Cash flow per unit of 15c rose 4.2% and matched estimates; revenue of $62.75M missed estimates of $63.5M. EBITDA of $21.97M missed estimates of $37M. Occupancy increased slightly and was solid at 96.9%. Monthly rents rose 5%. Net operating income rose 3.1%. It is difficult to comment on the dispositions. The company is taking advantage of deals when they present themselves, and is achieving good market prices. Debt will decline but we imagine some purchases will still be made as well. IIP has bought back 4.8M units in the quarter and another 1.9M after the quarter ended. This has certainly supported the stock and the average price paid is below current market levels. It is interesting since on a valuation basis IIP is 17X cash flow and other REITs can trade as low as 9X to 11X. Payout ratio is conservative, in the 55% range. We would remain quite comfortable here overall.
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