In previous questions you thought that on a cash flow basis the above reit was too expensive and too small. What is your present assessment? Does this version of it pay distributions in Canadian or US currency? Any other suggestions.
Thanks, Ben.
At 17X cash flow, it is still very much on the expensive side of relative peers. At $415M market cap, our 'small' comments still apply, again, on a relatively basis. The 3.75% distribution is paid in US dollars. It is expected to show 10% growth this year, so the valuation does reflect higher-than-peer growth. Payout ratio is less than 33% so that also somewhat justifies the high valuation. The distribution was raised in November (5%). We would be OK with it as long as an investor understands the premium price and associated risks. We continue to like DIR.UN and GRT.UN