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

Earnings

[Frankie10]

My analysis based on a review of Artis PR and financials, as well as Cominar’s financials. I have not looked at either REITs MD&As yet. 

I don't use this forum anymore because of a certain individual, but I am happy to share my preliminary thoughts and bounce ideas around with anyone using this post.

 

https://x.com/alphafortuna10/status/1720310844116926807?s=46&t=c3ZJB3W5JdjUXgGKfBn01g

[Frankie10]

Missed this point: Iris prefs continue to pay us in shares rather than cash.   The risk with the prefs is if Artis’ ownership interest in the prefs shares is a lower % than its ownership interest in the equity. Based on my calculation minimum % of total prefs we own is 18.5%, with an optimistic view that the ownership % for each are equal. This would mean no dilution of our interest in

[babybunny]

I am still befuddled as to why all the other parties to the Cominar transaction allowed Koch to grab ~ ~$500M in preferred shares (5/6 of the total) compounding at 18%.  I cannot be sure this is what happened, as Artis refuses to divulge the IRIS financial structure, but this is what all the evidence seems to point to imo.  That being said, at least we hold a 1/6 interest through our

[Frankie10]

Interesting. Devastating, if true, to those here who believe they own a third of Cominar. The pref holders own Cominar, yet we don't know with certainty who the pref holders are... ridiculous. I see no path forward where the commons aren't wiped out by the prefs - simple restructuring once the prefs become redeemable -  convert prefs into commons so the interest bleeding stops, 

[babybunny]

I assume that IRIS's  "Other expenses and income, net" reported under Note 5 to the Artis quarterly financial statement is almost entirely preferred share interest.  What else could it be?  This amounts to about $24 million per quarter, or $96 million per annum, implying that the face value of the preferred equity is $96 million / 18% or $533 million at the end of Q3.&

[jmkOttawa]

Great sleuthing nevertheless Baby Bunny. Thank you!