Q: Can you please comment on Nexus Industrial REIT third quarter 2024 financial results and on their payout ration, dividends safety, expected growth, and in relation to piers, etc. Thank you.
5i Research Answer:
Cash flow per share was 19c, beating estimates of 18c; Revenue of $45.5M matched estimates. EBITDA was $33.0M, 5.9% ahead of estimates. Occupancy rose to 98% from 97%. Payout ratio rose from 97.2% to 101.1% and this would be our main concern in an otherwise good quarter. With its somewhat cyclical sector and the payout ratio, we would consider the distribution to be of higher risk. Price to cash flow is 11X, a bit lower than the peer average. About 5% to 6% growth is expected over the next couple of years.