Q: On friday,it dropped 3.6% to $13.40 on much higher volume of some 50k than 8.5k average. Any reason(s)?Please comment on company..I think it was associated with BN many moons ago. On Oct 16 it announced an agreement with BBU. Current yield of 10.07%.If sell,please provide 2/3 Dividend stocks.Txs for u usual great services & views
5i Research Answer:
BRE announced its regular dividend last week, but also noted that business conditions were very tough and it had reached an agreement with its largest shareholder to provide more financial flexibility to the company. Distributions to the parent BBU can be deferred for up to a year, and BBU is providing a credit facilities, which can be repaid in units if required. It is a sign of stress, certainly, for the company. The real estate sector of course is not great right now. With its small size, this news and its loss this year, it could get hit with year end selling. We would be OK selling this due to the new risks. We would prefer BAM, FTS, EIF, ENB.