Post by
SNAKEYBOY on Apr 30, 2022 9:58am
5 year potential
If they continue to cancel 10% of the float every year at a discount, in 5 years half the shares will be retired, all their office/retal will be gone, and you will be sitting on $25-30/unit industrial and residential reit. This is of course contingent on them selling their assets at or above FMV and buying back 50% of the float at a discount.
Comment by
alkhor on Apr 30, 2022 10:51am
Hate to be a stipler for detail, but after 5 years of cancelling 10%, it will be 59% of of the current float remaining. You can't cancel shares that have already been cancelled.
Comment by
SNAKEYBOY on Apr 30, 2022 1:31pm
On a recursive basis, you are right, but the fact is eventually things have to sway to the upside
Comment by
SNAKEYBOY on Apr 30, 2022 3:28pm
Selling Office/retail is about 50% of their market cap right now, plus FFO retention from the smaller dividend. The should be able to continue to fund it, and I assume it will be a priority if there's a 30-40% discount
Comment by
SNAKEYBOY on Apr 30, 2022 9:25pm
While residential is solid now, who knows if the future brings an excess supply of housing that can't be filled. Remember 2008