Latest news with #MasterLease
Mint
28-05-2025
- Automotive
- Mint
Gensol Engineering subsidiary taken to Delhi high court over leased EVs
New Delhi: Gensol Engineering's subsidiary, Param Renewable Energy, has been taken to the Delhi high court by electric vehicle lessor SMAS Auto Leasing India Private Ltd. The petition sought the appointment of a court-appointed receiver to take custody of the vehicles. SMAS Auto also asked the court to direct the company to disclose, via affidavit, all movable and immovable assets, including bank accounts, they own or have an interest in, as per the petition, which was reviewed by Mint. In addition, SMAS Auto has urged the court to direct Param Renewable to disclose the current locations of the leased EVs. 'Issue an ex-parte ad-interim injunction restraining the Respondents from alienating, transferring, or encumbering their assets in any manner prejudicial to the petitioner's interest pending the hearing and final disposal of the arbitral proceedings, and until the execution of the arbitral award,' the petition stated. The plea noted that EVs are fast-depreciating assets due to their sensitive battery systems, which require ongoing maintenance and regular use. Prolonged inactivity, exposure to extreme heat, and a lack of monitoring, it says, significantly increase the risk of permanent battery damage and complete asset devaluation. The lessor added that it was unaware of the location or condition of the EVs, leaving it exposed to liability for any incidents involving the vehicles while they remain under Param's control. 'Pass an order directing the Respondents to disclose on affidavit all their respective movable and immovable assets, including bank accounts which are owned by them or in which they have any rights or interests,' the plea also states. SMAS Auto is seeking a court directive requiring Param Renewable to deposit ₹ 19.22 lakh in outstanding lease rentals and service charges, along with ₹ 3.77 crore as the foreclosure value following the premature termination of the lease agreement. The dispute stems from a Master Lease Agreement dated June 22, 2022, under which 62 EVs were leased to Param Renewable and fleet management services were to be provided. A deed of guarantee dated 28 June 2022, was also signed by Param's directors—Anmol Singh Jaggi and Puneet Singh Jaggi—offering an unconditional personal guarantee for all payment obligations under the agreement. According to the plea, Param defaulted on several lease payments despite receiving regular invoices this led to approach the court. The Delhi high court is expected to hear the latest petition on Thursday. Param Renewable Energy, established in 2019, is a prominent subsidiary of Gensol Engineering Ltd., specialising in third-party Operations and Maintenance (O&M) services for renewable energy assets. This case follows an earlier court order dated 7 May, in which the Delhi high court directed the seizure of 164 EVs leased by SMAS Auto to Gensol Engineering. The current petition marks the sixth such legal action in less than four weeks. The total number of EVs leased to Gensol and BluSmart that are now under judicial protection has risen to 698. Separately, on 22 May, the Debts Recovery Tribunal (DRT)-III, Delhi, directed Gensol Engineering Ltd and its subsidiary Gensol EV Lease Pvt. Ltd to maintain status quo on their secured assets and vehicles, following petitions by state-run lenders—Indian Renewable Energy Development Agency (Ireda) and Power Finance Corp. Ltd (PFC)—seeking recovery of dues totalling approximately ₹ 992 crore. On 16 May, the National Company Law Tribunal (NCLT) issued a notice to Gensol Engineering Ltd on a ₹ 510 crore insolvency plea filed by Ireda, alleging fraud and default in loan repayments.
Yahoo
26-05-2025
- Business
- Yahoo
AGNC Vs STWD: Which mREIT Has Stronger Income Potential?
