Q: Do you like this stock ? Do you add at this level ?
Thanks !
Thanks !
5i Research Answer:
At 10X cash flow with an 8% yield, we would consider it OK for income investors, but not overly interesting. There is very little growth, debt is high, and the retail sector is somewhat susceptible to a weaker economy. Payout ratio is 89.4%, which is OK for a REIT, and slow growth and high debt is very common for the sector. The stock has not done much, but could do better if interest rates finally move lower. We would not add to an existing position today.