tag:blogger.com,1999:blog-2149523431587168680.post3196305127334204731..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: Maui Land and Pineapple, a case of cheap assets depending on where you sit in the capital structure.Nate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-2149523431587168680.post-52083201828816669272018-04-10T21:27:27.960-04:002018-04-10T21:27:27.960-04:00Call Kaanapali Land LLC (KANP) as they have some r...Call Kaanapali Land LLC (KANP) as they have some real nice lots for sale in their Coffee Farms development (www.kaanapaliland.com). hurtrhinohttps://www.blogger.com/profile/00336343326098810348noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-52718790493602270122018-03-31T10:08:11.942-04:002018-03-31T10:08:11.942-04:00I am very interested in purchasing an acre from th...I am very interested in purchasing an acre from these people. How do I and get a hold of Maui land and Pine and or who would I speak with I have cash on hand and I mean Cold Hard Cash. Right now I own a home outright in Maui Meadows I have no loans no credit just cash that's all I believe in and I would love to own piece of the property so please I'm dead serious I am this is no joke thank you.Kristyhttps://www.blogger.com/profile/00356290252547021009noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-46404276596847870142017-11-01T05:39:11.047-04:002017-11-01T05:39:11.047-04:00Your blog is extremely brilliant especially the qu...Your blog is extremely brilliant especially the quality content is really appreciable.<br /><a href="https://www.heatbud.com/post/business-zone-how-to-use-seo-in-search-engine-optimization-service-in-internet" rel="nofollow">compare hotel prices website </a>Anonymoushttps://www.blogger.com/profile/12608076821937306194noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-68466231463294071852017-09-07T02:16:52.779-04:002017-09-07T02:16:52.779-04:00Any comments on the 2010 land claims that MLP does...Any comments on the 2010 land claims that MLP does not own some 13,000 acres of land it claimed? <br /><br />https://mlpcaught.wordpress.com/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-2059138357191774142017-07-11T11:47:58.463-04:002017-07-11T11:47:58.463-04:00This is all very insightful, have there been any r...This is all very insightful, have there been any recent updates to this? Dannoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-42425613997789698862016-06-01T23:15:50.661-04:002016-06-01T23:15:50.661-04:00Nate, the below link outlines my thesis for MLP if...Nate, the below link outlines my thesis for MLP if you're interested: <br />https://medium.com/@svafier/maui-land-pineapple-588572aff407#.uf6gr6ndfStevehttps://medium.com/@svafiernoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-25579874583895885032016-01-15T11:37:38.350-05:002016-01-15T11:37:38.350-05:00Steve is right. If Steve Case wanted to steal the...Steve is right. If Steve Case wanted to steal the company, he would have done so by now. I would also add, I actually think his involvement makes this stock much more attractive than a lot of other land companies, where management can drag things out and keep reinvesting proceeds from real estate sales into new deals regardless of attractiveness to extend their employment. Most such companies trade a discount to their asset value for this reason. Arguably should not be the case here.<br /><br />Management here actually seems quite sensible and smart, but Steve Case having control gives some additional assurance that the company is truly aligned with shareholders.<br /><br />I would also note that Steve Case is from Hawaii. He was born and grew up in Honolulu and went to the private Punahou School (where Pierre Omidyar and President Obama went) and has donated to a lot of local causes (including $10mm to Punahou for a middle school named after his parents). That may provide some additional comfort in his stewardship of the company, and I think it probably helps the company manage the local politics involved in land development.<br /><br />The land within the Kapalua Resort area (800-900 acres) is already fully entitled with specific development plans. Existing single-family homes on quarter acre lots within Kapalua are selling for $2.5-3mm each. Getting land entitled in Hawaii is notoriously difficult (the film The Descendants shows the local politics involved), which also helps keep supply limited.<br /><br />Full disclosure: I also own MLP and may be biased.Rajhttps://twitter.com/RajYerasinoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-13393171070147924662016-01-15T07:38:17.142-05:002016-01-15T07:38:17.142-05:00Nate, I think you may be missing a few key element...Nate, I think you may be missing a few key elements of the story here. In terms of the debt maturities there are a few other options outside of bankruptcy protection or distressed real estate sales. <br />1. Refinance / push out maturities: They have done this in the past (May 2014) and you allude to this in the post. Agree if they go this route they may get squeezed for higher interest rates but the incremental $1-2m should have a minor impact in the scheme of things. However, the environment for high yield has gotten significantly worse so perhaps they are unable to refi this time. <br />2. Rights offering: Steve Case (63% equity owner) will not let the banks steal the assets for $40m. Absent a refinancing, I believe the