Colony Credit Real Estate (CLNC) could provide an extremely attractive shareholder return if the adverse impact of previously identified credit issues is fairly reflected in the financial statements.
CLNC remains significantly cheaper than peers based on book value.
However, those peer premiums have been earned through steady performance. CLNC failed to meet the expectations it provided for rising core earnings and failed to quickly address the known valuation issues in its portfolio. The share price is likely to remain depressed until it delivers a reliable book value and earnings. If improvement is not