Melcor REIT - Property SaleMelcor REIT just put out a press release regarding the sale of an office property in Kelowna for gross proceeds of $19 million ($9 million net of the mortgage).
The wording is a bit opaque as to whether or not the sale was in line with their carrying value (ie: FMV). The proceeds of the sale will be used to pay down the operating line that had recently funded the repayment of the convertible debenture.
I would like to see more property dispositions (at the right prices). The funds should be used to repurchase shares and free up some cash. The current yield on the REIT is over 8% at today's share price. Conceptually, the REIT could sell properties and repurchase shares at $0.50 on the dollar or less.
Stay tuned for more!
LR