Here are the catalysts for 2025.
2025 Goals will be to eliminate land loan carrying costs. The below is the path we are taking to get there, and at the same time, bringing many new developments to completion generating positive cash flow and new income streams. MPCT has been trading at a discount due to the large amount of land holdings, which are held for development and sale. The 2025 plan will remove most, if not all Land Loans. The drop in interest rates will be enormously beneficial for MPCT vs other REITs, as all our land loans are VARIABLE rate. Cooper has realized that the market does not want a development REIT, and is aggressively moving to a traditional income property REIT with distribution.
Catalysts w/ Dates:
Q3 2024
10 Lower Spadina Sold (Confirmed). Cash in bank
349 Carlaw Sold. Cash in bank
IVY Condos Closing (Cash in bank)
Q4 2024
Birch House Begins Leasing (Confirmed, OCT 1st) 444 Rental Units
Brightwater Townhomes Closing (Cash in bank)
Maple House is Fully Leased, generating Net Positive Income.
76 Stafford Sells (Guessing, nothing confirmed)
50bps Interest Rate Cut in October (Most likely)
Annoucement Brightwater will move from build to sell condos to purpose built rentals.
Q1 2025
49 Ontario Sale - 100% owned by MPCT. We will sell 75%, and keep 25%. ETA Guessing.
2 New Apartment Building Starts at Zibi (will reduce land loan). Just announced. ETA Guessing.
Aalto 2, and Common at Zibi all stabilized (fully leased 90-99%) and generating Net Positive Income
The Mason at Port Credit Closing (Cash in bank)
Quayside begins phase 1 construction (Guessing ETA, should be around here). Reduces land loan
Q2 2025
Zibi 3.27 Acres for sell (will remove most the land loan costs). ETA Guessing.
Brightwater Apartment Start(s) - ETA Guessing. Nothing Announced.
West Don Lands Block 20 begins construction (Oak House) ETA Guessing.
Q3 2025
Distribution Reinstatement (exact date not known).
Q1 2026
Cherry House @ Canary Landing starts leasing (855 Rental Units)
Unknown Dates:
Scarborough Junction Sale - Will be a huge milestone for MPCT
Any further repayment (if any) of the Vegas Hotel Investment that was written off.
Research the projects MPCT has just completed, and ones that are being built. The quality is undeniably some of the best in the public REIT sector. MPCT has been beaten down heavily due to its holding of lands (land loans at variable rates), and distribution cut until these income properties come online. However, as we are eliminating the variable debt on land loans, and these income properties are leasing up faster than expected, the distribution will be reinstated and the cost of holdings these valuable lands will be eliminated (while maintaining a large land bank for future development). MPCT will then become a traditional residential REIT, albeit with some very high quality developments in the pipeline.
Owning a residential REIT with high quality assets that are coming online should prove to be an attractive investment, especially since there is around a 80% discount to NAV which I anticipate will close the gap as the milestones above get announced. Some of the announcements are very material and should handsomely reward patient investors. As noted, most of these are in the near term. We are no longer waiting years, these are most likely to happen over the next 12 months.
As mentioned twice before, MPCT is a low volume REIT. If you do choose to purchase MPCT, I would suggest considering holding for long term and not trading, as the volume is too low to trade.
Happy investing!