Tuesday, May 7, 2013

Real estate investment trust GYPO

Gyrodyne Co. of America Inc. (GYPO)

  • company profile
                 Gyrodyne Company of America, Inc., a real estate investment trust (REIT), engages in the investment, acquisition, ownership, and management of a portfolio of medical office and industrial properties in the northeast region of the United States. It is also involved in the development of industrial and residential properties. The company focuses on acquiring, developing, owning, leasing, and managing medical, commercial, and industrial real estate. As of March 31, 2012, it had 100% ownership in 3 medical office parks comprising approximately 131,000 rentable square feet; and 1 multitenant industrial park consisting of 128,000 rentable square feet, as well as approximately 68 acres of property in St. James, New York. The company has elected to be taxed as REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income tax purposes, provided that it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1946 and is headquartered in St. James, New York.

                  In a word, this company invest on real estate in the northeast region of the United States. leasing, owning, managing real estate will make profit for this company. cons: no income tax, so high return to shareholders

  • key statistics and main competitors                
Valuation Measures
Market Cap (intraday)5:108.35M
Enterprise Value (May 8, 2013)3:20.06M
Trailing P/E (ttm, intraday):1.09
Forward P/E (fye Dec 31, 2014)1:N/A
PEG Ratio (5 yr expected)1:N/A
Price/Sales (ttm):21.92
Price/Book (mrq):1.69
Enterprise Value/Revenue (ttm)3:4.02
Enterprise Value/EBITDA (ttm)6:-4.35
note: low P/E value of 1.09

Direct Competitor Comparison
Market Cap:108.35MN/A2.46B19.83BN/A
Qtrly Rev Growth (yoy):-0.12N/A0.010.010.00
Revenue (ttm):4.99MN/A710.49M2.06BN/A
Gross Margin (ttm):0.54N/A0.590.710.00
EBITDA (ttm):-4.61MN/A374.05M1.22BN/A
Operating Margin (ttm):-1.16N/A0.260.240.00
Net Income (ttm):99.05MN/A30.33M-62.98MN/A
EPS (ttm):66.80N/A0.31-0.05N/A
P/E (ttm):1.09N/A90.42N/AN/A
PEG (5 yr expected):N/AN/A8.35N/AN/A
P/S (ttm):21.92N/A3.439.60N/A

Pvt1 = LeFrak Organization Inc. (privately held)
CLI = Mack-Cali Realty Corp.
PLD = Prologis, Inc.
Industry = REIT - Office

From the comparison to competitor, the cap of GYRO is tiny, only 8 employees, and the EPS reached as high as 66.80. 

  • financial  analyzes

Income Statement
View: Annual Data | Quarterly DataAll numbers in thousands
Period EndingDec 30, 2012Dec 30, 2011Dec 30, 2010
Total Revenue4,989  5,520  5,551  
Cost of Revenue2,308  2,347  2,219  
Gross Profit2,681  3,172  3,332  
Operating Expenses
Research Development-  -  -  
Selling General and Administrative7,575  1,892  2,261  
Non Recurring-  -  -  
Others900  876  804  
Total Operating Expenses-  -  -  
Operating Income or Loss(5,794)404  267  
Income from Continuing Operations
Total Other Income/Expenses Net167,457  (332)(108)
Earnings Before Interest And Taxes161,663  73  159  
Interest Expense966  1,197  1,132  
Income Before Tax160,697  (1,125)(972)
Income Tax Expense61,649  -  109  
Minority Interest-  -  -  
Net Income From Continuing Ops99,048  (1,125)(1,081)
Non-recurring Events
Discontinued Operations-  -  -  
Extraordinary Items-  -  -  
Effect Of Accounting Changes-  -  -  
Other Items-  -  -  
Net Income99,048  (1,125)(1,081)
Preferred Stock And Other Adjustments-  -  -  
Net Income Applicable To Common Shares99,048  (1,125)(1,081)

Comparing the annual report for the last three years, from 2010 to 2012, the gross revenue is keep decreasing, but the Net income from Continuing options in 2012 rapidly increased to 99,048. The raito of net income/gross revenue make this income suspicious.

  • overall evaluation
        I am not confident with GYPO's income statement. The real estate is recovering, but GYPO is going to face competition from other big companies who own more resources. In the real estate field, capital and money rule the game. So I am short GYPO.  

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