Transcontinental Realty Investors (TCI), mcap=$392m, price $45.34 vs $40.5

TCI pitch:
– Multi-family real estate owner that trades at a 50% discount to its NAV.
– TCI’s BV/share is set to double to $89/share after the proceeds of the recent asset sale get reflected in the financials.
– The company will be flush with cash – $336m in total or almost equivalent to the current market cap of $350m.
– Additionally, there is the substantial incremental value from the MTM valuation of properties as well as land on the balance sheet.
– Controlling shareholder and external asset manager are a risk.

TCI valuation:
– Trades at a 50% discount to NAV.
– BV is set to double to $89/share compared to the current BV of $44/share or the $40/share market price.

Exp. gain: +100%

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