My current view is that I can no longer be a shareholder if there is no dividend increase, or if there is an argument as to why that isn't going to happen.
Do you have any argument that could support my remaining a shareholder in a company where neither the distribution nor the share price is increasing?
Thanks!
Paul K.
Our main argument would be growth overall, vs other REITs, and very low valuation (9X cash flow). We do have comments on the quarter posted. Cash flow per unit has gone from 71c in 2020 to $1.11 estimated next year. 2019 (pre covid) was 78c. Versus other REITs it has seen OK per unit cash flow growth. The valuation, considering takeouts in the sector, is very low. A takeover possibility would be another potential reason to keep. It has done acquisitions (recently closed on $460M in transactions) and it is buying back units. It has bought back nearly 2 million units since early March. But frankly we do not see why the company does not raise its distribution. The payout ratio is lower than most. It would be the fastest way to boost valuation, in our view.