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

RBC Q3 Preview this AM 43% upside

[Income]

Understanding many here discount the information the banks provide. Hwoever it is relevant to how the market thinks about relative performance against these (and other) expectations.
They rate Artis as SP with $8.00 target. 43% upside.
Have the REIT trading at a 10% cap rate veresus and RBC cacluted 7.7% cap.
Looking ahead to 2024. FFO is essentially flat at $1.12 per unit.and AFFO growing from .69 to .73.
FWIW.

[Frankie10]

I'd like to point out... My implied cap rate model eliminates all equity in connection with Iris, thus is more conservative than the banks and better inline with the reality that Cominar is dead money (my opinion for over a year now). At best the prefs are worth book value. Worst case is the equity is a write-off and we need to take a haircut on the prefs. Even if you account for latent

[Catchtherally]

Can you elaborate why cominar would be dead money? 

[Frankie10]

I believe Artis' equity in Iris is worth nil. I also believe Artis' preferred units in Iris are worth their book value (approximately). Therefore the combined invest in Iris (Cominar) has a value in my view, and the approximate write-off on today's NAV would be equal to the equity investment in Artis' balance sheet. As to why - I have written many essays here. I do a quarterly