It makes sense to sell HQ property at what may be near the high point in the RE cycle within a low interest rate environment. We'll see when the cap rate on sale price is announced.
Global oil consumption continues to grow.
The long awaited fall off in production (sharply declining rig counts)--it's just a matter of time.
The Fed will likely keep rates low---their reduction in 10 year bond issuance is already pushing up demand, pushing down long rates. And, with continued low rates, hopefully a weaker USD.
I'd say the odds at this point is to the upside for oil.
Sloppy and misleading.
Taking a beating--but, I'll wait to see CAR's numbers on Feb. 23 before I concede defeat.
Lot's going on in the market that defies reason, such as in the MLP space--e.g., CPLP, yielding 24%+ despite strong fundamentals or GLOP, yielding 13.7% despite payout coverage 1.4x
"$13B+ in debt with little cash."
This is an extremely sloppy and misleading statement. You clearly don't have a finance or accounting background.
"The debt is backed by used cars of dubious value"
Again, a very sloppy statement without substantiation.
"Avis has declared BK already in its history and probably will again."
Speculation. Look at the cash flow statement.
"Both vessels have been chartered to a reputable operator for 12 months (+/- 30 days). We expect the new charters to commence in April 2016. The charterer has the option to extend both charters for an additional 12 months (+/- 60 days) at an increased rate."
Whatever the rate is, these charters will add to DCF and distribution coverage.
Too, if I remember correctly from remarks during the Q4 CC, these charter rates will be fixed for the first year and then renew at them market rates.
There are no insolvency issues---just the market jerking around with oil prices.
CAR at these prices are severely under-priced--stay tuned for Q4 report in 2 weeks.
It's not as dire for CPLP, though---given the market outlook/demand for its fleet, its excess DCF which will be used to reduce debt and/or buy back shares. It'll take a bit more time, but I believe CPLP will be able to distinguish itself apart from weaker operators and its shareprice will drift up slowly.
Access to capital is undoubtedly a major concern, but it's one that impacts most of the entire MLP sector.
Too, it's driven by commodity prices--ie, concern about counterparties and demand for transport--and should moderate as commodity prices recover from current levels, even if only into the $50-60/bbl range.
One positive factor is interest rates: it's quite clear that rates will remain low/zero globally for extended periods.
It's an oil driven market outflow---not SYF specific.
SYF business is strong, management is capable, motivated and executing on its plan. I've been adding, too.
"Question in will Shell/BG they renew existing contracts with GLOP as the expire?"
Shell IPO'd SHLX because it wanted to divest capital intensive assets not central to E&P.
In the same vein, my guess is that, rather than acquire GLOP and/or tankers, it'd be more inclined to sell its tankers to GLOG et al.
On the earnings conference call this morning, I believed the CEO mentioned that CPLP's bonds are non-amortizing--which struck me at the time as odd.
Maybe not so odd if vessel values are expected to increase.
"cuz all of them have cut their divi already"
You're wrong--check out GLOP's earnings report today and dividend announcement. Check out TNK's near quadrupling of its distribution.
"lot of cargo ships are idle now and shippers have to lower their rate in this tough enviorement"
Again, blanket statements like this are just plain wrong and inexperienced. You really need to sort through the pile and separate the wheat from the chaff.
The important question is the state of the newbuild order book---as long as supply growth is controlled (ie, avoid the insanity seen in drybulk), LNG shipping will prosper for decades. Let's hope that all shippers have taken the drybulk lessons to heart.
Despite reasonable concerns about CPLP as discussed, the excessive selling has had more than a few of us digging deeply for the truth---only to scratch our heads.
The MLP space is heavily dominated by retail investors--largely unsophisticated, undisciplined. Retail played a significant fact in the sector sell off last year and following into 2016 YTD---the proverbial herd stampeding out.
The truth behind the excessive yield might be as simple as this. We'll see soon enough.
GLOP reported strong results today, including distribution coverage of ~1.4x, and the units are up sharply.
CPLP's fleet is quite different, but I expect a decent Q4.
A Bloomberg report this morning on oil/refined product shipping indicates that vessels are reducing speed because of limited storage capacities at delivery points and which sometimes results in significant waiting periods before the vessels are off-loaded--the implication being that of concerns about product end demand.
In addition to capex and capital access questions, this has got to be a significant concern surrounding CPLP.