RE:RE:FMV of MRT.UN propertieswheeloffortune wrote: The problem is if I type in TMX MRT.UN, key data says EPS = -5.75. It is bleeding serious cash. PRV.UN EPS -=+0.45, DIVY=7.45 and it's an $8 stock trading at $6 (a much better deal). The mismanagement at MRT.UN hasn't changed for years. There are so many way better REITs out there that pay a better divy, are still at discount and are not bleeding serious cash due to mismanagement. Investors who lost money on pre-pandemic mismanaged reits that liquidated like PARTNERS REIT don't want to get burned again. They were saying the same BS with Partners REIT that FMV was high vs liabilities, but then management sold off the properties at a huge discount (pre-pandemic) screwing over the shareholders with little equity left. "OH, but it's audited financials with tonnes of equity", you say... You think the same can't happen here by this bad management group??
While I don't own MRT, your first two sentences aren't accurate. There is no direct link between EPS and cash. You can have a really negative EPS and still have positive cashflow. You can also have positive EPS and have negative cashflow.
To explain this, last year, despite lower collections and everything, MRT generated $0.73 per share in cash flows from operations. While PRV hasn't published its end of year results, they are expected to have generated around $0.57 per share in cash flows from operations. Hence, per share, MRT has generated more money from its assets than PRV even though they had significantly more problems (in normal operating conditions, they would have generated well over $1 per share).
So, despite EPS, MRT did not bleed cash last year and even made more cash than PRV from managing their properties. The main reason why MRT had a large EPS loss was that they reduced the value of their properties on their balance sheet, but that a non cash loss. The current discount to NAV includes those write downs.
As to why MRT is trading below PRV even though they generated better cash flows metrics last year... MRT stated, when they released their latest financial results, that they had to reduce the dividend because they anticipate a reduction in cash flows this year combined with problems in refinancing some assets and a big debt redemption coming up (convertible debentures). PRV doesn't face the same issues at the moment and their latest cash flow results have been pretty good. For this year, it's quite likely that MRT trades in its current range until things get better. However, if they can weather the storm, MRT will eventually generate higher cash flows than PRV.