Dream Office Real Estate Investment Trust T.D.UN

RE:RE:RE:RE:RE:RE:It's on: COOPER VERSES MANJI

[Frankie10]

Hey Northforce - Samir will likely continue buying Dream, not just because your very valid point (I raised it in the Artis board over a year ago), but because the leverage of Dream Office allows Samir to scale up Artis' business at the proportionate ownership level in terms of assets, using proceeds from asset sales, which delevers Artis at the entity level. Explained in the following post: 

Unwind leverage and scale up

Samir is unwinding debt at the Artis level by selling assets. He is also increasing the scale of the business on a proportionate ownership basis in terms of assets... explained below:

Artis is selling assets at NAV to generate liquidity and  unwind debt at the REIT level.

 

Artis is then using a % of the proceeds to buy equities at meaningfully lower implied valuations.

It is important to note - Artis is selling assets and buying equities - this is not an apples for apples swap...

 

By buying 2% of Dream Office equity, Artis purchased 2% of it's assets (proportionate ownership) - total assets being $2.7B. Meaning Artis bought $53M of assets... 

 

The math is fascinating.

Artis' debt to GBV is down to ~35% per my estimation, and the business as I have detailed is scaling up in terms of assets *should* Samir continue down the path of acquiring Dream Office.