TSXV:PAR.H - Post by User
Comment by
Roxy27on Apr 15, 2014 11:15pm
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Post# 22456484
RE:I would like to focus
RE:I would like to focusI appreciate your efforts to focus the discussion, however I IMHO believe that its not just the currently mediocre portfolio being acquired for a lower than market cap rate that would be a concern for investors and analysts alike. Its that his remaining 4 million sq. ft. of owned and managed commercial real estate assets could be next, at similarly inflated valuations.
What are these assets you may ask. Well, the public doesn't know because none of them are disclosed. There's no website to highlight his "extensive experience in real estate development, construction, ownership and management". This is really the answer to your question of what should be done from a PR standpoint. Highlight the success stories, the turn around, the repositioning. Show what he's done to turn the Barrie Kozlov Centre around and how his leasing relationships are capable of filling in vacancies.
Look, you may recall that when Calloway REIT grew rapidly through pre-negotiated purchase and Sale arrangements from SmartCentres developed sites, the market paid up for the accretive growth pipeline. 20 yr lease to Wal-Mart and locked in long term financing available meant equity premiums.
When RBC was pumping the shares of PAR.UN (2011/12) it was largely based on the potential pipeline of assets that was supposed to come from IGW (before the truth was known about that fiasco).
The market pays for growth. McCowan has that pipeline. If its reasonable quality and he can demonstrate leasing and development accumen, it should be a positive. Shouldn't he lead with his strengths.