I wrote up a quick blog post on Seeking Alpha about a liquidation situation. You can read it here.
Executive summary:
- TSX-listed Maplewood International REIT plans to sell its only property and return all of its capital to unit holders before winding-up its operations.
- IFRS accounting rules inflate the REIT’s liabilities and understate the liquidation value.
- Maplewood’s conservative liquidation value is $0.80 CAD versus current trading price of $0.30 CAD.
Post mortum: This was ultimately a successful trade but took a lot longer than I originally anticipated. I sized the position wrong as it was much too large for me to get out of when the sale process was delayed and better opportunities came up.
