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 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... see more

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TSX:AX.PR.E - Post Discussion

Artis Real Estate Investment Pref Shs Series E > PMZ AND HR TRADE AT ~14.5x AFFO MULTIPLE

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Post by SNAKEYBOY on Mar 03, 2023 6:59pm

PMZ AND HR TRADE AT ~14.5x AFFO MULTIPLE

ARTIS AT 11.64x. APPLYING THE SAME MULTIPLE WE GET $10.90 FOR ARTIS.

Bottom line is Artis is discounted 20%+ so taking some steps in the right direction could easily get it back to $10.00

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Comment by Reece1986b on Mar 03, 2023 7:06pm

I already have all the Artis I want however I'd be quite happy to pick up a couple thousand more units if the Artis delisting gets us a nice little dip nearer $8. There may very well be better investments out there however I don't think someone is likely to lose a lot of money buying from these levels. That's good enough for me.

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Comment by Frankie10 on Mar 03, 2023 7:31pm

Cash flow relative to market cap would be more than compelling in the low $8s... if you believe NAV, at $8 P to NAV is 0.46. I will be a buyer. Happy to make this a longterm hold to realize value.

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Comment by SNAKEYBOY on Mar 03, 2023 8:29pm

I thought it was compelling at $11....then $10...then $9.....depends on if their FFO/AFFO continues to decline which could be the case with higher interest expense and asset sales. They need to start looking under the cushion for savings and use the NCIB to add value of declining metrics

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Comment by Frankie10 on Mar 03, 2023 9:40pm

Free cashflow has since deteriorated. The risk of rising rates was heightened at the time due to the % of variable debt and % of debt coming due within a year or two. Using Q4 metrics, I believe the NAV is realistic and the cash flow is relatively sustainable. Using Q4 metrics, at $8-$9 Artis is a good risk adjusted for ME.

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Comment by CatchTheDip on Mar 03, 2023 10:47pm

HR is higher quality. PMZ is not diversified. AX has a debt problem and no clarity of their focus. If they dump FCR and focus on their initiatives, such as Dream Office and Buybacks, the market will like it. The market does not like this mess of FCR, D, 300M in assets held for sale, debt coming due, and lack of buybacks. Clean it up Mr. MANJI.

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