True North Commercial REIT T.TNT.UN

Alternate Symbol(s): TUERF

True North Commercial Real Estate Investment Trust (the REIT) is a Canada-based unincorporated, open-ended real estate investment trust. The REIT is primarily focused on creating value for unitholders through the investment in and ownership of commercial properties in Canada. The REIT’s primary objective is to maximize total returns to its unitholders. Its returns include a stable, reliable, and tax-efficient monthly cash distribution as well as long-term appreciation in the value of its units through the effective management of a portfolio of commercial properties. The REIT owns and operates a portfolio of about 40 properties consisting of approximately 4.6 million square feet in urban and select strategic secondary markets across Canada focusing on long-term leases with government and credit-rated tenants. Its properties include 36 and 38 Solutions Drive, 500 Beaverbrook Court, 61 Bill Leathem Drive, 675 Cochrane Drive, and 1112 Fort Street, among others.

TSX:TNT.UN - Post by User

True North Commercial REIT > 19.1 MILLION NET PROCEEDS

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Comment by matt2018on Apr 21, 2024 8:15am

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Post# 36000004

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:19.1 MILLION NET PROCEEDS

Your $15 NAVPS estimate makes little sense (based on the recent 4 asset sales).
That would imply the total value of the remaining assets at appr $990M or $215 /ft.
The 4 assets just sold (appr 186,000 sq ft), fetched a total of $61.4M (avg $330 /ft combined and above IFRS value from Q4 report).
The assets book value are based on evaluations that are derived from recent office sales data specific to regions, occupancy rate for each building, etc. Not what a banker thinks they may be worth in a distressed sale scenario.
Reits have already written down values to reflect current market conditions.
A bank is saying to take anothher 50% off on top of that?

You can certainly make the case that the sector is out of favor with investors and is trading with heavy discounts to the NAV and there continue to be risks.
Buyers see a potential upside narrowing of the NAV discount with the buybacks and a return of distributions in future and sellers dont. Simple as that.

luscar99 wrote: The NAV was calculated by the company in their Q4 presentation.
(Assets as per IFRS- liabilities)/ number of units A and B.

$28.39.

However, TD's estimated NAVs for the office REITS sector are on average about 50% of the NAVs calculated by the REITs themselves.
TD doesn't have an estimate for TNT.UN because they don't bother with this smallish REIT.
They only do AP.UN, D.UN and SOT.UN.
TNT.UN asset quality is lower than AP.UN, probably a little lower than D.UN and a lot better than SOT.UN.
If one would extrapolate, an eventual TD estimate for TNT.UN NAVPS would probably be between $14 and $15.