RE:What is going on in the Trustee's meetings??stockeditor wrote:
Its simple, either we grow the portfolio by acquisitions or we sell the portfolio. ....
Or we keep it and collect a monthly paycheque as a trustee.
Didn't they hire a firm 2 or so years ago to give them a "strategic review" which is code word for "looking for a buyer" and didn't they cancel it a year or so ago. Why is that ?
stockeditor wrote:
People on this site have been paralyzed into thinking that the assets are questionable. Do not believe it.
Believe it because:
1) Same asset NOI is falling.
2) Secondary and tertiary locations with little lease upside
3) Excessive leverage i.e. an inability to pay debentures from cash-flow or re-financing, only through issuing more equity, i.e. more dillution.
4) barely sustainable distribution, which will cause stock to fall if cut
Expect this stock to linger in the low $3's to perhaps high $2's.
SOT.un, NWH.un, D.un, DIR.un, NPR.un, REI.un or EON.un all better REITs with higher yields or more total yield (ie distribution plus stock value upside).
Or, buy the par.db debentures (.a or .b or .c) as all trade well below par and yield 11-12% per year to maturity with no downside.