Whiterock Real Estate Investment Trust T.WRK.DB.K

RE: And the beauty is:

[baudelaire]

"From the recent news: "Whiterock's total portfolio of acquired and announced assets is now approximately $381 million." Hmmm. The math seems to be, (IMO) that value leveraged 70% leaves 30% or 114.3 million of equity component. If there are 7.935 million units (from the TSX quote page), 114.3 divided by 7.935 equals $14.40 per unit. I realize it isn't that simple, could be mistakes here. If the debentures are converted for example there would be more units than this. And if they succeed in leveraging less than 70%, the equity would be more. Hmmm......Not going to sell in a blind panic just yet. " $14.40 per unit equity and $33.61 per unit debt. Debt to equity of 2.33. Riocan and more conservative REITs are in 1.5 to 1.75 range - much more beautiful. Second tier quality and location with mega debt, how much of a premium should investors ask for? OTOH, there is a positive aspect to the leverage: keep it high in the short term to maximize the accretion and staunch the drain of an uncovered distribution ASAP. Can't complain about management, though, they've already recognized that the leverage is too high and have committed to lowering it to 65% (could be lower still). An equity issue could also re-jig the ratios - what are they waiting for, the unit price is high NOW.