AW.UN has a more attractive yield at 6.7% vs. PIF at 5.0%, but PIF trades at a slightly cheaper valuation. We like the profit margin profile of AW.UN more, and its growth has been better overall. Both names have some level of cyclicality, but we feel that AW.UN has a more consistent track record, and largely we would be more comfortable with AW.UN today.
AW.UN reported royalty income growth of 1% year-over-year, and royalty pool same store sales growth of 0.6%. Consumers seem to be getting stretched thin, but growth is expected overall and we are not concerned on its distribution.
PIF reported EPS of $0.21, beating estimates of $0.1184 and revenues of $20.63M beat estimates of $20.51M. Sales grew marginally against the prior year, although energy production declined 2%, mainly due to lower production from its geothermal facility in Nicaragua and hydroelectric facilities in Peru. Overall it was an OK quarter for the company.