AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

On April 24, 2019, we published an insight- SpinTalk: Spirit Realty Capital - A Rising Spirit - in which we highlighted the transitioning process that Spirit Realty has been undergoing over the past year towards becoming a conventional triple net lease REIT  with the goal of closing its large valuation gap to its primary peers. There have since been significant developments which are likely to accelerate the process, notably the announcement on June 3, 2019 that Spirit MTA REIT (SMTA US) will sell the assets of its Master Trust in a process that will lead to its liquidation. Closing of the transaction is targeted by the end of 3Q 2019 at which time Spirit Realty' will receive gross proceeds od ~$260 MN from SMTA, which in addition to the expected ~$450 MN of net proceeds that will be available from its recent public offering, significantly increases Spirit Realty's deployable growth capital. Moreover, Spirit Realty's external management contract with SMTA will be replaced by a much more modest interim version to help manage the sale of SMTA's remaining assets.Since our previous insight on Spirit Realty, the shares have risen by 12% in value, and are up ~30% since the start of the year. Still, our updated valuation thesis indicates further value upside of  ~20% plus as Spirit Realty continues its progress in narrowing its valuation gap relative to peers. But, our valuation assessment could prove quite conservative given the significant increase in deployable capital that Spirit Realty will enjoy. Furthermore, having already received a credit rating upgrade from S&amp;P Global following the public stock offer launch, we expect both Moody's and Fitch to follow suit with the latest SMTA news only  being another source of encouragement.

On April 24, 2019, we published an insight- SpinTalk: Spirit Realty Capital - A Rising Spirit - in which we highlighted the transitioning process that Spirit Realty has been undergoing over the past year towards becoming a conventional triple net lease REIT  with the goal of closing its large valuation gap to its primary peers. There have since been significant developments which are likely to accelerate the process, notably the announcement on June 3, 2019 that Spirit MTA REIT (SMTA US) will sell the assets of its Master Trust in a process that will lead to its liquidation. Closing of the transaction is targeted by the end of 3Q 2019 at which time Spirit Realty' will receive gross proceeds od ~$260 MN from SMTA, which in addition to the expected ~$450 MN of net proceeds that will be available from its recent public offering, significantly increases Spirit Realty's deployable growth capital. Moreover, Spirit Realty's external management contract with SMTA will be replaced by a much more modest interim version to help manage the sale of SMTA's remaining assets.Since our previous insight on Spirit Realty, the shares have risen by 12% in value, and are up ~30% since the start of the year. Still, our updated valuation thesis indicates further value upside of  ~20% plus as Spirit Realty continues its progress in narrowing its valuation gap relative to peers. But, our valuation assessment could prove quite conservative given the significant increase in deployable capital that Spirit Realty will enjoy. Furthermore, having already received a credit rating upgrade from S&amp;P Global following the public stock offer launch, we expect both Moody's and Fitch to follow suit with the latest SMTA news only  being another source of encouragement.

SpinTalk: Spirit Realty Capital (SRC US) -Transition To Be Completed Sooner Than Expected

On May 31, 2018,  Spirit Realty Capital (SRC US), a triple net lease REIT that is primarily focused on single tenant retail real estate in the US, completed the spin-off of its lower quality and debt encumbered assets into a vehicle named Spirit MTA REIT (SMTA US). But, as we approach the first anniversary of the spin-off event, we believe it is worthwhile revisiting the situation since we continue to identify Spirit Realty as an attractive misvaluation opportunity, particularly as it has entered the last phase of its transition into a more typical triple net lease REIT which we believe should catalyze a value re-rating in the coming quarters.Our valuation thesis points to a shareholder return well in excess of 20% (including the dividend) that should be achievable within a year if the aforementioned last phase of its transition progresses as expected.

On May 31, 2018,  Spirit Realty Capital (SRC US), a triple net lease REIT that is primarily focused on single tenant retail real estate in the US, completed the spin-off of its lower quality and debt encumbered assets into a vehicle named Spirit MTA REIT (SMTA US). But, as we approach the first anniversary of the spin-off event, we believe it is worthwhile revisiting the situation since we continue to identify Spirit Realty as an attractive misvaluation opportunity, particularly as it has entered the last phase of its transition into a more typical triple net lease REIT which we believe should catalyze a value re-rating in the coming quarters.Our valuation thesis points to a shareholder return well in excess of 20% (including the dividend) that should be achievable within a year if the aforementioned last phase of its transition progresses as expected. 

SpinTalk:Spirit Realty Capital (SRC US)- A Rising Spirit

United States

STORE Capital Corporation provides real estate investment trust services. The Company invests in single-tenant real estate such as chain restaurants, supermarkets, health clubs, education, retail, service, and distribution facilities. STORE Capital operates in the United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

STORE Capital (STOR US)

SpinTalk: Spirit Realty Capital (SRC US) -Transition To Be Completed Sooner Than Expected

On April 24, 2019, we published an insight- SpinTalk: Spirit Realty Capital - A Rising Spirit - in which we highlighted the transitioning process...

Robert Sassoon

SpinTalk:Spirit Realty Capital (SRC US)- A Rising Spirit

On May 31, 2018, Spirit Realty Capital (SRC US), a triple net lease REIT that is primarily focused on single tenant retail real estate in the US,...

Robert Sassoon

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)