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Melcor Developments Ltd T.MRD

Alternate Symbol(s):  MODVF

Melcor Developments Ltd. is a diversified real estate development and asset management company The Company develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. The Company operates in four segments: Land, Properties, REIT, and Golf. The Land segment is responsible for purchasing and developing land to be sold as residential, industrial and commercial lots. The Properties segment owns approximately 24 leasable commercial, retail and residential properties and other rental income producing assets, such as parking lots and land leases. The REIT segment owns approximately 38 leasable commercial and retail properties and other rental income producing assets, such as residential property, parking lots and land leases. The Golf segment owns and manages three 18-hole golf course operations (one of which is 60% owned) and has a 50% ownership interest in one 18-hole golf course.


TSX:MRD - Post by User

Comment by dangoodon Sep 27, 2024 12:29pm
62 Views
Post# 36244254

RE:RE:RE:RE:You Ain't seen nothing yet

RE:RE:RE:RE:You Ain't seen nothing yetThe REIT shares were roughly $2.50 at the end of June and are going out at $5 now so Melcor will book a loss of $30 million (market capital of the REIT is $60 million). The group that is opposing the transaction says the transaction is going out at 50 cents on the dollar so I assume Melcor should book another $40 million writedown due to the valuation on the REIT units already owned. I don't believe the book value of $40 as the dividend yield is only 3% and has been getting cut. So I take a few dollars off on Melcor's direct  holding of commercial real estate too. So a conservative number would be $35 assuming a 50% writedown of under 1/3 of their assets which I assume to be commercial and not land development. So booking all the writedowns to current market should give me a number closer to $30. I treat investing as an art not a science so everything should be simplified. My point was there are few companies that trade at 50 cents on the dollar EVER unless they are losing money. And I first got into Melcor in the late 1980s.
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