RT: Q4/2010-Year End Shows Excellent Forward Progress
my observations were much the same, and anticipated, and I am excited they are able to grow occupancy in these times (88.3% is exceptional imo), that debt has been butchered thru asset sales, revised mgt agreements and JVs, there is cash on hand. I also am impressed at the structure of the JV deal that gives SRZ the OPTION to purchase the facilities down the road; not a commitment, but an OPTION. This makes the restructuring of the balance sheet all the more important, as with 88% occupancy growth will need to come from multiple sources: 1) Ordan's identified overhead reduction efforts from managing fewer ALFs; 2) rate increases which show up as improved year-over-year rev growth; 3) increase in occup from 88% to 90+%; and, 4) new acquisitions, using owned ALFs as collateral. I agree that things are rosy for SRZ. 1Q11 & 2Q11 should show vast improvements in operations for continuing ops, on a year-over-year basis, and there is upside on the acquisition front. IMO, smart growth will continue to come from creative purchase decisions by Ordan & Co.