Q: Thoughts on this company? Thank You
5i Research Answer:
Sentiment towards office properties remains horrible, and thus AP.UN is very cheap at 7X cash flow with a 10.4% distribution. It continues to pay 15c a month and paid a 48c special distribution in mid January. Debt is high and there is very little growth here, but the company is buying back units, and the 2023 payout ratio was 72%. Occupancy is in the low 80% and may not improve this year. Still, most of the issues are reflected in the low valuation. Momentum is highly negative so it is hard to endorse a purchase. But the financial metrics we think are better than sentiment, at least.