Q: Hi, Northview Fund (NHF.UN) is doing a recapitalization transaction where the portfolio is being acquired and becoming a $2.7 billion tradional multi family REIT. The deemed transaction price is $15.06 and the stock has been drifting lower, I get that this can be sector specific, but this is not a well followed company, I am wondering if am I missing something on this transaction and why would this be drifting to the $7's. There is a share consolidation coming but I believe it is post transaction.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Why are they consolidating the shares? They are nowhere near a delisting price.
Why do you think the market is unphased by the yield reduction. Even an anticipated cut almost always creates a drop. Occasionally a boost of course.
Why do you think the market is unphased by the yield reduction. Even an anticipated cut almost always creates a drop. Occasionally a boost of course.
Q: Further to the recent question. NHF currently pays $1.26 pa. does the new structure reduce the yield and if so, by how much? Thanks
Q: Hello 5i Team
Northview Fund issued a press release June 12 announcing a recapitalization event and conversion to a traditional REIT (Northview Residential REIT NRR-UN).
There was lots of information to un-pack from the news release, however I am confused by the statement regarding future distributions once the recapitalization occurs:
In anticipation of the completion of the Transaction and the conversion of the Fund into a more traditional real estate investment trust, it is the Fund's intention to commence paying a distribution of $0.625 per Class A Unit per annum, or $1.09375 per Unit per annum after giving effect to the Consolidation
Based on the above, the current holders of NFH-UN would receive $0.625 per annum per unit (i.e. approximately 7.18 % based on current $8.70 unit price).
Questions
1 - Is my interpretation of the proposed distribution correct?
2 - Is it better to wait a while until all the applicable documents are available on SEDAR and can be reviewed prior to purchasing units?
2 - General opinion of this recapitalization
Ironic this entity has gone full circle in the last four years (Northview Apartment REIT, Northview Fund and now Northview Residential REIT). Lots of fees for investment bankers and lawyers.
Thank you
Northview Fund issued a press release June 12 announcing a recapitalization event and conversion to a traditional REIT (Northview Residential REIT NRR-UN).
There was lots of information to un-pack from the news release, however I am confused by the statement regarding future distributions once the recapitalization occurs:
In anticipation of the completion of the Transaction and the conversion of the Fund into a more traditional real estate investment trust, it is the Fund's intention to commence paying a distribution of $0.625 per Class A Unit per annum, or $1.09375 per Unit per annum after giving effect to the Consolidation
Based on the above, the current holders of NFH-UN would receive $0.625 per annum per unit (i.e. approximately 7.18 % based on current $8.70 unit price).
Questions
1 - Is my interpretation of the proposed distribution correct?
2 - Is it better to wait a while until all the applicable documents are available on SEDAR and can be reviewed prior to purchasing units?
2 - General opinion of this recapitalization
Ironic this entity has gone full circle in the last four years (Northview Apartment REIT, Northview Fund and now Northview Residential REIT). Lots of fees for investment bankers and lawyers.
Thank you
Q: Further to my previous question, in their last financial results, they speak of a recapitalization event. Can you speculate as to what form that might take? Would it likely be a bond issue followed by share buybacks, or ...???
Thanks!
Paul K
Thanks!
Paul K
Q: I would appreciate an update regarding the payout ratio for this company, and your assessment of both the likelihood of a dividend cut and the relative safety of the dividend after, say, a 50% trim (which today would still leave about 6.5% payout).
Thanks!
Paul K
Thanks!
Paul K
Q: Peter;Could you update your thoughts on this company? The high yield is making me nervous- any risk of a reduction ? Thanks. Rod
Q: Peter; Could you updates your thoughts on NHF.UN ? Thanks. Rod
Q: Hi, I’ve read through the information on the company’s website. Wondering what are the implications of a 3 year closed fund with two one year extensions. Does this mean the fund will be closed or potentially closed after 3-5 years and funds returned to unit holders? If so, at what value? Would a closed fund of this nature typically be wound up after a set period or is this more of an option of the company? Thanks.
“Three-year closed end fund, with two one year extension options
Targeted annual pre-tax distribution yield of 10.5% per annum, paid monthly”
“Three-year closed end fund, with two one year extension options
Targeted annual pre-tax distribution yield of 10.5% per annum, paid monthly”
Q: Hello 5i Team
The Northview Canadian High Yield Residential Fund Class A units, initial public offering has closed and the units have begun trading on the TSX as NHF-UN.
The units are trading today (Tuesday) around $13.00 up from the IPO price of $12.50.
The website “northviewfund.com” does not offer much information yet other than the initial prospectus and IPO marketing materials.
Questions I have are as follows:
1 – How does a “closed end fund” differ from REIT from an investment and/or taxation perspective?
2 – Is this a reasonable investment, given a three to five year hold.
3 - When compared to the other residential reits (BEI.UN, CAR.UN, IIP.UN, KMP.UN, MI.UN and MRG.UN), how does NHF.UN rank?
Thank you
The Northview Canadian High Yield Residential Fund Class A units, initial public offering has closed and the units have begun trading on the TSX as NHF-UN.
The units are trading today (Tuesday) around $13.00 up from the IPO price of $12.50.
The website “northviewfund.com” does not offer much information yet other than the initial prospectus and IPO marketing materials.
Questions I have are as follows:
1 – How does a “closed end fund” differ from REIT from an investment and/or taxation perspective?
2 – Is this a reasonable investment, given a three to five year hold.
3 - When compared to the other residential reits (BEI.UN, CAR.UN, IIP.UN, KMP.UN, MI.UN and MRG.UN), how does NHF.UN rank?
Thank you