Analysis of CapitalSource: Part II
Dan Wieman submits:
Yesterday I began my analysis of CapitalSource with a look at CapitalSource Bank. CapitalSource (CSE) has a current market capitalization of under $500 million, yet CapitalSource Bank has a book value of $910 million. At year-end there were no delinquencies or non-accruals in the bank’s portfolio, though it had a good portion of CapitalSource’s reserves based mostly on their macro view of the economy. The bank appears to be worth every bit of its book value.
Another source of value for CapitalSource is its Health Care REIT. The health care portfolio consists of 180 nursing homes located across the United States. Each of these facilities is leased triple-net leased on a long-term basis. Total investments in this portfolio totaled $990 million at year-end. Mortgage debt on the portfolio was $330 million. Total equity in this portfolio is approximately $650 million.
