Inovalis Real Estate Investment Trust T.INO.UN

RE:Very disappointed

[apollojetic]

On the surface the payout ratio is terrible. Can't put lipstick on a pig.

They do however have cash to deploy to buy more assets and try to turn things around. The yield has been high for a long time for a good reason. It is a riskier reit to hold.

It seems they might have to cut the divy at some pointin 2022 and start to get realistic about their future revenues and prospects.

If they do that the share price usually recovers over time and the payout ratio becomes much more manageable. 

Having said that, perhaps they will try again to sell the reit through another review. They did sell a property last year and gave a special distribution.

You never know, some company may be kicking the tires right now because they see value here. 

Could be some surprises in store. Hopefully positive ones after this negative surprise.