# Dundee International REIT (DI.UN)



## Toronto_Boy (Apr 9, 2013)

Hey everyone,
I have a question about how the returns are calculated for REIT.

Today I was looking at the financial statements for Dundee International REIT and noticed they mentioned "Delivered 17.3% total return to unitholders in 2012"
http://www.theglobeandmail.com/globe-investor/news-sources/?date=20130221&archive=cnw&slug=C7389


My question is ... how did they calculate that 17.3% return? given that the yield on this is about 7% ~ 8%
I'm new to this ...so asking this. Thanks


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## HaroldCrump (Jun 10, 2009)

They are using share price appreciation to make up the numbers.

DI.UN seems to be about $10.35 in Feb of 2012.
This Feb (when these earnings were announced), it seems to be about $11.35
That's an appreciation of about 10%.
Added to the ~ 7% yield will give a total return of around 17.3% that you are seeing in their report.

Selectively picking data is wonderful, innit?


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## londoncalling (Sep 17, 2011)

Hi Tboy. Welcome to the forum. Harold is correct. You could calculate the annual return using any day on the calendar. A wonderful marketing tool. I think you have a nice holding in DI.UN. I have had a bid in on this one for a couple of weeks. At some point I will stop holding my breath.

Cheers


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## AGHFX (Aug 31, 2012)

I am a fan of this REIT. Nice dividend, well managed, and opportunity for growth in Germany.


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## humble_pie (Jun 7, 2009)

i have nothing against dundee international but why are we here in this section with it

?


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## HaroldCrump (Jun 10, 2009)

Right, this thread should be moved under Individual Stocks/Equities section.


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## JosephK (Nov 7, 2012)

http://www.dundeeinternational.com/documents/DI-2012-TaxFormCDS.pdf

I notice that the distributions for this REIT are split into "Foreign Non-Business Income", and RoC. If held in a TFSA would there be any hit on the "Foreign Non-Business Income" portion? What would be an ideal account to hold this in?


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## AltaRed (Jun 8, 2009)

If withholding tax has been withheld, it is not recoverable in a TFSA. AFAIK, anything with Foreign Non-Business Income is not suitable for a TFSA.


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## mrPPincer (Nov 21, 2011)

It should be safe from withholding tax because it's HQed here in Canada.
I keep my DI.UN in the TFSA, but I don't know how the "Foreign Non-Business Income" portion is treated there.

In my case it doesn't really matter much, because most years my income is too low to be able to write off any foreign non-refundable taxes.

I'm interested to hear what others might know about this.
The REIT itself may have paid some foreign taxes which we could possibly claim if in a non-registered account?


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## humble_pie (Jun 7, 2009)

DI.UN took a wallop because its principal tenant deutsche post - currently leasing 59 or 65% of DI's euro properties - has just terminated 5 of its leases as permitted by the rental agreements. DP will move out of these properties by july 2014.

DI is in talks with DP over the remaining 54 properties. CEO has declared that dundee international's goal is to reduce deutsche post's percentage of euro rental property from 65% to 38%.

EDIT: we have tried but failed to move this thread to individual equities section ...


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## AGHFX (Aug 31, 2012)

http://online.wsj.com/article/PR-CO-20130903-905316.html

I would consider this to be pretty good news for DI.UN. I saw it had a little bump yesterday, but has returned to near 52-week lows. I think it's still looking pretty attractive at this beaten down price - will hold out a bit longer to see where it ends up before adding to my position, though.

Anyone else have thoughts on this news?


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## Jungle (Feb 17, 2010)

They are giving them 1.7 million euro in rent reduction to stay and paying them 1.45 million euros for upgrades in tenent space.. They sound desperate to hold them because we'll, 65% of their rents depend on them.


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## blin10 (Jun 27, 2011)

i unloaded this a while ago and glad i did....


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## PatInTheHat (May 7, 2012)

I didn't own this for long but I wound up selling for a tiny gain. There are other REITs I feel have more upside and less risk.


