Here’s what going to happen IMHO Here is what I think is going to happen after the annual meeting in June.
Two issues to be agreed upon at this annual meeting. One, they want permission to have a special distribution. Two, they want permission to perform a reverse split.
They are going to sell the DIR holdings for 450 million to someone (could be anyone, I have no guesses but lots of institutions would love to get that big chunk all at once). DIR is on fire.
They will then issue a special distribution for 450 million. At the same time. They will then dilute unitholders to the tune of 250 million (essentially clawing back 250 of the 450 million distributed). The share price will drop by about 7-8 dollars with the sale of DIR and they will then reverse split that same day to bring price back up to 10+.
Meanwhile that 250 million will be used to pay off this years maturity. As such reducing debt to 35% and not needing to renew debt at 6%. This is a huge savings now and in the long term.
Meanwhile they will continue buybacks max annually.
Shorts will be be absolutely devasted with an 8 dollar a unit special destribution.
and a reminder, Michael Cooper just exercised about 6 years of his saved vests deferred units last Friday. You don't so that if you know a cut or bad results are coming.
200bps increase in committed occupancy based on my calculations from Dream leasing site.