TSX:REI.UN - Post by User
Comment by
CANCDNon Nov 01, 2020 8:04pm
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Post# 31820924
RE:RE:RE:REAL ESTATE VALUATIONS
RE:RE:RE:REAL ESTATE VALUATIONS
Covidruinedme wrote: dont get fooled by the low caprate, read the report, the caprate is derived from current rent which is down 10% to 20% on average vs the Cost building, if the we use pre covid rent the caprate would have been 5.5% to 7%
stabilized is 9 months or 85% occupancy. Occupancy dropped 1% beteeen 2&3rd quarter to aboit 92%. The most important metric is that we got 50% value based on IFRS which is market value assessed by internal and external appraisals. Would it be worth more at 100% occupancy, likely but would only be a million or two more.
if we assumed 100% occupancy (which won't happen anytime soon until pandemic is over) the cap rate would be 3.6 vs 3.5.
Here is the facts, we purchased that 50% of ecentral rentals and eplace commercial literally 1 year ago for 120 million. We just sold that exact same holding for 150. Thats 30 millliom profit in one year or about 25%. That 150 million essentially wiped out the mortgage (assumed by the new buyer) and now own 50% of ecentral and 50% eplace commercial area unencumbered.
we now have more loan space to redevelop more property.