TSX:AX.PR.E - Post by User
Comment by
Torontojayon Aug 25, 2024 9:17am
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Post# 36195117
RE:CAD 10-YR BOND YIELD AT 3.03%
RE:CAD 10-YR BOND YIELD AT 3.03%
garyreins wrote: So for many REITS that operate only in Canada and the US interest rates dont matter, we have a 10 year at 3% and the BOC expected to cut to that 3% by end of 2025 by major banks...
but we're still getting 10% AFFO cash flows from HR, BTB, PRV reit...
Retail reits like Riocan and SRU probably moved up from 8.5% to 7.5% or so now
REIT rally should still have legs so AFFO yields move towards 6% across the board and maybe even 5% if your a solid reit
As the BOC and fed cuts come in steady every quarter there should theoretically be nowhere to go but up. If inflation magically surges again....well,
It's not just about AFFO yield that matters. It also matters whether or not the company can grow its cash flows over time. That's the speculative part about putting a value on a company.