Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Dividend cut coming ?

[incomedreamer11]

Today from TD

Q1/24 Expectations by Sector (Sorted by AFFO Growth)

Diversified (-10%):

For H&R REIT, our 7% forecast AFFO/unit decline is mostly due to dispositions (interest costs are expected to be flat).

Elevated interest costs are the main driver behind the expected 23% AFFO/unit decline we are forecasting for Artis REIT, which weighs on the overall group average.We are expecting $0.14 AFFO/unit in Q1/24

$6.50 HOLD Our $6.50 target price is based on a 9.5x-10.0x multiple on our 2025E AFFO/unit. It is at the lower end of the 9.5x-12.0x multiple range that we use to derive the target prices of Artis’ closest peers in our coverage universe, potential for a distribution cut owing to a high payout ratio

[jmkOttawa]

I certainly wouldn't bet against an analyst. They are paid professionals.

[EstevanOutsider]

highly doubt that. artis likely sold nearly $1bn of assets since december. hence, they can kill the floating rate debt exposure pretty easily here. they also bought a ton of prefs and commons which reduces distribution outflows also, recyled asset capital into dream office which also pays a distribution. td reit coverage is very very poor quality.

[EstevanOutsider]

also keep in mind that manji previously said artis distribution deciions are made quarterly, they already confirmed may's common payout so does not look like a cut is coming - in addition to the comments made by manji last Q when asked about payout ratio. so i would say it is nearly 0% chance that q1 they cut the distribution, especially with the successful asset sales at good prices which