TSX:TNT.UN - Post by User
Comment by
BlueJay2020on Feb 24, 2024 11:04pm
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Post# 35897609
RE:$54 million in distributions per year to $0
RE:$54 million in distributions per year to $0To put it another way, the company could buy itself in under 3 years and get the long-lived assets for free. We need to learn the lessons of those that bought O&G companies for equally ridiculous valuations post-COVID - these are generational opportunities for an asset class. The difference here is that the income stream associated with the assets is much less volatile and more predictable, plus there is far more optionality on the assets. On top of that, we have a fast-growing population that, one way or another, is going to close the demand gap just as supply is shrinking (who in their right minds would be starting a new office project since 2020 ... and for the forseeable future?)
This is where I agree with Frankie - rather than try and nickle and dime the market, whet I am interested in is the bigger and longer-term picture. That is why I stuck with Sienna Senior Living when it sank below $10 and it's now just about to hit $13 with more to come. You look at the demographic tailwinds and you think, crikey, this is really mispriced.