GREY:CMLEF - Post by User
Post by
Bobbymeon Aug 14, 2017 1:32pm
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Post# 26579047
New td comments.....
New td comments.....For those who have ther report in td waterhouse account
but heres the conclusion
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TD Investment Conclusion
While Cominar's Q2 results were below our forecast, we view the distribution cut and DRIP suspension positively. The ~$60 million/year of cash that we estimate the REIT will retain as a result of the cut, can be redirected towards more prudent uses such as debt reduction, capex projects, and developments. At current prices, we also believe the REIT may institute an NCIB. We maintain that Cominar has built a portfolio that should generate mid-single digit AFFO growth over the medium to long term and we expect a return to positive SPNOI growth in H2/17. We believe the current valuation represents an attractive entry point based on the REIT's risk/reward profile. We are maintaining our BUY rating and $14.50 price target.