Basically bought 500 properties for 3 mil each. Leasing back over 90% percent with very good terms. The other properties will likely be sold off or redeveloped. View this as an opportunity that mgt thought was a good deal for shareholders, Bet that they will be able to spin off business in a few years.
Why would they spin it off in a few years?
There is nobody else for whom a portfolio this size is a good idea because
it would represent too much portfolio concentration. Thus, there are no ready buyers
for such a property other than them, and spinning it off stand-alone would create a highly concentrated entity that would never get a got equity market valuation.
As a result, the idea that it will be spun-off in a few years is, in my view, off base.