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If I Was Naming This Horse, It Would Be Called 'Sucker Yield'

High leverage makes it more difficult for GOV to become a competitive buyer.

Summary

  • High leverage makes it more difficult for GOV to become a competitive buyer.
  • The Fresno deal is over 500,000 sq. ft. (3.1% of revenue) and could be very difficult for GOV to re-lease.
  • GOV's occupancy is falling and the share price (overhang) will make it difficult for GOV to maintain a competitive cost of capital.
  • The dividend is not safe and is clearly suggesting it’s a “sucker yield”.