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The experts agree that Smart REIT has a stable and defensive profile, primarily due to its strong association with WMT. While the company offers a high distribution yield and is considered safe, it also has limited growth prospects. The experts suggest holding and collecting the distribution, but recommend seeking better earnings growth opportunities elsewhere.
Units are quite cheap at 11X cash flow, and generally we like it for income. Very little growth is expected, and of course inflation/rates impact it, and the retail sector is somewhat under siege right now. Payout ratio is high at 93%, but did drop from 96% in the Q1. Cash flow in the quarter improved to 54c from 51c. Decent for income but we would not expect much excitement here.
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Yield of 7% is extremely attractive. Nothing wrong with it, stable. Trades at a discount. Well positioned to weather a challenging economic environment with WMT, but a lower growth profile. Hold, and collect the distribution. Other opportunities in the space, such as FCR.UN.
It operates across Canada with its principle tenant being Walmart. Has stable cash flow with little growth although it is increasing density in existing space. He feels there are other places to be in real estate.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Diversification effort makes sense. Management is solid and the CEO has significant stakes in the REIT. Revenu was inline with estimates. Per-unit cash flow was 5% better, rising 12%. Occupancy was 97.4%. Debt ratio is good at 42.9% and payout ratio is ok with 85.8%. Fine for income. Unlock Premium - Try 5i Free
Walmart is their anchor tenant, so Smart is rock-solid stable. They collected a high percentage of rents during the pandemic. But prospects are limited. SRU may see only 1-2% rent growth when new space comes to market, far below to peers of 5-10% like Riocan. He prefers grocery-anchored shopping centres, like First Capital REIT.
Smart REIT is a Canadian stock, trading under the symbol SRU.UN-T on the Toronto Stock Exchange (SRU.UN-CT). It is usually referred to as TSX:SRU.UN or SRU.UN-T
In the last year, 3 stock analysts published opinions about SRU.UN-T. 0 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Smart REIT.
Smart REIT was recommended as a Top Pick by on . Read the latest stock experts ratings for Smart REIT.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered Smart REIT In the last year. It is a trending stock that is worth watching.
On 2024-03-27, Smart REIT (SRU.UN-T) stock closed at a price of $23.12.
Great job getting into other asset types by going vertically on what they already own. Operating income dictated mainly by WMT, which gives a very defensive profile, so he doesn't really worry. Flipside is very little growth. Tight cashflow coverage. Believes distribution of 8% is safe, even though payout ratio spiked above 100% temporarily. Better earnings growth elsewhere.