RE:With or without Airmiles..we're OKYou are correct we are safe without AirMiles as I believe the Stratus income will be more than AirMiles over a full year...
It was hard to run numbers for that quarter as a look forward as there were a few bits a pieces added and moved around, but as per a layout I posted in November it was within a couple hundred thousand of my projections in different ways, but that was because the partial influences and in quarter buisness, if I was wrong it wasn't gonna skew the numbers much either way, it was a super safe guess for me considering the knowns we had...
I don't really think the Airmiles purchase really affects us short term as the way I would understand it, BMO has to honour the contracts of what it's bought until they renegotiate, which may happen but I didn't see any mention of that, and DIV would have notified us if the previous agreements were nullified. It's likely the take reduces due to less buisness, but overall BMO is gonna try and grow this program, but I would not be surprised if our agreement is revisited after the purchase is completed and we get further along, and I don't think we will gain in a re-negotiation, and if they wanna part ways with our royalty claim on Airmiles buisness they could rename it in a shuffle and cut us loose likely for a break fee... currently I think it's steady as we go, but expect mildly lower revenue from that part of the portfolio...
There is a chance that Stratus could add 4-5 cents per share of distributable income over a year to our portfolio, but we will need to see a full quarter of numbers to be sure that's a pace we are on. It's not worth my time to dive in hard as I don't think my numbers would be that accurate at the moment...
I'm still holding with the idea 3.40-50 might be overvalued, I'm still giving it some leash but it's quarter to quarter at this point for me as I wanna see what Stratus can do and also they mentioned growing that portfolio so I'd like to see what it does...