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  5. NXR.UN: Early last week I asked a question about NXR. [Nexus Industrial REIT]
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Q: Early last week I asked a question about NXR.UN. Still I have not received any answer. My question was about your insight about this company, latest results etc. Does the cash flow cover the dividend. There was a similar delay about my question on FCD.UN two weeks ago.
Thanks for your insight
Asked by Terry on May 25, 2023
5i Research Answer:

FYI we do not show a record of the prior question. NXR.UN is a REIT focusing on industrial, office and retail properties, and is now trading at 17x times' Forward P/E. In the recent quarter, NXR.UN’s AFFO (Adjusted Fund from operations) declined slightly by -2.5% to $0.159, compared to last year of $0.163 and Net Asset Value also declined slightly to $12.13 per share. The balance sheet is leveraged, with net debt of $1.1B. Net debt/EBITDA is around 12.0x. Distributions in the trailing-twelve-month period were $36M, which was covered by the cash flow of $44M. Overall, the company has been consistently growing (slowly)  over the last few years.  NXR.UN is trading at a discount to NAV and at 11X cash flow which we think is attractive. However, there is size risk here and macro risk and these should be taken into consideration as well.