Whiterock Real Estate Investment Trust T.WRK.DB.K

Aquisitions

[dtal]

CanadaFan

What's your take, on this?

[canadafan]

I held RioCan for close to 15 years. Every few years they would do an equity rasie at a siscount to trading price.This is no different.The deal is said to be a .1/unit AFFO improvement (all-in).so the math makes it a good thing for those who are worried about the distribution.IN the short term a few "traders" will be pissed off, for the price drop.For the "investors"...those

[gwplant]

Hmmmm maybe someone can explain to me why these REIT's all have such high payout ratio i.e this one which after the acquisition will have an AFFO of .375 per quarter yet payout .42 they are paying out more than they are taking in.... doesn't add up to me.  I like the buying opportunity but with such a huge payout ratio over 100% I am hesitant any thoughts would be appreciated.

[Jimpossible]

Hi, gw,I'm not an accountant, but  in Canada, reits have been required to depreciate their properties at a high rate, and for book-keeping purposes this is a high cost, and it goes into the affo calculation. (if I'm not mistaken).... But it's not a cash cost. Also, over time, the value of properties seems to go up, not down.  They will add-back the non-cash depreciation to