This P/E ratio is now nearing 4.5 vs peers at 10-12. Even if you discount income portion FR gets from property sales, it's way below peers. FR has limited exposure to debt maturity thru 2010, so why is stock getting dumped? Seems like great buying opportunity. What am I missing?
July 23/2008 press release "A number of factors could impact our ability to deliver results in line with our assumptions, such as interest rates, the economies of the United States, Canada and Europe, the supply and demand of industrial real estate, the availability and terms of financing to potential acquirers of real estate, the timing and yields for divestment and investment, and numerous other variables. There can be no assurance that First Industrial can achieve such results for 2008. "Investors should note that our assumptions on both balance sheet and joint venture sales volume include select land sales. The disposition market for land is inherently more volatile than for other types of real estate and can be even more volatile in more challenging real estate environments such as the current one. Such volatility could negatively impact our ability to profitably complete select land sales that we anticipate for the balance of 2008 and, therefore, our ability to deliver results in line with our guidance."
So , providing guidance BUT , depends on interest rates, economy , real estate prices and assuming they can sell real estate. What else is there , armageddon, locusts ? Why bother giving hope(guidance) if your gonna cover your butt with a statement like this? Note , this is said at the end of the news which in legal terms means that the last thing said has the final word and negates the previous. As he said , THERE CAN BE NO ASSURANCE FIRST INDUSTRIAL CAN ACHIEVE SUCH RESULTS FOR 2008.
With almost 14 million shares short, i.e. 29.6% of total stock float, First Industrial Realty Trust is either experiencing significant stock manipulation or those with inside information know something that we don't know. Which is it?
Shorting is the only way to play the downside. I wouldn't want to be short a company that's paying this kind of dividend and has a solid track record of payment. Shorts are trying to beat a stock down that's already near 5 year lows and eating a huge divvy in the meantime. That is a low risk/low reward trade.
I'm nibbling here, but nothing meaningful yet. Keep cash for the crash, but start scoping out your targets now.