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## HaroldCrump (Jun 10, 2009)

Hmm...with so much negative sentiment, I wonder if it is time to buy in now ;o)


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## humble_pie (Jun 7, 2009)

HC are u able to dish a bit on the dirt about how they're doing finding new tenants in germany?


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## PatInTheHat (May 7, 2012)

HaroldCrump said:


> Hmm...with so much negative sentiment, I wonder if it is time to buy in now ;o)


Certainly a good time to buy. It's cheap. Although I kept CUF.UN HR.UN NWH.UN over it. Missed my buyin point on NPR.UN a few days ago by 1 cent and its been on a roll since, hoping for it to come back down. For $USD ARCP and O are extremely attractive and I plan to add to my positions in both but i'm starting to get over weight on REITs.


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## Mall Guy (Sep 14, 2011)

Didn't really like DI.UN because of the single tenant exposure . . . what do others think of DIR.UN given it's participation in the recent REIT sell-off ?


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## HaroldCrump (Jun 10, 2009)

Mall Guy said:


> what do others think of DIR.UN given it's participation in the recent REIT sell-off ?


I don't see how DIR will out-perform the overall Dundee REIT (D.UN).
After all, they acquired their entire portfolio from Dundee REIT to begin with, therefore, the valuations are the same.
You can simply buy D.UN.

If you are interested specifically in industrial complexes, check out Pure Industrial instead (AAR.UN).
It is about the same size (market cap) as DIR, but more reasonable valuations.
AAR also happens to be one of the very few REITs that has raised its distributions recently (although not by much).


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## HaroldCrump (Jun 10, 2009)

humble_pie said:


> HC are u able to dish a bit on the dirt about how they're doing finding new tenants in germany?


It is a slow process. They have been able to bring down the share of Deutsche Post from > 85% in 2012 down to about 40% as of this recent announcement.
Also note that when they say Deutsche Post, it is not entirely "post offices".
Included in that 40% share of GRI is Postbank, which is a joint venture between Deutsche Bank and Deutsche Post to provide a combination of postal and banking services.

They are also managing this situation by disposing those properties vacated (canceled) by Deutsche Post and leasing all new acquisitions to other tenants.
This _should_, over a period of time, further reduce the GRI% of Deutsche Post + Postbank.

If we look back to mid 2011 when DI.UN launched, they have always said that tenant diversification is always their #1 priority, but it will take time.

Here is their latest tenant distribution. You can see the new tenants they have acquired, and their relative GRI%.










It is a little bit disappointing that they have not diversified outside Germany - something that they said was a priority for them back in 2011.
Their target was the United Kingdom at that time.
I think back then the UK was still in a relatively good state compared to the rest of Europe.

Anyway, I think overall it is progressing as they had laid out, but with more than expected hiccups along the way (the lease cancelations).
This could be an opportunity if one is ready to suffer through some more short term pain as all this works itself out.
More conservative investors may want to wait until we see a more sustained move towards tenant diversification.
Also, at this time, there are other (external) things going on with bond yields etc. which is clouding the whole issue.


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## gibor365 (Apr 1, 2011)

From 65% to 40.6% ... it's a good dynamic... taking in consideration that Germany is still the major European engine and positive trend in European economy, imho DI.UN should do not too bad


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## HaroldCrump (Jun 10, 2009)

gibor said:


> From 65% to 40.6% ... it's a good dynamic...


It was over 80% at the beginning of 2012. The 65% that you see above is from the end of 2012.


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## londoncalling (Sep 17, 2011)

I am pleased with the increased diversification of tenants. I would like to see some more geographical diversification which I think will come in time. I have the time horizon to hold this longer term to allow the management to meet its objectives and collect distributions while I wait. I may average up or down over time depending on macro (European situation improves) or REIT sector sp movement (further downward pressure). I am currently content with my REIT allocation but wanted to add to my holdings outside of Canadian and US REIT exposure.

