Boardwalk Real Estate Investment Trust T.BEI.UN

Moving to MRG.un

[avertrisk]

We have been takinkg some nice profits on BEI.un after a real good run and parking some of those funds in MRG.un, which is trading at a discount to NAV.  This strategy has worked well in the past with MEQ and BEI, so we will see if we can get another reversion to the mean on MRG

Also took profits on GSY and moving funds to HCG.

Good luck with your trades.

[autofocus111]

@avertrisk BEI trades well below NAV. Per the Q3 earnings report Net Asset Value (NAV) increase to $64.29 per Trust Unit, equating to approximately $185,000 per door.

[malx1]

auto, it's nice to see that you've held your shares and joined us NAV builders.  Management has focused affo surplus on upgrades just before Alberta economy shows signs of strong recovery.  Seems their strategy is paying off nicely.  Share price performace here has been stronger than peers who focused on big yields.  TD will have a $70 target on this soon.  The

[autofocus111]

When I bought units of BEI half a decade ago, it was trading below NAV. It has traded below NAV since then. I'm not convinced it will ever trade at a premium to it as long as they stick with an Alberta-heavy asset weighting. FYI: Back when I purchased the units it was yielding close to 5%. 

[malx1]

Management righted the ship 4yrs ago when they slashed the dividend and poured surplus funds into renovations. A half decade ago is when US shale had been flooding oil markets for 2yrs and Russia was battling Suadis in a shootout for top supplier of global oil market.  Funny thing about BEI is that $40 has always been a decent price-point and value for the units.  What changed was the

[malx1]

I think Alberta RE is set to meaningfully outperform as their resource-based economy wakes from 7yr slumber.  World is sleepwalking into energy shortages.  Provinces like AB and SK will prosper. "Boardwalk further announces that it has declared a special non-cash distribution of 32.5 cents per trust unit, payable on Dec. 31, 2021, to unitholders of record at the close of business

[malx1]

TD issued $70 price target January 5th.  Good call, malx!  "The non-cash special distribution will be paid at the close of business on Dec. 31, 2021, by the issuance of additional trust units that will have a fair market value equal to the dollar amount of the special distribution and which will be based on the closing price of the trust units on the Toronto Stock Exchange on Dec

[autofocus111]

I read the announcement again. I thought the 'non-cash; reference meant the distribution would be flagged as a capital gain, but it seems there is no actual distribution. Instead there is a unit issuance and consolidation that will leave unitholders with a higher ACB, even though the unit 'count' remains unchanged? Very confusing. If this ever manages to hit NAV aka 64.25 at last count

[malx1]

NAV will be $75 when this trades at $65. What will you do then?

[autofocus111]

malx1 I will close out my position. If investors refuse to meaningfully close the gap to NAV there's a reason for that. As I stated previously, I originally bought this years ago as a dividend income play. That model went out the window after they cut the dividend and shifted their shareholder returns strategy.

[malx1]

The reason is that they're afraid of AB exposure. Funny thing is, it will be AB exposure that triggers the outperformance here. I'm staying with these guys for next few years, maybe longer. If you haven't seen what NAV building will do, have a look at MEQ. They don't pay a dividend but they've tripled share price in 5yrs, including the pandemic. That's similar to BEI

[malx1]

Best performing REIT in Canada. $20 to $80 since Pandemic. NAV grown every year.

[Karren411]

have held MRG.UN since its IPO at $10.00 ...  cheers