Liquidations Watchlist #1
A list of real estate liquidations I'm looking at.
Disclaimer: The content in this write-up is for informational purposes only and should not be construed as financial or investment advice All opinions expressed are my own. Please do your own research or consult with a professional before making any investment decisions.
With equity markets near all time highs and meme coins going to the moon I’m more focused than ever on the downside.
Liquidations are a good place to invest cash that can earn low to high teen annual returns with a low correlation to the market.
I’ve been focused on real estate liquidations the last year. I enjoy analysing real estate and the interest rate hiking cycle caused a sell off in the listed space. This has lead to a lot of companies trading below net asset value (NAV).
Questions to ask when analysing a liquidation:
what are the assets really worth?
how much debt is there?
what is the cash burn?
how long will the liquidation take?
what is the timing of cash flows back to shareholders?
is the potential return worth the risk and what is my IRR?
Below is a list of liquidations that I find interesting. These all have different risks, timeframes and return potential. This is not a recommendation to buy any.
I’ve also included a couple of potential liquidations that have not confirmed they will liquidate but might in the future.
Note: NAV is reported NAV, book value or my estimate. Timeframe is based on my estimate. Both could change.
NASDAQ:GYRO- New York industrial and healthcare property owner. Trying to sell both properties for development. In legal disputes and applying for entitlements. 2-3 year timeframe. NAV $13.88.
ASX:URF- New York based residential property owner. Liquidating portfolio. 3-4 year timeframe. NAV $0.59.
LON:RESI- shared ownership and independent living in UK. 2 year timeframe. NAV £0.767.
LON:PSDL- owns residential rentals and condominiums in Berlin. Converting portfolio to condominiums to get higher sale price. 4-5 year timeframe. NAV £2.87.
NYSE:NLOP- selling off B/C grade offices across USA. 3 year timeframe. NAV $42.06.
NASDAQ:STHO- previous spin off .Owns 13.5m NYSE:STAR. Is a residential/mixed use developer. 3 year time frame. NAV $20.
LON:ASLI- European logistic properties with inflation linked leases. Market reports suggest cap rates are firming across EU. Capital return early 2025. 2 year timeframe. NAV £0.732.
LON:MPO- Macau residential real estate. Could be close to a turn in the real estate cycle. 2 year time frame up. NAV £0.83.
NZE:APL- single asset debt free REIT in Auckland. See my write up here. NAV $0.346.
Potential Liquidations:
TSE:FCA.UN- mostly owns multifamily in USA directly and via JVs. Selling assets but have not formally announced they will liquidate. A former director and fund manager who owns stock has said they will liquidate. NAV $8.90.
NYSE:AIV- apartment owner and developer. Found this via
. New language in recent announcement suggest they might liquidate. “acceleration of asset sales, or a sale or merger of the company as a whole”. NAV $13-14.ASX:FPP- investment trust that owns REITs. A shareholder has called an EGM to vote on a wind up. NAV $0.95.
I would be interest to hear anyone’s thoughts on these? I have quite a few more I’m tracking and will do another post soon.
Disclosure: I, or members of my family, hold shares in NZE:APL and LON:ASLI. I could potentially hold shares in any of the mentioned companies in the future.