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					                                                                                                          $14.90)

                                                                              tenant commercial
properties in the U.S and has gone through a major transition over the last 6 months. The
                                             -grade rated and its diversified portfolio is 100%
occupied. Surprisingly, despite high quality assets and a market cap over $4 billion, ARCP has
minimal sell-side coverage and has been essentially ignored by the market. We believe this is
because ARCP entered 2013 with a market cap of only $150MM. After an under-the-radar
reverse merger on February 28, ARCP became a brand new stock and has continued its
transformation by subsequently announcing several more acquisitions, which should drive
significant growth through 2014. We believe ARCP could pay an annual dividend of $1.10 per
share in 2014, translating to a 7.4% dividend yield. As sell-side analysts begin following the
stock and when the manager of ARCP is internalized, it could trade at a dividend yield of 4%-
5%, or a stock price of $22-$28 per share.

Business Summary

                                                                                sly aggregating what we believe is the strongest portfolio

                                                                                                          ARCP CEO Nick Schorsch

ARCP acquires, owns and operates free standing, single tenant commercial properties with long
and mid-duration net leases. The portfolio is a well diversified, high quality asset base, with
multi-use corner locations and financially stable tenants. Furthermore, management has focused
on properties operating at below-market rents, providing potential organic revenue growth when
leases roll over.

ARCP believes its acquisition strategy provides a competitive advantage versus its peers and
makes this story even more interesting. Larger net lease competitors such as Realty Income
Corp.
new long-term leases (10+ years remaining). ARCP, in contrast, acquires existing mid-term
leases (less than 10 years remaining) as well as new long-term leases. Additionally, the
                                               provide capacity to evaluate single assets, small
portfolios, or even corporate mergers. The management team has found itself bidding on
properties with little-to-no competition and at attractive valuations.



This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in
which Corsair and its affiliates have examined or may examine opportunities. Additionally such examples do not represent Corsair                       entire
portfolio and in the aggregate may represent only a small percentage of Corsair              portfolio holdings. Corsair and its affiliates may, at any time,
buy or sell any of the securities mentioned in this letter and may change its long or short position at any time without providing any notification of such
changes. It should not be assumed that any trading activities pursued either now or in the future will be profitable. Such activities may in fact result in
losses.                                                                                                                                                                                            5
       Corsair	
  Capital	
  Management,	
  LLC	
  	
  |	
  	
  350	
   Madison	
  Avenue,	
  9th	
   Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240	
  
2013 Transformation


our portfolio to enhance and stabilize our earnings and thereby
ARCP CEO Nick Schorsch

As of December 31, 2012, ARCP owned 146 net lease properties with average remaining lease
terms of 6.7 years. On February 28, 2013, the company closed on the acquisition of ARCT III (a
private REIT), which was managed by the same team as ARCP, adding 507 net lease properties
with average remaining lease terms of 12.4 years. This reverse merger resulted in ARCP owning
653 properties, with average remaining lease terms of 11.4 years, bought at an average
capitalization rate of 8.0%. Overnight, ARCP was transformed into a new stock.

The transformation continued as the company has subsequently announced 3 more transactions.
                                                                                                s 71
properties and has a market cap of $750MM (expected to close in 2H 2013). ARCP also
announced and closed on the acquisition of 447 net lease properties from GE Capital for
$774MM. Finally, in early July, ARCP announced the acquisition of privately-held ARCT IV
for $3.1 billion in cash and stock, adding another 1,326 net lease properties to the portfolio.

In addition to these large transactions, ARCP has also acquired 81 other properties in 2013 for a
total purchase price of $367MM (cap rate of 8.1%). Pro forma for these deals, ARCP will own
2,579 net lease properties, in 48 states, with 100% occupancy, leased to 470 individual tenants,
operating in 29 different industries, and with average remaining lease durations of 10 years. The
                    tenants will represent 30% of net operating income and 9 out of 10 are
investment-grade rated (1 is not rated by a major rating agency).

Outlook


the company will earn $0.91-
2013 and $1.19-$1.25 in AFFO per share in 2014. This implies earnings growth of over 30%
from 2013 to 2014. Management sees another $1.3 billion in asset acquisitions in 2013 and 2014
to provide more growth in future years.




 This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in
 which Corsair and its affiliates have examined or may examine opportunities. Additionally such examples do not represent Corsair                       entire
 portfolio and in the aggregate may represent only a small percentage of Corsair              portfolio holdings. Corsair and its affiliates may, at any time,
 buy or sell any of the securities mentioned in this letter and may change its long or short position at any time without providing any notification of such
 changes. It should not be assumed that any trading activities pursued either now or in the future will be profitable. Such activities may in fact result in
 losses.                                                                                                                                                                                            6
        Corsair	
  Capital	
  Management,	
  LLC	
  	
  |	
  	
  350	
   Madison	
  Avenue,	
  9th	
   Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240	
  
M anagement

                                                                                                                                             ARCP CEO Nick Schorsch

We believe this management team is smart, focused, and obsessed with driving shareholder
value. CEO Nick Schorsch has a clear vision for driving earnings growth, dividend growth, and

mouth is. Schorsch has personally purchased $1.1 million in ARCP stock in the open market in
20

significant value to unlock at ARCP.

