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

RE:Net Asset Value Discussions

[Reece1986b]

Artis NAV is based on what are in my opinion stale appraisals which do not take into account these discounted prices on office properties. I think almost everyone here agrees that appraised values are fairly reasonable for retail and industrial properties but are wildly inaccurate as to what prices are necessary to move office properties in any reasonable timeframe. We will hopefully see more sales from Cominar this quarter. The Cominar stake (and preferred units) is starting to become increasingly material to whatever value Artis ultimately has. 

Unrelated to Artis however I thought this was an interesting article to consider as energy prices remain high and interest rates rise: https://www.zerohedge.com/markets/macleod-unwinding-financial-system

garyreins wrote: I would like to bring in light some discussions regarding offices listed for sale. 

"Looks like a 9.5% cap rate on the Arizona office"

"Artis is selling Iverness for $21 million ($50 million less than 2016 purchase price?). That's only $80 psf! Seems quite low"

Does their $16.20 NAV reflect these marked down prices? Probably not.  What about the BELL buildings, and other less-than-stellar office properties? Is Artis management acknowledging their NAV is artificially inflated, and now determined to have a liquidation strategy with the goal to come out with $12/13 a share in the near-term? It may appear so.

p.s. This is NOT snakeyboy. Please do not associate me with that vile creature! 

-gary