Parent Capital Corp V.PAR.H

RE:It's a standoff today

[YieldChaser]

Not so fast. Many properties have deferred maintenance that do not show up in financials. The only measure really is NOI growth or top line revenue growth if leases are renewed, and that is unlikely in secondary and teriary markets.

Due ot impaired asset quality this tock shoudl trade at a 8% yield, i.e. around $3, not yield 6% when it is $4.

There is more room for downside correction than on the upside.

Stocks with higher asset quality and better management teams, such as AAR.un (Pure Industrial REIT) or DIR.un (Dundeee / Dream REIT) exist with higher yields today.

The recent run up in the low low interest rate environemnt by these two REITs, for example, as opposed to PAR.un give room for concern that PAR.un is shunned by institutional investors.

The the next financials look at same-asset yield growth (or decline) for direction of the stock. If flat or slightly declining PAR.un will drift down towards $3. Only if slightly rising might it stay where it is as the risk-adjusted yield is too low.