Valuation

ARCP currently pays out an annual dividend of $0.91 per share. The stock is trading at a current
yield of 6.2%, versus O which trades at a 5.0% dividend yield and NNN which trades at a 4.5%
dividend yield. But the valuation discrepancy might be wider than that. Management has guided
that as soon as either the LSE or ARCT IV mergers close, the dividend will be raised to $0.94
per share, representing a 6.3% prospective dividend yield.

Additionally we believe that management will target a 90% payout ratio over time, and that the
initial $0.94 per share dividend guidance could be raised in 2014 to as much as $1.10 per share.
                                   a 7.4% prospective dividend yield. Given the credit quality and
diversification in its portfolio, we believe ARCP should trade in-line or better than its peers.
Applying a dividend yield range of 4%-5%, ARCP could trade to $22-$28 per share.

Catalysts

Several catalysts should drive the stock higher over the next 12 months, including:

             Sell-side analysts initiating coverage of ARCP
             Closing the LSE and ARCT IV deals
             Internalizing the management company
             Increasing the dividend gradually from $0.94 per share to $1.10 per share
             Additional property acquisitions


This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in
which Corsair and its affiliates have examined or may examine opportunities. Additionally such examples do not represent Corsair                       entire
portfolio and in the aggregate may represent only a small percentage of Corsair              portfolio holdings. Corsair and its affiliates may, at any time,
buy or sell any of the securities mentioned in this letter and may change its long or short position at any time without providing any notification of such
changes. It should not be assumed that any trading activities pursued either now or in the future will be profitable. Such activities may in fact result in
losses.                                                                                                                                                                                            4
       Corsair	
  Capital	
  Management,	
  LLC	
  	
  |	
  	
  350	
   Madison	
  Avenue,	
  9th	
   Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240	
  
   ARCP Pro Forma Valuation
   2014 AFFO/ shr Guidance                                              $  1.22
   Payout Ratio                                                           90.0%
   Dividend @ 90% Payout                                                $ 1.10
   Current Stock Price                                                  $ 14.90
   Dividend Yield                                                          7.4%

   Fair Value Dividend Yield                                               4.0%    4.5%    5.0%
   Implied ARCP Value/shr                                               $ 27.45 $ 24.40 $ 21.96
   12-mo Total Return                                                     90.5%   70.1%   53.7%




This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in
which Corsair and its affiliates have examined or may examine opportunities. Additionally such examples do not represent Corsair                       entire
portfolio and in the aggregate may represent only a small percentage of Corsair              portfolio holdings. Corsair and its affiliates may, at any time,
buy or sell any of the securities mentioned in this letter and may change its long or short position at any time without providing any notification of such
changes. It should not be assumed that any trading activities pursued either now or in the future will be profitable. Such activities may in fact result in
losses.                                                                                                                                                                                            4
       Corsair	
  Capital	
  Management,	
  LLC	
  	
  |	
  	
  350	
   Madison	
  Avenue,	
  9th	
   Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240	
  
I M PORTANT DI SCLOSURES

An investment in any Corsair fund is speculative and involves a high degree of risk. Past
performance is not necessarily indicative of future results. There can be no assurances that any
Corsair fund will continue to have a similar return on invested capital because, among other
reasons, there may be differences in economic and market conditions, regulatory and political
climate, portfolio size, investment opportunities, expenses and structure.

References to benchmarks are for illustrative purposes only. Comparisons to benchmarks have
limitations because characteristics of such benchmarks, such as level of volatility and position
concentration, among other things, may differ from those of the applicable Corsair fund. The
Corsair funds do not attempt to track a benchmark.

The information in this letter is as of the date set forth on the cover page hereto and is subject to
change without notice. The delivery of this letter at any time does not imply that the
information or opinions contained herein are correct at any time subsequent to the date set forth
on the cover page hereto.

Any forward-looking statements included in this letter represent the subjective views of the
portfolio managers of Corsair, including the future performance of the market generally and
portfolio companies specifically, based on assumptions that may or may not prove to be correct.
There can be no assurance that these views are accurate or will be realized, and nothing
contained here is, or should be relied on as, a promise as to the future performance or condition
of any Corsair fund, any portfolio company or the market generally. Industry experts and the
portfolio companies themselves may disagree with these views and/or assumptions.

Certain information contained herein has been obtained by Corsair from third parties. While
Corsair believes that such sources are reliable, it cannot guarantee the accuracy of any such
information and does not represent that such information is accurate or complete.




This letter is not a research report or recommendation to buy or sell the securities mentioned herein. The examples herein are illustrations of ways in
which Corsair and its affiliates have examined or may examine opportunities. Additionally such examples do not represent Corsair                       entire
portfolio and in the aggregate may represent only a small percentage of Corsair              portfolio holdings. Corsair and its affiliates may, at any time,
buy or sell any of the securities mentioned in this letter and may change its long or short position at any time without providing any notification of such
changes. It should not be assumed that any trading activities pursued either now or in the future will be profitable. Such activities may in fact result in
losses.                                                                                                                                                                                            7
       Corsair	
  Capital	
  Management,	
  LLC	
  	
  |	
  	
  350	
   Madison	
  Avenue,	
  9th	
   Floor	
  	
  |	
  	
  	
  New	
  York,	
  NY	
  10017	
  	
  |	
  	
  	
  212.389.8240	
  

				
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