Q: The new earnings report seemed slightly positive overall, I think. Yet the stock is dropping about 3% in an up market today. Is there something I am missing? What do you think of their quarter and prospects going forward?
5i Research Answer:
The quarter was decent, but results across the board were marginally below estimates. We would not read too much into the decline; it has been strong the prior month and even with the drop the unit price remains higher than it was on July 16. At 13X cash flow we would continue to view it as one of the more-attractive REITs. Fairly low cash flow growth is expected, however (2% to 3%).