Q: I'm confused about why IIP shares are doing so poorly. The last two quarterly reports were excellent. ffo is up, dividends increased, debt to book value is less than 40%. I realize IIP is mostly in toronto, which is rent controlled, but if I understand it right those controls are only on older buildings, and interrent is renovating the older buildings in order to increase the rents above the inflation rate. So here is a stock that seems to have an extremely safe dive, which increases every year (5% or more for 13 straight years, i believe), and growing cash flow......yet the stock price is at a multi year low. Am I missing something?
5i Research Answer:
There may be a few reasons. It did miss cash flow per unit estimates in the Q3. Not by a lot,...