Pretty good considering the junk market in the last few months.
IMO, there was 1 critical issues that caused the bulk of this stock decline. Occupancy and Doc not being up front with problems there. Problems from Youngstown to overbuilding. I see it as that simple.
Prior to the bomb-shell in May, PZN was $22 and on the mend. The stock price was quite arrcretive and we had a willing buyer of $600mm per year at that accretive price. The decline since that time only goes to show how vunlerble REIT's are because of their outside financing needs. And two, how the institutions will dump on you if your not upfront with what's happening.
I attribute the fall from $22 to $14 due to occupancy issues and $14 to $10 due to the REIT structure and it's need to dilute investors even if the company does not want too, the catch 22 we all have talked about.
The REIT structure is grand as long as the investor receiving the cash realize that part of the deal is they must invest back part of that cash. If that does not happen the REIT financing structures falls apart as I see it. The only way out from a fall out as we have experienced is internal growth, slow and painful, IMO.
Converting back to the previous C Corp/captive REIT structure makes obvious sense from a business standpointpoint, from a legal one, etc....I don't know.
Can PZN grow out of this mess?.....I would be interested to see internal cash projections after the next earnings report. CapEx were running at a clip of $700mm a year. Since they can't raise debt and equity is too expensive, I'll be very curious to see that number next week. Some of the major tenant incentive fees should be out of that number.