Heres the full report.
n the report, Compass Point noted, â€œWe are initiating coverage on shares of GPT with a Buy rating and a $6.50 price target. Over the course of the past 15 months, the company has exited the esoteric and risky CDO business, hired an institutional quality management team aimed at transforming the company into a world class office & industrial focused triple net REIT with an asset management arm, changed its ticker from GKK to GPT, and acquired $380M in triple net leased assets at a 9% cap rate with no material debt maturities or lease expirations for the next several years. GPT should go current on its preferred in 4Q13 and commence a common dividend in 2014. If management can continue to acquire $300M/yr at 8.5% cap rates, a $0.40 annualized dividend by 2015 is achievable. We value the stock on this expected dividend, on current NAV, and on AFFO and arrive at an average valuation of $6.50 per share which represents nearly 50% upside from the current stock price excluding any common dividends.â€