is, that the leases, and therefor the eps are maintained.
Looking over the lease performance of the type of clients mdt has, presentation indicated that in the previous recession, these businesses did well.
If you maintain the EPS, and you can also maintain the property valuations,,?? then your debt covenents will hold up, and then you prove the viability of the venture.
Given that firms, then the eps, cw sp, would suggest massive gains to be had.
The NTA of .92 cps, is the ace, worst case, they can sell some of the assets, reduce the debts, and then you have a whole new equation,
Its not their theme, to run no debt, as the REITS were always best as a leverage play.
But if they sold off 60% of their assets to a no debt position, and lose 60% eps (6-7 09-10 forcast) down to 2.6cps.
Purely hyperthetical, but would would on a pe of 10, have to say 26c. with a NTA of 92c to back it up.
There are enough fundemental strengths behind this for an undervalue, punt.
I cant find amoungst all the other riets, anything close on upside, or NTA backing.
I've been doing some reading on the industrial REITS over the weekend, and must admit not a lot of confidence in that side of it.
But to MDT, we are talking about supermarkets, discount stores, national retailers.
IMO, i argue, some industrial space, like technology parks, etc, industrial hubs, could go out of business, and not renewal of leases, but the basics, of the retail side, on necessity would have better lease retention prospects?
How do others see the difference bw the MDT retail leases, and the industrial REITS?
cheers
MDT Price at posting:
4.2¢ Sentiment: LT Buy Disclosure: Held
