Thursday, 1 October 2015

Lucie sells VER 7.72: Once the Cole Capital business is back operating at full speed, management will make a determination if the VER share price properly reflects the value of the Cole business segment.

The Department of Labor (DOL) is still in the process of evaluating and defining the rules regarding disclosure and the fiduciary relationship between advisors and customers moving forward. In April, 2016 FINRA 15-02 will increase transparency and change the requirements regarding customer statements. The largest two Broker/Dealers represent 17,000 and 14,000 advisors, respectively. The five largest former Broker/Dealers are still conducting due diligence regarding reinstating the sale of Cole branded products. The ARCP accounting irregularities, cover-up and related lawsuits led to the cancellation of the selling agreements between Cole Capital and the majority of the investment advisors who previously sold investments it sponsored.


Luvenia:
The largest change will be in the reduction of the Red Lobster and simultaneous shrinking of the casual dining restaurant segment.

Sparkle:
This will help achieve the target of 1.25%-1.5% of same store growth, with a reduced weighted average lease term (WALT) of no less than 10 years.

Iona:
The percentage of flat leases will be noticeably lower.

Qiana:
Vereit is one of the largest FedEx landlords.

Laveta:
The main takeaway regarding offices from the presentation was that these are typically leased to a single corporate tenant and house operations that are either mission critical, or corporate and regional headquarters.

Hyo:
That said, management shared that at the property level, RL sales have increased for the past three quarters; and that the credit metrics for the lessee Golden Gate Capital have improved since the deal was first signed.

Alexis:
It can be broken down into three main categories: Retail, Restaurant and Office/Industrial.

Martine:
While Vereit has internalized all property management, when it comes to dispositions real estate brokers are often utilized to obtain the highest price.

Roberta:
However, individual properties can go from being non-core to core through active asset management: re-tenanting and extending the lease term would be two examples.

Kareen:
However, these properties are usually single-purpose entities (SPEs) with secured debt; therefore selling them will help VER to reduce its percentage of secured debt, a step along the way to achieving an investment grade rating.

Vereit Inc. (NYSE:VER)
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