RE:RE:RE:Debt levels okalparentqc wrote:
Not only will it helps cash flow (since the yield is higher than the borrow rate) but it will also increase the NAV per share even if the buyback is 100% financed by debt (since shares' price is lower than their NAV). BUT they can't rush it. They have a lower interest rate because they aren't so leveraged. Also maybe they are keepig some money because of risk management and in case of buying opportunities (like Suncor in oil). Yes it's not the best for shareholders right now, but I think in the long term, it will increase our value with minimal risk. Just take the book value per share, it was slowly increasing until this year which is stable (33-35$) and don't forget the dividend. And one of the best metric for reits is P/FFO. Dream is one of rhe cheapest with Onereit and Northview.
Too bad their hands are tied right now until after earnings are released on Thursday night. Isn't it convenient that an article comes out today scaring people about the Calgary market. Everyone knows its been weak for over a year now. When oil eventually recovers, so will rents...