Dream Office Real Estate Investment Trust T.D.UN

Alternate Symbol(s): DRETF

Dream Office Real Estate Investment Trust (the Trust) is an open-ended real estate investment trust. The Trust owns central business district office properties in various urban centers across Canada, with a focus on downtown Toronto. The Trust owns and manages 3.5 million square feet of office land in downtown Toronto. Its objectives include managing its business and assets to provide both yield and growth over the longer term. Its properties are located across Adelaide Place, Toronto; 30 Adelaide Street East, Toronto; 438 University Avenue, Toronto; 655 Bay Street, Toronto; 74 Victoria Street/137 Yonge Street, Toronto; 36 Toronto Street, Toronto; 330 Bay Street, Toronto; 20 Toronto Street/33 Victoria Street, Toronto; 250 Dundas Street West, Toronto; 80 Richmond Street West, Toronto; 425 Bloor Street East, Toronto; 212 King Street West, Toronto; 357 Bay Street, Toronto; 360 Bay Street, Toronto; 350 Bay Street, Toronto; 56 Temperance Street, Toronto; and 6 Adelaide Street East, Toronto.

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Dream Office Real Estate Investment Trust > No NCIB unless DIR or asset sales, IMHO

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Comment by Frankie10on Aug 17, 2023 5:56pm

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Post# 35593868

RE:RE:No NCIB unless DIR or asset sales, IMHO

I've been buying in the 12's and will sell if it rips to 14 and above, but I have a core position here I won't part with until I get what I believe a fair value is and there is an opportunity to rotate into something else.

- no short-term catalysts; here for the long-run based on the quality of assets and the significantly discounted asset values using pretty much any comp metric you can find - just have to wait for management to stop renovating and lease it all up for the cash to flow (medium-term catalyst).

- developments are high quality (funding is an issue) - hopefully they can continue to do deals where they contribute the land and no additional capital, like the one they have done recently. (Long-term catalyst)

- I agree valuation is absurd... based on managements estimate of stabilized NOI, implied cap rate here per my calc is ~8.5%

- I would hate for them to continue to sell DIR to buy Dream Office units... in a slow controlled mannor via NCIB is okay, imho... but I would prefer if they sell it would be for liquidity to develop and grow organically without taking on additional debt, or to pay down debt as to avoid it rolling at higher rates in a couple years if rate environment remains expensive.

- Cooper dumped on unitholders here. Worst part about this investment. Thankfully these are asset driven businesses and I invest in the assets and hope managment dosent completely fumble it like Manji has

- Manji would struggle to sell Iris, which holds Cominar. Probably can only sell to exiesting partners. He could sell FCR and meaningfully increase his stake here. I have FCR stake worth 107M vs D stake 55M... if he rolled FCR into D, he could take a run at taking this over... that said, he should have done that when FCR sent him packing... then he should have done that via the SIB by not tendering while Cooper did and then swooping in like a gangster using belief as his pitch to win over unitholders... so nah, doubtful in my eyes for Manji to do anything I would do...

Cheers.