TSX:SRU.UN - Post by User
Post by
logicandinertiaon May 14, 2021 12:35pm
331 Views
Post# 33203931
conference call
conference callone of more pertinent pieces of information was that Transit condos (of which 1 and 2 $40mm profits were realized in 2020 and a further $20mm for 3 in 2021) were planned several years ago and SRU required a developer partner with particular expertise.. As such, SRU share only 25%. over these past number of years, they have developed their own expertise and don't require use of a developer anymore.. therefore, their share of projects going forward will be considerably more than 25% and maybe north of 50%. in addition, pricing on Transit 1,2 and 3 was $700/sq feet. market prices now considerably higher (part of that is due to higher construction costs). so in future, SRU will realize both higher percentage of project profits and higher pricing.
other than that, no real surprises and just reiterated the role that mixed-use development will play in the future and that their 30 plus years of municipal development has allowed good relations with those government entities that have to approve these rezoning applications. These negotiations have been progressing well...and, if anything, covid and movement of population out to the suburbs (from toronto) has accelerated municipal govt pace to approve those developments which increase residential housing supply and shopping infrastructure. seemingly good for SRU...
GLTA.