RE:RE:My final verdict after reading the quarterly reportYou are right, many businesses are on life support.
I don't want to appear as a cheerleader, but morguard is in the business of renting out locations. Old businesses die, and new businesses rise after the pandemic. The purpose of the life support is to make sure that the business can survive after the temporary life support. If the businesses don't survive, what's the point of the life support provided so far then? The government will provide life support until the survival of most businesses is secured.
Most of all, it's quite an interesting reopening trade with huge upside while the business stays profitable. If this thing crashes tomorrow, the upside can be as high as unprofitable businesses for reopening trade.
That being said, morguard has lots of short term challenges, many renewals for key tenants have to be done over the next few months.. Cheap mortgage rates have yet to be locked in.
Enjoy the crash tomorrow.
Shirtlessnomore wrote: Just remember one thing tho, improvement yes but that is partially due
in part to government life support, the big part will be once these businesses get running and off life support. I'm not trying to be negative because I think its bs that these businesses have had to face closures but I am remaining vigilant on the negatives and positives cheers and gl to all tomorrow!
MTLfinecity wrote: I understand the headline news is a dividend cut of 50%. However, this is only the dividend return to shareholder. If we look at other metrics, as other people have already pointed out on this board, operating results have greatly improved over the previous 4 quarters. The effect of the pandemic is clearly tappering off slowly but surely.
The trust currently has a debt to asset ratio of 53%, it is high The declaration of the trust limits this ratio to 60%.
400M worth of debts are maturing this year. They do need financial flexibility to weather through this.
The trust had AFFO of 0.25$ in Q4, big improvement over Q1-Q3 (0.23, 0.18,0.16). This is annualized AFFO of 1$, a share price of 6$ implies a P/AFFO of 6. Most other canadian retail/office focused REITs have a P/FFO (yes, not AFFO) of 10 and above.
Tomorrow the market will be a voting machine, but i think in the medium the weighing machine will push the share price higher dispite of (or thanks to) today's dividend cut.
Good night.