Cheers

ps thanks for the informative posts Harold.


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## humble_pie (Jun 7, 2009)

londoncalling said:


> I am pleased with the increased diversification of tenants ... I have the time horizon to hold this longer term to allow the management to meet its objectives ... thanks for the informative posts Harold.



yes, agree with all esp the thanks to harold part. Sitting tight like london. 

growing list of additional tenants looks very gilt-edged ... i assume that in some cases - the big german companies like deutsche telecom - the DI.UN offices are satellite offices in the smaller cities


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## HaroldCrump (Jun 10, 2009)

humble_pie said:


> the big german companies like deutsche telecom - the DI.UN offices are satellite offices in the smaller cities


The Deutsche Telekom office is actually a building in Düsseldorf, which is one of the major cities.
The region where the building is located is supposed to be a technology hub called _Unternehmerstadt_.

I believe this is a shot of that building below.

Deutsche Telekom is using their leased space as IT server storage, networking equipment etc.
Not as a business location.
But they are bound by a lease with termination penalties, at least for now.


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## humble_pie (Jun 7, 2009)

HaroldCrump said:


> Deutsche Telekom is using their leased space as IT server storage, networking equipment etc.
> Not as a business location



yea that's what i meant. The big companies would have their own prestigious head office buildings, would rent space from dundee as satellite facilities ...

nice looking building, though. If deutsche telecom is using that for server storage, imagine how grand their head office must be!


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## Mall Guy (Sep 14, 2011)

HaroldCrump said:


> Deutsche Telekom is using their leased space as IT server storage, networking equipment etc.
> Not as a business location.
> But they are bound by a lease with termination penalties, at least for now.


These kind of operations are so expensive to move, and they need to be located in certain fiber optic hubs, that companies almost never leave!


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## HaroldCrump (Jun 10, 2009)

Mall Guy said:


> These kind of operations are so expensive to move, and they need to be located in certain fiber optic hubs, that companies almost never leave!


Yep, also I assume that particular facility is used to house Deutsche Telekom's cloud storage.
Like most other telecoms (e.g. our own Bell and Telus), Deutsche Telekom is also a big provider of cloud services.


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## Mall Guy (Sep 14, 2011)

Recently read that the government has moved to (1) increase the land transfer tax (RETT) and (2) eliminate a loophole that allowed companies to avoid the 4.0% to 6.5% fee altogether . . . could be good for long term holders, but the change needs to work it's way thru the price model.


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## Canadian (Sep 19, 2013)

I wonder if there would be any grandfathering for existing entities, or if it would apply to all. If it were the former of the two it would create a great barrier for new competition to enter the German market - good for DI.UN! Time will tell...

Any chance you can provide a link of this read?


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## Mall Guy (Sep 14, 2011)

Will try to see if I can find the link. Was from one of the big commercial RE brokers who covers the EU RE market . . . google ?


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## Canadian (Sep 19, 2013)

I'll take a look


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## HaroldCrump (Jun 10, 2009)

Yes, there has been a change in land transfer tax rules that can materially affect Dundee International, but only under certain specific circumstances.

The tax changes were first proposed in Oct 2012, the bill was drafted in Dec 2012 and was passed in Jan 2013, but subject to certain changes that were to be implemented by June 2013.
Those changes have now been agreed upon by the upper house of their parliament.

Dundee management is aware of the changes and clearly outline the risks in the 2012 annual report.
Here:
http://www.dundeeinternational.com/financial-reports2012.php

In order to estimate the risk potential, we have to understand how Dundee has structured its ownership of properties.
Dundee does not hold the title to any of its properties.
The title for its initial set of properties, acquired as part of the first IPO, is owned by a private Luxembourg based property management company called Lorac.
Their website is:
http://www.lorac-fund.lu/about.en.html

Dundee owns a 50% stake in this (private) corporation.
This is by design to avoid subrogation of any liabilities of this company to Dundee.

