TSX:AX.PR.E - Post by User
Post by
garyreinson Oct 07, 2023 7:35pm
191 Views
Post# 35674903
The easiest/best solution IMO
The easiest/best solution IMOIf there is no buyer for the REIT on mass for a good price, not sure we consider $10 good but maybe in this environment, then the best option is to just sell 100% of the assets on the private market, fund NCIBs and paydown debt. Likely some assets will be taken in bulk and have competing offers, while some may sit for several quarters or until the market unfreezes. Thought experiment, if Artis listed more than 300m for sale past year, but 3billion for sale, how much would have sold by now? Maybe 1b+? All REITS are limiting their sales of assets like FCR/AP/HR to be strategic and balance sheet improvements. Artis can go all the way and if the macro improves while they are executing its even better. If the macro gets worse then at least they freed up more liquidity before it deteiorated. Seems like the best option regardless of what happens. Perhaps this strategy can see SP at $13 by end of 2024. Not sure if any reit has ever attempted this disposition strategy and what the tax implications may be.
-Gary Reins