TSX:NXR.UN - Post by User
Comment by
CanSiamCypon Oct 07, 2021 8:47pm
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Post# 33986976
RE:RE:Another REIT transitioning towards greater industrial %
RE:RE:Another REIT transitioning towards greater industrial %Hey SD!
If the acquisitions are truly accretive (and each and every REIT I have experience with issue statements that their acquisitions are accretive), then the REIT management could opt to increase the monthly distribution OR decrease the payout ratio (since many investors and analysts are nervous about high payouts) OR retain some of the FCF to fund future growth/acquisitions. I am surprised that most of the REITs that cut their distributions during the time of the Wu Flu panic in early 2020 have not fully (and some not even partially) restored their distributions to pre pandemic levels (i.e., HR.un, BTB.un, PRV.un); Usually they explain that they cut out of an abundance of caution, and generally they had higher payout ratios than analysts were comfortable with. So it's complicated as the saying goes! Cheers!
SuperDude2 wrote: Posting suggestions l personally do not take as promoting but useful tips to those who want to listen and learn. l defer to you in regards to a nxr icrease , but a question . l am wellaware that some recent aquisitions have still to close but as all mgmts moves are said to be accretive , then woulddnt that entail an increase in fcf and hence the ability to increase the existing dividend. just asking as the tax implications are on unit holders not the entity. l my case unlike you l have nothing outside a registered account and so no tax liabilities. It seems the amount of tax discussions on various boards and BNN guests would make you think that everybody must be a multimillionaire. , It sort of makes me feel that investors like myself whos portfolio is counted in a hundred or two hundred thousand size are definately a minority in the scheme of things.