Q: Hello,
Has the REIT issued shares in the last few years to fund their residential redevelopments?
What’s the current valuation against peers (price / ffo).
Can you comment to their level of debt vs other REITs. It seems acceptable and supported by a strong leasing profile, although retail.
I am planning on starting a position ant these levels and was looking for your general comments. Thank you!
Has the REIT issued shares in the last few years to fund their residential redevelopments?
What’s the current valuation against peers (price / ffo).
Can you comment to their level of debt vs other REITs. It seems acceptable and supported by a strong leasing profile, although retail.
I am planning on starting a position ant these levels and was looking for your general comments. Thank you!
5i Research Answer:
SRU.UN sold 6.4M units at $31.25 in January 2019 and this was its last public issue. Unit count has risen 1M from 169M to 170M since then, with acquisitions and/or employee share issuance. It is at new 52-week low today, and 11.5X cash flow, about 3 points below many peers. Debt to assets is 43.2%, which is below peer average. Occupancy is good and payout ratio is 93%. There is essentially no growth here, but it is a $4B REIT, with a strong record of profitability. It has not raised its distribution since Oct. 2019 but then again did not cut it at all during the pandemic. We would consider it 'OK' but for income investors only.