Q: Given the numbers in Friday's news release, is Allied Properties a good buy today?
Thank you.
Thank you.
5i Research Answer:
Prior quarter cash flow per unit did slightly miss estimates. But the company also declared a special $5.48 distribution (taxable as capital gains). The regular distribution payout ratio is fairly high, but this is also reflected in the low valuation of the company (8X cash flow). The REIT had a good 2023, though minimal growth is expected in 2024 and 2025. We would consider it buyable for income, but there are still risks in the sector. But it does look better than before and with the 22% decline this year and lower rates ahead we would expect some recovery.