Bullboard - Stock Discussion Forum Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

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

Artis Real Estate Investment Trust is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States. The Company’s portfolio comprises more than 100 commercial properties. Its properties include Bower Centre; Maynard Technology Centre; McCall Lake Industrial; Pepco Building; Alex Building; 1093 Sherwin Road; 1681... see more

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TSX:AX.PR.E - Post Discussion

Artis Real Estate Investment Pref Shs Series E > Pref shares

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Post by HermannHaller on Aug 12, 2022 4:04pm

Pref shares

Anyone have any thoughts as to whether they will redeem the A pref shares (AX.PR.A) on Sept 30?

The dividend is currently 5.7%, but based on today's rates, will step up to 6.9% if allowed to reset. Seems to me the company has lots of liquidity, plus more coming from asset sales, that they will just redeem them.

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Comment by borne2run on Aug 22, 2022 7:21pm

Reset will be over 7% based on today's trading in the 5 year Government of Canada bond. Only 3.25 million A prefs outstanding, lowest of the 3 issues. And Reset Premium to 5 yr bond is the highest at 4.06%. So, if Artis were to redeem a preferred issue, this should be the prime candidate. I recently purchased some of these - if they are reset I will enjoy a decent yield for the next 5 years;& ...more

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Comment by HermannHaller on Aug 23, 2022 9:02am

My thoughts exactly. I think they will make redemption announcement next week. $25 plus final 35c div at end of September.

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Comment by rad10 on Aug 23, 2022 7:23pm

nice work! I felt the same. Reset should come near the peak of the interest rate raises. This may well trigger redemption. Heads we win with a nice capital gain, tails we get a nice bump in the dividend for several years from a quality solvent company! I'll take that every day. Long common and preferred.

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Comment by rad10 on Aug 23, 2022 7:30pm

Holy shoot - hadn't looked at the preferreds for a couple of years. (Bought at 15) They are trading near parity. Looks like a redemption is priced in already.

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