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

RE:RE:RE:RE:RE:RE:RE:The heat is on!

[NotDrake]

I agree doesn't make sense that it would impact the shorts.  I think they might be able to claim a non-cash capital loss, which reduces their cost giving them a greater gain whenever they cover.

The special div is a nothing-burger in my eyes.  A one-time distribution/tax obligation MRT is forced to pass onto investors because they didn't have enough to offset against it.  I assume it would be generally difficult for them to reduce realized capital gains unless they dispose other properties at a loss.

If the $0.115 is all cap gain, that means they realized a minimum gain of $7.3M that they needed to distribute.  Just to pull out a ROC factor out of thin air as well, say there was $0.06 ROC for the year before the cap gain, it would mean they realized a $11M gain on property disposal.

Unless I'm missing something there's nothing in Q3 to indicate this, seems they only disposed a strip mall for $15M.  The reconcilation of carrying amounts shows $14,500, I'm not sure if that means they realized $500,000 on that. 


DIsclaimer:  I'm a newbie to looking at stocks indepth