Dream Impact 5 50 Convertible Unsecured Subordinated Debentures T.MPCT.DB

Government is doing everything in MPCTs Favor. Links below.

[InvestSmarter]

CMHC Financing and other NEW rules (2 Links at bottom)
 

-December 15th, Individual condo investors can buy NEW condos with 30 year amortization, making buying cash flow positive rentals a reality for investors in the Pre-Development Condo Market.

-Removed HST/GST on New Purpose Built Rentals (Huge Savings for MPCT)

-Removed rent caps on new rental units - Growing SPNOI quick

-10 Year Bond Rate (Currently under 3%) on New Purpose Built Rentals with some Affordable suites. So MPCT's PBRs are getting loans around 2.90% today. MPCT has some loans under 2% fixed for ~10 years.

-CMHC Allows up to 50 Year Amortization, increasing cash flow

-CMHC Loan covers up to 100% of the development costs. No cash needed by MPCT to fund developments.

-CMHC is interest only payments until occupancy, reducing devlopment risk.

 

 

With new developments leasing up so quickly (huge demand), MPCT's purpose built rental strategy is going to pay off big time. Lots of partners are going to jump in for MPCT's developments, like 49 Ontario, which will receive this CMHC financing. Quayside, Brightwater and ZIBI are also going to see strong partner demand.

CMHC Development Apartment Program (MPCTs HUGE financing benefit)

https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/funding-programs/all-funding-programs/apartment-construction-loan-program

New CMHC Changes for Home Buyers (Good for pre-construction condos)
https://www.canadianmortgagetrends.com/2024/09/breaking-federal-government-raises-cmhc-insured-mortgage-cap-to-1-5-million/

I hope this helps others understand the MPCT business model. Only invest if you are buying long term please. Liquidity is an issue in MPCT and is not a good trading REIT. Im not giving financial advice, just a real issue.

[DJ441c]

yes, thanks   for this   the situation looks  brighter, still I have concerns why directors who could buy a couple of hundred shares with what's in their wallets don't do so.  would give confidence to the rest of us      will nibble a bit to reduce cost base,    what's  really annoying  is  when we do get into 

[Ogopogo26]

I agree, if we were at an inflection point, why is there no insider buying? All of 2024, if anything, insiders were selling. In addition we are dealing with the continuous dilution from DAM.

[InvestSmarter]

Possible Blackout. 49 Ontario Deal or Scarborough Junction Deal would not allow them to buy as insiders. We know 49 Ontario is getting close per last quarter earnings. 49 Ontario = 120M and still own 25% (Based on Cooper's Estimates). MPCT Owns 100% and debt is over 6% at roughly 80M. Scarborough Deal = Very Roughly 336M * 45% = $151M (based on 5.6M square feet residential at $60/foot, plus

[Ogopogo26]

All your comments are much appreciated. I think there would have been plenty of opportunities for insiders to buy in 2024. Why do you call it a REIT? It's a property developer.

[InvestSmarter]

MPCT is/was a developer, turning into a traditional REIT in the very near future. The future of MPCT is an apartment rental REIT with all its holdings in Toronto and Ottawa area, not a developer. The plans for MPCT is to develop or sell their remaining lands. From a technical and legal stand point, MPCT is a REIT, it has just not operated as a traditional REIT but it will be more like a

[Ogopogo26]

Another question for you, did you see the increase in shares from issuing new shares to DAM? In 2023 we had an increase in outstanding shares of about 5%.

[InvestSmarter]

Instead of paying CASH to DAM for managing the assets, they issue units at full NAV ($24). Its their commitment to MPCT and a positive, not a negative. It would costs many millions in cash to pay a management team of DAM's level. Instead, we are getting their expertise at a fraction of the cost. Additionally they dripped their distribtuion instead of taking cash, which is over, as NOI will

[Ogopogo26]

I am aware and understand the arrangements, but a 5% dilution I wouldn't explain as a fraction of cost. As of Q2, shares outstanding are 17,973k compared to 17,572k end of 2023, so again an increase of about 400,000 shares, so not sure where your 550,000 for 2024 comes from. Based on my estimates we're looking at 800,000 shares and again a dilution of 4-5%. I know we get their expertise,

[InvestSmarter]

We are paying DAM $2.2M worth of units annually at current $4/unit market price to manage over 700 Million in assets, and all the loads of development and rezoing work required to get our assets ready for shovels in the ground (most of that work is done now). This is one of the lowest cost of management fees to asset value in the entire Canadian REIT sector. "not sure where your 550,000 for

[InvestSmarter]

When MPCT doubles and hits $8, we are paying DAM only $4.5-5M in units to manage over 700M in assets.    DRM is investing heavily in MPCT. Instead of taking cash like every other asset manager would, DRM takes units at full NAV. DRM has incentive for the unit price to go up, and NAV to go up. The commitment and support by DRM by taking units for the next 3 years is almost

[Ogopogo26]

All good points, however, if this all as attractive as you believe it is, why no insider buying, why no share buybacks, why the low price targets by sell side analysts and why hasn't an institutional investor stepped in? Market cap is only $75mn, doesn't take much to accumulate a significant stake?

[InvestSmarter]

Q. why no insider buying A. Insiders are buying. DRM is aquring units at full NAV instead of taking cash for management fees. They are putting everything they get from management fees back into MPCT at full NAV, and taking ZERO cash. That's serious, and should not be taken lightly. Additionally, there are a lot of deals happening around MPCT right now, and we dont know if they are in