Dri Healthcare Trust T.DHT.UN

RE:RE:Big News

[deleuze68]

I don't think the market fully understands how significant this deal is. They essentially added CAD$3.96 (half their market cap) to the NAV in a span of less than 2 months. 18% (or CAD0.72) of this will be returned to shareholders and the rest will be deployed in new deals. 

The stock has traded at a significant discount to NAV (about 40%) for the last couple of years so taking the $0.72 dividend and adding 60% of the remaining $3.96 gives $2.66. At minimum this should be trading $2.66 higher today. But I think this still is a ridiculously low valuation as this deal proves the ability of the DRI team to source out deals with exponental upside. This really should no longer be trading at a discount to NAV and should now be trading closer to CAD$17.