Dec. 22 at 12:54 AM
$DHC Current enterprise value is
$3.5BN, pro forma for the remaining asset sales. The MOB/LS assets are worth about
$1.3BN and the NNN assets are worth about
$500MM using a conservative 8% cap rate for both. At
$5.15 you're creating the SHOP assets for
$1.7BN or just about
$70K per room. That's ridiculously cheap. The recent mortgage financings using SHOP assets as collateral valued each room at
$180K+ and the comps (WELL, VTS, BKD and SNDA) are all trading well in excess of
$200K per room. At
$200K per SHOP room, DHC stock is worth
$4.7BN or nearly
$20 per share. It's just math and, at some point in time, the math matters.
