AlerisLife (ALR), mcap=$31m, price $0.95 vs $1.13

$ALR pitch:
– Potential multi-bagger upside.
– Real estate assets on balance sheet worth 5x-8x more than EV in private markets.
– Owner/operator of assisted living and independent living facilities.
– Part of the infamous $RMR / Portnoy family web with a track record of self-enrichment.
– Currently, RE assets are underearning.
– Not clear if and when management will decide to unlock RE value, but the margin of safety is very wide.

$ALR valuation:
– Owned & Operated units are set to generate $65m in annual revenue.
– At 30% margin (in line with peers) NOI would reach $20m. At 8-6% cap rates equity would be valued at $5.5-$8.1.

Exp. gain: 4.5x – 6.5x to $5.5-$8.1 per share.

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