Mark Kenny video interview w/ Jenny Ma, BMO analyst Video link Good interview with Mark, even though it's quite long. The last 20 minutes in particular is good as he focuses on the unitholders. Some highlights:
- Buybacks are ongoing, however he will not lever the company to do them. He wants to sell assets with low cap. rates and he's actually happy to not grow the company anymore and to shrink if that's what's best for unitholders.
- He's more invested in the company with his units vs. his CEO title. He really came across as wanting the best for unitholders and his personal investment. If that means that CAR doesn't grow anymore, he's totally fine with that - there's no ego for him, he wants high quality income vs. showing how big they can get.
- He will never issue shares while it trades below NAV
- He thinks this is temporary, but if the stock trades below NAV by next year, that indicates a shift in investor thinking.. so possibly might shift how they handle their business and might indicate a shift in the capital allocation policy.
- New acquisitions will only be done if there are inplace financing that they can take over (at the reduced rates). He has no intention of having negative spreads (i.e. borrowing at 4% and buying at a 2.5% cap rate).
I always enjoy listening to Mark talk, but I did feel pretty confident as a unitholder that what he wants to do is aligned with unitholders interest.