Post by
EstevanOutsider on Apr 17, 2024 2:04pm
Artis likely much less sensitive/risky to higher rates
given they sold nearly $1 billion of assets since December with possibly more to come. Only the retail and industrial sales were known, not the offices including Poco Place which sold for around $100 million in Port Coquitlam. They have the Burnaby Kinkaid property which also has residential zoning opportunities (source AIF) for consideration that they could dispose of.
Overall I think Artis should be seen as significantly less risky, including on the distribution with these asset sales. I think they will likely run a SIB this year on the commons.
Also the abiltiy to sell USD-denominated assets in USA and buyback cheap Canadian debt/units is a great opportunity in my view.
Comment by
rad10 on Apr 17, 2024 2:35pm
If they touch the distribution they lose credibility. Buying dream in the open market and then cutting the dividend? Not happening. Max out NCIB, buy back preferreds, paid handsomely to wait.... All good.