TSX:AX.PR.E - Post by User
Comment by
Reece1986bon Feb 07, 2024 5:07pm
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Post# 35868483
RE:Is it just me?
RE:Is it just me?DZ explained recently the challenges going forward in the banking system. There will be difficulty refinancing some commercial real estate properties which have declined in value. Some banks will be in trouble from having made too many commercial real estate loans. One of the programs which was put in place to help banks is ending soon (March?). This will apply further pressure. Impossible to say if this is all reflected in the price of REITs. Needless to say, there is a lot of uncertainty right now. There is no reason for the unit price to go up meaningfully until this resolves itself or we get some massive amount of favorable asset sales. Don't forget: You will get a ~9.5% return for the year (from the distribution yield) even if Artis ends the year at the same unit price as it began the year at.
garyreins wrote: This certainly doesn't seem like normal trading action with expected cuts starting sometime in Q2....wouldnt 8-10%+ reits being bid up a bit by then. Something stinks here and IM not sure what. But cleary no fund managers are excited about cycling money into these anytime soon