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

The reason why this might be a value trap....

[MTLfinecity]

new leases command lower rent than expiring leases. 

Good thing they made mention of the redevelopment plan @ Burquitlam Plaza

Overall a neutral quarter within expectation, but the discount to faire value won't close anytime soon.

[robbie80]

MRT.UN is very similiar to CUF.UN. Same occupancy rate at 91%, FFO is around 25cents/quarter. CUF.UN is valued at $11.75. 

[apollojetic]

Still hard to get excited about a reit that issues very dull  quarterly reports with no new initatives to help move the share price up. Give us something. Tell us your plan to turn things around. What are you working on?  Being one of the worst performing reits is not a badge of honor where you play defense for the forseeable future. A divy raise would at least give some confidence

[robbie80]

MRT.UN has $162M available credit + $35M upward refinance enough to repay $175M convertable debt.  Now it is time to correct the mistake and raise the dividend.

[Mrguillaume]

The biggest catalyst for this name right now is a short squeeze. 2 million shares needed to cover!! Although their available credit is sufficient enough to pay the 4.5% debt maturing in December of $175 million, I would like to see them being re-issued. RioCan this week completed a debenture offering @ 2.829%.

[slst]

They do say they are in dicussions to renew.  The parent company holds $60 million of the $175. I hope they do not offer a drastically lower conversion rate. Besides the Burquitlam Plaza to build 2,175 residential units + 85,000 sq ft of Commerical Space, they are still repurposing Old Sears spaces in several provinces for new tenancts.  That is taking a long time and making investors

[Mrguillaume]

I think that the Burquitlam Plaza is already sitting on the books at the redevelopment value per Morguard F/S – “highest and best use as a redevelopment property”. The 2021 BC Assessment for this property is $150.5 million. As the REIT is not a developer, the property will likely transfer to the parent corp. to be development once zoning is in place. Then we can realize the value - between $150

[Northforce13]

Maybe they reduced the dividend because they DONT have confidence in the "tenant mix".  Lack of said confidence would be warranted, considering declining revenues that have been happening.  WTF are you suggesting?  PRETEND all is well and jack up the dividend in the hope that everyone is stupid and will think things are going just dandy when revenues continue to steadily

[apollojetic]

Justification and making excuses for poor performance is not investing or good leadership,  I sincerely hope management of this reit are not thinking the way you are. All reits have had to adjust and pivot to the new enviroment. Some have done much better than others in recognizing how the landscape is changing. Anticipating these trends and shifting focus on more diversification in either

[slst]

All valid points.  Healthy discussion.  Ultimately, they are still generating good cash flow.  Annualized at over $1.00 per share.  So only slightly less than pre covid.  They just dont seem to promote the stock, beyond those boring reports. Market usually takes all that into account.  I am stil hoping this is NOT a value trap, rather it IS deep value that is not

[Shirtlessnomore]

Here is my opinion, MOST of these reits are in fact value traps, many are simply bought for the monthly income which is great if that's what you are after, but beyond that they offer little to nothing in capital gain, pick out a handful and look at 10 year charts, they are all flatlined or close to it, and they are all also undervalued all thru that 10 years, there are definitely exceptions