RE:RE:H&R Planning Split into 4 to fix unit pricing..." Investors do not like "diversified" whether you refer to REITs or mining. "
thats a load of crapuala, just because you dont understand it doesnt mean your theory is true.
here is the truth: commercial/retail trades at 6 to 7 multiples precovid
office around 4 multiples
residential around 11 multiples
so ofcourse 100% residential is trading higher than 50% commercial 50% residential cause 100% of 11 multiple is higher than 50% multiple of 7 and 50% multiple of 11
100% of 11 > 50% x 7 + 50% x 11
11 > 9
now HR is trading at a discount because its 35% office 25% residential and 25% retial an 15% industrial ( dont know the exact ratio but its around that i believe )
thats 35% x 4 + 25% x 11 + 25% x 7 + 15% x10
now do the math , is 100% higher or sum of 35% x 4 + 25% x 11 + 25% x 7 + 15% x10 ?
now is 91% x 7 + 8% x 4 + 1% x11 higher ( riocan) or
sum of 35% x 4 + 25% x 11 + 25% x 7 + 15% x10 ?