Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Alternate Symbol(s): ARESF | T.AX.UN | T.AX.PR.I

Real Estate REIT - Diversified

Artis Real Estate Investment Trust is an unincorporated closed-end REIT based in Canada. Artis REIT's portfolio comprises properties located in Central and Western Canada and select markets throughout the United States, including regions such as Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Arizona, Minnesota, Colorado, New York, and Wisconsin. The properties are divided into three categories: office, retail, and industrial. The industrial properties account for most of the portfolio, followed by the office properties and the retail properties.

TSX:AX.PR.E - Post by User

Artis Real Estate Investment Pref Shs Series E > Put another way

<< Previous

Bullboard Posts

Next >>

Comment by EstevanOutsideron Jun 08, 2024 6:22am

86 Views

Post# 36078993

RE:RE:RE:RE:Put another way

well, there is certainly demand for retail and residetnail in canada and little for new supply is coming

office is certainly in a bear market for a number of reasons albeit i believe it has generally bottomed, if not reversing, in certain markets including toronto.

eventually the lack of new builds with population growth, removal of existing supply, should help office.

in any case, i am super convinced that all asset classes but office are on fire...

i don't find value in generalized statistics about CRE debt at all. canadian reits still getting financed without challenge in the mid 5 range on unsecured debentures (HR, Riocan, SRU to name a few)

Torontojay wrote:

EstevanOutsider wrote: financial crisis caused by real estate lending verses falling inflation.

reits were trading strongly into that unlike this time near all time lows with no new supply and a surging population.

The supply is low for a reason. The demand is simply not there for certain types of commercial real estate, specifically the office space. The GFC was a residential sub prime mortgage crisis. This cycle it's all about the crash in commercial real estate, the refinancing cliffs at higher rates and the loan to value ratios that have effectively wiped out all equity. Sound familiar with the GFC?

There is almost $1 trillion in Cre debt that has to be refinanced by end of 2024 and many regional banks are at significant risks for credit losses. Moreover, the multi family residential space is flooding the market with excess inventory which is going to put downward pressure on rents. There is a record number of multi-family completions that are expected in 2024. These are units that were sold when interest rates were much lower.

Lastly, and I will repeat, when they cut interest rates it is almost always the end of the bull market. This has occurred every single time with the exception of 1966,1984 and 1995. Please refer to the chart below and zoom out to see past economic cycles.

https://fred.stlouisfed.org/series/FEDFUNDS