TSX:REI.UN - Post by User
Comment by
Covidruinedmeon Dec 04, 2020 8:11am
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Post# 32035475
RE:RE:RE:RE:RE:RE:RE:RE:Last time I recall
RE:RE:RE:RE:RE:RE:RE:RE:Last time I recall gashole wrote: He lost credibility for REI with his comments the dividend was safe, lots and lots of small investors chased the yield because it was "safe" and trusted him.. Now they are going to dump it.. Look at HR, they did a much better job, cutting right away, now it yields 4.7%... I think this goes back to a 7% yield temproarily.. then rebounds slowly as the bigger investors start buying. There is going to be a temporary selloff in my opinion.. For REI to yield the same as HR it needs to be $20/share.. I doubt that happens any time soon at all, purely because of Sonshine. Once the CEO credibility is lost, it becomes more difficult for the shares to recover, you invest in the management when you buy a REIT, the realestate is secondary because decisions they make can destroy the share price...
Down the road, in a year or 2 its going to be ok in my opinion but I think the shares dont get over $20 now for at least a year... Originally I thought $24 by fall 2021.. I am going to hold, Im not desperate to get out, and if it drops under $16, I will buy more.
Reitguy wrote: Ask yourself this. Did leaving the dividend at its original price help the sp? I believe Ed thought it would, he also underestimated the severity of covid or at least the way society reacted to it.
Go back and watch all his public interviews.
this is why i never bought riocan pre covid, i was following it for a whil but took me very little time to see how old fashion and awfully stupid ( in certain ways that harms shareholders ), he is old and does not change with the changing market like most young and seasoned CEOs, he is stuck with the mentality he had 50 years ago, they are still selling residentials and expanding retail in an era where it should be the opposite, expand residential and sell retails and only keep the key and prime location retails.
a good CEO would have cut the dividend by half back in march and since they had buyback already in place from 2018, and just bought back as many shares for instant 10% cap rate with zero ongoing cost. but he was too stubborn to accept that.