Inovalis Real Estate Investment Trust T.INO.UN

Distributions are safe for the foreseeable future.

[SIGG1]

As noted in the latest letter to shareholders;

the REIT’s Q2 FFO is $0.22/Unit, well ahead of forecast. The cumulative FFO as at June 30, 2023 is $0.36 per Unit, approaching the value of annual distributions to Unitholders of $0.41 per Unit. 

[stockrook86]

I agree, I think they are safe - the one wrinkel is the massive loss of rent from Arcuiel. Starting this quater the FFO payout will be well north of 100% on a quarterly basis.  They should be able to let it run assuming the sale happens in mid 2024 as mentioned in the last MD&A.  Everything hinges on what they can do with Arcuiel - at least since it is 100% single tenant, it does

[lebouclier]

Your concerns are valid, but the market has blown the risk way out of proportion. The physical building will stand and someone will pick Arceuil up. the only question right now is at what cost.  Savills | Spotlight: European Office Outlook – June 2023

[stockrook86]

100%, Inovalis is extrememly cheap based on the underlying assets. Basically trading at the value of cash on the books (proceeds from prior sales) and the appraised redevelopment value of Arcueil less debt, basically getting all the remaining office for free.  I own a bunch and have for a while, do believe WFH concerns are not as signifcant in Europe - but there is in my mind a small to

[lebouclier]

There`s still 6 months left for them to find a buyer and sell it to be on schedule for Q2 2024. That`s plenty of time in the real estate world - even if the actual sale is delayed by a couple months. According to Q2, the property is worth 92M on the books and has 50M in debt associated with it. Even if sold for 50 M, there`s no way the rest of the REIT is worth what it is. I don`t believe the

[SuperCC]

Finally some good comments here, people are acting absolutely stupid when things drop massively. Emotions will kill you in this game of investing! As Peter Lynch, the most important organ in the investing world is the stomach. I have added massively between $2.13 and $3. Guys, book value is $8.76 and Morningstar's Fair value is currently at $4.71. Let that sink in.

[lebouclier]

I would have also increased my position heavily, if it were not for the following reasons. First, the only reason I have not picked up more units is that this is already my number one play by book cost. Second, I purchased other REITs at record low prices in its place to add a little more diversity to my portfolio. Third, there is still plenty of time to pick Inovalis up for nice and cheap, like

[SuperCC]

No worries, you can keep adding with the distributions coming around November 15th!

[BlueJay2020]

I've continued to add - now have 11,000 averaged at $2.425.  My smallest REIT holding other than TNT but that's because I don't like to wade in too deep to the less liquid REITS. I think INO has 50 per cent upside - TNT and Dream Office a bit higher.

[BlueJay2020]

"I would have also increased my position heavily, if it were not for the following reasons. First, the only reason I have not picked up more units is that this is already my number one play by book cost. Second, I purchased other REITs at record low prices in its place to add a little more diversity to my portfolio. Third, there is still plenty of time to pick Inovalis up for nice and cheap

[lebouclier]

nope it did not.