TSX:AX.P.E - Post by User
Post by
SNAKEYBOYon Sep 25, 2023 8:13pm
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Post# 35653614
10% office cap rate
10% office cap rateSeeking alpha gets a 13.3 nav by only suggesting office segment is impaired and used a distressed 10% cap rate. Imagine manji was able to sell office distressed for 10% cap rate and immediately funded a big SIB of 300m to get that nav back up to 15ish. He effectively deleveraged good, removed office, and nav basically unchanged. This would make him a legend. But is there a buyer for 1.3b in office at 10% cap? Not impossible though unlikely to one buyer
"On a distressed level, we could see a worst case of around a 10% cap rate on office. This is extremely unlikely but let us run with that. So if you blow out the cap rate that far, your $1.8 billion gross book value becomes $1.3 billion. Your total gross book value drops to $3.5 billion. "