TIX Moving Back toward Market Value

TIX seems to be slowly creeping back up to its market valuation before it launched the strained and lengthy acquisition of ANI last December. The current price of $2.48 is still some distance yet to its target price of $2.67 (warning: only one broker covers TIX in Thomson/Reuters) and further still to its market high point nearly a year ago (approx $2.80). But I was amazed that some investors were selling TIX at $2.30 just four weeks ago.

TIX's share price isn't a huge issue for us as long term TIX investors (we have held for more than two years and added 20% near the lows recently). Still, consider where TIX might be priced if its premium was comparable to other mid and large AREITs, some of which are in riskier areas (shopping centres, business offices) than industrial warehouses. GMG, WDC, SCG, GOZ, ARF, CMW, and a few others are currently priced 35% to 55% above NTA. If TIX NTA is $2.34 (not certain, due the ANI acquisition, but close enough), the lowest premium to NTA among these (35%) would price TIX at $3.16.

Don't count on TIX re-rating that much, but it's worth a thought.