Post by
garyreins on Feb 10, 2024 6:58pm
My view on strategic review
I think this REIT doesn't have limited options, they probably have TOO many options and its a game of tug and war and time horizon and end goal that is at stake here.
For example. Their initial plan was to move into big joint ventures. Less capital, rake in asset management fees for their platform. Not sure how the UK JV failiure soured on this plan.
Alternatively, they can exit a few countries (UK/US/Brazil), pay off a wad of debt, and just be a more simplified REIT with a good balance sheet. This may get unit price back up to $6-7 but then what is the avenues for growth?
Given the discrepancy between trading price ($4.34) and NAV ($12) the best thing they can do in my opinion is to definitely achieve 1-2B of asset sales, get rid of as much as that 9% debt as possible, andd run a NCIB maxed out for next 1-2 years or even a SIB. 35% of NAV for a healthcare reit is ridiculous and this is the best use of capital once they work out a big delevaraging sale