TWC Enterprises Ltd T.TWC

Undervalue..........

[Malpeque2]

You posted right over it without blinking an eye?     TorontoJay gave us a number   $18,000 or more in Aurora for a serviced lot,  per lineal foot of frontage.   I know what that means for a 50 foot lot.  Like what we have in Highland Gate.    Like they said,   easily $1M per lot.  

So Thank you TorontoJay for that.    Undervalue,  where is the profit in cash on these house closings?

IMO the "delay"  you mention in getting this project off the ground should probably have helped the profitability of these JV homes,   since the land value has gone up so much in the recent past. 

So Undervalue,  what is our cost basis in Highland Gate BEFORE the JV with Geranium was formed? 

What is our capitalized cost basis now?       Can you figure a cost basis per remaining house/lot,  forgetting the value of the multi family structure that will come at the end of the project,  I guess.

[undervalue]

Perhaps you now get why I prefer lot sales to house building. There is an MLS for I assume one of the units at 2.688 million for 4000 feet. Around the corner there is a resale on a 60 foot frontage for 1.748 with 4700 hundred built feet. With a 900k differential, new is a tough sale. Lots worth 70% of the value, no way. It used to be a third 20 years ago.  I would guess much less now. The

[carbide]

Apparently they forward sold the houses, and then had inflation in materials and maybe labour.  So that explains some margin compression.  But judging by the account on page 11 of the MD&A, they sold the houses at cost, and gave away the land for free.  The magnitude of the loss defies explanation. You have to wonder what the JV partner's books look like: Geranium Homes

[undervalue]

I do not disagree.  The sad part is that we now control Geranium as I understand it. I got caught year ago in Burlington in the early 90's. I built, and was stuck waiting for sales. The resale market was in the dumps. I was sitting there looking at a bunch of invoices from suppliers and trades. I had to take what I could get. By the time it was done, I had lost 10k a unit. And I worked my

[Malpeque2]

Undervalue............I know this is the TWC Blog,  but I was wondering,  since your into RE and undervalued shares,   have you ever taken a look at Morguard  MRC,   and it's daughter Morguard REIT,   MRT?       They seem to have a lot of assets in there that seemingly never get sold,  and trading well  below book. 

[undervalue]

Mrc is a very inexpensive stock. I do not hold. Probably should. I was amazed at the dividend bump at Twc. It appears that they cannot buy meaningful shares back.

[Martin1]

I still remember the days of 7.5 cent dividends. But a nice increase none the less. I have a very small position in MRC. Bought in 2020 at $128. Down 15%. Buy more to average down? Have done that in the past and it didn't end well.

[undervalue]

Bought a few of MRC at 112 today.

[carbide]

Amazed at a 1.25% dividend yield?  ;) As I understand, they can only buy 10% of the free float, which is 20%, so 2% per annum, which is not material.  Except for block sales.  So we are told, they are interested in blocks for sale. Liquidity will continually dry up.  Eventually it has to be bought out.  How long is anyone's guess.