Q: I have a question on the issue just announced- is this a decent entry point. With rates peaking and likely coming down this year would this be a good play? What is the outlook
5i Research Answer:
We don't really like when a company issues stock after its stock has declined, but we can live with this, as it makes sense to shore up the balance sheet to creat more flexibility as rates decline. This was specifically mentioned by the company ('potential future acquisitions'). Sentiment is still weak on real estate, but consensus calls for 15% growth over the next year. We would consider the stock 'OK' today but not hugely compelling.