So does NGI have any edge on evaluating a business like Marble? Property development in the USA in a time of rising inflation and interest rates. US laws strongly act in favour of tenants in many (all?) states, and rental returns are generally marginal once you pay for debt collection and periods without rent. I remember so many cases of these businesses just suddenly going underwater after the GFC, and recently URF doing the same. 12 to 14% interest rates, 75% LTV.
I suspect there's a good reason why this is a great industry for more rough and tumble property developers and landlords than big organisations. All of the guys running the show are university grads in neckties with a marketing graduate in charge. No Harry Triguboff or Luigi Grollo type telling them what to do? Tradies know what to charge guys wearing suits.
Good luck!
NGI Price at posting:
$1.62 Sentiment: None Disclosure: Not Held
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