of 100M of new capital
New CEO first came on board he personally bought 1 million shares @ $2.50
Easily see $9 after business plan completes
3 Scenarios for GPT discussed one of which was a buyout @$6.60
Demuth is overly optimistic. He speaks of the company buying quality net leased assets that are yielding 8%. Those assets do not exist in the current environment. Unless the company is taking significant credit or residual risk, net lease assets with meaningful lease term and credit are priced between a 6 to 7% unlevered yield (and that may be high!). With GPT's recently announced line of credit, market priced assets will yield the company a 10 to 11% return on equity. Not bad but not nearly as attractive as Demuth suggests.