Q: I just signed up with 5I a couple of weeks ago and you are suggesting I purchase more real estate holdings in my portfolio
Is DIR.UN a good buy at the moment and what is the long term prognosis.
Thanks
Ron
Is DIR.UN a good buy at the moment and what is the long term prognosis.
Thanks
Ron
5i Research Answer:
REITs are not typically 'growth' stories as they pay out most cash flow. But for the sector we do like DIR.UN. The industrial focus remains attractive, it is very cheap at 9X cash flow, and the payout ratio is very reasonable at 68% (note it has not raised the distribution in some time, however). Expectations call for about 6% per unit cash flow growth this year and about 5% next year. We think it is a BUY for income-focused investors.