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  5. EMA: For the last 5 years LNF has done nothing. [Emera Incorporated]
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Q: For the last 5 years LNF has done nothing. Yes it hs a dividend of 3.8%. But cheap as it is do you see it advancing much? EMA, EIF, and NWC pay higher dividends and have advanced quite a bit since bought. Would it be suggested that any of these three could replace LNF or should I hang on to LNF in the hopes that it may spring to life?
Asked by STANLEY on December 11, 2023
5i Research Answer:

LNF is facing short-term headwinds from tough comparisons during COVID, normalized demand from consumers, and a tough macro environment due to weak consumer spending. These headwinds have led to weak same-store-sale growth. Having said that, a few catalysts could potentially unlock shareholder value here. The recent CEO change was positive for the company as it intended to split itself into two entities, including the retailer and REITs to unlock the value of the real estate portfolio. While the operating results were weak and uncertainty is high on whether the slowdown in operating results is an industry-wide challenge; or company specific. Given the upside potential from the company’s split, we would be comfortable sticking with LNF for a while, especially as interest rates pivot. 

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