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

STRATEGIC REVIEW

[SNAKEYBOY]

I dont know man, with the REIT sector getting flushed day after day, and supposedly a better office property REIT like Dream office getting smoked, does artis really have "levers" to pull to close the gap?

That 40% minnesota/winnipeg office is not going to be easy to unlock value.

I will be really surprised if Manji could deliver on anything that would get us to $9 in the medium term

[Reece1986b]

I think today's price action on Dream Office makes it very clear why it has been a mistake and continues to be a mistake for Artis to hold off selling what they can because they think there are better days ahead. The FCR position can still be sold at a reasonable price -- not as good as could otherwise have been obtained earlier this year but certainly a better price than can be had with the

[DZtrader]

Reece, respectfully, I think it's a fools game to sell anything right now for significant losses. I am not talking about the properties they have long already earmarked for sale but am unfortunately speaking of the the brilliant purchases in other reits, with the obvious caveat that if they absolutely have to then they have to, but hopefully they have not found themselves in that position. You

[SNAKEYBOY]

I agree with Reece and communicated to Manji the urgency.   The March banking debacle ruined office sentiment in literally under 3 weeks, in the US you cant even get financing for it, based on what Cooper is saying. Dont want to risk a hard landing or more hikes and then be stuck with ZERO options and a total illiquid market.  I dont know what they should do with the public

[DZtrader]

Oh good, "you communicated to Manji", whew, had me worried there for a bit! All should be good now! Gotta hand it to you, when the chips are down, we all know we can count on you to pull us out of this.  "I communicated to Manji"...............................ya, what did he say? Did you remember to ask him if there is enough cash in the kitty to cover your losses? "

[SNAKEYBOY]

He said he is doing what they set out to do in the announcement- at all costs.  Do you believe it?

[Frankie10]

Disagree. There is zero long-term thesis to hold FCR. We have the ability to sell at ~70% of NAV - I think you sell and redirect that capital to a number of high return options: 1) credit that costs us prime + 1.7% 2) prefs with an effective yield of 10%+ 3) commons with an implied assset yield of 9% and cash flow savings of nearly 9% (from saving on distribution) 4) use the capital to buy Dream

[Frankie10]

correction: 3) commons with an implied cap rate on its investment properties of 9%+ and cash flow savings of nearly 9% (from saving on distribution)

[DZtrader]

I am well thanks, hope the same holds true for you too. I kind of thought that last post may have elicited that type of response, likely from yourself. I won't argue your points because they are correct, highest and best use of capital at present time. I don't like taking losses and losing money, that's not to say I haven't because I have. I guess my point is, I believe we are at

[Frankie10]

Glad to hear you're well DZ. Yeah, I understand the phscology of taking loses, but I'm indifferent to the emotions of it all (or atleast I try my best), and simply focus on the math. The math, as I laid out, is simple and clear. From a success vs. failure percpective, I agree - exiting FCR at a loss would be a failure. I believe the perception of this can be avoided if some or all of

[SNAKEYBOY]

Manji has his own problems to solve then thinking about d. If he's able to restore value through his strategic review with a MASSIVE sale then later in fall or 2024 he can target d. It would be another distraction like fcr was. 

[DZtrader]

Hey Frankie, you make a compelling case (as usual) and as noted in prior post, hard to argue your math. Having said that, I will push back for a few reasons. Firstly I have been fairly vocal about his thus far failed experiment of playing "hedgie". You just don't know where you end up with this stratagy, hard to valuate moving target. I recognize in the grand scheme of things it has

[Frankie10]

I was very public that I thought FCR should have been sold immediately after failing to take control of the REIT.  Path forward is clear to me - sell 20% of the industrial and retail portfolio yesterday and try your best to sell 20% of office (to maintain asset type blend - or sell whatever % of each to get you to optimal blend Manji thinks is best) - we need to see a meaningful amount of