Hi, Nick. A lot of info in this 10-Q (not K). I wasn't happy to learn that the Usufruct Agreement (UA) has not yet been signed and registered. I was under the impression that would happen within days of the DA signing. So be it, not a show stopper nor is it slowing anything down as it will be done shortly.
But there is very promising info near the end of this document. Specifically, management is working on a fast track strategy and a couple of ways to get that to happen sooner rather than later. Key is to get the Financing Agreement Date to occur. I see the logic in providing a loan to LLC asap which would trigger said date and therefore the movement of $69m into LLC. That would add ~ $2.60/share to book value. Which essentially gets book value to where today's market value is.
I'd prefer that we didn't sell any of LLC to outside investors, but if that's what it takes to get the ball rolling, then so be it. It's one of several options they're looking at.
The land valuation looks like it will be done before year end ... I can't imagine it being a difficult thing to do and I wouldn't be surprised if a lot of data points haven't already been collected to aid in this endeavor. Once the value has beenn agreed upon, the land will be booked "...as a non-cash capital investment by RCA into LLC." Assuming it's valued at a minimum of $700m, that adds another $26/share to book value and, TO THE EXTENT THE MARKET RECOGNIZES THIS INCREASE, earns a friend of mine an expensive and free dinner. To be clear (I am now speaking directly to my friend), the stock price has to reflect (within reason) the book value before said dinner can be executed. We'll call it the "Dinner Execution Date" in keeping with Omaginese financial reporting!
I would expect management would be very incentivized to get this done by year end so it's reflected in the annual report (10-K).
So, all-in-all, very positive news. Now let's see how the execution goes during the next few weeks.
