Artis Real Estate Investment Pref Shs Series E T.AX.P.E

RE:RE:artis versus hr

[Frankie10]

All great points. I would however disagree with your last point regarding cost of equity implied by dividend yield. For the same reason you illustrate above regarding valuation - you cannot look to the distribution/dividend given it is descretionary in nature - you should look to the underlying of the dividend which is FCF. Same with cost of equity - no Valuator should use dividend yield as proxy for cost of equity. When determining cost of equity, one should look to enterprise risk and total expected return to equity owners. For example, Google's cost of equity is not nil, and Dream Office's cost of equity has not been reduced along with its "dividend cut".