company will do a rights offering. They have done these in the past to restructure the balance sheet (yes, they came out of the 08-09 recession in very bad shape and have been restructuring ever since). I believe the most recent rights offering was in July 2010. <br /><br />I think the biggest risk is that Steve Case tries to seize value for himself at the expense of minority shareholders. He could do this through a loan or an equity offering to refi the debt but it seems unlikely given the reputational headwinds he would face and more importantly, his history of acting in the best interest of all MLP shareholders. Since he took control of the company in 2010 he has made significant progress on behalf of shareholders. He (and the management team he hired) have acted methodically trying to be as efficient with capital as possible. In fact, this prudence may turn out to have been a mistake since the environment in Maui recovered with such vigor that an unconstrained balance sheet would have allowed them to develop for this cycle. In any event, here are a few asset sales Case has overseen:<br />1. Sold 244 acres at Lipoa Point to the State of Hawaii for $19.8m. This land had zero development rights and would have taken decades to receive those entitlements. Instead they negotiated with the State who wanted to own this land for preservation purposes. Seems to have been brilliant negotiating by using the proceeds to fully fund the unfunded pension obligation. The State gets to claim a win by preserving the land and helping retirees and MLP monetizes an asset for a very full price. <br />2. Sold a 25 acre golf academy for $12m to TY Management (Tadashi Yanai of Fast Retailing – one of wealthiest people in Japan). Again, a very full price for a property with zero development rights and the sale took place just a few months ago. TY Management owns the Kapalua Golf course and it appears they wanted to use the academy as temporary tee boxes as they renovated some of the course. Seems to be a great deal for MLP as they monetized an asset with no development rights for a price that implies full development rights. <br /><br />In both instances it appears MLP was taking advantage of constrained counter parties, not the other way around. Obviously that can change at any time. <br /><br />Full disclosure: I own MLP and am therefore very biased<br />Stevehttps://twitter.com/svafiernoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-61066145766404934982016-01-15T00:44:22.618-05:002016-01-15T00:44:22.618-05:00An update is probably required to this. The 63% o...An update is probably required to this. The 63% owner is Stephen Case, former AOL exec. This is starting to look like a rich person's playground that is coincidentally traded. No wonder they don't care about shareholder returns, too worried about making sure they have enough golf courses.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-10916340315425739952016-01-15T00:40:36.295-05:002016-01-15T00:40:36.295-05:00I agree, considering the facts prudent management ...I agree, considering the facts prudent management would dump 2% of their holdings, retire the debt and operate debt free. The leasing business seems to provide enough cash flow to cover expenses.<br /><br />The problem is they want to be a public company and show public company earnings. To do that they either need leasing scale (potentially not possible) or they need to continually hive off some of their land.<br /><br />The land is valuable, but as you say management has squandered an incredible asset.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-85875435777520686302016-01-15T00:38:59.544-05:002016-01-15T00:38:59.544-05:00Correct, many companies face refinancing risk. Bu...Correct, many companies face refinancing risk. But most companies don't stack all of their debt to mature at the same time. Maui Land and Pineapple has set themselves up for a situation where the banks have the most leverage. They can either demand higher rates or force the company into selling land. The majority of the company's revenue is from land sales, they don't have much else.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-15040176882860054982016-01-14T12:38:07.433-05:002016-01-14T12:38:07.433-05:00"The company will either need to refinance th..."The company will either need to refinance their loans or sell a considerable amount of real estate..."<br /><br />Even at $100k / acre, they would have to sell "only" 400 acres to cover $40M, or just under 2% of their holdings. While time may not be a luxury, it seems like they could split up that sale a bit as well to get a better price ($100k / acre on Maui is a song).<br /><br />The real risk here seems to be that the management sucks at their jobs (picking profitable ventures) and will repeat this cycle, slowly bleeding off valuable assets without the shareholders having anything to show for it. <br /><br />"Is this company a constrained counter party in any way?" is definitely going on my investment checklist.Davidnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-13804329666270957852016-01-14T11:39:15.638-05:002016-01-14T11:39:15.638-05:00Nate, absent refinancing many companies would go b...Nate, absent refinancing many companies would go bankrupt. If the value is there a bankruptcy with liquidation could be best for shareholders.Martinhttps://www.blogger.com/profile/08749838473979475080noreply@blogger.com