Dream Office Real Estate Investment Trust T.D.UN

75% of market cap is now DIR...

[BlueJay2020]

... meaning that all the prime downtown Toronto Real Estate Dream Office is valued at just over $60M.  This is utter craziness.

[BlueJay2020]

Picked up another 1000 at $15.02 shortly after my last post.  I was already over a full position, but...

[lcha06]

ist it? i thought you needed to pay off 1B in debt first, so value of properties is 1B to pay to debt holders + 60M left to shareholders. we are going to be underwater soonish... where we owe more than it's worth. ist it worth 1 billion?

[BlueJay2020]

The $60M reflects the MARKETS current value of  the residual assets and the debt, so yes just $60M left over.  That's completely different from the ACTUAL net realisable value of the assets.     When you say underwater, you must mean that the market will soon (effectively) ascribing a NEGATIVE value to the assets.  That's completely different from saying that

[lcha06]

Yeah, but the problem is assets have become completely illiquid, so one can argue their NAV is on the way to zero or at least is coming below the liabilities if you were to try to find a buyer.  So the market  is basically assigning a new NAV and might be not too far off. It could be just a matter of time they have to write down. From the cash flow perspective the shareholders also

[BlueJay2020]

You've likely sold near the bottom, sadly., because you're not taking a longer-term view.  Maybe you had to, but I don't and neither do management and that is key. Come back in 5 years and see who was right!

[lcha06]

ya, buildings will still stand there, but owners may change...so better to stop dreaming too much

[garyreins]

It comes down to where interest rates go- stay high or up, this REIT is going to try to survive..  Rates go down especially more than 100pts and this will fly.   Most people have conscensus that these RATES may not be able to stay high indefinitely with CRE/housing stress and government debt and recessions coming but who knows

[jmkOttawa]

BlueJay is not dreaming. He is a realist. The management does not need to sell. Prudent property owners don't sell when the market does not value their properties fairly by normal metrics. Dream office has wonderful properties, excellent tenants and no need to sell at this time. Unless the management receives offers at or above IFRS values, they would not be entertained.

[Frankie10]

Very well said. 

[EstevanOutsider]

i agree and tempted to add here. it will take the sale of 438 university ave to wake people up. if cooper gets what HR did in their january deal i suspect it will energize the unit price. there is no way i can imagine d/t t.o properties are worth $300 psf. i say $400 in a fire sale.

[colombuss]

This post has been removed in accordance with Community Policy

[colombuss]

This post has been removed in accordance with Community Policy

[colombuss]

This post has been removed in accordance with Community Policy