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Dream Office Real Estate Investment Trust T.D.UN

Alternate Symbol(s):  DRETF

Dream Office Real Estate Investment Trust (the Trust) is an open-ended real estate investment trust. The Trust owns central business district office properties in various urban centers across Canada, with a focus on downtown Toronto. The Trust owns and manages 3.5 million square feet of office land in downtown Toronto. Its objectives include managing its business and assets to provide both yield and growth over the longer term. Its properties are located across Adelaide Place, Toronto; 30 Adelaide Street East, Toronto; 438 University Avenue, Toronto; 655 Bay Street, Toronto; 74 Victoria Street/137 Yonge Street, Toronto; 36 Toronto Street, Toronto; 330 Bay Street, Toronto; 20 Toronto Street/33 Victoria Street, Toronto; 250 Dundas Street West, Toronto; 80 Richmond Street West, Toronto; 425 Bloor Street East, Toronto; 212 King Street West, Toronto; 357 Bay Street, Toronto; 360 Bay Street, Toronto; 350 Bay Street, Toronto; 56 Temperance Street, Toronto; and 6 Adelaide Street East, Toronto.


TSX:D.UN - Post by User

Post by bendergardenon Jan 28, 2014 7:30pm
486 Views
Post# 22144916

Buybacks are the key

Buybacks are the keyAt 7.5% - 8%, the buyback return is greater than any available North American cap rate, with no additional maintenance/administrative  expenses. Its a no brainer. They could easily just buyback their way through a down cycle of any kind, or any rise in interest rates over periods of time. They just need to keep buying away, since at the moment issuing equity is generally non-accretive. Debt needs to addressed at the same time, so the debt/equity ratio doesnt get out of hand, which they have been doing. This is an oversimplification, but  I would view the dividend as fully safe.
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