Bullboard - Stock Discussion Forum Dream Office Real Estate Investment Trust T.D.UN

Alternate Symbol(s): DRETF

Dream Office Real Estate Investment Trust (the Trust) is an open-ended real estate investment trust. The Trust owns central business district office properties in various urban centers across Canada, with a focus on downtown Toronto. The Trust owns and manages 3.5 million square feet of office land in downtown Toronto. Its objectives include managing its business and assets to provide both... see more

Add To Watchlist

TSX:D.UN - Post Discussion

Dream Office Real Estate Investment Trust > DRM

View:

Post by Frankie10 on Sep 12, 2023 3:21pm

DRM

Go-private deal?

If DRM were to acquire Dream Office at a bid of $20, would *enough* unitholders accept?

It would be a great chess move by Cooper. However, it would not be good for long-time unitholders who have watched their wealth dissolve, only to then be acquired for far below what they originally paid for the stock.

Hopefully unitholders put up a fight - all I hear is the properties are irreplaceable, the location, location, location... yet, based on the current unit price, nobody seems to want to buy!

My thoughts: I think Allied is the far superior office REIT, with far superior balance sheet, and development pipeline. Allied is a cash flow machine, while Dream bleeds cash.

124

Comment

Comment by Catchtherally on Sep 12, 2023 3:27pm

DRM just sold their shares at 15.5 ... I don't imagine they plan on buying them back at 20.00 anytime soon

Comment

Comment by Frankie10 on Sep 12, 2023 3:38pm

Would unitholders have accepted $20 per unit if not for the unit price collapse ever since the SIB? Would the current unit price be where it is if we were back at pre SIB debt to total asset levels? SIB at $15.50, yet no NCIB at $12.xx? so many questions... ...perhaps $20 is too high and they take it private for even cheaper? ...my ACB (exlcuding the phantom distribution) is $14.30... I'll ...more

Comment

Comment by SNAKEYBOY on Sep 12, 2023 3:29pm

LOL this guy thinks I spit out nonsense onthis board....sure tender 7m shares at $15.5 then buy everyone out at $20. You cant have mental gymnasitcs to think that makes any sense. A hostile bid would come in at $15 right now if it were to be bought out

Comment

Comment by matt2018 on Sep 12, 2023 3:42pm

Stop dreaming, nobody is buying anything. You think if there was even a whiff of such a plan in the works, someone would be dumping this many units at these prices? Obviously someone with large holding wants out (for wahtever reason) and buyers not there to absorb all this volume, day after day. Question is more like, when will they be done?

Comment

Comment by Frankie10 on Sep 12, 2023 4:16pm

I agree with you buyout is far from my base case. Interesting that you think this is a controlled sale...my first thought was cascading marginal calls. Hard to think someone is willingly selling at this price. That said, with respect to your rebuttal as to the unlikelihood of take private - I would note the unit price leading up to the SIB was a nasty downtrend. cheers, Frankie

Comment