Dundee properties are owned under a _fonds commun de placement _(FCP) arrangement:

http://en.wikipedia.org/wiki/Fond_commun_de_placement

This arrangement via a Luxembourg registered corporation is specifically to avoid German corporate taxes, and is quite common.
However, Dundee has already made accounting provisions in the event they are liable to pay German corporate taxes.
This is described on page 58 of the report linked above.
Here is the relevant excerpt:

_The income tax treatment of non-German residents, such as the FCP unitholders indirectly owned by the REIT, is not entirely clear and
is subject to significant judgment, and accordingly it is not currently possible to determine with certainty whether the FCP
unitholders will or will not be taxable in Germany on their net rental income and capital gains. 
*In light of this uncertainty, the REIT has structured its affairs assuming that the FCP unitholders would be subject to corporate income tax in Germany,
and has prepared these consolidated financial statements on that basis.*_

Dundee properties acquired in the last 2 years after the original IPO are not held via Lorac, but a different investment fund that further reduces Dundee's liabilities.
I do not know the name of that fund and it's not in the annual report, but a quick call to Investors Relations or the corporate head office here in Toronto ought to resolve that easily.

That was the corporate tax treatment.
Regarding the RETT, in the event that the titles of any of the properties are assigned to Dundee, then indeed they will have to pay the RETT.
Those circumstances are described on page 42 under the section _Organizational structure_.

Distilled, those circumstances basically boil down to Lorac going bankrupt, having to pay substantial third party liabilities, or something else happens that no longer makes it safe for Dundee to hold its investments via Lorac.
That would indeed be a large financial burden on Dundee, and will take several quarters to recover from.
But the ownership of the properties is never in question - no one can move against Dundee's ownership.

As for the general nature of RETT, I found this article helpful in understanding the German land transfer arrangement:


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## HaroldCrump (Jun 10, 2009)

BTW, thank you Mall Guy, for raising this.
It made me do more research into the specifics of the situation and found a few things I was not aware of.
I had read about the Jan 2013 law change coming up in their 2012 report, and had looked into it at that time, but completely forgot about it since then.


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## HaroldCrump (Jun 10, 2009)

I just finished talking to a very knowledgeable individual in Dundee International accounting who explained the details of the structure.

The titles to properties acquired during the original IPO are held via the Lorac corporation, as I have described earlier.
However, all subsequent acquisitions are held through entities owned directly by Dundee International under a SARL structure (Société à responsabilité limitée).
There is no third-party involvement or liability in these cases.
Currently, there are about 20 SARLs that Dundee has registered for holding various properties.
Only 2 of their properties are shared deals with third-party corporations.

Dundee has already paid the land transfer tax for all the properties acquired post Lorac.
In other words, there is no large scale upcoming tax liability for the non Lorac properties.

Moving forward, all their acquisitions will follow this pattern.


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## gibor365 (Apr 1, 2011)

HaroldCrump, so what do you think about DI.UN? Sell, hold, buy?


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## HaroldCrump (Jun 10, 2009)

gibor said:


> HaroldCrump, so what do you think about DI.UN? Sell, hold, buy?


Well, I don't want to influence anyone's decision.
This is certainly not like your average Canadian REIT such as RioCan.
There are many risks and headwinds at this time, but it does provide international exposure and expert management.

There is lots of good information in this thread.
Analyst coverage is increasing slowly as well, and now both Scotia Capital as well as TD Securities are covering it.
http://www.dundeeinternational.com/analyst-coverage.php

For the sake of disclosure, I do have a long position in this, however, I am not exactly betting the kids' education fund on this ;o)


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## humble_pie (Jun 7, 2009)

DI.UN is also an example of how international equity can be obtained by buying canadian companies with multinational exposure.

the advantages of buying canadian multinationals compared to those stagnating, under-performing "international" etfs are that such companies:

1) report under canadian accounting standards.
2) appear regularly in news media here.
3) investor can easily find serious, informative discussions like this one.
4) a knowledgeable investor like HC can even (fairly easily, i assume) phone the chief financial officer's team with a probing question ... and get back an expert, detailed, responsible answer.

yet the whole time DI.UN is a 100% european-oriented real estate firm.


