Melcor REIT Strategic ReviewWell the come to Jesus moment has finally arrived for Melcor REIT as per the press release that went out earlier this evening.
It would be nice to know who is on the Independent Committee to determine if it has the bench strength required to pull something off.
In my mind this should be the end of the line for the REIT and I can foresee some portion of the properties being disposed of and/or Melcor absorbing these properties.
They are wise to tie up the loose ends associated with the REIT.
The next question is the bigger one which is what is Melcor itself going to do to maximize shareholder value with or without the REIT. Melcor Development is in a better financial position than the REIT but the undervaluation issue is pervasive across both entities. Said differently, you can't say that one entity is undervalued and requires a strategic review without saying that both entities in fact require a strategic review.
Kudos to the Board for starting this process and I hope to see a successful outcome that results in either a higher share price or a special distribution.
LR