OTCPK:NNVUF - Post by User
Post by
jimmyjeblonskion Mar 24, 2016 7:27pm
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Post# 24699712
5i Research likes it
5i Research likes itI think the kicker is the very low valuation. This gives these shares a margin of safety. After all, you are investing in apartments which are very safe and boring. 7X price to AFFO is about half what the competitors trade for. Eventually this will come up to a level closer to the others and you will have a nice capital gain on top of this high yield.
5i Research Answer: Cash flow per unit of 53 cents did miss estimates of 59 cents. But occupancy remains high at 91.5% and the payout ratio of 75.9% is still OK. Cash flow per unit declined 11.7%. The True North deal has closed, and we would expect some asset sales this year.
The balance sheet is ok and there is some growth at the company and historical growth has been modest but solid in the mid single digits. The dividend is high and has been growing slightly over a five year period.
We would deem it OK overall, primarily due to its quite-low valuation of 7X cash flow. Shares are recovering a bit this year.