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

Come on people

[SNAKEYBOY]

I make a deal to not post pending material info.... seconds later news comes in about 3 offices sold for 100sq foot,  and not ONE "intelligent" investor here asks the obvious question "why the firesale price?" I was expecting some intelligent discussion but crickets here.

Evanstanoutsider previously said artis  sold at firesale office price of 279sq foot can come out with $10...

Not a good indication of NAV if these offices going for dirt cheap.  Of course unless it's bait and switch and they'll come out with much higher price...

However my SPECULATIVE bone tells me they are going to get rid of some dogs asap and raise cash.  GET A SIB DONE  then have a crisper portfolio to sell to someone

How does these sakes fit into strategic review outcome..

[Reece1986b]

Artis has too much Minnesota+Manitoba exposure at almost 40% NOI.  The portfolio is probably too concentrated in Manitoba+Minnesota+office space to be attractive to most buyers. These office properties are probably worth little more than what Artis is asking.

[EstevanOutsider]

i did not say artis could get $279 psf for their offices. not even close. those 60s and 70s era offices seem to be going for $120-140 psf based on other sales ive observed which have been in even better markets. winnipeg is alot less glamorous the last time i checked. the reit with much higher quality properties is trading at a 60% discount to nav now so maybe selling these old properties to

[SNAKEYBOY]

"INDUSTRIAL: 5.7M @ $192 sq ft = $1.1 bn @ 20% discount = $880 million   retail: 1.8M @ $333 sq ft = $0.6 billion @ 20% discount = $480 million office: 6.5M @ $276 sq ft = $1.8 billion @ 30% discount = $1.26 billion" 30% of 276 is about 200.

[EstevanOutsider]

if you look at the other office properties artis has, especially in the US, they are way nicer and more modern and $200 psf seems more than reasonable to me in a fire sale. these primitive manitoba buildings being sold for residential retrofitting are nowhere near the quality of the rest of artis' office portfolio.

[SNAKEYBOY]

Fair points. Do you think the ASK price is what they have on their NAV in the books?

[SNAKEYBOY]

Also it'd be good to know what the cap rate of the listed price is.