Q: I was wondering if you could provide an update with regards to Chartwell. Should we expect much growth. Has made a nice move but should I consider moving on. Difficult sector? Thinking of moving to Manulife.
Thanks
Dave.
Thanks
Dave.
5i Research Answer:
CSH.UN has made a nice recovery over the past year, pays a good yield of 5.3%, carries a high debt load, but generates a healthy amount of cash flow, enough to service its distributions. Its balance sheet is OK, and the REIT sector has been hit hard with higher rates. MFC is much larger than CSH.UN, has had a stronger five and 10-year total return, and overall has seen better recent momentum than CSH.UN.
Overall, we like both names, but we would be comfortable with a switch to MFC given similarities in yield, but better capital appreciation opportunities through MFC.