True North Commercial REIT T.TNT.UN

Funds for buying on the NCIB should run out soon

[lancebryant]

Unless TNT announces a property sale that has not been previously disclosed its not likely that they can continue the buybacks at the pace that they are currently.  

This comes from the assumption that TNT does not want to pay significant income taxes and has expunged most of the capital that wasn't subject to the primary income lines.

Under the assumption that they pay significant amounts of Canadian tax they can more or less just keep buying back while it makes sense to do so.  This is one door that they may actually explore and I would be one to support it.   It would be a dramatic shift in principle of how to run a REIT and may change the way other REITS in the industry operate.

[garyreins]

Not sure what you mean- they specifically said at the onset they woudl redirect all distribution amounts to the NCIB.  So if they were paying ~8m a month in dividends it was going to the NCIB. I assume they will find a way to go to 10% or maximum allowance.  

[lancebryant]

The tax requirement is that it 95% of funds have to be paid in terms of dividends, not as buybacks.  If REITS could only buyback shares and never pay dividends and never pay tax on those buybacks man that would be broken lol.

[luscar99]

This post has been removed in accordance with Community Policy

[lancebryant]

You, like many people; dont actually read what people say. We are actually of the same mind.  Yet you managed to find a way to disagree. Welcome to democracy I guess. And for the record; you are wrong on the taxable income thing when it comes to write downs from the Ops.

[BlueJay2020]

Tax works on a cash/realized basis so simply writing down the value of an asset would not affect the rules on distribution.  If it did, it would be a masive loophole...

[luscar99]

This post has been removed in accordance with Community Policy

[giovinco]

Lancebryant probably owns a business and is not implying tnt is breaking the law. He just has bad communication skills and is not highly proficient in English, that's all. Just look at the subject he posted. The subject is wrong. Tnt won't run out of funds to buy ncib. In fact, if price stays as is, it could possibly buy back all the shares if ncib was not limited to certain percentages

[luscar99]

This post has been removed in accordance with Community Policy

[lancebryant]

The post went right over your head. Read the tax laws. They have to pay the money out as DIVIDENDS, or pay tax.  It's not that they dont have funds; its that they will have to pay tax if they continue to buyback shares only.

[giovinco]

Sorry but what are you saying? I can't understand anything because of the poor sentence structures and communication errors. I hope English is not your first language, otherwise you would have hard time communicating in your regular life.

[lancebryant]

If you cant understand that comment then I don't know how to help you. lol.

[EstevanOutsider]

These are the properties they are known to be selling: 251 arvin street hamilton $2.7 million $395 psf 3650 victoria park north york $38 million $251 psf 1161 CRAWFORD DR peterborough $9.25 million $284 psf Considering the implied trading value of TNT is around $200 psf, any of these sales would be highly accretive!