TSXV:PAR.H - Post by User
Comment by
YieldChaseron May 21, 2014 8:44pm
208 Views
Post# 22585078
RE:With all this collateral damage, selling the REIT as a
RE:With all this collateral damage, selling the REIT as a RioCan does not buy in secondary and certainly not in tertiary markets. RioCan is only 50% levered.
Asset sales will reveal true asset value, unlike appraisals that use rosy assumptions.
If the assets are worth 10% less than appraised value well over $50M would be lopped off their NAV, or roughly $2 a share. If they can show flat per property revenue and sustain 50 cents stock will head for $5. If not, it will fall. Tertiary locations in two have-not provinces, Quebec and Ontario with rising energy cost and falling real wages do not bode well for stronger leases.
Only stronger leases will increase NOI. That is unlikely in this REIT. That's why it is priced correctly at $4.50. It might rise fifty cents, or may drop if leases do not improve.