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Dream Office Real Estate Investment Trust T.D.UN

Alternate Symbol(s):  DRETF

Dream Office Real Estate Investment Trust (the Trust) is an open-ended real estate investment trust. The Trust owns central business district office properties in various urban centers across Canada, with a focus on downtown Toronto. The Trust owns and manages 3.5 million square feet of office land in downtown Toronto. Its objectives include managing its business and assets to provide both yield and growth over the longer term. Its properties are located across Adelaide Place, Toronto; 30 Adelaide Street East, Toronto; 438 University Avenue, Toronto; 655 Bay Street, Toronto; 74 Victoria Street/137 Yonge Street, Toronto; 36 Toronto Street, Toronto; 330 Bay Street, Toronto; 20 Toronto Street/33 Victoria Street, Toronto; 250 Dundas Street West, Toronto; 80 Richmond Street West, Toronto; 425 Bloor Street East, Toronto; 212 King Street West, Toronto; 357 Bay Street, Toronto; 360 Bay Street, Toronto; 350 Bay Street, Toronto; 56 Temperance Street, Toronto; and 6 Adelaide Street East, Toronto.


TSX:D.UN - Post by User

Post by Frankie10on May 03, 2023 6:51am
149 Views
Post# 35426813

Combine Dream Office and Artis

Combine Dream Office and Artis

If unit price is the only consideration, I think the easiest solution by far is simply combining Artis and Dream (deal to be done via units, no cash). Combined entity would be added back to the index and the downward price pressure we saw not too long ago would flip into reverse. Furthermore, the market would value the size and scale of the combined entity. Combined entity makes sense imho - Toronto office fits into Artis' framework as a diversified REIT and another equity investment would just mean the combined entity would now hold FCR and DIR.

Discounts to NAV for each entity are similar so whether you price the enties at market values or use internal FMVs (NAV) you should end up in an similar position with respect to ownership of the new combined entity.

With respect to timing, I would announce the plan once both entities exhaust their NCIBs.

It would truly be a masterclass.

Snakey, please don't spam 5 posts immediately after this to allow others a chance to read and discuss.

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