RE:RE:RE:RE:RE:WHY WAS THIS TURD UP SO MUCH TODAY
SNAKEYBOY wrote:
They are forking over $ for the strategic review, wonder if that is going to yield anything
I gotta be honest, I'm not too worried about that, I see it quite often from many companies in several industries, it actually isn't really a bad thing for us investors other that it seems like a waist of cash.
Usually this means management is looking at a change of direction, weighing options or looking for a better way, and these reviewers are gonna compare, give ideas and report suggestions of how to better manage, utilize our optimize our funds which is a positive thing. What we are gonna see if a very bare bones summary of the report, but I'm sure what management sees is very indepth. Optimally the results of the review is that the direction path is correct and here are a few suggestions to help it out, worst case is a large report suggesting change of direction and finding problems, those are usually very expensive for transitioning and take several quarters to see results from.
A few years ago we had a large core change and instead of being more broad owner of select properties across Canada, they narrowed the focus to 3 core markets with interest going to a specific size and type of property. The idea being optimizing a focused strategy, but I kinda feel it painted us into a corner too by reducing investment options. Also in that shuffle it seemed like we divested more properties than we acquired and that's shown by the dividend reduction on less income from a smaller portfolio (not including the pandemic based reduction)
Year over year the numbers have seemed good and strong from what we own compared to some things we divested from in my memory (I believe our occupancy rate at one time was mid-high 80s, with a building in Winnipeg being a drag, but the rent from what was occupanied was good it just a struggle to keep occupancy up to maximize the location's investment), but payout comes from income and if the incomes lowered the payout must fall too, you can only squeeze so much juice from a lemon and we have been keeping our lemons pretty tight lately (pre-Covid)
My main concern is this is not the company strategy or payout I bought for several years ago that excited me, but I've held on to see if this was a better direction. I now don't feel I'm on board with this direction as I don't see it offering me what I'm looking for myself. Also, I believe I should have purchased this in a TFSA not a taxable account which is a mistake I feel I made.