RE:RE:RE:RE:RE:NCIB RENEWAL DEC 17JMOTTAWA
You asked elsewhere what I thought about this outfit.
I have not studied it deeply.
It is an outlier in that it seems to have no category focus and ir has an
ongoing storewide sale. Every asset is for sale at the right price.
Currently assey mix is;
Offices 48% (84% occupancy)
Retail 20% (92% occupancy)
Industrial 32% (97% occupancy)
Plus
It owns shares in other companies.
Payout is 6.5% or so. This is good.
The strategy of the company is unusual
Our March 2021 announcement highlighted our focus on growing our net asset value (“NAV”) per unit and distributions through value investing. There are three pillars to this strategy: 1) strengthening the balance sheet through accretive dispositions, disciplined unit buybacks and debt reduction; 2) driving organic growth through development of our assets; and 3) investing in mispriced, misunderstood, or mismanaged assets or companies, including REITs. In each aspect of this strategy, we have exceeded expectations over the past 12 months.
We closed 2021 with a NAV per unit of $17.37, representing an increase of $2.34 or 16% over the 2020 yearend NAV per unit of $15.03. Multiple factors contributed to this growth, including the monetization of certain assets above their International Financial Reporting Standards (“IFRS”) values, the increase in overall value of our portfolio of properties and the repurchasing of units through our normal course issuer bid.
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The discount to NAV is currently about 37% according to analysts or about 45%
accrording to their own slightly optimistic cap rate assumptions.
On the surface
** the unit price is very cheap
** it could get taken out or it could sell all Industrial or all retail or all Offices.
** its strategy could lead to a bit of helter skelter activity however so far the
company has shown discipline.
I will poke into it more deeply and I might buy some
mat