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

RE:We're smart people here

[InvestSmarter]

It's material asset sales. I assume you listed to the call. They told us three times what they are doing. If asset sales are large enough, running a SIB after sales are confirmed would make sense to keep debt in line and return capital to unitholders while increasing NAV. Will this close the gap? Maybe, if SIB and buybacks are large enough.


Samir:
"There will be additional dispositions going into 2024. We just are not in a position to comment on what the nature of that nor the magnitude of that looks like. But suffice it to say, as we conveyed in our remarks, there is a very clear focus on monetizing assets to pay down debt and reduce our overall leverage, and thereby giving us greater financial flexibility as a key near-term priority"

Jackie:
"We're committed to reducing our current debt"

Samir:
"the NCIB has been fully utilized for the year. We have the opportunities to rewnew the NCIB in December. We have other meachnisms available for buybacks. But as we've already conveyed now twice, I'll say for the THIRD time, the near-term priorirty is debt reduction and enhancing liquidity"

The only real way to reduce debt is asset sales. I'm expecting a material asset sale announcement.

garyreins wrote: Doesnt seem like anyone here is able to connect the dots with the results, CC, maybe even reading Manji's tone, omission of details etc and discover what he  is COOKING.   We're smart people here.  We should be able to play detective and figure it out.

InvestSmarter seems to be the most on top it, but contradicts himself at times (no offence) by first writing a nice huge blurb a few weeks ago about all the connections of all the private equity that own artis, joyce, jetport, liz, edgepoint, cominar takeout parties etc, and background arranging transactions, then going on how selling office will help close gap by improve the AFFO multiple etc. Quite differentiation in the outcome. 

4 options:  

1. Selling the REIT to an external party
2. Prvitiziation from within
3. Going to pure play industrial or breaking it into 2 pure play reits
4. SIB

SIB seems the easiest/most  likely as all it requires is selling over 500m in assets, which Manji  is good at.

Each of the 4 options have reasons why it might make sense, but also some factors that raise questions (for example, 2 and manji representing sandpiper and artis shareholders) 

GLTA!