NCIB and REIT Kudos for Melcor for buying every share they could in the NCIB. Tim Melton has been a very active buyer as well.
The REIT's debenture has been repaid using the operating line. I understand why they did it but that strikes me as a capital source of last resort. The credit markets didn't seem very accessible to them.
It strikes me that the REIT has not been very successful and I don't think that it really achieved it's stated objective.
In 2023 I would like to see Melton renew the NCIB. I would also like to see the company re-evaluate it's capital structure as well as the REIT strategy. Perhaps it makes sense to sell off some properties to prove to the market that the carrying value is real!
The cap rate should increase this year so we will likely see a write-down of the properties in Q4; however, the disconnect between FMV and the current share price feels really extreme.
Best of luck,
LR