Mike Muller's questions to Marti Technologies (MRT) leadership • Q3 2017
Question
Mike Muller from JPMorgan Chase & Co. sought clarification on the 0.9x fixed charge coverage for the Texas portfolio, asking if it was at the tenant level. He also asked if, in hindsight, any red flags from the original underwriting process would stand out today.
Answer
CEO John McRoberts confirmed the coverage was at the tenant level, specific to the ten facilities they own. Reflecting on the underwriting, McRoberts noted the main issue was that the management company was slow to recognize and address the operational problems. He emphasized it was a fixable management issue, not a systemic market problem. CFO Jeffery Walraven added that the original underwriting expected a quicker ramp-up to 1.5x coverage from the initial 1.3x, which has not yet been achieved.