AX.UN is a REIT owning a portfolio of properties that focuses on industrial (40.9%), office (46.2%) and retail (12.9%), and is now trading at a significant discount to NAV (as of the most recent quarter of $16.28). The yield is also quite attractive. However, in the past 12 months, cash flow was $95M but distributions were $123M. The distribution cannot be considered completely secure, as noted by its high 10% yield as well. The majority of assets focus on office properties, which is also a headwind. AX.UN did repurchase its common units in recent quarters due to the huge discount. Overall, a cheap name, but distribution is not considered to be completely secure. Sentiment remains poor, and going into year end we might expect to see some tax loss selling. We think buyers have time here.
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