DRUNF - Dream Office: 50% Stealth Distribution Cut Is Too Little And Perhaps Too Late
2024-02-20 17:05:44 ET
Summary
- In our last piece we had suggested that Dream Office had a high risk of a distribution cut in 12 months.
- The cut came, in a creative manner.
- We tell you why this might be too little and perhaps too late.
Note: All amounts discussed are in Canadian Dollars
On our last coverage of Dream Office ( OTC:DRETF ) ( D.UN:CA ), we did not buy into the cheap assets theory and stayed on the sideline. Our rationale was that you were getting office properties for 40% off, but you would do best to wait for an 80% off sale. We also felt the distribution policy being pursued was just plain wrong and a cut was needed to better align capital plans....
Dream Office: 50% Stealth Distribution Cut Is Too Little And Perhaps Too Late