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

Does this make sense?

[garyreins]

Just running with the trio privitization and how it would look for them:

Industrial 954m
Office 1,542m
Retail 556m
Development Properties 215m
Cominar/Public Securities 250m
Total assets ~ $3.5billion
Total Liabilities ~  $1.64billion (47%)

Sold 950m industrial to one buyer because its the most in-demand asset class.  Proceeds of $550m or 55m shares at $10 to buy out public float.    -400m mortgages/debt (liabilities)

Now becomes:

Total assets ~ 2.55 billion
Total liabilities  ~ 1.24 billion
Unitholders equity: 1.3 billion
New share count (sandpiper/joyce/manji/edgepoint): 50m
New NAV per share: $26 (1300/50)

Now they have a small private entity worth over $25 with 1.3b equity and can pay themselves juicy dividends as they attempt to liquidate it all over the next few years.

Disclaimer: Just paper napkin math and a theoretical scenario.

[garyreins]

The premise is with just crystalizing the full industrial portfoilo value they can basically buy out half the float via a strong SIB ($10) and have 400m to buyback preferreds or credit facility.   The only issue is you are left with a 75% office reit, 25% retail, and the public securities + cominar, and who knows what that'll trade at.  But at least it makes the reit smaller