BMO maintaining Outperform Headwinds Remain, but Maintaining Outperform on
Valuation
Bottom Line: We maintain our Outperform rating, but have lowered our price
target to US$6.30/unit from US$6.50.
Distribution Should Be Sustainable if Financials do not Deteriorate Further:
Our Outperform rating is partly based on AHIP’s 12.5% yield, which we think is
sustainable based on our 2019 financial forecast, however, the turnaround expected in
AHIP’s core business has been elusive. We think the REIT can maintain its distribution
while it works through its business challenges (higher labour costs, displacement from
capex programs), however, the distribution would be at risk if financial results
were to fall further.