Q: Would appreciate your comments on their just-released quarter financials. Dividend back over 5% after this day's drop. Payout ratio of about 43%. I am wanting to own residential, but have been put off by the low dividends from most. This one is now looking good to me, but do you see any red flags here? Are there any others you might suggest (but please, with a reasonable dividend!)
Thanks!
Paul
Thanks!
Paul
5i Research Answer:
Payout ratio is very low at 43.8%. FFO per share was 44c, beating estimates of 40c. Income was $25.1M, beating estimates of $19.1M. Average rent increased by 5.4%. Occupancy increased 0.1% to 98.7%. The debt ratio remains very conservative at 38.7%. We agree this is starting to look interesting at only 8X cash flow. KMP.UN may be of interest, at 3.6%, or DIR.UN at 5.25%.