AGNC Investment Corp. AGNC and Starwood Property Trust, Inc. STWD are two of the known names within the mortgage real estate investment trusts (mREITs) industry. Both offer favorable long-term stockholder returns and a massive dividend yield. But which one offers the better opportunity for investors right now? Let us break down the strengths, risks and growth potential of AGNC and STWD. AGNC Investment adheres to an active portfolio-management policy, which includes re-evaluation and adjustment of its portfolio, as well as hedges amid a varying interest rate and mortgage market environment. The company is operating in a more defensive position with significant hedge protection due to market volatility. Over the recent quarters, the company has made pronounced efforts to reposition its portfolio to offset risks related to interest rates and prepayment uncertainty. As of March 31, 2025, the company maintained a significant interest rate hedge position, which covered 91% of the outstanding balance of its Investment Securities Repo, TBA position and other debt. Such prudent asset-selection efforts may offer greater stability of cash flows and bode well for long-term growth. The Government-sponsored enterprise guarantee for the principal and interest payments makes Agency mortgage-backed securities MBS a safer investment choice. Spread widening and mortgage market volatility affected existing Agency MBS investments' performances. Nonetheless, the long-term investment outlook for the company's new Agency MBS is with $77.9 billion of Agency MBS in its investment portfolio (as of March 31, 2025), AGNC Investment is expected to enjoy attractive risk-adjusted returns within the fixed-income markets. The company enjoys a decent financial position. It has solid access to attractive funding across a broad spectrum of counterparties and financing conditions. As a result, it has flexibility in the opportunistic enhancement of its portfolio. As of March 31, 2025, AGNC Investment's liquidity, including unencumbered cash and Agency MBS, was $6 billion. The company's leverage increased modestly to 7.5X at the end of the first quarter (from 7.2X in the prior quarter). It has a long-term debt of $62 million as of the same date. Starwood Property is a leader in investing in commercial mortgage-backed securities (CMBS) and related commercial real estate assets, with a diversified portfolio of $1.02 billion as of March 31, 2025. This allows it to generate stable income streams while capitalizing on market opportunities. The company's asset management expertise and ability to navigate the complexities of the CMBS market contribute to its strong market position and growth potential moving forward. Starwood Property has been actively engaged in acquisitions and divestitures to optimize its portfolio. In February 2024, the company sold 16 retail properties in its Master Lease Portfolio for $387.1 million, recognizing a gain of $92 million. Additionally in 2024, it sold an operating property within its Real Estate Investment and Services Equity Portfolio for $18.2 million, with an increase of $8.3 million, reflecting continued portfolio optimization. Also, the same year, the company also sold residential units in a New York conversion project, totaling $12.1 million in proceeds, though with no gain or loss recognized. Meanwhile, there were no significant acquisitions recently, aside from properties acquired through loan foreclosure. This strategy of selective sales and reinvestments supports the company's ongoing focus on enhancing its portfolio. However, Starwood Property's weak liquidity position is concerning. As of March 31, 2025, the company had cash and cash equivalents of $692 million. Its long-term debt was $18.4 billion. This is likely to be concerning if the macroeconomic situation worsens. In the past year, shares of STWD and AGNC have risen 13.6% and 6.3%, respectively, compared with the industry's growth of 1.9%. Image Source: Zacks Investment Research In terms of valuation, Starwood Property is currently trading at a 12-month forward price-to-earnings (P/E) of 10.55X, lower than its five-year median of 10.56X. Then again, the AGNC stock is currently trading at a 12-month forward P/E of 5.39X, which is lower than its five-year median of 5.47X. Image Source: Zacks Investment Research AGNC Investment is trading at a discount compared with the industry average of 7.78X, while Starwood Property is trading at a premium. Hence, AGNC is a better choice for value investors. Both companies regularly pay dividends. AGNC Investment has a dividend yield of 16.29%, whereas Starwood Property has a dividend yield of 9.83%. AGNC has a higher dividend yield than the industry's average of 11.29%. Here, also, AGNC Investment holds an edge over STWD. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AGNC Investment's 2025 and 2026 earnings has been unchanged over the past week, indicating stability in analyst expectations. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research The Zacks Consensus Estimate for Starwood Property's 2025 and 2026 earnings has been revised downward over the past week, suggesting a more cautious outlook from analysts. Image Source: Zacks Investment Research AGNC Investment's exclusive focus on Agency MBS, backed by government-sponsored enterprises, creates a highly secure income stream. The principal and interest payments on these securities are effectively guaranteed, making its portfolio less prone to credit risks than Starwood Property's commercial CMBS and broader commercial real estate debt investments. AGNC's management is highly proactive, evidenced by a hedge position covering 91% of its exposure as of March 31, 2025. This aggressive hedging strategy significantly reduces interest rate and prepayment risks, which are critical for mREITs. Meanwhile, STWD's risk profile is higher, with earnings sensitive to commercial real estate market dynamics, including commercial loan performance. AGNC Investment offers a stunning dividend yield that is substantially better than both Starwood Property and the mREIT industry average. This outsized yield is a compelling draw for income-seeking investors. While STWD has delivered stronger price performance over the past year than AGNC, much of this growth is priced in and future growth may be constrained by the uncertain commercial real estate market. Conversely, AGNC Investment offers consistent cash flows from its Agency MBS portfolio, and maintains ample liquidity and hedging to support long-term growth. At present, AGNC Investment carries a Zacks Rank #3 (Hold), while Starwood Property carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report STARWOOD PROPERTY TRUST, INC. (STWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
