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  5. SRU.UN: The price of smart centres is still trading at a discount from pre-pandemic. [SmartCentres Real Estate Investment Trust]
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Investment Q&A

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Q: The price of smart centres is still trading at a discount from pre-pandemic. Is this a recovery play and is the 7.5% dividend safe in the current climate or only in a recovery?

Asked by David on January 25, 2021
5i Research Answer:

Based on the current payout ratio and outlook, we would not have significant concerns on the distribution. However, there is just not a lot of growth here. Even with a recovery, cash flow per unit is expected to decline in 2021. We would view it still as 'OK' for income and it is priced well at 11X cash flow.