ONEREIT TRUST UNITS T.ONR.UN

RE:RE:RE:RE:Todays TD analyst report

[alparentqc]

Yes, I do agree that it will go higher. If you read the transcript, they give a lot of information of what they are doing and how it will affect FFO/unit (the most important metric in my opinion) so it's really nice to see the management is focusing on delivering to shareholders rather than other REITS where they focus on FFO but make a lot of equity offering which result in no change for FFO/unit.

Like I said in my previous posts, it's a REIT with a lot of potential and they are seizing thoses opportunities. Just look at the transcript

About interest saving: "The 2016 refinancings have resulted in nearly 180 point reduction in the average weighted interest rate which resulted in annual savings of approximately CAD1.2 million in interest costs. We expect this will contribute approximately CAD0.013 to the REIT's FFO per unit."

About Golden Mile Shopping Center: "We anticipate the completed shopping center will contribute an additional CAD3 million to our NOI compared to the annualized fourth-quarter 2015 contribution. We expect that this will generate approximately CAD0.022 per unit of FFO."

About internalization of management: "As of April 1 the REIT successfully internalized the property management of 46 of our properties. The integration has progressed smoothly and we are pleased with the results to date. Internalization is allowing us to improve the quality of our services and we are now beginning to see the positive impact through cost savings and operating efficiencies. We expect annualized cost savings of approximately CAD1 million which will contribute more than CAD0.01 to the REIT's FFO per unit."

A lot of FFO/unit increases incoming in the next year, and with the payout ration this low, they have plenty of cash to either invest in properties, pay down debt, increase dividend, or buyback.

 

On a personnal side, I don't want a dividend increase for now, I think the cash is in better hand with the management who are doing a nice job on turning around the REIT, I prefer that they keep a low payout ratio, save a nice cash cushion for opportunities like buying a properties at a nice price or do some buyback on the dips like when the price dropped below 3$. I think this will offer a better total return with a faster FFO/unit increase and lower dividend than low to none increase in FFO/unit and higher dividend. I continue to hold about 12k shares with the DRIP on.