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

Short position update

[incomedreamer11]

On November17th  12.1% of floating shares - short ,biggest for REIT ,

next one BEI.UN only 5% of floating was short

[robbie80]

Some shorts were expecting new share issueing at lower price. The short sellers have to pay 6% borrow cost + 4.5% dividend.  T : MRT.UN 2021-11-15 2,394,735 86,833 64,151,537 3.73 T : MRT.UN 2021-10-31 2,307,902 36,482 64,148,556 3.60 T : MRT.UN 2021-10-15

[slst]

Shorts can lock their downside by purchasing the Debentures now or later, just in case Management raises the distribution.  Over 60% of the distribution goest to the parent anyway. If the debenture in converted, it frees MRT to finance their Burquitlam Mega Project some time next year.  Shorts likely correctly predicted that the coversions price would be brought down so drastically

[Mrguillaume]

Shorts are keeping a lid on the upside and are active daily on MRT. In rough numbers, the entire short position increased 87k shares between Nov 1 - 15 while the entire volume was only 703k shares (TSX only) - so 12% of the volume. Explosive upside when the distribution is increased - huge position to cover.  GLTA

[WEBuffettisbest]

Pressure continues on the SP. I wonder if some have started tax loss selling yet, or is it short selling.

[incomedreamer11]

Debenture still available with TD Direct Investment , reflecting difficullty with refinancing debt

[WEBuffettisbest]

Yes, still open at TD, but closed at Rbc and Scotia. Interesting

[slst]

Based on their Balance Sheet, and the liquidity they have boasted about for a couple of quarters + the actual cash flow for the last 3 quarters, the are refinancing at a BARGAIN. IMHO, it may be a good thing if they have to use their cash to pay off a big chunk of it or even ALL OF IT.   Its seems like a strange give away. Commercial mortgages are at their lowest.  Most REITS are