Q: Appreciate your thoughts on D.UN after reverse split and drop in monthly payout by 50%. Doesn't exude confidence.
Thanks
Thanks
5i Research Answer:
Certainly it does not, and the way the company executed the announcement left a lot to be desired as well. Claimed 'the same distribution' but the number of shares owned declined for investors. It is cheap no doubt at 5.8X cash flow, but its small size and negative momentum will keep investors at bay. We almost never will suggest a stock right after a cut. Artis AX.UN has announced a 16.7% ownership interest in D.UN, and this development makes things a bit more interesting. But with occupancy at 82% and unlikely to move up, sentiment towards the sector will likely keep this stock flat, at best, we think.