Parent Capital Corp V.PAR.UN

My analysis of anticipated return

[gertrude73]

I have purchased shares at around $1.83.  I think the sale of properties announced will in fact close at net proceeds of $63 million or about $1.37 per share. 
The equity is $99.663 million according to the financial statements.  Deducting $63 million from this leaves $36.663 million.  i have discounted this by 10% leaving a value of the company (after announced sale) at $33 million or about $0.79 per share.  $1.37 + $0.79 = $2.16.  So, I think the value of the company is $2.16 per share. I bought shares for $1.83, or $1.815 with distribution of $0.015.  I anticipate my return on investment will be approximately 18%.

Remember, do you own due diligence.

Comments?

[Predator2018]

Seems reasonable. I have visited all their remaining properties in Ontario and they are all at very good location off major roads and anchired by solid tenants . With all the massive losses incured in asset sales so far, would the REIT pass on the Capital Loss to unitholders?

[gertrude73]

Read the Management Discussion and Analysis for 2018 carefully.  Here are statements from the MD&A as I read it: "Net asset value is a measure of the REIT’s total assets less its liabilities, and is represented on the balance sheet as unitholders' equity. As at December 31, 2018, the REIT’s net asset value was $2.16 per unit, a decrease of $1.84 per unit from $4.00 at December 31

[gertrude73]

My apologies. I made a mistake on my calcs.  My 10% discount on remaining assets was missed in my calcs.  As a result my estimated return is approximately 14%, rather than 18%. But of course do your own due diligence.