Lanesborough Real Estate Investment Trust V.LRT.UN

The smart thing for 2668921 Manitoba to do

[riverrrow]

to try to protect their own investment in LRT would be to offer to take LRT private under the same terms that Lakeview got bought out.  A $2.5 million investment could save them a world of headaches and hurt later on.  GLTA.

[quicksilver545]

The terms of the Lakeview buy-out were really not that attractive to the debentureholders. They ended up getting about 7.5 cents on the dollar. Would others here really be willing to accept a similar offer? I have been comparing LRT's balance sheet to Lakeview, and they are similar from the perspective of indebtedness. Currently trying to decipher how the assets are valued in the balance

[Isyckle]

Since the change in accounting method, the accounting as been diminishing the assets value as negative" Fair value adjustments" been going on since 2017. The asset value doesn't reflect the market price of the assets, but the pure financial performance of buildings and unit as money making machines. Few years back, fire broke out where they hold most of the real estate, making the

[BobTheKnob2]

And this is exactly why they followed closely behind fellow Winnipeg-based company Lakeview Hotel Investment Corp in low-balling the debenture-holders to get the company on the cheap.  Big differencebetween the two as I recall is that Lakeview directors were continually buying the debt on the cheap. Not sure if that was happening here or not. Haven'tseen any SEDI filings to indicate

[Isyckle]

Their assets would be a good fit for Boardwalk indeed. I see no rush in converting the debentures. I think the best is to come.

[quicksilver545]

This is what i figured, Isyckle, when I read through the balance sheet. Seems like real estate assets are not valued on their market price, but on their income potential.  Any ideas on what the actual liquidation of the real estate assets would be, and if it would leave enough to be distributed to debentureholders? I'm still on the fence regarding changing my vote to reject the proposal

[Isyckle]

With the current balance sheet, i think everything would go to Shelter and Manitoba with the loans that were needed, even though it was artificial. If liquidated right, Debenture holders would get crumbs. Leaving the trust unit holders with nothing. But remember, the only reason why right hand loaned to left hand, is because of the cumulative fair value discount, nothing more. They have money,