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

Paper napkin math

[SNAKEYBOY]

Industrial 954m
Office 1,542m
Retail 556m
Development Properties 215m
Cominar/Public Securities 250m
 

Total assets ~ $3.5billion
Total Liabilities ~  $1.64billion (47%)

If they sold everything EXCEPT office TOMORROW for Full FMV (best case scenario), minus closing costs etc, you have about full debt wiped out and just a portfolio of 1.5 billion in pure office.

Office 1,542m, shared outstanding- 105 million.

You are left with $14-15 a share.  Now,  thats obvious because the math I did just implied you sold everything at FMV.  

The question becomes, will the market value this office at a ~30% asset value discount like they are dream office....if so then artis will still be trading at $9-10.

[Reece1986b]

Artis could have that $1.5 billion pure office portfolio roughly debt free like you said if they sold the retail and industrial assets. They could then lever that office portfolio up and buy back pretty much all Artis units not owned by insiders.

[SNAKEYBOY]

Yes it's more engineering required cause no reit carries 0 debt.  Manji is basically already doing what needs to be done except 300m out of 3b assets for sale isn't enough... he needs to go over 1b in assets.. keep paying debt with a couple SIBS. buying shares back under $10 is where value is added back