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

RE:RE:RE:RE:UPTREND IN TACT

[Reece1986b]

Artis NAV reported as $17.09 (page 6, Artis Q1 2023 MD&A). Artis closed today at $7.27. That is about 43% of NAV. The industrial and retail assets appear to possibly be worth near-IFRS NAV given the ease with which they are being sold in volume. Net operating income is ~ 50% retail/industrial according to Artis themselves here: https://www.artisreit.com/our-portfolio/portfolio-overview/ 

Artis could probably recover or exceed the equity equivalent of the full Artis $7.27/unit public market price by selling everything except the office assets (e.g. Cominar stake + Cominar junior preferred shares + D stake + FCR stake + all industrial and all retail assets). Whatever the office assets are worth, it is not zero. Do this slowly over time as offers near-NAV occur and do a SIB when liquidity permits it. Artis will be an office REIT however it will no longer be trading at $7.27. 

SNAKEYBOY wrote: The caveat with frankies statement is that  artis is selling what they know can sell in this environment....what % of assets would not be able to fetch NAV right now or in the future potentially, and what happens when the good industrial properties and retail run out?

Either way its a good move for the balance sheet but can they continue selling assets indefinitely to pay down debt and fund a NCIB remains to be seen