Q: Based on the information in the market at what level would u recommend a disposition of ere.un to move forward if not interested in owning the resulting entity after divid payment? What is likely to be the final value to current shareholders?
Are there any reits u feel particularly positive on to deploy resulting funds into for 2025 and if not yr favoured sector to deploy funds into in 2025?
Generally reit performance has been anemic this year n not certain if this will change in 2025.
I
Are there any reits u feel particularly positive on to deploy resulting funds into for 2025 and if not yr favoured sector to deploy funds into in 2025?
Generally reit performance has been anemic this year n not certain if this will change in 2025.
I
5i Research Answer:
Usually, special dividends result in a drop in the price of the stock when they go ex dividend. But at times they do not drop by the same amount as the dividend. In ERE's case, it is also reducing its regular distribution, and the company will be even smaller with less cash/assets, so we would likely expect a 90c to $1.00 drop on the $1.10 dividend, so an exit price could target $2.80 or so. Final value is harder to predict, but we would not expect big gains here going forward. We would continue to see GRT.UN and DIR.UN as two of the more attractive REITs today.