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

RE:RE:RE:STRATEGIC REVIEW

[Frankie10]

Disagree. There is zero long-term thesis to hold FCR. We have the ability to sell at ~70% of NAV - I think you sell and redirect that capital to a number of high return options:
1) credit that costs us prime + 1.7%
2) prefs with an effective yield of 10%+
3) commons with an implied assset yield of 9% and cash flow savings of nearly 9% (from saving on distribution)
4) use the capital to buy Dream Office - take control - monetize assets oppertunistically (this is Manji's thing) - I've been saying we should do this since we missed our shot at FCR.

Rate cuts would be an instant positive to the bottom line as a quarter of the debt is variable. Apply a multiple to that instant increase in free cash flow. Recession offets, but not menaingfully imho as WALT is long.

Hope you have been well DZ. You really have to put Snakey on ignore... I see you responding to him... the forum in unuseable when he is visable.