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

I just had a crazy idea

[SNAKEYBOY]

You know how we were all thinking Manji would sell industrial/retail because office is not very liquid right now...

What if he did something like:

1.8b in office assets at 7.2% cap rate...Sell for 10% cap rate for 1.3b (500m discount).  A buyer like Group Mach may think they are getting a great deal...10% cap rate is a decent risk premium and takes.


So Artis has 1.3b in cash, net of mortgage debt etc, its 800m.  800m goes to huge floating debt repayment and a lowball SIB. 

HERE'S THE PUNCHLINE:

You NOW have a  70% industrial REIT, and 30% retail, 10% resedential WITH a healthier balance sheet.   NAV becomes $14/share (written down due to office firesale, but recoup some with SIB).

Artis trades at $10-11 and has an incredibly favorably asset mix.  When reits get favor again it trades at $12+ and or  they sell it entirely for $15!