Iris/Cominar Whoever owns the Iris preferred units owns Iris, and therefore Cominar.
We do not know what % of the Iris preferred units we (Artis) own.
I have asked and have been refused an answer.
"In addition, the REIT acquired junior preferred units of Iris for $100,000. The junior preferred units have a rate of return of 18.00% per annum, are redeemable by Iris at any time and are redeemable by the REIT commencing on March 1, 2025. Distributions on the junior preferred units are paid quarterly in cash, or at the election of Iris, in-kind through additional junior preferred units."
Until presented with more information, my base case is Iris undergoes a reorganization on or before March 1, 2025, whereby preferred units will be converted to equity (because preferred units can trigger a redemption that Iris would not have the cash to fulfill). It is my estimation, barring rate cuts and a reversal of the real estate valuation trend, that whoever owns the Iris preferred units at that time will then own all, or nearly all of the equity in Iris and therefore Cominar (because the face value of the preferred units continues to grow as interest is paid in kind through additional units at a rate of 18% per annum).