Thanks for the writeup. But why is it that stock-based comp is added back to arrive at FAD or RPDFAD. That is a real expense and should treated as such. Is it that you are only seeking out the cash generation ability and there is another metric where that expense is captured?
You are correct. I am seeking out cash generation. Chris Volk pointed out to me that the property way to account for stock-based comp is as dilution when the stock is issued. One can approximate it in some cases as steady, if one wishes. But ultimately what it does is increase the share count over time so by doing per-share numbers you fold its impact into the results. One can also note that it is rarely large, fractionally.
SLGPRI pays 7.6% but I'll pass. Perhaps not germane to your presentation I am curious about the leasehold on Manhattan. I just assumed, wrongly, it was all fee simple. Is their a lot of land leases on Manhattan? Does SLG own substantive amount of leasehold properties? Would be interesting to see those land leases...
There are lot of ground leases in Manhattan, and a lot of bad ones. From the 10-K, it looks like an unspecified fraction of 6 leases are ground leases.
Thanks for the writeup. But why is it that stock-based comp is added back to arrive at FAD or RPDFAD. That is a real expense and should treated as such. Is it that you are only seeking out the cash generation ability and there is another metric where that expense is captured?
You are correct. I am seeking out cash generation. Chris Volk pointed out to me that the property way to account for stock-based comp is as dilution when the stock is issued. One can approximate it in some cases as steady, if one wishes. But ultimately what it does is increase the share count over time so by doing per-share numbers you fold its impact into the results. One can also note that it is rarely large, fractionally.
SLGPRI pays 7.6% but I'll pass. Perhaps not germane to your presentation I am curious about the leasehold on Manhattan. I just assumed, wrongly, it was all fee simple. Is their a lot of land leases on Manhattan? Does SLG own substantive amount of leasehold properties? Would be interesting to see those land leases...
There are lot of ground leases in Manhattan, and a lot of bad ones. From the 10-K, it looks like an unspecified fraction of 6 leases are ground leases.