Q: If FFH still attractive given its recent appreciation? On Nov 11, you said, "If rates stay where they are for longer, FFH could perform well from here" - agreed, but won't there be a point at which the market starts baking-in the implications of their decline - that is, at which it expects FFH to become less profitable? Or is this more of a Brookfield situation, in which we should expect FFH to capitalize on its interest-rate-driven windfall by, say, pivoting to growth opportunities?
5i Research Answer:
We would equate it more to BN/BAM. It is impacted by rates, but also its financial moves (buying/selling assets) are also a significant contributor. If rates fall it may be able to make more deals, AND, its assets owned already may increase in value further.