Q: Hi 5i Guys,
According to Morningstar, AX.UN has 0-Sells, 4-Holds and 1-Buy.
Div is very attractive at 8.37%. In your opinion, is it safe?
There was some thought that it might be bought because it's 'cheap'. Anything happening on this front that you know about?
Do you think AX.UN is a Buy/Sell/Hold. If it's as Sell what would be a good candidate to replace it?
Thanks as always for your thoughts.
According to Morningstar, AX.UN has 0-Sells, 4-Holds and 1-Buy.
Div is very attractive at 8.37%. In your opinion, is it safe?
There was some thought that it might be bought because it's 'cheap'. Anything happening on this front that you know about?
Do you think AX.UN is a Buy/Sell/Hold. If it's as Sell what would be a good candidate to replace it?
Thanks as always for your thoughts.
5i Research Answer:
At only 6X cash flow, AX is certainly cheap, and other REITs with much higher mulitples would probably be interested in it. But we have no news to report on that front. Cash flow will decline this year, and flatline in 2024. Debt is high. Investors do not like its retail exposure. There is little growth here, and very weak price momentum. Dividend payout is 105%. We do not think it is a need-to-own stock and would far prefer DIR.UN