RE:RE:RE:RE:RE:STRATEGIC REVIEW Glad to hear you're well DZ.
Yeah, I understand the phscology of taking loses, but I'm indifferent to the emotions of it all (or atleast I try my best), and simply focus on the math. The math, as I laid out, is simple and clear.
From a success vs. failure percpective, I agree - exiting FCR at a loss would be a failure. I believe the perception of this can be avoided if some or all of the proceeds are used to acquire influence/control over Dream Office. On a dollar for dollar basis, Artis could sell its position in FCR and roll those proceeds into Dream Office and match DRM's position. Then the fight for control begins. I think it's an easy narrative to sell that you are buying and believe in the assets while Cooper and DRM dumped on us (includes himself) and shows very little belief in the assets, honestly and transparently explain how the tender was a reaction of the tax burden, how we save on external admin/management fees by removing DRM, etc. (I'm sure he can make a compelling case that plays both on emotion/frustration, and sound financial persuasiveness).
So to conclude on selling FCR and meaningfully multiplying our position in Dream Office, I believe it would be very impactful. Note - through accounting, by increasing the Dream Office position above 20% allows for equity accounting (50%+ we could just consolidate it), which would mean we would carry the investment at NAV and not market value (very impactful for Dream Office considering the market discount). This change in accounting would meaningfully impact Artis' NAV. This is pure optics, but the smooth brain Snakey's of the world wouldn't understand the difference.
With respect to wholesale versus individual asset sales - I don't care - sell $400M+ of anything inline with IFRS values, repay the upcoming $250M debenture, further reduce credit facilities by another $150M+ ... while also taking control of Dream Office. Once you have Dream, the easy solution, right out of Manji's playbook, is to sell DIR and 2-3 investment properties, then signal to the market that the debt for the next couple years is a non-issue (like Allied has done).
That's how I would solve the debt issue and grow the business on paper by selling assets. Obviously easier said than done. But in my defence, I've been saying this for quite some time.
Hope you have a great day DZ, and everyone who bothered to read. First NFL Sunday of the year and the wifey is out with her best friend for the entire day... Needless to say, I'm about to have an amazing day!