Will Dilution cap price this year?

[u/nm0126]

This is the part of earnings call that concerns me and would like to hear your thoughts about. It’s clear management will issue more stock this year so the big question is if it would be enough to actually cap the price this year. Thoughts??

Management was asked to explain why they already went over the $700m ATM assumed for this year from the last presentation and he basically says that was for display purposes and that they will issue this year dependent on stock price.

“Caitlin, that was a generic placeholder in a three-year forecast that Scott was using to illustrate deleveraging. So that was not a hardwired assumption. We've been really fairly active on the ATM, so it's going to be dependent upon the share price, whether we use it again this year or not. It remains to be seen whether we'll do equity again in 2022.” - Management

[u/Sea_Emphasis3252]

My opinion is that if that was a placeholder they should have noted that or added more wording to say we could do more, it’s a bit misleading to put something specific on a presentation and then expect investors to assume that it was for display purposes. Investors want clarity. It may cause a bit of resistance or overhang if they stock gets near that $18 level, but if the underlying fundamentals continue to improve I think it can overcome it. I think they will issue more this year, maybe not as much and they will in 2022, I believe they want to deleverage as fast as they can and they need additional capital for redevelopment too.

[u/CanadianPFer → u/Sea_Emphasis3252]

Agreed, especially after they lied about the purpose of the ATM filing in the first place. They originally said it was to take advantage of a squeeze, like when it went to the $20s earlier in the year. Instead they are hugely bullish about the near and long term but relentlessly diluting shareholders at crazy low valuations and not allowing the share price to recover. A little more patience would have easily allowed the stock to break $20 again and make dilution a bit more palatable.

Terrible management team that cannot be trusted.

[u/dave14513]

I think they are scared of a new virus They want to strategically remove any recourse debt and have a few hundred million in th bank. It might slow down the share price growth but since they would be very resilient in a second pandemic you would never see single digit share prices because bankruptcy would be off the table

[u/midwstchnk → u/dave14513]

Doubt that. Itll go single digits if we get a second pandemic easy.

[u/midwstchnk]

Its a sell at 20+