TSX:AX.PR.E - Post by User
Post by
garyreinson Nov 04, 2023 3:46pm
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Post# 35717631
We need to look at this objectively
We need to look at this objectivelyIt doesn't matter what they *should or should not do. The mandate is clear. There is effectively 3 results:
1. SIB
2. Privitization
3. Sale to another REIT
Lets be clear, no amount of asset sales to pay down debt will make the SP appreciate more than $1 MAX. That's not a success. Breaking the REIT into pure plays is too much overhead and needs signfiicant resources to spin off a new reit company.
Therefore, 1 and 2 is by far really the only option. This will be achieved with
A. Signficant asset sales
B. Taking out mortgages on unencumbered properties that they do not wish to sell
This will create hundreds of millions if not 1b in liquidity. A good chunk of this will be buyout out a portion or all of the REIT.
Edgepoint knows this, though to bet this $ on a SIB that is oversubcribed is a bit adventurous.
GLTA!
-Gary Reins