#90: Coronavirus Investing Series, Part 8 | Jeremy Raper | Japanese Hotel REITs

04/01/20 • 21 min

This is Part 8 of a special Coronavirus Investing Series. If you have not listened to Part 1, please click here to get the overall context/market overview during this unprecedented time.

You can also listen to:

In this episode of The Intelligent Investing Podcast, I sit down with Jeremy Raper to chat about a potential opportunity in Japanese Mall REIT's which have been hit pretty hard during this coronavirus pandemic.

Overview

If you are willing to look through whatever happens in 2020 and assume we go back to a normalized environment in 2021, then you should be looking at some of the most beaten-down sectors.

You have to ask yourself a few questions when valuing names in the most beaten-down sectors of the economy:

Is the equity going to survive?
What losses are they taking along the way?
What does that post-corona-world look like?

Japanese REITs

Japanese Mall REITs fall within the broader subsector of Japanese REITs. REITs are real estate investment trusts. Furthermore, REITs must pay 90% of their income as dividends.

Japanese Hotels

Why Japan hotels in particular? Japan has been under-hoteled for a long time. There has been a shortage of hotels and that had been rectified somewhat on the runup to the Olympics.

However, the hotel fleet is still pretty tight.

Two Cheap Japanese Hotel REITs

On this episode, we discuss two Japanese Hotel REITs

Both REITs trade at fractions of NAV and high normalized cap rates.

Staying In Touch With Eric Schleien

Staying In Touch With Jeremy Raper

Blog
Twitter

This is Part 8 of a special Coronavirus Investing Series. If you have not listened to Part 1, please click here to get the overall context/market overview during this unprecedented time.

You can also listen to:

Overview

If you are willing to look through whatever happens in 2020 and assume we go back to a normalized environment in 2021, then you should be looking at some of the most beaten-down sectors.

You have to ask yourself a few questions when valuing names in the most beaten-down sectors of the economy:

Is the equity going to survive?
What losses are they taking along the way?
What does that post-corona-world look like?

Japanese REITs

Japanese Mall REITs fall within the broader subsector of Japanese REITs. REITs are real estate investment trusts. Furthermore, REITs must pay 90% of their income as dividends.

Japanese Hotels

Why Japan hotels in particular? Japan has been under-hoteled for a long time. There has been a shortage of hotels and that had been rectified somewhat on the runup to the Olympics.

However, the hotel fleet is still pretty tight.

Two Cheap Japanese Hotel REITs

On this episode, we discuss two Japanese Hotel REITs

Both REITs trade at fractions of NAV and high normalized cap rates.

Staying In Touch With Eric Schleien

Staying In Touch With Jeremy Raper

Blog
Twitter

Previous Episode

#89: Coronavirus Investing Series, Part 7 | Jeremy Raper | GAN plc

This is Part 7 of a special Coronavirus Investing Series. If you have not listened to Part 1, please click here to get the overall context/market overview during this unprecedented time.

You can also listen to:

You can also listen to a previous episode where we discuss GAN, here.

You can also listen to our YouTube clip about GAN, here.

Overview

In this episode of The Intelligent Investing Podcast, Eric Schleien and Jeremy Raper discuss GAN plc. GAN is a leading developer and supplier of online gaming content and enterprise-level business to business gaming software systems as well as a provider of supporting operational services. GAN has developed the GameSTACK Internet Gaming System (or “IGS”) which the company licenses to online and land-based gaming operators as a turnkey technology solution for both regulated real-money and Simulated Gaming online.

GAN will benefit from people staying at home who do online gambling, they have a competitive moat which we go further into detail in the episode, and the company trades at a low multiple for a high growth stock.

Staying In Touch With Eric Schleien

Staying In Touch With Jeremy Raper

Blog
Twitter

Next Episode

#91: Coronavirus Investing Series, Part 9 | Shelly Lombard

This is Part 9 of a special Coronavirus Investing Series. If you have not listened to Part 1, please click here to get the overall context/market overview during this unprecedented time.

You can also listen to:

Overview

In this episode, I interview Shelly Lombard who spent over 30 years on Wall Street. Shelly started her career with financing leveraged buyouts at Citibank and then spent the rest of her career either at a hedge fund investing in high yield and distressed companies or at a research boutique covering those companies.

During the 2007-2009 automotive crisis, Shelly was one of the most quoted auto analysts on Wall Street, frequently appearing in the New York Times, Wall Street Journal, and on CNBC.
Currently, she reviews investment ideas for a family office; trains new analysts at several leading investment banks; and guest lectures in the executive education programs at Columbia and Wharton.

She is also an active investor in two startups: GuessWhatIBroughtYou.com which delivers cool souvenirs made locally to a traveler's hotel or home and MilleMoney, which features financial content for novice investors.

STAYING IN TOUCH WITH ERIC SCHLEIEN

STAYING IN TOUCH WITH SHELLY LOMBARD

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