Melcor Developments Ltd T.MRD

NCIB and Melcor REIT

[longrun86]

Hi folks,

I have a question that I am hoping someone here knows the answer to.

Is Melcor Development allowed to purchase shares in Melcor REIT in the open market and if so, what are the legal restrictions on doing this?

Perhaps Melcor would consider maximizing the NCIB for Melcor Development and simultaneously setting aside funds to continuously buy down the externally held share block of Melcor REIT.

Looking forward to any guidance someone can provide regarding the potential restrictions around this.

My view is that the company needs to make some strategic moves that unlocks the value of Melcor. The NCIB has been nice but the share price has gone exactly nowhere in the last 15 years. If the Board's job is to maximize shareholder value (as measured by the share price plus cash distributions), then they need to focus more on this aspect of the business.

Doug, Bruce, and Janet are all reasonably new to the Board as Independents and both Ralph and Janet are well into the 9th inning with their time as Melcor Board members.

My recommendation would be to run an SIB at $15 and see what the Tender results are. The company has bought back shares into the $14 range back through the NCIB so it's not like they think its overvalued at a $15 (with a book value of $39.50+!).

Perhaps the other alternative the Melton's should also consider is selling the whole company at any price around Book Value. Tim and Andrew aren't getting any younger!

There is a lot of value that created by Management that hasn't translated to the share price. The Board must step up and help convert the book value to share price.

LR

[Northforce13]

A lot of their buildings are office and retail, so like all other office and retail REITs it trades at a discount . They pay a nice dividend and have been doing the right thing in buying back shares with idle cash. If they wanted to do an SIB of significance, they would have to start selling buildings in order to raise cash to do so.  I am a shareholder and I am happy with what they are

[Thor16]

You are happy with the REIT unit price and common share price?  Both are heavily negative over 2, 5, and 10 years.

[Northforce13]

"You are happy with the REIT unit price and common share price?" Yes "Both are heavily negative over 2, 5, and 10 years." My current shares were purchased within the past year.  2/5/10 year comment:  Compare MRD to similar REITs 2/5/10 year performance.   I think the majority of similar REITs have not had a great decade either, so I don't blame MRD

[Marley66]

Longrun, i have no idea what are the legal right of Melcor and it's REIT. But you can look not far with Morgard (mrc) and it's commercial and office Reits (MRT.UN). - mrc buy it's own share with a NCIB and buy MRT.UN in the stock market ...they been doing that since the onset of the pandemic. So base on that, probably Melcor could buy as many shares of it's REITS.... I

[babybunny]

I don't think there is anything stopping MRD from buying units of HR.UN   Of course they would have to report these purchases through SEDI/SEDAR but this is not too heavy a burden.  I would love to see this happen, buying with both fists. Because the daily limit on the NCIB is so restrictive, the biggest lever Melcor has to unlock value is a SIB.   It should be priced