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

Re: A couple things to consider here

[garyreins]

Assuming the strategic review isn't intentionally a facade to appease investors in the short-term, then it is my belief it was done so not 'to determine the best way forward', but for a drastic change from the current strategy reflected in his business transformation plan/letter to investors.  This existing strategy includes GBV targets via dispositions, accretitive buybacks, and public securities (the latter which Im sure he realized backfired immensely).  There is also no recalbiration of Manji's 'timeline' he gave himself, as he now fully depends on a  favorable macro-environment to be successful, and that is unpredictable.

Therefore it is my belief that he is attempting to slice and dice the REIT to one or multiple buyers hoping he can come out with $10-12 range.   Possible or not we have to believe that his his goal and intention here.  Mr Manji clearly has a much better insight into the transactional volumes and interest in properties then we do, so if he called this review knowing the probability of success was low, and wastes 3-6 months only to stay on the same path, then as InvestSmarter has said, he would have failed at literally everything he set out to do.

GLTA

Gary Reins

[DZtrader]

Well by its very nature, as I have said a number of times here, the "review" is exactly that. It is to review what strategic initiatives are available to them then make an assessment of which IF ANY, makes the most sense going forward. There always exists the possibiltiy that they determine there are no avenues currently available to them that make economic sense beyond that of strategic

[garyreins]

Correct, he has painted himself in a corner so to speak.   That being said while getting a great price to sell to one buyer seems unlikely, I do believe they have avenues to bring the unit price a few bucks which may come by selling the entire industrial or retail portion of the reit, improving their debt to GBV to 40% or under, and funding a SIB.  If nothing else it will prime the

[jmkOttawa]

He hasn't painted himself in a corner at all. Not sure why you would say such a thing. The stated intentions are clear and any speculation that you may have is just that. Pure speculation.

[DZtrader]

"If nothing else it will prime the REIT to be sold at a later day or when the macro-improves." If and when conditions improve, why would anyone even consider a sale? Thats when you run a reit, that's the reason you exist as a reit. Sell, ya I guess, when you are grossly over valued. That won't be happening for awhile. In fact, why even consider a sale here now?? Makes no sense

[EstevanOutsider]

I think he should do just enough to eliminate another year of floating rate debt and have enough to run another full buyback. That would be epic. No need to sell the entire REIT or divisions of the REIT given the cyclical top of interest rate cycle is very likely in with cuts in 1H of next year.

[DZtrader]

Agree 99%, doh!

[garyreins]

In a very optimistic scenario Artis can rebound to $10 by Dec 2024, if in fact the central banks begin cutting.  While rates may have peaked the higher for longer is now driving the narrative and I see big reluctance by any central banks to cut while inflation remains above target.  Therefore, if Manji can take a shortcut and get $10 right now, why not go for it.   There's

[DZtrader]

There are a host of factors that influence rates both ways. The Fed will portray their somewhat hawkish stance although if you watch carefully you will see they are suptly now starting to move off  of this stance with a number of members outright saying we are there. Higher for longer, sure, for the time being. If and when the labor market starts to roll over (and it will) all bets are off

[jmkOttawa]

Love your sense of humor!! :)

[babybunny]

I agree completely.  It would be a crying shame to miss out on the NCIB while the unit price flounders in the 6's.   That being said, each week that goes by without any disposition worries me.  It will be a great relief if we see a decent slug of cash come in this quarter.   Baby Bunny