TSX:AX.PR.E - Post by User
Post by
SNAKEYBOYon Aug 17, 2023 11:14pm
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Post# 35594244
What happened before deciding to do strategic review
What happened before deciding to do strategic reviewThe finance team ran through scenarios of all the debt/preferreds rolling over at a higher rate in Q3, Q4 and 2024, including if rates went up another 50bp which is realistic. They know their AFFO payout ratio will run around 100% or over which is a recipe for their unit price to break down even more...i.e. $6.00.
At this point, Manji got on a call with BIG investors like joyce estate, and sandpiper, and salamat investment investors, told them they have 2 options:
1. Ride it out long term, have a weak unit price, AND a possible dividend cut if rates pushed higher
2. Look to sell the REIT in the most optimal manner possible, whereby options would be discussed at which Manji probably implied a price he thought he thinks he can come up with ...i.e. $11-13.
My guess is the big players already voted for 2. If they didn't, we probably wouldnt be here.