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

What exactly is the benefit of cancelling preferreds?

[SNAKEYBOY]

They may have a higher coupon but is the discount comparable to trust units?

[Reece1986b]

The preferred Series I units are a particularly bad deal for Artis. They pay a minimum yield of 6% regardless of what government bond yields do. The Series E preferred units are more reasonable but I think Frankie10 is right that Artis choosing to buy these preferred units every week does suggest it is likely they will be redeemed once possible. I'm not sure why Artis is not really using

[Frankie10]

Discount? You have no idea what you're talking about. You own equity. Prefs are above you in the cap table and act more like debt than equity. The yield on both of these classes of prefs reset this year and both will be greater than 6%. Furthermore, these prefs can only be redeemed every 5 year anniversary - meaning if they don't redeem them this year upon renewal, these will be stuck on

[HermannHaller]

When Manji unveiled his new strategy for Artis, a couple of years ago (?), he talked about it eventually converting from a REIT to a corporation. This will make it easier for them to invest in other companies, removes payout requirements that a trust has. Analysts at the time asked about the prefs, and Artis acknowledged that to convert to a corp, they would have to first get rid of the prefs (for