It has been some time since a question has been asked about MRG.UN. I am looking for a replacement when my Tricon shares are taken from me!!!! Would you be so kind as to give me your opinion on: Growth expected, growth if any --past two years, even though price fell with advance in interest rates, analysts covering it. They have recently put an NCIB in place. Anything else you might think of. Multiple X cash flow. Any chance of a takeout? How does it compare to MRC and MRT.UN. Thanks, Ben.
We typically value REITs on cash flow. In 2020 per unit cash flow was $1.20, followed the next years by $1.13, $1.43 and $1.60 is expected to be reported for 2023, with $1.65 estimated in 2024 and $1.70 in 2025. So, for a REIT at least, growth is fairly decent. It hs three analysts, all buys, with an average target of $23.00. It is much smaller than TCN but very cheap at 9X caash flow. Payout ratio is very low at less than 45% on a trailing 12-month basis. The distribution was raised in November and was not changed during the pandemic. Occupancy is high (98.9%) and debt ratios very good. If one is OK with its small size we think it looks good for income investors. MRC is more of a developer. Its stock is also cheap but the dividend is tiny. But faster growth is expected. MRT is cheaper, but smaller, with less growth expected.