H&R Real Estate Investment Trust T.HR.UN

SIMPLER PLAN?

[SNAKEYBOY]

Can't they sell off their residential properties and industrial that have high demand, monetize them, then do a mass NCIB to scoop up the office/retail properties on cheap.  That would theoretically drive that price back up to $20ish

[materialsgirl]

That is one theory that might work.   They would get a 25% premium  over NAV for both the Industrial and Apartment segments.  They would need  to wait for another 6 or 8 months. Still these segments are only about 30% of the total NAV so the boost would  not be revolutionary. mat

[SNAKEYBOY]

Yes but they have the cash to buyback discounted office and retail properties via NCIB at a mass scale.  They would be left with a office/retail reit with 35% debt and be like dream office.  Even should sell some non-core office and retail

[materialsgirl]

Would becoming like Dream office be a good thing or not? The other point of course is that management and employees of a company never want to dismantle the business just so  shareholders make a quick one-time gain and they lose their  jobs. What is good for shareholders, who just want to make a  quick buck, is not good for employees who lose their job mat

[gashole]

they should sell off 10% of retail, and 20% off office space and get bigger in industrial and residential. 

[materialsgirl]

gashole Selling off 10% of retail involves deciding which bits to sell. Open air malls?   Enclosed malls? grocery anchored? We would all like to be rid of losing smalled enclosed malls. But there is no enthusiastic line-up of buyers who are shouting  "bring me your garbage retail assets and I will pay you a big price" Implementing your ideas may be very hard to do

[gashole]

For sure, I totally get that.. I guess if I was managing the company I would do things a bit differently, but Im not... Plus Im not qualifiied lol