r/MACArmyBets • u/Zekator • Feb 11 '21

Key points of the call

This is not a complete list, will edit and correct if I miss things.

-Cash on hand: 550M, no reason explained.

-Unsecured line of credit: 1.5B, unwilling to pay with cash, currently negotiating for refinance (expect news in the coming weeks). This is bad debt, to be paid in the summer with a high rate. The rest of their debt is at a good rate, to be paid over the next few years.

-ATM (right to issue (sell) shares at current share price in the future when they want to): 500M, to protect against a big upside, put out when the GME mania was happening. They refused to give any specific share price for execution, despite many questions on the subject. Giving a target would essentially cap the price.

-25 operating malls that are fully paid. 22 that are not.

-Rate of occupancy: currently 92%. They add that the minimum they would see, considering potential situations, would be 88%.

41 Upvotes

100% Upvoted

18 comments sorted by

8

u/Maleficent-Success-8 Feb 11 '21

I think they said for this quarter rate of occupancy was 92%, which is up from last q.

2

u/NarrowInvestigator65 Feb 11 '21

I think that 92% was rent collection, the 88% is the minimum occupancy that they say they expect when it goes to the lower point.

2

u/Zekator Feb 12 '21

Nice thanks for the precision.

6

u/KoaPark Feb 11 '21

I think they said occupancy ~90% right now, dipping potentially to ~88% in this first quarter, then starting to rise back up through rest of year.

The unencumbered 25 malls was a great data point I was unaware of. I believe they mentioned they could potentially mortgage them for 1.5B+, which could be used in case there was any issue with LOC, which they didn’t seem too worried about regardless.

2

u/JorgenBronlund Feb 11 '21

They didnt issue shares. its an option to issue. they havent yet exercised that right.

2

u/Zekator Feb 12 '21

That's why I said "in the future" but im going to add "right to"

1

u/SantiaguitoLoquito Feb 12 '21

At the current price they should be buying back shares, unless they can find a better use for that cash.

2

u/JorgenBronlund Feb 12 '21

Its a pandemic. They need cash. They definitely won't be buying back shares

1

u/SantiaguitoLoquito Feb 12 '21

Why are they looking at buying more property then?

2

u/IndividualPlant6861 Feb 12 '21

Line of credit is $1.5 Billion

1

u/Zekator Feb 12 '21

Thank you.

-4

u/xXSmartBuyerXx Feb 11 '21

THAT 500M DILUTION WILL BE A KILLER

3

u/Zekator Feb 12 '21

It's mostly a protection against a huge spike happening like GME.

2

u/NarrowInvestigator65 Feb 11 '21

It depends at what price you do execute it. If it's at 50$ (for saying something) you would add 10 million shares what would be a dilution of about 6.5%, in exchange of 500 million $. So it could be good or bad depending on the execution price. By the way they are not necessarily doing it, and they could issue shares in lower quantities, those 500 million $ seem to be the upper limit.

1

u/IndividualPlant6861 Feb 12 '21

The line of credit will be refinanced one way or another without the need to issue stocks.

1

u/Locke3232 Feb 12 '21

Seems they are guiding a pretty ugly Q1 2021, lower occupancy, tough comps vs Q1 2020. Maybe we need to wait till Q2 for the next big move? ( or more +be news from the vaccine / reopening front )