Read on Twitter
An interesting stock to me is $EQC.
Sam Zell took this over in 2015, with a view to harvesting all the 40MM sq ft of real estate it owned, and be positioned to invest in the the next market crash. They unloaded basically the last piece of the portfolio on March 14, 2020.
Sam Zell took this over in 2015, with a view to harvesting all the 40MM sq ft of real estate it owned, and be positioned to invest in the the next market crash. They unloaded basically the last piece of the portfolio on March 14, 2020.
New 2019 Annual Report. Short letter at beginning lays out the investment thesis.
Fortress balance sheet: show this to all those folks that said "no one could possibly have been prepared, it is unreasonable for a corp to anticipate this correction"
http://ir.eqcre.com/Cache/IRCache/0cf5a17c-6356-9913-2ba9-9d132d5ed766.PDF?O=PDF&T=&Y=&D=&FID=0cf5a17c-6356-9913-2ba9-9d132d5ed766&iid=102958
Fortress balance sheet: show this to all those folks that said "no one could possibly have been prepared, it is unreasonable for a corp to anticipate this correction"
http://ir.eqcre.com/Cache/IRCache/0cf5a17c-6356-9913-2ba9-9d132d5ed766.PDF?O=PDF&T=&Y=&D=&FID=0cf5a17c-6356-9913-2ba9-9d132d5ed766&iid=102958
Many consider Sam Zell the best distressed RE investor in the game. This came on my radar several years ago when this article was published. I marked it as something to buy when the market corrected, unfo the market is smart, went from $32 > $29 > $34. https://horizonkinetics.com/what-does-sam-zell-know/
Still, I love the idea of getting to piggyback on Zell hunting the market for deals. I recommend this great interview with him -- you can read the transcript (as I did) or listen to the pod. What a history and career. https://tim.blog/2020/01/23/sam-zell/
If you think this market shift will create opportunities, but you're too busy to chase all of them, or want to invest in real estate but don't have the platform or skills to do it, this is in my view a great way to do it. Plus anyone can, in any size, with continuous liquidity.
EQC quarterly call today: it's early in this crisis, we are probably months if not years before real buying oppty for us, but obviously we are in market talking to folks. too early to see the opportunities here. no rush to deploy.
Really emphasize: unprecedented environment. Zell driving team: need a completely fresh eval of every deal. World will be different, there is no historical framework. No sectors are redlined, look at everything, absorb as much info as possible and be ready to find bargains.
Good interview with Zell. Takes a little while to get going but some good nuggets. Great model of a balanced view for investors out there.
