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

RE:Please comment

[Reece1986b]

The Scotia comment that incomedreamer11 posted below essentially said the same thing as what my thoughts are -- there is a lot of leverage here that will make Artis more difficult to sell or spinoff asset classes than if debt was paid down.

Diversified REITs trade in public markets at considerable NAV discounts and I doubt this is any less true in private markets (albeit perhaps at a significantly smaller NAV discount). The retail and industrial properties are proving themselves quite readily sold so Artis should continue selling them in my opinion. It would probably be easier to find someone interested in acquiring a portfolio of industrial assets or retail assets or office assets versus trying to find someone interested in acquiring the entire Artis portfolio unless the price is far below NAV which would make selling the assets they do not want worth their time.

SNAKEYBOY wrote:
What if the result of the strategic review is the following, which I deem a realistic possibility:

"After an extensive review of ALL options, including deciding putting the REIT up for sale, management has decided that due to the difficult and challenging climate, the best course of action to maximize unit holder value is to continue selling assets opportunistically and in a patient manner over the next few years, to ensure we get a good price, and to decrease leverage, and fund a NCIB, which will ultimately close the gap.  This is the best course of action and management is commited to delivering it and will provide timely updates.  Also, we are cutting the dividend to protect the balance sheet"

Anything along these lines would completely put Manji in the failure column and probably will forever tarnish artis.