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

Alternate Symbol(s):  ARESF | T.AX.UN | T.AX.PR.I

Artis Real Estate Investment Trust is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States. The Company’s portfolio comprises more than 100 commercial properties. Its properties include Bower Centre; Maynard Technology Centre; McCall Lake Industrial; Pepco Building; Alex Building; 1093 Sherwin Road; 1681-1703 Dublin Avenue; Keewatin Distribution Centre; 360 Main & Shops of Winnipeg Square; Hamilton Building; Bell MTS Building II; Grande Prairie Power Centre; Northern Lights Shopping Centre I; 2190 McGillivray Boulevard; 1431 Church Avenue; Prudential Business Park 1; 951-977 Powell Avenue & 1326 Border Street, 100 Omands Creek Boulevard, Hudson's Bay Centre, and others.


TSX:AX.PR.E - Post by User

Post by InvestSmarteron Nov 03, 2023 8:54pm
173 Views
Post# 35716921

"Singular Goal" & Additional Undisclosed Dispositions

"Singular Goal" & Additional Undisclosed Dispositions
After reading over the earnings call transcript, here is what I got.
 
- More asset sales are in the works beyond the 110M announced. New asset sales sounds substantial. An important part of the plan.
 
- Artis is looking at ALL options (Capitalized ALL because Samir spoke ALL in a capitalized manner). By the sounds of it, a SIB is likely after substantial asset sales (which sounds like are in the works).
 
- The goal was repeated serial times, to close the NAV gap. 
 
- With likely over $200k in strategic review costs, my best guess would be substantial asset sales followed by a substantial issuer bid. Likely for Prefs AND commons. 200K covers much more than just a few meetings. It means they are actively working on preparing to initiate the plan. (examples might be Appraisals, Independent review of SIB, disclosures, etc). It cost Dream Office 500K to run their SIB as a comparison, including the Dream Industrial Offering/sale.
 
It is (some sort of strategic review results) happening soon. 
 
"Proceeds from these transactions [109.3M], along with additional dispositions underway, are expected to enable us to continue reducing our overall debt and improving finacial flexibility."
 
"We are looking at ALL options with a singular goal of closing the substantial value gap between the current trading price and the intrinsic value."

Singular goal of closing the gap. Very important wording. Very specific goal.

I am looking for a one time massive asset disposition that no one is thinking of. Example, all remaining Canada Office (mostly Manitoba, head office is sold there anways), All Wisconsin Office (Madison Portfolio, which was noted in the call that this had low leasing incentives), and remaining Minnesota Industrial (Which one unit was already sold). Entire areas are important to clear out, as it reduces overhead for management. We dont know what will go, but we do know there are options, and there are buyers of these assets.

Enjoy the ride!

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