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

Public investments backfired big

[SNAKEYBOY]

The 300 plus million they got from selling assets at fmv should have sat on the balance sheet. With sub 45% debt,  They could have pulled the trigger on a 40 million SIB at 7.50.  It literally would have made manji a legend and to be honest I don't think his strategy will ever work.  Even when reits outperform its unlikely the investments will outpace artis unit price making the fees and capital gains worthwhile

[EstevanOutsider]

true it appears to be bad now but in hindsight; however i see it also that artis value has fallen along with the sector which has allowed for cheap buybacks. therefore, not much of a loss if he were to liquidate FCR and buyback Artis units. net-net. As for Dream Office, the valuation has been triple in the past couple years but suddenly it's worthless and nobody needs high quality best

[SNAKEYBOY]

Manji could look smart if he times it well, but the past year showed us that he can easily get it wrong.  Really it comes down to if Artis was very strong where the NCIB didn't need to run (traded at $12+) and had a solid balance sheet, then he picked on a very disliked REIT with the intention of becoming activist and having big returns, I can see that potentially working.  But just

[EstevanOutsider]

artis wasn't trading at the discount it was today  to be fair. i think he is doing the right thing with buying back. doing the math on potential artis liquidity sources i have no concerns about this REIT and even significantly less after the large industrial purchase int he US today which implies significant value for Artis' industrial assets - some of which are brand new & coming

[SNAKEYBOY]

Correct. I believe Manji is course-correctnig Artis and with nice debt paydown and NCIB and aggressive asset sales they'll make it on the other side very strong.  Ideally I would still like to see D/FCR dumped at some point and free up 300 million in liquidity that can make artis more attractive 

[EstevanOutsider]

i would prefer he winds down artis and keeps dream office. i believe dream office has more promise and could offer substantial long term gains for artis unitholders. sell in a few years when office space is running back full throttle and the narrative has shifted to supply shortage.

[EstevanOutsider]

i mean wind down *FCR not artis.

[Reece1986b]

I really do think Dream Office would make a very nice acquisition for Artis. I previously thought DAM and Artis/Sandpiper might buy Dream Office together and split all the physical real estate assets amongst themselves until DAM dumped their units in the SIB. It could have worked out better for Artis to receive Dream Office office real estate properties for their Dream Office units rather than

[SNAKEYBOY]

Artis should only be buying more D if their intention is to take control or go activisit force Cooper to explore strategic alternatives like asset sales + big SIB or find a buyer.  If Dream rebounds to $25+ on its own then artis will also double in price, so the point is they are both going to be taken up or down with the tide.  Might as well invest just in artis via ncib and  SIB