Q: RE: "MBA is losing money and has too much debt for any comfort level." I'm confused about this statement. MBA has been cash flow positive and has been making significant gains from their student housing projects, which includes 8% development fees and capital gains associated with the % ownership of the projects through the Joint Ventures.
Last year they made 0.25/share. That doesn't include the Pearson project who's fair value wasn't yet realized on the income/balance sheet and who's fair value adds another $49M of equity before minority interest or 0.18-0.19 of earnings/equity to CIBT shareholders. This company works similarly to BAM in that it takes outside money through partnerships, charges a management fee, invests into real assets, and realizes profits through eventual sales, and cycles profits into other opportunities.
All the debt is mortgages owned through the limited partnerships. The actual debt to capital before minority interests is normal in real asset financing and not actually very high, especially if you consider the unrealized gains, the cash, etc.
What's more, it's pretty easy to look to the projects they have, and estimate earnings, management fees, etc and come up with a reasonable forecast.
I don't know if your comment was referring to MBA as a mistake, but I encourage you to read the annual report vice relying on numbers on the Bloomberg terminal. In my opinion, this is a hidden jem.
Last year they made 0.25/share. That doesn't include the Pearson project who's fair value wasn't yet realized on the income/balance sheet and who's fair value adds another $49M of equity before minority interest or 0.18-0.19 of earnings/equity to CIBT shareholders. This company works similarly to BAM in that it takes outside money through partnerships, charges a management fee, invests into real assets, and realizes profits through eventual sales, and cycles profits into other opportunities.
All the debt is mortgages owned through the limited partnerships. The actual debt to capital before minority interests is normal in real asset financing and not actually very high, especially if you consider the unrealized gains, the cash, etc.
What's more, it's pretty easy to look to the projects they have, and estimate earnings, management fees, etc and come up with a reasonable forecast.
I don't know if your comment was referring to MBA as a mistake, but I encourage you to read the annual report vice relying on numbers on the Bloomberg terminal. In my opinion, this is a hidden jem.
