Dream Impact 5 50 Convertible Unsecured Subordinated Debentures T.MPCT.DB

Alternate Symbol(s): T.MPCT.DB.A

Dream Impact Trust is a Canada-based open-ended trust dedicated to impact investing. The Company operates through two segments: Development and investment holdings, and recurring income. The Development and investment holdings segment comprised direct and indirect investments in residential and mixed-use developments, a hospitality asset, and participating mortgage receivables. The Recurring income segment comprised a portfolio of commercial real estate income properties and multi-family rental assets in the Greater Toronto Area (GTA) and Ottawa/Gatineau, a utility asset, and interest-paying corporate loans. The Company is managed by Dream Asset Management Corporation (DAM).

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Dream Impact 5 50 Convertible Unsecured Subordinated Debentures

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Post by Ogopogo26on May 30, 2016 10:05pm

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Post# 24917930

Pros and Cons

I like that it is backed by hard assets, trading at a discount of around 40% to published NAV and obviously Management believes the investment case, given the daily buybacks. Also Dream Asset Management is buying daily, owns now over 6% and still continues accumulating - maybe they want to privatize it at some point? Their renewable assets exposure is now significant and a great asset.

What I don't like is that NAV continues to inch lower and they now only finally are generating enough cash flow to cover dividends. All of this will change according to Management, cash flow seems secure, but as to the development assets and real value of assets, I feel the company lacks transparency and guidance?

Also, unfortunately, nobody seems to care about this company - what is it: REIT, developer, renewable energy? - which might explain the huge discount to NAV?

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