RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:19.1 MILLION NET PROCEEDSYour $15 NAVPS estimate makes little sense (based on the recent 4 asset sales).
That would imply the total value of the remaining assets at appr $990M or $215 /ft.
The 4 assets just sold (appr 186,000 sq ft), fetched a total of $61.4M (avg $330 /ft combined and above IFRS value from Q4 report).
The assets book value are based on evaluations that are derived from recent office sales data specific to regions, occupancy rate for each building, etc. Not what a banker thinks they may be worth in a distressed sale scenario.
Reits have already written down values to reflect current market conditions.
A bank is saying to take anothher 50% off on top of that?
You can certainly make the case that the sector is out of favor with investors and is trading with heavy discounts to the NAV and there continue to be risks.
Buyers see a potential upside narrowing of the NAV discount with the buybacks and a return of distributions in future and sellers dont. Simple as that.
luscar99 wrote: The NAV was calculated by the company in their Q4 presentation.
(Assets as per IFRS- liabilities)/ number of units A and B.
$28.39.
However, TD's estimated NAVs for the office REITS sector are on average about 50% of the NAVs calculated by the REITs themselves.
TD doesn't have an estimate for TNT.UN because they don't bother with this smallish REIT.
They only do AP.UN, D.UN and SOT.UN.
TNT.UN asset quality is lower than AP.UN, probably a little lower than D.UN and a lot better than SOT.UN.
If one would extrapolate, an eventual TD estimate for TNT.UN NAVPS would probably be between $14 and $15.