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## bettyboop (Dec 13, 2011)

Next dip I think I will pick up a half position to add to my new REIT basket, either that or HRR.UN, maybe both. I'll have a little cash from UUU shortly in my TFSA.
I have D.UN which I bought too early and am down 25%, the rest are all up a little HR.UN, HPL.UN, KMP.

Unless someone has a suggestion to round out my basket....


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## Canadian (Sep 19, 2013)

I know this was released a week ago but I think it's still post-worthy:

http://www.dundeeinternational.com/documents/November-7-2013-Q3-2013-FINAL.pdf

The company has sure been on a buying spree this year. They've almost doubled their investment properties over the past couple months. Their occupancy rate is up, as is their rent per square foot. All good indicators to me. Deutsche Post is still a major tenant but its share of total GRI has been reduced to below 40%.


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## londoncalling (Sep 17, 2011)

New aquisition


http://www.newswire.ca/en/story/127...-107-7-million-property-in-dusseldorf-Germany


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## Canadian (Sep 19, 2013)

This looks like a great add to their portfolio. Decreasing their reliance on Deutsche Post is an added bonus. Now only if the TSE would show this REIT some love, haha. I wonder how much further down its price will go. Its 1-year chart is beginning to look like a tobogganing hill.


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## Hawkdog (Oct 26, 2012)

Its on my watchlist, some good info on this thread thanks people.


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## Jon_Snow (May 20, 2009)

Buying some of this with new TFSA funds... not betting the farm though.


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## Canadian (Sep 19, 2013)

Good luck! You've locked in some nice income yield to your portfolio!


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## Jon_Snow (May 20, 2009)

I admit to having a bit of "yield hog" in me... Probably too much.


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## gibor365 (Apr 1, 2011)

Holy .... Checked my Investor Edge account and found 

DUNDEE INTERNATIONAL REAL ESTATE INVESTMENT TRUST UNITS DI.UN:CDN 
Decrease of $9.41 Decrease of 100.00 %

...than found that Effective May 2014, Dundee International REIT’s new name is Dream Global REIT


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## Jon_Snow (May 20, 2009)

Geez, you had me a bit scared there. :biggrin:

BTW, this has been a great pickup for me. Kinda goofy name though.


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## gibor365 (Apr 1, 2011)

Jon_Snow said:


> Geez, you had me a bit scared there. :biggrin:
> 
> BTW, this has been a great pickup for me. Kinda goofy name though.


I got a bit scared when accessed my TFSA and saw huge loss for today


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## andrewf (Mar 1, 2010)

Why the name change?


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## gibor365 (Apr 1, 2011)

andrewf said:


> Why the name change?


To confuse myself and Jon 

_

Effective May 2014, Dundee International REIT’s new name is Dream Global REIT

In addition to the name change, the stock symbols for trading on the Toronto Stock Exchange have changed as follows: REIT Units: DRG.UN (formerly DI.UN) 5.5% Convertible Debentures: DRG.DB (formerly DI.DB)

We’ve been around since 2011, dedicated to building a diversified portfolio of commercial properties outside of Canada and creating stable and growing cash flows for our investors. We’re happy to announce that we’re moving into a new and exciting time in our business and, effective May 2014, our name will be changed to Dream Global REIT.

We believe the change will bring clarity to our story and aligns our efforts around one core belief: that creating better communities to work in will result in a better investment for our unitholders. This sums up what we do and why we do it and has been such an integral part of our culture, our work and our objective’s since the beginning.

Our new website will launch soon. Until that time, please continue visiting us at www.dundeeinternational.com. 

