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Seth Singerman Long Washington Prime Group: Invest For Kids Chicago Presentation

We're posting up notes from the Invest For Kids Chicago Conference 2017.  Next up is Seth Singerman of Singerman Real Estate who pitched a long of Washington Prime Group (WPG).

Seth Singerman's Invest For Kids Chicago Presentation: Long Washington Prime Group

“Retail Apocalypse” has arrived.  The $100 billion increase in Amazon’s market cap since January is greater than the combined value of all REIT market caps.

Washington Prime Group (WPG) has a 12% dividend yield that is well covered, a 15% FCF yield, and trades <7x 10="" 30="" a="" analysts="" at="" cap="" cover="" earnings="" four="" if="" improves.="" nbsp="" only="" p="" rate.="" sentiment="" upside="" wpg.="">
Trades like a B-mall company but most of WPG’s value is better than B. CEO of Simon owns $250 mm of WPG stock.  WPG trades below the valuations of its own retail tenants.

Valuation: $10 base case, $7 down, $11.75 up over 3-4 years.  Rouse is a good comp; CBL is not a good comp.  WPG has low debt/EBITDA and no maturities over the next five years.

For more from this event, check out the rest of the presentations from Invest For Kids Chicago 2017.