REIT
GLOBAL X EQUAL WEIGHT CANADIAN REITS INDEX ETF
stock TSE

With all the reit takeover happening I’m looking at my cap REIT holding.
I have a small position of about 300 shares. Current cost basis is $40
Cap reit nav is around $54 so it’s currently trading at a discount to its nav which makes it a good candidate for a takeover. Executives have been buying back shares in the mid $30’s.
Say a takeover happens .. depending on the premium of this deal I’d still most likely make money on this deal or at the very least (say it’s a 10% premium) break even.
All things are pointing to a hold for cap maybe?

As an investor in REITS. I hold XRE and CAP REIT.
I’d like to know what impact this recent REITS takeover news is going to have on my positions.
I bought cap becaise it’s the biggest apartment REIT in Canada so I assume they are not on a chopping block of a takeover ?
How will it impact somethinf like an XRE etf? Will H&R still be a holding in XRE .. etc.

Yep. I shouldn't be surprised at the crappy premium - it's been a thing in the Cdn REIT space. I own FCR.UN too and scoffed at the 14% premium it got earlier this year. At least in that case, FCR had already gained a lot before it was taken out... H&R definitely deserved a higher price!!

Transaction Highlights and Strategic Rationale
>Transformational scale: Creates the second-largest publicly-traded residential REIT in Canada and seventh largest publicly-traded residential REIT across the United States1; larger scale drives cost efficiency opportunities, margin expansion initiatives and strengthens organizational capabilities
> Portfolio diversification: Significantly diversifies New York City concentration by adding a high-quality 23-property Sunbelt portfolio in markets (Tampa, Dallas, Orlando, Miami, Raleigh, Austin and Charlotte) with superior employment growth and economic momentum
> High-quality, luxury portfolio: Trophy New York City assets complemented by attractive Class A Sunbelt properties; post-transaction completion GO will continue to have among the highest average monthly rental rates of any public residential REIT in Canada or the U.S.
> Earnings accretive: Expected to be accretive to GO's FFO and AFFO Adjusted per Unit, with approximately $15 million in annualized synergies expected to be realized through margin enhancement initiatives
> Strengthened balance sheet: Pro forma debt to EBITDA decreases by more than ~2x at close, with further potential improvement from synergies and income support, while intending to preserve investment grade credit rating
> Greater investor liquidity: Expanded unit float by approximately 4x, which is anticipated to enhance trading liquidity and broaden GO's institutional investor appeal

Well there goes another Cdn REIT - H&R REIT to be acquired by a consortium of investors, including Go Residential REIT, Blackstone and Crestpoint. Stingy 10% takeout premium to last night's close, wah wah.

I own it too (I’m under water) & bought a bit more today. I like its assets and yield, sure, but another factor for me was how big a takeout target the Cdn apartment REIT space has been recently (Minto, Interrent, Dream, etc). With CAPREIT trading at all time low valuations and earnings forecast to start recovering next year, I decided to risk it and “average down”.

Cap REIT with a nice monthly paying 4.5+% yield.
You have to imagine the rental market in Canada rebounding at some point in the far future.
As a long term hold maybe this is the bottom and you safely collect a great yield waiting out the market ?
Thoughts?
I hold this position but it’s a small position and I’m essentially flat. Considering adding more