Morguard Real Estate Investment 5 25 convertible unsecured subordinated debentures T.MRT.DB.A

RE:Firm Capital and Melcor???

[Malpeque2]

HermannH:    Thanks for the post.   Interesting Developments at the Melcor Franchise.  

MRC is buying MRT stock thru the drip.   Increasing their ownership.    If you think that is O.K. then you can participate by owning MRC and MRT,  which I do.   More of MRC of course.   If you don't think that is O.K.  then you can buy more MRT stock and increase your ownerhsip right along with Sahi and MRC,

Firm Capital knows that Melcor Developments owns a majority stake in Melcor REIT,  as we have here.   THey seem to be implying that an oppression claim or a derivative action against the parent may be possible if the parent does not act.     The parent response came  yesterday........"business as usual".   

A friend of mine asked me the other day if you think SAHI keeps MRT loaded with debt and a lower interest coverage ration for the express purpose of depressing the price of MRT making it look risky to the markets so that MRC can accumulate shares cheaper?    I don't know.

What I do know is that MRT is about the lowest price to NAV and lowest price to FFO you can find.   They have a lot of BIG office and retail properties,  including enclosed malls.   IF they were to unload a few of these around NAV and say that they were going to use the proceeds to repay debt and move closer to a 50/50 debt to equity,  and use some spare cash to repurchase stock of MRT in the open market,   then the stock would start a move up.    A continuous program of asset sales and stock repurchases and debt reductions and I dare say we might get pretty close back to NAV. 

Will SAHI do it is the $100 question?