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

RE:RE:RE:RE:RE:Is this Burquitlam Plaza owned by MRT.UN?

[babybunny]

Well stated slst.

There tends to be hysteresis in the IFRS assessments, meaning that it takes several quarters for the balance sheet to properly reflect drops in value.  It is not supposed to be this way, it just is.  This was a bit of a concern late last year, when we were all bracing for further writedowns.  We are now a full year past the valuation nadir, so IFRS values should have stabilized by now.

I think the NAV (medium-term breakup value) of MRT lies much closer to the $18 IFRS value than to the current trading price.       

Both retail investors and analysts are obsessed with the overpriced real estate sectors:  warehouses and apartment buildings.  Any REIT with exposure to office or retail has been left for dead; and even a dash of exposure to Alberta is toxic - as though the entire province is about to turn to dust.  Sentiment just needs to go from extreme loathing to ordinary loathing to take MRT through $10 and give the shorts an atomic wedgie.  

Ball up and hang tight, this is going to be a fun ride roughshod over the shorts.

My opinions only , as always.