RE:RE:RE:RE:RE:RE:RE:Time to Reload HereHi Frankie,
The problem with SRU vs. REI or FCR which are in the same industry is the average rent $ per sq ft.
SRU on the surface looks great because Walmart is a huge tenant.
But when you look at SRU's average rent per square foot, it is half of REI and FCR.
Also when you realize that 2 Walmart execs sit on SRU's board, it's clear as day that Walmart is paying far below market rent to SRU.
So Walmart is not a positive, it's a negative, and SRU shareholders are subsidizing Walmart.
Also Mitch (SRU CEO) has been using gains from selling land to pay the distribution because the NOI does not support the distribution. Without that SRU is in danger of a distribution cut.
In SRU's most recent annual report, they split out their top renters by revenue and sq ft so it is now possible to calculate how much of a discount Walmart is getting on their rent from Mitch.
Everyone else is paying $25/sq ft while Walmart is paying $14 per sq ft.
Keeping in mind that there are 2 Walmart execs on SRU's board and Walmart makes such a huge % of SRU's rents, basically Walmart is a black hole sucking value away from the shareholders.
I wouldn't touch SRU.UN with someone else's 10-foot pole.