RE:RE:Raymond JamesHey Retired!
Good to see you on this board! Taking a break from the HR board!
I think it is a very good sign that DIR.UN did not fall below the new issuance price of $13.70 as has happened with several other REITs secondary offerings in recent months. Also, the discount on yesterday's close was approx. 3.1% which is lower than most if not all of those other REIT secondary offerings.
This move to Europe is truly transformational for DIR.UN. They plan to hold virtually no mortgages on their North American properties, while concentrating all of their mortgages on the European properties - at dirt cheap interest rates. So they keep their overall debt to book value %age low and their income expense low! All good for us!
And since so much of DIR.UN is "owned" by D.UN, we don't have to worry much about this REIT being taken over by an external entity.
I have owned DIR.UN since 2013 and am up $85k cf. my ACB. One of the good ones!
As an aside, you may have noted that the SOT.UN team announced that they are exploring a transormative entry into the European market - probably trying to copycat the approach taken by the DIR.UN management. Considering the track record of the numb nu ts in charge of SOT.UN, it will be interesting to watch them in action - 100% guarantee they will figure out how to scr ew it up - ensuring that any and all benefits accrued to the Welch family and the SLAM parent body!
Cheers!
RetiredCEO wrote: DIR should take a drop to 13.70 today due to the new issuance and stay there until complete. If fully subscribed (including the additional units, which I suspect they will be), I wouldn't doubt to see DIR get to the $15.50 target.
I am still playing the arbitrage by buying Dream Office as a way to get DIR exposure.
retiredcf wrote: 5/20/2021 Raymond James Set Price Target Outperform C$15.50