SmartCentres Real Estate Investment Trust T.SRU.UN

Potential unit buybacks

[martin020]

RBCRating: Outperform Price Target: 35.00 Competitive tension building; buybacks possible Our view: Post in line Q1 results, we remain constructive on SRU. As the tug of war between rising rates, elevated inflation, and a potential economic slowdown continues, we see SRU as a good spot forshelter. Indeed, asfundamentals continue to recover, we expect its defensive Walmart anchored portfolio to deliver steady organic growth. As well, its substantial mixed-use development pipeline provides visibility into sources of FFO and NAV upside for yearsto come, while potential unit buybacks could provide some near-term support. Maintaining Outperform, $

[Frankie10]

Buybacks? With what free cash flow? Honest question. The payout ratio is 80%+, no? Debt financing to repurchase stock? Full discoloure - I opened a small position here today under at $28.90. 

[gashole]

There will not be any buybacks.. This low paid RBC analyst is clueless. SRU needs every spare dime it can come up with to move forward with any developements. They just issued new debt in I think class B shares. And the payout ratio is as follows this quarter...............The Payout Ratio to ACFO(2) for the three months ended March 31, 2022 increased by 3.2% to 96.7% 

[gashole]

And another comment - Walmart has them by the short and curlys. there will be NO organic growth from Walmart rents, thats a joke. Walmart is not going to take any increases in rent from SRU when inflation is 8 or 9%. SRU needs rent increases from Walmart in a BIG way, Walmart has roughly 50% of rental space of SRU properties, and pays roughtly 25% of rents. Thats a joke, and you can see that based

[Frankie10]

i agree free cash flow is tight - hard to see buybacks ontop of ambitious development. i literally made this exact argument which you ignored. small fact check to your rant: walmart represents 25.4% of gross rental revenue and 40.9% of gross leaseable area. furthermore, there q-over-q growth from q4 2021 to q1 2022 from 201.3M to 205.2M (2% q-over-q or 8% annualized). full disclosure - i have

[gashole]

That's why I said roughly... I was just sort of going by numbers I had looked at in the past but didn't feel like going back and looking at it.. I know that Walmart has a very large portion of the square footage but proportionally less rent being paid... I have owned shares in this since it was around $20.. Not planning on selling and I might add some if we get a bad sell off which I think

[Frankie10]

40% vs. 50% is a meaningful misrepresentation, as is saying there is no growth (walmart) vs. growth in-line with inflation. Same. Except I dumped my 3k shares last year at 30 and rolled the capital into H&R. I am now buying this back slowly into heavy blood. Best of luck.

[gashole]

I was just making a point. I dont like Walmart, they are very difficult to deal with, and play hardball with suppiers, and who they lease space from. SRU needs to play hardball back. With inflation where it is right now they actually have declining rents.. I have never tracked it but I would like to go back and look at previous quarterly reports and compare based on Sq footage what they are

[microcaphobby]

The anchor tenants always pay much less per Square foot then the smaler tenants.That is real estate commerical rents 101. I am certain there is a rent increase in the walmarts leases of a  % certain percent per year. I know beecause I am a  real estate lawyer and I have seen their leases.  Actually Smart Centre "has" walmart   as much as walmart has smartcentres

[gashole]

thanks for the insult, hence the reason I stopped posting on here, too many know it alls.............................. I do know what I am talking about and WALMART is paying too cheap of rents.. but they do need each other, of course they do........ you are a "lawyer" that has seen SRU leases, umm OK... so you claim.... Even small increases will help the bottom line.. Have you looked at

[Frankie10]

This is a good take. Don't let others dissuade you from posting here. Note lumber and other input costs have rounded tops peaking in March.