Post by
garyreins on Oct 07, 2023 7:35pm
The easiest/best solution IMO
If there is no buyer for the REIT on mass for a good price, not sure we consider $10 good but maybe in this environment, then the best option is to just sell 100% of the assets on the private market, fund NCIBs and paydown debt. Likely some assets will be taken in bulk and have competing offers, while some may sit for several quarters or until the market unfreezes. Thought experiment, if Artis listed more than 300m for sale past year, but 3billion for sale, how much would have sold by now? Maybe 1b+? All REITS are limiting their sales of assets like FCR/AP/HR to be strategic and balance sheet improvements. Artis can go all the way and if the macro improves while they are executing its even better. If the macro gets worse then at least they freed up more liquidity before it deteiorated. Seems like the best option regardless of what happens. Perhaps this strategy can see SP at $13 by end of 2024. Not sure if any reit has ever attempted this disposition strategy and what the tax implications may be.
-Gary Reins
Comment by
jmkOttawa on Oct 08, 2023 7:46am
Furthermore, I would be very surprised if the strategic review recommends a sale of the entire REIT to one party. The implied discount on such a transaction would not allow the best outcome.
Comment by
garyreins on Oct 08, 2023 9:46am
Instant capital recycling makes a low-ball offer enticing if you can buy other REITS at a greater implied discount after the take out price. Sandpiper may not have this option as they need to wait months to close while we can sell our tiny shares at the arbitrage which should be about ~8% under
Comment by
Catchtherally on Oct 08, 2023 12:56pm
Patiences snakeyboy. These reviews can take a long time.