Dream Unlimited’s announcement of the sale of its Arapahoe Basin Ski Resort mentioned: “Dream is also evaluating other investments throughout the Company to maximize shareholder value and increase liquidity.” Dream previously suggested sale of Arapahoe Basin was unlikely because it would trigger a significant tax liability. Willingness to sell suggests that other assets may also be examined from a fresh perspective. Let’s consider some opportunities…
Good article. I am in for "the plunge" with Cooper on Dream Office. Can't see how you lose from current valuation and feeling good about my position with a recent add prior to the cut of course, which I always thought was a possibility albeit likely to be accompanied with asset sales. Seems like major asset sales could be coming this year plus a joint venture residential deal. Excited for this and won't be surprised to see it as a top winner if Cooper can execute the asset sales.
D would be in strong shape if it did not do the SIB last year and instead put the DIR proceeds towards NCIB, capex, and debt reduction. However the SIB was a way for DRM to extract a significant amount of capital and raise its liquidity.
Regarding fees charged to MPCT by DRM: both DRR and DIR have 15% incentive fees, MPCT does not. Also DRM is acting as the developer for MPCT. Developers might typically receive 3-4% of the end value of each project. I think if you adjust for that the differences in fees that DRM charges its subs may not be very meaningful.
That's an interesting perspective. I wrote "If MPCT achieved extraordinary returns then this expense might be affordable, but instead it has simply added to destruction of unitholder value." I calculate that MPCT has paid cumulative fees of $111mm to DRM over 10 years and incurred a cumulative loss of $20mm. So I don't see MPCT's agreement as comparable to DIR.
I have had a small position of D-UN.TO for many years 2013 ( 100 shares purchased for a unit price $37.38) being a income investor . Sorry But i cant agree with any of this positive discussion. It is not a value, and i don't see any bright future for this security ever. Now it has done another desperate move to further erode value with a unit consolidation... Its down another 3% today. There are many other REIT's with much better metrics and qualities. Honestly with REITS, better to buy a basket of them with an ETF like ZRE or MREL. They (single Reits) are obviously not diversified enough to be reliable year after year.
I'm sorry for your loss. I didn't own D.UN in 2013 so I can't comment on why people believed it was attractive at that time. My investments and commentary focus on value rather than dividends which are just an arbitrary management decision.
Good article. I am in for "the plunge" with Cooper on Dream Office. Can't see how you lose from current valuation and feeling good about my position with a recent add prior to the cut of course, which I always thought was a possibility albeit likely to be accompanied with asset sales. Seems like major asset sales could be coming this year plus a joint venture residential deal. Excited for this and won't be surprised to see it as a top winner if Cooper can execute the asset sales.
D would be in strong shape if it did not do the SIB last year and instead put the DIR proceeds towards NCIB, capex, and debt reduction. However the SIB was a way for DRM to extract a significant amount of capital and raise its liquidity.
Regarding fees charged to MPCT by DRM: both DRR and DIR have 15% incentive fees, MPCT does not. Also DRM is acting as the developer for MPCT. Developers might typically receive 3-4% of the end value of each project. I think if you adjust for that the differences in fees that DRM charges its subs may not be very meaningful.
That's an interesting perspective. I wrote "If MPCT achieved extraordinary returns then this expense might be affordable, but instead it has simply added to destruction of unitholder value." I calculate that MPCT has paid cumulative fees of $111mm to DRM over 10 years and incurred a cumulative loss of $20mm. So I don't see MPCT's agreement as comparable to DIR.
I have had a small position of D-UN.TO for many years 2013 ( 100 shares purchased for a unit price $37.38) being a income investor . Sorry But i cant agree with any of this positive discussion. It is not a value, and i don't see any bright future for this security ever. Now it has done another desperate move to further erode value with a unit consolidation... Its down another 3% today. There are many other REIT's with much better metrics and qualities. Honestly with REITS, better to buy a basket of them with an ETF like ZRE or MREL. They (single Reits) are obviously not diversified enough to be reliable year after year.
I'm sorry for your loss. I didn't own D.UN in 2013 so I can't comment on why people believed it was attractive at that time. My investments and commentary focus on value rather than dividends which are just an arbitrary management decision.