Q: Is ALLIED PPTy.is this a good reit.i have had it for 2 yrs and only down 4.70%. i also have ILLM HOLDINGS @ 5.10. I see Lumine mentioned often in questions are they related companies and what is 5i views let it go as a loser and buy something producing dividends I was thinking CAR.un as a substitute and additional reit. TKs
5i Research Answer:
LMN is in no way related to ILLM. ILLM has bounced this year, up 30% YTD. It has lots of cash and is expected to return to profitability this year. Cash flow has been negative, and we would consider it very high risk for the current market backdrop. We would be fine selling it. AP.UN has exposure to office properties, and must be considered higher risk. But..its valuation is very low. Its payout ratio is quite high in the 95% range. It should benefit from lower rates, and we would be OK holding it today only if an investor wants income only and is willing to take on sector risk here.