American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures T.HOT.DB.V

RE:TD Report and rating

[StormyD]

lnatoli wrote: TD Investment Conclusion We like this acquisition as it is on strategy and ahead of our timing expectations, which limits earnings dilution. The newer hotels improve the overall quality of the portfolio and should experience no income displacement for PIP renovations, both of which we view favourably. However, we expect Q4 to be a messy quarter owing to the closing of both transactions. We believe the strategy to focus exclusively on higher growth, higher quality branded hotels should be positive for the stock's valuation, particularly in combination with the expense savings from the renegotiated hotel management contract. With a ~13% cash yield, we believe that investors are being well compensated as they wait for the valuation to improve. We are maintaining our BUY recommendation and $6.00 target price.

Thanks for sharing this Inatoli! BMO maintains BUY rating and a US 5.50 target price (>$7 Can.). Cheers!