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Dream Office Real Estate Investment Trust T.D.UN

Alternate Symbol(s):  DRETF

Dream Office Real Estate Investment Trust (the Trust) is an open-ended real estate investment trust. The Trust owns central business district office properties in various urban centers across Canada, with a focus on downtown Toronto. The Trust owns and manages 3.5 million square feet of office land in downtown Toronto. Its objectives include managing its business and assets to provide both yield and growth over the longer term. Its properties are located across Adelaide Place, Toronto; 30 Adelaide Street East, Toronto; 438 University Avenue, Toronto; 655 Bay Street, Toronto; 74 Victoria Street/137 Yonge Street, Toronto; 36 Toronto Street, Toronto; 330 Bay Street, Toronto; 20 Toronto Street/33 Victoria Street, Toronto; 250 Dundas Street West, Toronto; 80 Richmond Street West, Toronto; 425 Bloor Street East, Toronto; 212 King Street West, Toronto; 357 Bay Street, Toronto; 360 Bay Street, Toronto; 350 Bay Street, Toronto; 56 Temperance Street, Toronto; and 6 Adelaide Street East, Toronto.


TSX:D.UN - Post by User

Post by Longvalueon Nov 19, 2015 8:11pm
151 Views
Post# 24307568

Interest Rates...

Interest Rates...From their October Investor Presentation, they have about 1.2 Billion in debt coming up for maturity by end of 2017. The debt is at about 4.5 %, they should be able to renew at about 2.5-3 %. That's about 20-25 million a year in ongoing interest rate savings, or about 10 cents a share/yr. Nothing to sneeze at. So although interest rates will go up long-term, it shouldn't have as much of an effect short term since they will continue to roll-over at lower rates than when the debt was first issued. Also, I don't believe we will see the overnight BOC rate above 3 % until 2020. Its going to be slow and steady for the BOC. So Im not too worried about interest rates. If I was, I wouldn't be in REITS. Plus, REITS have been successful in the past with much higher rates; although cap rates were higher as well.
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