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Bullboard - Stock Discussion Forum Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Alternate Symbol(s):  ARESF | T.AX.UN | T.AX.PR.I

Artis Real Estate Investment Trust is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States. The Company’s portfolio comprises more than 100 commercial properties. Its properties include Bower Centre; Maynard Technology Centre; McCall Lake Industrial; Pepco Building; Alex Building; 1093 Sherwin Road; 1681... see more

TSX:AX.PR.E - Post Discussion

Artis Real Estate Investment Pref Shs Series E > AX preferred shares a buy?
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Post by tylerreddick on Jul 15, 2024 11:52am

AX preferred shares a buy?

They are yielding almost 10%, just wondering if that indicates any concern from those types of investors?
Thanks for any insight.
Comment by InvestSmarter on Jul 15, 2024 11:58am
AX Prefs are treated like Debt to AX's balance sheet. AX is about to announce large asset sales, which is great for PREF holders. AX goal is to reduce debt. The PREF debt is some of AX's most expensive debt. It would make sense for AX to SIB back some of this debt at even a 8% yield (much higher than $18/unit). Historically, AX Pref's trade at $22+ when the yield was much lower.  ...more  
Comment by InvestSmarter on Jul 15, 2024 12:05pm
Well, 30 seconds later 200+ Million in asset sales are announced and proceeds will be used to pay down debt lol
Comment by rad10 on Jul 15, 2024 1:43pm
  We have held both series for some time.  Very good holding.  Double digit qualified dividend income - simpler than distributions from the units.  SIB likely, but also may get called thereafter depending upon how many are left.   I don't think too far out - equally happy if they are reset.  We'll just continue to hold.
Comment by luscar99 on Jul 15, 2024 5:17pm
This post has been removed in accordance with Community Policy
Comment by rad10 on Jul 16, 2024 8:25am
I think we may be confusing eligible and qualified.  I'll check with our accountant - mid term holding, so definitely qualified.  Unsure about eligible status.  It's a cash distribution according to the company.
Comment by luscar99 on Jul 16, 2024 9:25am
This post has been removed in accordance with Community Policy
Comment by rad10 on Jul 16, 2024 12:12pm
It's a dual national thing.  Qualified refers to duration of hold and source.  Dividend harvesting is taxed as regular income on a 1099.  Preferred are qualified, regular REIT units income usually aren't.