RE:RE:RE:RE:DIRI completely agree with everything you have posted today colombuss. I think Michael Cooper (just like Samir Manji over at Artis REIT) did not anticipate interest rates rising as high as they have. I didn't either. The cost of borrowed money is now higher than the distribution yield offered by the DIR units so I think it would make sense to sell them. I would like to see more properties sold and more properties rezoned for residential. I think it would make great sense to sell 2-3 properties at cap rates at or below the cost of debt to deleverage the Dream Office balance sheet. We have ~$500 million in 2025 debt at present which I feel is far too much coming due in the same year. We could reduce ~$250 million of that debt by selling the DIR units and one Toronto office property. Cooper has said on past interviews and conference calls that he may be open to selling assets outside Ontario (e.g. Western Canada) however I think the assets inside Ontario are the only properties which there might be a market for near NAV at this time.
colombuss wrote: But yes, sell the Industrial arm now, and pour cash into consolidation, and rersidential developments, and even sell a huge part off those residential units, would be prudent. Just reduce debt to a minimum, and keep it there. It should be clear for all now, that REITS need a very low debtlevel to thrive and survive in downturns.