Capital Keeps Fallin on My Head
January 22nd, 2007 by
Senior Editor: Jeff
Sam Zell sent out a Christmas card this year. Who's Sam Zell? He manages Equity Office Properties Trust. What's that? Well, dear reader, they own and manage office properties. And there is currently a battle going on to acquire it, with bids up to $37 billion (that's 22 times earnings). For a real estate investment trust. At 22 times earnings. For less than 5% return on cash flow.
His latest Christmas card is quite entertaining, and quite interesting. See it here at www.yieldsz.com. It is to the tune of Raindrops Keep Fallin on My Head.
"Liquidity abounds…
The ratios we're used to have been squeezed by too much cash flow… "
