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

RE: RE: RE: Jumped in today

[baudelaire]

"ebitda is a good measure for anything."

Anything?

"Whiterock is especially undervalued when you consider we are in a deflationary economy where interest rates are going to stay low for a very long time"

The REIT with the largest relative debt load is the go to name in a deflationary environment?  Rental rates should fall in such an environment while the debt is almost all fixed rate.  The land and buildings would be tumbling in value, removing the "replacement cost" buffer.  What else is there to consider....

"I think their renewal rates will be on very favourable terms so your interest expense line will ramp down very quickly"

In a deflationary scenario renewals will be downward which is hardly a favourable outcome.  Again, interest is largely fixed at already very low rates and the progress on deleveraging is minimal so far, so how is it going to "ramp down?" Convertibles are still way out of the money and too small a % of total liabilities to make much of a dent.
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Rates are already quite low, if we get deflationary conditions for a couple quarters, how do you see any value today in microcap REITs with the current run up in unit prices and profligate leverage? 

Good luck with the trading.  I've been in and out a few times on the long side with success.