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

RE: RE: Some insider buying

[TheHandOfDante]

"Jason as the CEO knows the value of the units & with the present 15% yeild is a no brainer as the say.
wrk as a company is doing fine and I suspect will continue to do so.
whe ver thebottom is established in the market:WRK from its existing price range will look like a bargin.
in the wait , I just keep on collecting my 15%"

Personally, the double digit yields on Calloway and even Morguard REIT (well, yesterday I got some at $8.10 which IS double digit) are more attractive.  Morguard's debt maturity schedule, asset quality and POR did it for me.  I like that they sold out of the overheated AB office market and went into Ottawa's office mkt with the proceeds.  The perpetually flat distribution sort of changed today - a pleasant surprise.  Support from Morguard corp. helps as well - not a bad buy right now either.  Calloway has an issue with forward contracts, but I think it'll work out as, at $20/unit, Mitch has a $700-million position in the REIT. 

Whiterock's leverage will hurt it when cap rates are adjusted.  The analysts will start to raise cap rate assumptions, and Whiterock will feel the effects of leverage in reverse (on NAV, okay).  They're also moving into the AB market, in low quality, at the top.  Morguard left a little earlier, selling to pension funds.  Will AB bounce back?  Sure.  But the bounce in class B office (perhaps I'm being generous here; some properties lacked even landscaping and were sitting in dirt) in a city with a huge roll out of office space on the way might not be all that substantial.  I could see mkt rents slipping a bit.  Was that the best they could do with the credit line secured by 655 Bay?  You might want to ride another yield horse in this environment, where high yield and high quality are available hand in hand - how long we REIT fans have waited for such an opportunity!