RE:RE:Market being ridiculousJohnny41 wrote: My own thoughts on D.UN are this... the stock is being priced not based on current NAV, but rather on the perception that in 3,4,5, years or so when they are re-negotiating their mortgage rates that the rates will be much higher than they are now. they are continually trying to re-negotiate at lower rates but the perception is that they will be paying out more interest in the future, that coupled with lack of growth and slightly increasing vacancies is really punishing this stock. I would suggest it might hit $15 or even as low at $13 before this is all over. that would be in 2-3 years from now. I think its dead money except for the yield of course, which in my opinion will need to be cut in 2-3 years timeframe by perhaps as much as 50%.
I don't believe its interest rates dragging it down the past year (since last December). All reits took a nose dive in the summer of 2013 when the draw down of QE was announced. People have been taking about increased office supply in Calgary for the past 2 years. Its the perfect synergy of increased office supply and oil weakness -> which leads to cost-cutting (layoffs) -> which leads to reduced demand for office space.