Q: What is your current view on SRU?
5i Research Answer:
SRU is a good mid-cap REIT with a good yield and stable cash flow. The valuation at 7x cash flow is attractive, and the unit price has recovered. The Q4 was decent. Offsetting these points is the payout ratio (high at 94%) and the whole retail "problem" or at least sentiment to the sector. Also like most REITs, there is not a lot of growth. But for income, we would consider it decent.