Q: Your recent comments about FSV fundamentals have been quite positive and yet the share price continues to decline. Is it possible (ie likely) that this has something to do with the changes to the capital gains rules? If so, what would be your approach?
5i Research Answer:
We would say that is unlikely a factor contributing to FSV's recent decline. The decline is likely reflective of general weak sentiment in real estate due to high rates with investors being weary on how long the downturn in the industry will last. Additionally, some of the sell-off may have been reactionary on the fact that FSV's adjusted earnings declined on a year-over-year basis.