True North Commercial REIT T.TNT.UN

RE:RE:Dist. Cut / Risk & Capital Management

[Frankie10]

Buying back equity at a depressed valuation is very positive. But needs to be done from a position of strength by a well capitalized business. TNT is heavily indebted - albeit the debt is well laddered. That said, the business is too levered compared to other office
REIT peers, while the quality of the underlying is below peers.

Buying back equity at a time where the market is clearly indicating the equity may be worth zero just seems way too risky for me. If the business is generating meaningful cashflow - resolve the fundamental issue - reduce leverage.

I support the distribution cut for whatever it's worth. I do not support using operating free cash flow to buyback equity. Mangement is swinging for a home run... while I rather just hit singles all day long.

imho - Operating cashflow should be used to pay down debt and proceeds from asset dispositions should be used to buy back equity (if that's what you want to do). I've been saying this over at the Artis board for quite some time... both have managed their capital horribly. Artis apears to have found Jesus - TNT appears to be tripling down. Possibly a career making or ending move. Time will tell. I just want to own quality run by adults who enjoy smashing singles all day long.

I wish everyone invested here all the best. But this name continues to become more and more risky over the past year.