Morguard Real Estate Investment 5 25 convertible unsecured subordinated debentures T.MRT.DB.A

Worst stock in the history of REITs

[canadian]

Why is this the worst performing stock? Still can't find a reason. Management definitely sucks.

[incomedreamer11]

Tax selling period ,from REIT its worst performing stock -53.5% one year period,  second one CUF.UN -39% one year period

[alexll]

It is not the worst stock, at least not for MRC. They are slowing taking over MRT at an extremely low price. It is a steal at this price and it may be the best one in their perspective.

[maplenorth]

Its easy to see what they are doing. Currently every month they are getting about 1.7M in distributions paid to them. At todays prices they can buy back ~300,000 units a month. They are slowly increasing there insider ownership at a rate of about 0.5% per month. I would think once stock price recovers and they are only buying back say half that amount, they will stop the buy backs and put the

[canadian]

Since MRC holds majority of MRT shares, what if they offer 6$/share instead of closer to NAV? Isn't this bad for the minority shareholders?Is it legal?

[Shirtlessnomore]

I think I speak for every shareholder in that I dont want 6 bucks, could have already sold out higher than that. I will admit I was guilty of selling alot under 6 that I bought for under 4.50. It moved pretty fast and I wont make that mistake twice, the right piece of big news for this virus and we may never see this price again, as been noted it hit a 20 year low or something, I am going to make

[maplenorth]

This is a good question, but begs the question why keep DRIPing more distributions in to additional buybacks when they already own well over 50% then? To pay out less to non-insiders? 

[maplenorth]

They have to pay out 60% minimum of operating revenue - I think they are buying back more to increase their payout once the distribution inevitably goes back to .08 We are already seeing a .08 payout in december!!

[canadian]

Found probable answer to this question. They can't really buyout with an offer very less than NAV

[Shirtlessnomore]

That's right.

[Shirtlessnomore]

And why would they want to sell themselves short on value, the topic is pretty much about how much they own, why wouldnt they want it as much value as possible. That's their whole complaint and reason for share buyback, they arent happy with the valuation and want it higher so the more control they have the higher it can go. Small retail ownership means less volatility. Everything screams buy

[canadian]

Respectfully disagree. MRT is buying back very few shares (nothin in November).  MRC is not buying shares. They are just dripping at low price (increasing the total numer of shares) which is bad for other share holders. MRC is using its majority shareholder power and not suspending the DRIP.

[maplenorth]

FALSE .. they bought back over 330k in mid November and will do the same next week.. buy while you can 

[canadian]

False. Issued new shares to MRC via DRIP. Issuer Name Morguard Real Estate Investment Trust Insider Name Morguard Corporation Relationship as filed with regulators 3 - 10% Security Holder of Issuer Transaction ID 3628911 Filing Date Nov 20, 2020 Transaction Date Nov 16, 2020 Security Type Units Transaction Nature 30

[maplenorth]

My bad, thought these were buybacks. Essentialy diluting the stock to give more ownership to themselves? I’m confused 

[canadian]

This might be minority shareholder oppression. Someone needs to file litigation against them. 

[maplenorth]

They have more skin in the game here. Buyout has to be relevant to NAV. No one was crying manipulation when it rose up 

[Shirtlessnomore]

I didnt mean they are buying back shares currently, just stating that their original plan for buying back shares when it started was because they were unhappy with the share price, they are saving money continuing the drip which is important right now. The drip represents a $1.5 million savings a month. This is a month to month decision by MRC.

[Malpeque2]

Canadian: You CAN drip too.     MRC is increasing it's economic ownership of MRT thru the Drip.   MRT does not have to pay the divie in cash to MRC. IFRS accounting on REIT's is that NAV is supposed to be some reasonable approximation of market value based on Cap Rates for similar properties in similar markets.  THat is what appraisals do.   There

[Shirtlessnomore]

Added a bit at 4.47 and will continue to do so every dime all the way back to 4.20 if people will sell it, but I would guess without warning the new bottom will be in barring further economic and political downside.

[Shirtlessnomore]

My apologies 5.47, I tend to do that often for some reason.