Morguard Corp T.MRC

Who benefits from the sale of hotels?

[pierrelebel]

I suspect MRC will use some of that $361,000,000 it receives from ther sale of those hotels and finally buy the units of MRT.UN it does not currently own - at a price well below book value.

WIN - WIN all around.

[Possibleidiot01]

Opens up many possibilities.

[babybunny]

I too would love to see MRC mop up the remaining shares of MRT.  They will have to pay up quite a bit if they want to tender for the whole thing all at once.  They are probably better off picking away as as they have been, just being a little more aggressive. I'd also like to see MRC repurchase more of its own shares through the NCIB.  Granted, it is a thinly traded stock, but

[Northforce13]

No... I think they sold the hotels because they are facing a big wall of debt maturities in 2024 that they have to refinance and they are freaking out over the interest rates being quoted.  Looking at their most recent debenture offering at > 9% is certainly sobering.   The sale of hotels is a solid plus and a good move at a good price which will give them some financial

[Malpeque2]

Hotels were 17 properties.   Carried on the books as at September 2023 for $341M.   The debt against the properties was $118M  so these hotels overall were relatively less encoumbered that the average property at Morguard.  NOI I have at about $27M  for 2021.   $32M  for 2022.  $39M for the 9 months ending Sept.  2023 v $27.7M for the 9

[steavie]

As per their 2023 results release today, they used it to pay down debt.