Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

RE:Artis

[Reece1986b]

That's a good question SNAKEYBOY. In my opinion, Artis is most similar among Canadian REITs to H&R but H&R has what are on average higher quality assets, has better managed their debt situation, and trades at roughly the same P/AFFO as Artis. I don't personally believe Artis deserves to trade at a higher P/AFFO multiple than H&R so that would mean Artis probably doesn't have a lot of upside from here without further asset sales or a change in sentiment surrounding office or the economy. I think Artis was much more compelling in April when H&R was trading almost 20% higher than it is now. I think we are probably stuck in this $7-$8 Artis trading range until either sentiment changes or we sell off so many assets that we are in a position to do a SIB like Dream Office.

SNAKEYBOY wrote: Glad they are deleveraging well and the plan is on track.  But what exactly is going to make Artis standout from the crowd and trade at a less discount to NAV/AFFO multiple then other REITS, like Manji was hoping for?

I dont see it in the cards with a higher % of revenue now  coming from office.

Maybe they need to sell off assets indefinitely and fund a NCIB indefinitely and in 5 years we get bought out.