RE:RE:RE:RE:RE:RE:bid
colombuss wrote: well, if they act on that, its 10% off float, it will cost 40-50 mill cad. But if shorts have to cover another 10%, we really have to get a serious downturn for them not to burn.
I read a headline about 4% caprates in Dream Office, on Seeking Alpha. Didnt rerad article since I cancelled sub, since its to biased for me, but I guess this makes sense on a basis off 25 mill cad in net rental income pr quarter, and a 2,3 billion property valuation. Thats 4 point somth. Not much?
Anybody want to give a view on how those caprates can be valued betwen 8,5 and 4%?
Offcause if you take gross rental income, its about double. And then we get at 8,5%, but running costs should be deducted.
Why Im not so worried. Is that debt is 1,3 billion. Dream Industrial is worth 200 mill. Thats net 1,1 billion. Net rental income is 100 mill, thats 9% off debt. If you add in rental growth, new buildings, parking, restaurants, in lets say 2 years, Net rental income could be 115 mill. or more than 10% off debt.
Looking into the future I believe rents are going up, offcause.
Then off this balance sheet, there is the 200 mill in extra value on one property with acceptance off development plans. Etc. there is a few redevelopment possibilities that could add few 100 millions in value.
So all in all seems good. But the 4% caprate, net seems a bit scary? Anyone?
Not sure where this 4% CAP rate is coming from. Seeking Alpha has a lot of idiots posting articles that dont know what they are doing. Even worse than Analysts.
AT FULL NAV (Over $34/unit) CAP averages are:
Toronto 5.32
Other Markets 7.66
We are trading here over 8% CAP rates at current market trading price.