Pure Industrial Real Estate Trust T.AAR.UN

RE:RE:RE:Older News (Dec 17) - PIRET announces Buy Back of 500K share

[maypeters]

Hi Emba

it has worked for lot of companies in the US who have picked up debt at negligible interest to buy back shares.

But most US companies are buying back shares when their share price is at an all time high (which does not make sense). But that is the way they increase EPS (earnings per share). Revenue &/or earnings may be flat or declining but EPS is higher due to lower share count.

The difference here is that Pure is buying back shares because they think the share price is undervalued.

Since company is buying back shares it sort of puts a floor to price drops (since there is a ready buyer).

Also as the share count goes down, EPS goes up for remaining shares & increases shareholder value. Not a guarantee but it's what is expected.


Hope that helps.

GLTA