Dream Office Real Estate Investment Trust T.D.UN

Combine Dream Office and Artis

[Frankie10]

If unit price is the only consideration, I think the easiest solution by far is simply combining Artis and Dream (deal to be done via units, no cash). Combined entity would be added back to the index and the downward price pressure we saw not too long ago would flip into reverse. Furthermore, the market would value the size and scale of the combined entity. Combined entity makes sense imho - Toronto office fits into Artis' framework as a diversified REIT and another equity investment would just mean the combined entity would now hold FCR and DIR.

Discounts to NAV for each entity are similar so whether you price the enties at market values or use internal FMVs (NAV) you should end up in an similar position with respect to ownership of the new combined entity.

With respect to timing, I would announce the plan once both entities exhaust their NCIBs.

It would truly be a masterclass.

Snakey, please don't spam 5 posts immediately after this to allow others a chance to read and discuss.

[Reece1986b]

That's a really astute observation Frankie. Right now, both Artis and Dream Office were delisted from the main Canadian index. Were they to merge, they would now be well beyond the size of the smallest index components and therefore shouldn't likely drop from the index again once added to it. It would essentially restore full market cap weighted index buying to both REITs since the merged

[Catchtherally]

Artis and D are not merging. Silly idea guys. 

[SNAKEYBOY]

I can see them both taking D private one day and splitting the assets so artis gets some it likes and dream keeps the others

[Reece1986b]

I'm sure Michael Cooper would be more than happy to have Artis take all non-Toronto/GTA assets off his hands. It's nice to see you back Catchtherally. It's been lonely here without you and CatchTheDip.

[Defiance2050]

I don't think this would benefit Dream Office shareholders. Majority of properties are focused geographically gta which could have liquidity same with DIR units.  There is already a significant discount to NAV, Artis has no direction and there would not be any benefit other than owning more properties.  Selling properties for near or above NAV or DIR shares and buying back shares,