Also as to the company as an investment.
ERE is relatively small at $550M market cap, which can lower interest. Its European exposure is another possible reason, as the economy there is less robust. The Ukraine War did not help sentiment. It is not cheap at 15X cash flow, with many larger peers at lower valuations. But, its payout ratio is decent at 72%, and it is growing. Occupancy is 99% and rents increased 6% last quarter. Units have been weak this year, down 19%, but that's hardly unique for the sector. Higher interest rates have certainly taken a toll. We would put it into the 'ok, but not that interesting' category. If it slips further then we think income buyers could slowly accumulate some if they are willing to ride out economic weakness and look forward to lower rates (one day). We would like to see a better valuation, but note the issues noted above are not of the company's doing (except its focus area). In terms of operations, it is doing well and better than many.