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

RE:Real NAV for MRT.UN

[Malpeque2]

IncomeDreamer11:

Thanks for the link to the Report.    I don't think that analysis is very close at all.

MRT has already written down (a non cash item)  the Fair Market Value of their properties by about $333M  Can  already just this year.    Mostly due to declines in Retail and Calgary Office,  which takes into account the reduction in rent and value of the PennWest Plaze location and lease.     THis is about a  10% decline in value.  

The REIT does carry a bit of debt,    with interest coverage ration of about 2 to 1 for the 3rd Q 2020.   Book Value at 3rd Q was closer to $20.    By IFRS accounting this is supposed to be also Fair Market Value of NAV for the properties also.     Your implying that IF the properties are really only worth $8 per share NAV,  then the company managment and auditors are going to commit a pretty big financial fraud at year end by signing off on the financials that are close to $20 per share,  when the assets are only worth $8?

Funny,  that analysis had no real discussion about MRT  FFO and AFFO.     For the 3rd Q in 2020 which is bound to be somewhere near a bottom,   hopefully.........FFO was about 92c run rate on an annual basis,   and AFFO was about .72c run rate.   I think FMV has got to be closer to 14 or 15 multiple on FFO like about every other REIT in North America.   

I own MRC but for those who want a little more leverage to potential upside in Retail MAlls and Alberta Oil Economy the MRT has more torque.