Dream Office Real Estate Investment Trust T.D.UN

Fact or Fiction

[SNAKEYBOY]

37.5m shares x$13 = $487m
37.5m shares x $35 = $1,312m

=$825 million in equity discount.

Artis about 1 billion, HR about 2 billion.

You think the "Fed"/SEC that ensures normal functioning of markets would either tighten up on the NAV reits  report or look into  thesebillions of discounts in publically traded reits.   Some of these big pension funds  should just buy them out full and steal them.  Why does Group Mache and private investors just buy properties for NAV when they could buy out full reits

[Reece1986b]

There have been very few office property transactions in the past year. There have been even fewer office property transactions since U.S. regional banks started having problems. Many public market office REITs are down 20-40% this year. That would suggest that market participants do not believe office properties are worth the same amount today that they were worth at the start of this year

[SNAKEYBOY]

Its crazy how REITS report NAV as a version of their success, like its supposed to impress shareholders.  Riocan doesn't highlight NAV like HR, D, Artis do....it goes by FFO growth per year. Thats a good metric while Manji etc are trying to spin their version of sucess with the fairy dust NAV number that make the share price look like its a fire sae

[hroark7]

Basically when REITs talk about NAV, they're saying "We're cheap!" What RioCan is saying is, "We're growing!" Cheap can get cheaper.

[Frankie10]

Great point. Both can be true.

[BlueJay2020]

The more I think about it, the more I think the market cap is a much better guide to asset values than NAV. It's what someone is prepared to pay at any point in real time. There are occasionally short-term market dislocations like Covid but the current SP is due to interest rates rocketing (in relative terms) on top of doubt about the viability of office space.  I am amazed we haven't

[Frankie10]

Lots of words to say how much more meaningful the implied cap rate is vs the weight average cap rate used to determine IFRS values (NAV). ...this is the true value of NAV and IFRS cap rates, imho. Determining implied cap rates based on NAV  is literally connecting the dots and analyzing the real time price on a look-through basis of the underlying assets themselves. ...don't be too

[mnztr]

These assets needs to compete with risk free rate of return which is now in the 5% range. A far cry from the 1.25% 2 years ago. So thus the stock has to drop to 13 to provide a premium over bonds. Even then that premium is only 2.5% or so

[SNAKEYBOY]

True but 5 and 10 year are better guages as real estate investors aren't looking at a 1 year return,  but decades

[mnztr]

True, thats what I was looking for,  but its been up, then down, then up and now down again. if i hadn't sold I would be under water in capital  over about 12 or 13 years.