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

RE:RE:What to Expect

[Frankie10]

I have said for the purpose of my personal valuation calculations, I had the pref shares of Iris worth par, and for simplicity I was writting off the total equity in Iris ($130M as at Q1).

It's important to note, we don't directly own Cominar - we own Iris, which is simply Cominar loaded with LOTS of additional debt.

Since I made these comments, I have noted Cominar publishes public financial statements. Based on the Q1 sales activity and notes regarding future sales - subsequent event sales and that all assets held for sale have sale agreements (just haven't closed). I have held my tongue and stated I will give it a true deep drive once Artis and Cominar release Q2 earnings.

That said, my rationale prior to reading Cominar Q1 finanicals and MD&A was based on:

a) the inability to monetize virtually any assets in Cominar as the fair market value of the assets and equity fell quarter after quarter after quarter (how can anyone have any confidence in IFRS values given this trend?); and

b) free cash flow from Iris (including interest on prefs) was negative quarter after quarter after quarter - can't attribute any value to equity using any discount rate for negative cashflow. Therefore, for simplicity I assumed prefs incl. prefs received in-kind, in leiu of cash interest, would be repaid (worth par) and equity of Iris would be virtually worthless (because prefs out-rank equity).

As I said, I will dig into this after Q2 financials are released. I don't care to speculate this close to eanrings, but I promise I will share my thoughts.