Merkado Barkada
November 18, 2024 | 12:05pm
DoubleDragon [DD 9.71 ?2.2%; 8% avgVol] [link] revealed that it intends to list its warehouse REIT subsidiary, CentralHub, “in the second half of 2025”. DD said that it expects interest rates to continue declining globally and that DD would list CentralHub “once the cap rates go back to 5 to 6% level.”
MB BOTTOM-LINE: DD’s earnings were flat, so this was the big pull quote for most of the media hits related to the DD earnings press release. The only problem? It’s basically the exact same thing (literally a cut and paste) DD said back in 2023. I think it’s fair to say that we’re closer to the cap rate environment DD is looking for to trigger its listing, but I caution anyone from making investment decisions on what DD might do with CentralHub. They’ve teased the market with this carrot many times before. Remember how the group teased injecting these CentralHub assets into DDMP [DDMPR 1.03 ?1.0%; 93% avgVol], back when DD was promoting the DDMPR IPO? DDMPR IPO buyers remember. I remember.
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