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

Unwind leverage and scale up

[Frankie10]

Samir is unwinding debt at the Artis level by selling assets. He is also increasing the scale of the business on a proportionate ownership basis... explained below:

Artis is selling assets at NAV to generate liquidity and  unwind debt at the REIT level.

 

In this environment - I would consider this: "selling high" -because…

 

Artis is then using a % of the proceeds to buy equities at meaningfully lower implied valuations.

This "swap" would be complete the sell high, but low gambit.
 

But alas, we should not forget - Artis is selling assets and buying equities - this is not an apple for apple swap...

 

By buying 2% of Dream Office equity, Artis purchased 2% of the assets - total assets being $2.7B. Meaning Artis bought $53M of assets... 

 

Considering how many dispostions have closed. I think he’s off to a good start. The math is fascinating.

I don't know what Samir has planned... but as I see it... this is no longer the REIT that exists on paper as at Q4 2023. The debt to GBV is down to ~35% and the business as I have detailed is scaling up in terms of assets... *should* Samir continues down the path of acquiring Dream Office.

We are all mere spectators... but I for one have my feet kicking up and my popcorn in hand. Masterclass. Carry on Mr. Manji.