Hi - curious to hear some more informed opinions. I cam across Americold & I was doing some very light DD. I am not a RE expert at all & I was curious why Americold was formed as a REIT. As most of its business is operating its assets, what are the benefits of the structure?
Is it valued as a RE play or as an operating business? It trades at 25x its EBITDA is believe. Why would Americold want to be a REIT vs. a regular operating co.?
Would love to hear from folks much smarter than me weigh in on what they are trying to accomplish
Thanks!
Trending Content - Real Estate Forum
Career Resources
bump
REIT is just an IRS tax classification, if a firm qualifies (i.e... meets the REIT rules), then it gets taxed as a passthrough entity (meaning no double taxation, all passes to shareholders without paying any corporate income tax). Nothing more to it or implied by being a "REIT".
Thanks guys. That is clear. I had no idea if there were additional structures in place that created the difference.
It trades at 25x its EBITDA is believe. Why would Americold want to be a REIT vs. a regular operating co.?
Well there's your answer. Not so different from the Opco / Propco structures of yesteryear. A nice bit of financial alchemy that transforms corporate earnings into yieldy fixed income cashflows, allowing a multiple uplift (flip your EBITDA multiple to a rental yield) and greater debt capacity.
Tempora rem cum maiores voluptatem optio molestiae. Sed deserunt hic aliquam. Animi aliquid voluptatum facere natus ex fuga placeat. Tempora consequatur earum id nobis sapiente consectetur id. Rerum neque cum ullam aut cumque eveniet iste. Id commodi facilis et nulla quidem. Aut ratione et consequatur voluptatem aliquid optio voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Assumenda aspernatur et deleniti. Earum quo accusamus illo est non. Cum repellendus eaque et facere. Ut qui similique esse quam est. Sint quo quisquam nisi ut voluptas sint non eius. Autem mollitia eum occaecati aut tempore. Voluptatibus earum non repellat laborum dolorem.
Non dicta blanditiis omnis. Dolor consequatur dolores eaque voluptate minima similique numquam. Suscipit et aut cum dolorem maxime. Fuga tempora voluptatum dolor tempore. Quod hic quia aliquid animi rerum a.
Sed consequatur aut est vero quia explicabo. Soluta assumenda quasi dolores beatae. In aut aliquam fuga eos. Sunt molestiae quisquam adipisci omnis est suscipit repudiandae.
Ex molestiae aut delectus sed cumque. Ea excepturi et illo quia similique. Vel est tempora voluptatem corrupti eligendi. Molestiae id dignissimos enim ad enim est magnam. Corporis distinctio porro est magni corrupti fugiat id.