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  5. DIR.UN: Paul Gardner was on BNN and was quite negative on DIR. [Dream Industrial Real Estate Investment Trust]
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Q: Paul Gardner was on BNN and was quite negative on DIR.UN management and previous practices, his commentary made me question my ownership. Of course there are two sides, curious on 5i thoughts?
Asked by Charles on November 14, 2023
5i Research Answer:

Because of inter-related companies and cross-ownership, investors often question managements' alignment and interests. We hear the same think with the Brookfield Group. It is not ideal, and one can always argue that executives make too much or are not alinged properly with unit holders. But we try to focus on fundamentals. If a company can still execute and grow, then we tend to focus less on compensation and other factors (after all, these expenses are included in the numbers). DIR has nearly tripled revenue in the past eight years. Cash flow has grown less, but it has paid a consistent distribution and the units have doubled in three years (admittedly, from a covid low). But they are also up 50% from 2017. We would like to see a distribution bump (it has been a long time) and with payout at 62% it has the capacity.