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FreeO10 min read

O: the cap-rate repricing is mostly done (Part 2)

O
Delayed

The thesis

The distribution is well-covered even under a conservative occupancy case.

Cap-rate repricing is largely behind us in the quality names — FFO is defensible.

What I'm watching

  • occupancy trend
  • occupancy trend
  • A clean move through the level I flag below

Positioning

Neutral / hedged on O, 6-36 months horizon. Conviction: Medium. Rates drive the multiple; I respect the macro overlay.

Opinion, not investment advice. The author may or may not hold positions discussed.

Opinion. The author may or may not hold positions discussed. Not advice. Not a financial promotion approved under FSMA s.21. Quote data is delayed. Past performance is not a reliable indicator of future results.

Comments

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Greta Fenwick·

This lines up with what I'm seeing in the O tape.

Elliot Vance·

The second point is the one most people are going to skip over.