TSX:TNT.UN - Post by User
Comment by
wheeloffortuneon Jul 05, 2023 6:34pm
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Post# 35528217
RE:RE:Very astute analysis Estevan!
RE:RE:Very astute analysis Estevan!Apples to oranges comparison. Did you even bother to read mrt.un's financials? They had a net loss of $86m in addition to all the covid losses. Technicaly, the 4.4% distribution should be cancelled. TNT.un had a net income of $57m after interest expense in the same 2022 year end. It's a miracle that mrt still holds its price.
flamingogold wrote: Anyone interested in TNT because of insider (CEO) buys might also want to take a look at MRT.UN. The distribution has been cut 50% twice already (early on during covid) and since then CEO billionaire Rai Sahi has been aggressively buying back shares by the truckload.
Eventually, I expect a buyout offer, at a premium of course, to be tabled in order for him to scoop up the remaining strongly held shares. Either that or he stops buying and raises the distribution. The stock is in a tight range now between $5.25 - $5.60.
https://ceo.ca/api/sedi/?symbol=MRT&amount=&transaction=&insider= CanSiamCyp wrote: Estevan wrote:
One thing that attracted me to TNT despite the mentioned flaw in external management is that Drimmer added millions during the Covid crash and also post distribution cut. He came into 2022 owning 11% personally and added to his stake. He has major equity alignment with unitholders. I expect people will be drawn to inevstments like this when GICs start falling and the market realizes that offices are not dying as portrayed. Also the director added around $500k this year and already owned a massive stake. Overall I am willing to overlook what you noted about external management costs due to large equity (common) incentize.
This is really key ... external management is generally unfavourable to the REIT's prospects .... BUT ... if the CEO and other members of management trust in the future sufficiently to put their own "skin in the game" ... then we have more guarantee that their actions will align with unitholders interests!
Contrast this with the absolute sh!te management of Slate Office by SLAM and the billionaire Welch Brothers ... external management but zero alignment with unitholders ... after cutting distribution by 70% not one single unit was bought by SLAM and/or REIT managers/personnel/staff/board members ... not one! This one SOT.un is the worst example of what can go wrong with external management of a REIT. I liquidated at a loss ... partially compensating/offsetting the large capital gain realized when Summit Industrial was bought earlier this year ... and then decided to also liquidate Slate Grocery REIT SGR.un ... cuz after the vultures have picked the carcass of SOT.un clean what is to stop them from turning their attention to the previously unafflicted SGR.un.
Amazingly ... not one peep about a class action lawsuit against SLAM ... despite their corporate malfeasance having been clearly documented by an activitst investor (George Armoyan) who has bought into SOT.un up to the 20% mark ... and having reportedly "lost" over $30M on the megabucks he invested! It seems in Canada white-collar criminals can literally get away with murder!
Happy Canada Day (tomorrow) to all residents of Turdoland!