Cominar Real Estate Investment Trust Unit T.CUF.UN

Primary Symbol: CMLEF

Real Estate REIT - Diversified

Cominar Real Estate Investment Trust is a Canadian REIT involved in the ownership and management of properties throughout the Canadian provinces. Cominar's real estate portfolio comprises a mix of office, retail, and industrial and mixed-use properties. While industrial and mixed-use assets are the most numerous and command the most square footage in the company's portfolio, office and retail locations combined represent the vast majority of the portfolio's total value. Most of Cominar's properties are located in the Greater Quebec City and Montreal areas. The company derives nearly all of its revenue from rental income from its investment properties. The source of this revenue is largely split between Cominar's office and retail locations.

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Cominar Real Estate Investment Trust Unit

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Comment by Johnnysbackon Apr 26, 2017 9:31am

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Post# 26167322

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Worst Case Scenario

When you sell off assets you lose income on those assets, they will pay down the debt and then redeploy some cash and get some new mortgages at a decent rate + new properties and income will slowly rise again into 2018, this insnt going to happen overnight or in a few weeks, its going to take until late 2017 before you even start to notice this happening, but it will eventually... Now is a good time to buy because you will get the dividend and shares will likely be $16+ in a year to 18 months... they have been around for a long time and I think they have a good plan and know what they are doing.

wilwal wrote: That all sounds great until you realize that anyone who bought the stock a year ago (well after it was known aoout Target), lost about 17% of their capital value while picking up 10% in distributions. Or, if you have held for 2 years, you lost 27% of your capital while earning 20%. A 5 year hold gets you a capital loss of 40% . The decline is relentless and distibutions barely keep you even.

The stock has consistently behaved like its distributions are being paid out of capital.

The market may be right. The REITs that have done well have focused on real estate that has a future such as residential, hotels or healthcare. Any REIT that has a significant mix of retail is gong to struggle forever because the new way of retail is to search and order online. It is far faster and usually cheaper. Office space doesn't have a great future either. Telecommuting and software is reducing the need for office space.

Management needs to get its head out of the sand and start looking at a long term strategy that is demand based. While the goal of reducing debt ratios has merit, it is also reflective of a failed long term strategy. If the company was into properties which were demand based, it could handle a higher debt ratio.

I am fairly recently long CUF on the basis that share price will eventually flatten but the pattern of distributions matching capital losses continues. I do question management's ability to develop a winning strategy for this company. It can't go on losing 10%/year or shareholders will continue to abandon it.