RE:RE:RE:RE:RE:SUCH GARBAGEsnake123 wrote: If stock and fundamentals go south for so long (40--->$18) you have to step back and take a different approach to facilitate growth. Focus on key markets, reshuffle assets, convert more to retail and healthcare etc. I bought this cause I chased yield. But I should have known better given the long term decline of SP since 2013 highs
Obviously SP has changed significantly, but fundamentally I dont think the change is as dramatic as the price action suggests.
The SP was soaring prior to 2013 for several reasons, 1. ultra low borrowing rates (therefore lower financing costs), 2. high demand/high occupancy properties, 3. aggresive growth (their entire portfolia has been revamped and is MUCH BETTER than it was in 2008) and 4. investors looking for income in a low interest rate environment.
Much of this changed in 2013, the taper tantrum (cant believe its been 2.5 years now) was a shot across the bow to all interest rate sensitives. Also there has been lots of building in the office market, especially in Calgary.
But fundamentally, their properties will still be rented out; although probably for less. I dont believe AFFO is going to deteriorate to the point we will see a 50 % reduction in the dividend, which is what the market is pricing in.
This is not a growth stock, dont count on AFFO growth for the 3-4 years. It will not happen! This is now a value/income stock.
My time horizon is 30+ years, so I am not too worried.