Q: It is in a constant downtrend compared to its peers, at this level the suggestion would be a buy,hold,sell ( for which more promising REIT instead ?)
5i Research Answer:
There may be a few reasons. It did miss cash flow per unit estimates in the Q3. Not by a lot, but a miss is a miss (15.9c vs 16.1c expected). The yield curve, despite Bank of Canada rate cuts, has still managed to shift upward. The recent government moves on immigration likely has some investors worried. Canada's population will actually likely decline for a couple of years now. Finally, IIP has had a premium valuation for some time. Even now it is above the peer group average at 17X cash flow. We would consider it a HOLD but it is getting interesting here. It historically has been one of the better REITs.