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

STRATEGIC REVIEW

[garyreins]

NWH AND ARTIS are hitting 11 months of strategic reviews, crazy how much excitement there was at the start, thinking something may happen. Now we know, these trd reits are worthless and current SP likely is close to what they are worth in this environment, a lifeless sector with no demand for hard assets anymore except high quality industrial

[REITman]

I have been wondering about this too.  Why are we allowing the so-called strategic review to just fizzle out or never even happen?   At least the trd is green this morning.

[Frankie10]

You guys are wild. $750M of dispositions and counting. Cap table has been completely reconfigured to put Artis in a position where Samir can play offense. Offense to me looks like a SIB to completely take out the prefs at a 15-20% discount to face value. least we not forget... there is still just under a $billion of industrial assets in Artis, and Samir has explicitly said selling industrial is

[garyreins]

Frankie my boy, you fail to recognize the big picture, a REIT selling its trophy assets while holding on to a bag of dirt, B class office and retail, just to fund a SIB may not end up too well.  I am satisfied with it as artis may be able to prevent the unit price from collapsing, but there is still risk in the long term vision of artis.  

[Torontojay]

  Gary, you are very bright and you see the bigger picture. As investors, we should always question management and not just have blind faith. 

[luscar99]

I own a substantial quantity of AX.PR.I.  These are not easy to accumulate. It took me more than a year. I won't let them go for less than $23. Representing a 7.5% current yield. And even then I would have a very hard time finding a similarly safe high yielding replacement.

[Frankie10]

At a 15% discount to face - the I's would trade at $21.25 with a yield of 8.1%. Based on the document you shared, you would be able to take the proceeds and roll them into Brookfield prefs for 10%+ Pretty sure we've already had this exact conversation... If Samir/Artis makes the offer, you would be a fool to decline imho.

[luscar99]

I wouldn't touch the Brookfield Office prefs with a 10 foot pole. Any other suggestions ?

[Frankie10]

No suggestions boss; only observations. I have a nice chunk of the prefs as well - nearly half of my position in the commons. I appreciate you sharing your opinion on the possibility of a SIB and what price would entice you to tender. I'll be sure to circle back and ask for an update should we get news on a SIB, rather than beat a speculative idea to death. Have a wonderful day.

[rad10]

  pipeline preferreds are good. TC has one series yielding double digits. Pembina is high yield.  Liquidity is a challenge with a lot of Canadian preferreds - stink bids and patience required.

[luscar99]

There are no Rate Reset pipeline prefs with CY over 8.2% at the moment. Not to mention AX.PR.I is "Min Reset". Which is rare and provide additional downsite yield protection. And I do have a lot of TRP floating resets already. They are a great deal at the current price, but their yield depend on the Canada 3months treasury rate. Would the rates be drastically cut by the BOC (the

[rad10]

  I lied earlier.....  my effective yield on one Artis series is >14%. The other series is >11%.  I don't think we are going to see those levels again, and I have no desire to crystallize any capital gains on them. Most of the BPY debt is non recourse, not sure about BPO.  There is a lack of clarity, and I understand why people avoid them.

[Frankie10]

I agree boys. Artis prefs are mispriced. I'm also very happy with my investment. :) cheers. NCIB likes them too... ;)

[luscar99]

Other mispriced prefs. Some grossly.  BPYP.PR.A/ BPYPM, TRP.PR.F, TRP.PR.H, TRP.PR.I, PWF.PR.Q, AIM.PR.C.