Dream Office Real Estate Investment Trust T.D.UN

Dream / Artis

[Frankie10]

Per Dream Unlimited: "With the proceeds from the Offer, we have bolstered our balance sheet with additional capital and resources that can be used [for] ... purchases of additional [Dream Office] REIT A Units”

...wow - you're all very smart - I will let you read between the lines.

Very interesting if Mr. Manji did not tender a single unit. This would demonstrate confidence in the underlying assets, which based on Managements actions, current Management lacks. A nil tender would put Artis/Sandpiper ownership at ~18% vs Dream's collectivley at ~33%... Should Mr. Manji subsequently buy more Dream Office, this would further bolster his public display of confidence in the REIT and it's assets. Long-term unit holders here must feel disgusted by the way they have been treated by Management... Not sure why anyone would want to own $D.UN rather than simply owning $DRM.UN based on how Management runs the entire corporate structure. Mr. Manji exerting influence and taking control here and making Dream Office and its unitholders his top priority is not as crazy a thought as it was a couple hours ago... 

[Reece1986b]

We will be cancelling 12.5 million units courtesy of this SIB. FFO/unit will be increased when we get our Q2 results and the FFO payout ratio will be improved from both the increase in FFO/unit and the money saved on not having to pay distributions to the cancelled Dream Office units which makes distributions to us remaining Dream Office unitholders more secure. If Artis/Sandpiper does not tender

[BlueJay2020]

Speaking of Q2, at some point you would think an asset impairment is on the cards. Not even management believes its own NAV. Non-cash, but no-one likes to see red ink - it just feeds into the negative narrative.

[Reece1986b]

Well said BlueJay, I think a more reasonable assumption might be that almost no REITs are worth their stated NAV rather than that the entire universe of investors has chosen to misprice almost all REITs.  I would personally welcome a reduced NAV since it would help us more easily sell unwanted assets. It's too bad we could not have written down NAV pre-SIB and bought back units for

[Frankie10]

With respect to valuation, these are cap rates used in the most recent audited financial statements:   Toronto downtown Other markets Total portfolio   Range (%) 4.75–6.00 6.75–8.50 4.75–8.50 Weighted average cap rates (%) 5.12 7.57 5.48 ...have any of the analysts posted implied cap rates? If not I'll run the numbers for the boys later today... if I had to squint and