An Intriguing Turnaround Play With A Major Hedge Fund Behind It

Execution needs to improve, but a valuable real estate portfolio suggests sharp upside

Highlights:

• This recent spin-off is primarily a play on Manhattan real estate — and, on paper, shares look dramatically undervalued.

• Asset-based valuation isn’t as attractive as a first glance suggests, but there’s clearly a path for that valuation to rise.

• A rights offering will fix the balance sheet, while a backstop and standstill agreement from a well-known and well-respected investor should provide near-term support.

• Overall, this looks like a “heads I win big, tails I don’t lose much” play with several paths to upside.