TSX:AX.PR.E - Post by User
Comment by
Frankie10on Aug 05, 2023 1:40pm
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Post# 35574908
RE:RE:RE:RE:Dear Mr. Manji
RE:RE:RE:RE:Dear Mr. ManjiI'd have to say I'm in the badbunny camp.
On a positive note that I hope we can all agree on - the Artis portfolio continues to perform very well, which I'm sure is a relief to all here... leasing is strong and SPNOI is positive in CAD and on a same currency basis.
Like Reece, I'm prelexed that we did not sell more assets nor reload the held for sale...
My thoughts to add to the conversation - I would sell the entire retail portfolio, inlcuding FCR - everything that is standalone retail leaving the only remaining retail being ground floor of specific office buildings...
This would free up $680M less any mortgages on the properties, almost exactly what I think is required to fundamentally fix Artis at the enterprise level.
Rationale - there are so many Canadian retail REITS, with significantly much higher quality and scale - this component in our portfolio makes Artis no more attractive as an investment, imho.
This would also increase the % of the portoflio that is industral and office. Artis already has the highest industrual component of any diversifed CDN REIT - lean into it and make Artis a unique and high quality investment option for CDN REIT investors. Where Granite and Dream Industrial trade near NAV, this would become incredibly desirable for industrial expsoure at an attractive valuation.
FCR would be off our books, and Dream Office would fit in beautifully with the portoflio... and just like that - clarity for investors.
Once the credit facilities are significantlly reduced, rather than do a SIB, I would agreesivley increase the REIT's position in Dream Office with the ultimate intent of takeover. (retail asset sales pay down debt, FCR sales buy D).
...if my board said no to Dream Office given the stain of what Mr. Manji has done, I would cut distribution, then run a SIB once more than half way thorugh the retail disposition is complete, once the sr. unsecrued $250M debt is repaid and credit facilities continue to fall .