Q: What is your outlook for BEI? It is down approx. 30% from its high. Has broken well past its 200 day moving average. If you held it today would you continue to hold or sell?
5i Research Answer:
We would consider BEI 'ok' and a HOLD. It dropped 8% last year with sector weakness. Its Alberta location also makes it somewhat sensitive to the oil and gas sector, which has not been investors' favourite. Yield is fairly low at 2.24% but the distribution has shown some growth. Payout ratio is very low at 32.2% so there is room for more increases. About 7% growth is expected (cash flow) for 2025. It is not that cheap at 15X earnings but generally a well-run REIT.