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

RE:FMV of MRT.UN properties

[Shirtlessnomore]

Correct, it's ridiculous! For this to not be at least 8 - 9 bucks is crazy town. I'm holding it cant stay down here.

15Stanmore wrote: At December 31, 2019 the audited FS of MRT.UN reported a unit holder's equity or $1,537 million and 60,735,539 units issued and outstanding, for a Net FMV per unit of $25.32. Total assets were $2,937 million and liabilities were $1,399 million.

The shares closed on December 31, 2019 at $11.79, a 53% discount to its apparent audited FMV.

At December 31, 2020 the audited FS of MRT.UN reported a unit holder's equity or $1,158 million and 64,125,215 units issued and outstanding, for a Net FMV per unit of $18.05. Total assets were $2,558 million and liabilities were $1,400 million.

The shares closed on December 31, 2019 at $5.39, a 70% discount to its apparent audited FMV.

This would appear to be an unsupportable discount, especially when compared to other Canadian REITs many of whom trade at a modest 5% to 10% discount, and some who trade at a premium (TNT.UN for example, currently trading at an 8% premium).

On the other hand, the earnings generated by the FMV assets appear to be significantly below industry standards. Does this suggest the current FMV calculations of the properties are vastly overstated, even after being written down by $420 million (about 14%) at the end of 2020.

I would normally be interested in buying a security trading at a 70% discount to its fair value, as time should see it revert to something closer to its true value and hence reward a patient investor. I am not sure it applies in this circumstance with its persistent history of oversized discounts to FMV.

Can anyone help?