Imagine…. If investors had a second choice, would they take it.
I remember relentless posting on these boards by users citing under valued NAV, AFFO and over compensation as a reason to oust the managers who built this company from the ground up. It seems like similar over posting of certain individuals has persisted. Like get a life, marketing through stockhouse posts is no way to run a company. These guys suck at selling stock.
Now fast forward to today, the same issues provided as excuses to oust managers are worse. I just read the investor letter, I could puke listening to managements excuses, cliche Buffett quotes and woke go broke ESG bologna.
I have $1m of cash on the sidelines. Last place I plan to invest it is with this lifeless ceo. This is going lower. They came in and made changes to 300 Main designs at the last minute. I was site toured and offered top floor suites for purchase. The designs were terrible and it was floor plan designs of new managements people that made it this way. Now they are struggling bad to get them rented. No word of a lie those apartments master suites are hardly big enough to fit a bed. It's so claustrophobic. I bet they aren't disclosing current rent because they aren't even close to being majority rented. Just another misstep of this management, one of many as far as I see it. Share price down 45% from the Covid rebound, so ugly.
Using asset sale proceeds to buy back stock, instead of hoard cash and more aggressively buy down debt is so foolish. Weakens the balance sheet and clearly isn't saving the share price.
The BOC is going to break the Canadian real estate market. Why? Brookfield. Brookfield acquired Sagan, Sagan the largest private insurer of mortgages in Canada. Who is a top shareholder of Brookfield? Bronfman trust. Same Stephen Bronfman that made a killing in the 08 market crash and is the top Liberal gov financial backer. BOC is making a market he wants. The only reason Brookfield bought Sagan is so when the BOC breaks the real estate market and triggers the crash too deep, the Trudeau gov will swoop in and bailout Brookfield as one of his last acts in office.
When this pans out, the shopping list of commercial opportunities will be massive.
Mr. Martens would be lowering debt and hoarding cash for this moment. Just like he did in 2008. I think he built up something like $1B liquidity back then. He sure wouldn't be wasting cash on stock buy backs, that's for sure.
When this happens, this will suffer another mini crash. If they are at these levels, look out I could see sub $4. I'm a buyer somewhere down there. Stocks at a key position technically. Market crashes will break the long term neck line. Buy the stock of other office REITs heading into these risks. Massively risky decisions. Don't say Cash is King, when you're only hoarding a tiny sum relative to your broad high risk activities. Shame.