Q: You have many positive comments about CAPREIT. However, its distribution has not gone up since August of 2021. How does this affect your thinking about CAPREIT?
5i Research Answer:
We do not think this is a huge detractor as most residential REITS have been unable to substantially increase distributions especially over recent years in the challenging environment they have faced. We like to see stability in REITs as they are primarily an income option. CAR.UN has displayed stability through a high quality portfolio of assets with high occupancy rates. In a lower rate environment, these residential REITs will be able to invest more in acquisitions and distributions rising should follow.