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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 themangokidon Feb 27, 2016 9:16am
131 Views
Post# 24601380

and this explains why...

and this explains why......management slashed the distribution. a 90% AFFO payout is completely reasonable within the reit universe. however that 90% payout gets quickly elevated when management starts selling assets that contribute significant cashflows. 


and as far as selling price goes, if d.un previously bought scotia plaza for $1 and can ony fetch a roughly similar sale price, I'm sure managment is thinking, "well, thats better than the 30 cents the market is valuing scotia plaza at". Just for disclosure though, I really have no idea what Scotia will fetch.


lastly, with management selling prized assets, at a surprising speed, at the expense of the distribution, I am wondering if Dream was approached by a third party with a takeover offer.  even now, with its move to just under $20 its market cap (2.1 billion) essentially made it a target for every single pension fund or real estate player looking for an entry or to add to their canadian portfolio. probably not as attractive a takeover target now in the middle of selling assets, including a portion of Scotia.
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