RE:RE:What's a good entry point? Numbers don't seem too bad to me... Industrial is doing fine... Office is still doing well,for now, but the trend will probably be negative for a while. And we all knew Retail would be gawd-awful!
Looking at Downtown Montreal, it's still very much a deserted city... So, we all knew it wouldn't be too great...
But residential is booming all over the island of Montreal... These guys should partner up with some DEV company, (or even better, get your own team of employed contractors) and convert some of the worse retail spots to residential condominiums or rental units... Branch out into residential, where the demand will be over the next while. Getting the permits won't be an issue as Montreal is desperate to get more units to cover the consistent flow of immigrants to the island that's pushing rents up considerably. Let's be honest, the entire residential market is a speculative frenzy orchastrated by the Governements... But there is no reason why Cominar shouldn't benefit from it... And, if they had been wise enough the start the conversation 2-3 years ago, they would be announcing increases to the value of their portfolio, not a decrease.
In any case, the numbers were decent, other than the 330Mish impairment to the retail portfolio (That we all expected).. On 2B in total assets, thats a 15%+ trim, so, it's already quite considerate.
I think the negative price action is more a reflection of the further cut to the dividend...Don't think it was necessary at this point, but management playing it safe isn't all that negative.
It's probably worth a consideration in anyone's portfolio. I mean, at least you get real physical assets and still a reasonable FFO. A yeild between 5-6%. In this world were governements are treating currencies like disposable toilet paper (which, I mean it kind of is at this point, so long that the central banks are buying Governmental bonds for negative REAL yeild, ajusted to inflation)...And with much higher inflation just around the corner. I think having physical assets and some level of debt is probably quite wise as the debt gets repaid with lower purchasing power and the assets should keep their value overtime, if you can stick on the scary roller coaster ride like today...
When our country's economy will look like Lebanon's (however long it will take to get there), we will be glad to have had purchased physical assets in 2020.