Q: Hello 5i Team
RFA Financial (the former Artis REIT)
Any thoughts on the merged entity?
The 3:1 share consolidation has muddied the waters a little.
Do you know what the proposed dividend will be?
Has the earnings date been released yet?
Thanks
RFA Financial (the former Artis REIT)
Any thoughts on the merged entity?
The 3:1 share consolidation has muddied the waters a little.
Do you know what the proposed dividend will be?
Has the earnings date been released yet?
Thanks
5i Research Answer:
It was a somewhat unusual merger. It is early days, still, but RFA will likely utilize its bank and mortgage financing unit to expand both its financial and real estate holdings. RFA notes it will pay an 11c per quarter dividend, but no official declaration has occurred yet. No earnings date has been released. In terms of the outlook, we would prefer to wait. It is a competitive field (financials services and real estate both) and we are not sure yet exactly what RFA brings to the table that others do not have already. It seemed to us that RFA took an easy way to go public and now is left with some real estate assets and its existing business. We think buyers have time here.