_


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## gibor365 (Apr 1, 2011)

Maybe ticker/name change helped this stock  
_Dream Global Real Estate Investment Trust (DRG.UN:TSX) price increases 2.55% from prior close with a trade of C$9.64 at 3:32pm ET._


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## HaroldCrump (Jun 10, 2009)

LOL, no way.
The name change has been known for weeks, if not months.
It was pre-announced by parent corporation, Dundee, as far back as March, I think.


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## HaroldCrump (Jun 10, 2009)

Dundee International REIT - now the new & improved Dream Global REIT - unit holders should keep an eye on this EC ruling against Apple Computers' tax evasion in Ireland.
The EC is cracking down on EU countries that disadvantage other member countries by offering extra low corporate tax rates, credits, tax minimizing structures, etc.
Luxembourg is on that list as well.
So far it is only Italy's Fiat corporation that is being targeted.
However, if there is a general overhaul of the tax evasion system in Ireland, Luxembourg, Netherlands, etc. Dundee International may fall into that net as well.

Dundee's structure is more complex (described in previous posts, between #25 & #35) so there is some security in obscurity, however, that may change any time depending on EC direction.

Here is a reference:

*Europeans Accuse Ireland of Giving Apple Illegal Tax Break*


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## TomB19 (Sep 24, 2015)

Does anyone know what's happening to DRG-UN.TO? It's been going down for the last few days.

I have no doubt, some news will be released in the near future explaining what the inside traders know now.


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## TomB19 (Sep 24, 2015)

Is the $14B fine by the US DoJ on Deutsche Bank dragging down this REIT?

I don't see why it would but they host Deutsche Post which, apparently, is controlled by Deutsche Bank. Perhaps there is thought Deutsche Post will reduce it's retail footprint?


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## NoWayMe (Nov 25, 2013)

Just sold my 1500 shares of DRG.UN this morning for 9.01 (held them for almost 3 years now). With the DB _potential crisis_ weighing I feel that it is RISK ON in Germany currently (on top of other issues in general with Germany/Europe). If and when things settle I will consider to buy back in, as it has been a great dividend provider.


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## Lost in Space 2 (Jun 28, 2016)

Now would be a good time to get back into Dream Global. The view from somebody living here is that Germany is just booming and Breixt is certainly isn't gong to hurt. Several things, normal to a Canadian/American, but new to Germans. House building boom they are building apartments (Europeans live mostly in apartments not SFMs) like crazy here. The place I lived in Munich, they dropped like a 1000 units into one section of the city, much to the chagrin of the locals (traffic). Even here where I live, a small town on the outskirts of Frankfurt, there's tons of new build. A city of 30,000 is expecting to add another 3000 more people. I expect Brexit will greatly benefit Germany. 

The point here is the stock may suffer but it won't be due to the economy.


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## humble_pie (Jun 7, 2009)

Lost in Space 2 said:


> Now would be a good time to get back into Dream Global. The view from somebody living here is that Germany is just booming and Breixt is certainly isn't gong to hurt. Several things, normal to a Canadian/American, but new to Germans. House building boom they are building apartments (Europeans live mostly in apartments not SFMs) like crazy here. The place I lived in Munich, they dropped like a 1000 units into one section of the city, much to the chagrin of the locals (traffic). Even here where I live, a small town on the outskirts of Frankfurt, there's tons of new build. A city of 30,000 is expecting to add another 3000 more people. I expect Brexit will greatly benefit Germany.
> 
> The point here is the stock may suffer but it won't be due to the economy.




good thinking. DRG.UN on DRIPs is a stalwart of my TFSA. Thankx for the commentary.

.


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## TomB16 (Jun 8, 2014)

Thanks, LiS2.


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## TomB16 (Jun 8, 2014)

I don't understand the dynamics behind DRG-UN. Perhaps someone can shed some light?

