Q: What is your current opinion on the validity of UFC in a diversified Canadian equity portfolio?
5i Research Answer:
UFC's small size ($50M) and sector (real estate) are additional risks. It has no analyst coverage and not a lot of growth. EPS is the same as it was 10 years ago. It mostly trades for its 5.3% yield, and the distribution was raised in 2021. The stock is very tightly held, with two entities owning close to 80%. It has done well, and with a rate pivot not one that would concern us much. But.. with the tight float and small size we can't endorse it highly.