The Q4 results for the Melcor REIT show some continued weakness but were not dire.
The conference call was very brief and the two or three analysts that cover this are probably not too interested in promoting it. They like all of us owners have been burned.
I just had a 20 minute call with the CFO and she explained that the REIT does face a cash crunch but I definitely did not get the sense that things are dire. She indicated that it is possible that the distribution will be reinstated at some level later this year. If not they could face income tax. But dealing with the cash crunch is a higher priority than paying a distribution.
It’s hard to say what is up here. Melcor Developments may want to take the REIT private back into Melcor. If so it would be unfair to do it at a really low unit price.
The units have recovered a little bit today and I think they do have value here. But obviously things can continue to be volatile.
I have no plans to either buy or sell units.