I follow Dream Global very closely, to say the least. When Trump announced the import tax on softwood lumber on Monday evening, with musings of additional import taxes on Canadian dairy products, I knew the Canadian dollar would take a hit. It did.

$CDN has gone down compared to $Euro in the last two days. DRG has improved the vacancy rate to under 10%. Earnings are up. It appears ripe for a distribution increase sometime this year, to me. 

... and yet DRG-UN has gone down in the last two days? Consider me confused.


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## mrPPincer (Nov 21, 2011)

Isn't the debt financed over here in Canadian dollars?
That might be why, if it's moving with the CAD.


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## john.cray (Dec 7, 2016)

Reviving this old thread. Seems to be the one for Dream Global (DRG.UN).

https://www.bnnbloomberg.ca/blackst...-6-2b-purchase-of-dream-global-reit-1.1316535

Congratulations to the winners. What are you thinking of substituting it with in your REITs basket?


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## humble_pie (Jun 7, 2009)

the deal requires approval from 2/3s of dream global's existing shareholders. Does anyone know when that shareholder vote will be held? i'm assuming it will be a yea vote.

if it's true that management is stopping dividends, or has already stopped dividends, then the only remaining play for parties who stay in this stock will be expectations that other buyers might emerge to top blackstone's purchase offer.

no other buyers + no dividends --> near-stagnant market price that should only fluctuate with currency adjustments imho


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## Parkuser (Mar 12, 2014)

humble_pie said:


> the deal requires approval from 2/3s of dream global's existing shareholders. Does anyone know when that shareholder vote will be held? i'm assuming it will be a yea vote.
> 
> if it's true that management is stopping dividends, or has already stopped dividends, then the only remaining play for parties who stay in this stock will be expectations that other buyers might emerge to top blackstone's purchase offer.
> 
> no other buyers + no dividends --> near-stagnant market price that should only fluctuate with currency adjustments imho


https://finance.yahoo.com/news/dream-global-real-estate-investment-003332644.html

_The consummation of the Transaction will be subject to the approval of at least 66 2/3% of the votes cast by Unitholders at a special meeting of Unitholders and a majority of the votes cast by Unitholders other than DAM and other related parties. The Transaction is subject to other customary conditions, including regulatory approvals, and is expected to close in December 2019. The Transaction is not subject to a financing condition._


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## humble_pie (Jun 7, 2009)

Parkuser said:


> https://finance.yahoo.com/news/dream-global-real-estate-investment-003332644.html
> 
> _The consummation of the Transaction will be subject to the approval of at least 66 2/3% of the votes cast by Unitholders at a special meeting of Unitholders and a majority of the votes cast by Unitholders other than DAM and other related parties. The Transaction is subject to other customary conditions, including regulatory approvals, and is expected to close in December 2019. The Transaction is not subject to a financing condition._



shareholder vote sometime in november then?

blackstone is a US company. If you think aboudditt canada will lose another canada-based corporation. All the properties are located in europe. The entire inventory of properties will transfer to blackstone where it will most likely be broken up.

btw this is an all-cash offer i believe? we won't be receiving any piece as blackstone shares?


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## humble_pie (Jun 7, 2009)

DRG.UN is trading at a 20-penny discount to blackstone's cash offer of CAD 16.79

this kind of discount is normal in buyouts. It represents the very slight risk that the deal will not go through.

20 pennies that can be harvested if investor waits through the scheduled december closure sounds paltry, but do the math before bolting. Even without additional distributions during months of october, november, december, a $.20 premium over yesterday's 16.57 close represents a gain of 1.21% over 3 months. Annualized, north of 4.80%. Plus, it'll count as a capital gain or loss, so only half taxable. Not too shabby.


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## john.cray (Dec 7, 2016)

humble, do you have a replacement candidate for DRG.UN ?


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## londoncalling (Sep 17, 2011)

sold my position today at !6.59. Will reallocate into another REIT when I find one that is suitable.


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