TSX:AD.DB.A - Post Discussion
Post by
retiredcf on Aug 02, 2024 8:51am
RBC
Their upside scenario target is $25.00. GLTA
August 2, 2024
Alaris Equity Partners Income Trust Q2/24 normalized EBITDA was ahead of forecast
Our view: Q2/24 normalized EBITDA was ahead of our forecast. Alaris continues to be active deploying capital and recycling capital and has done a good job growing and diversifying its investment portfolio. We maintain our Sector Perform rating and $18 target.
Key points:
Q2/24 normalized EBITDA of $35.8MM was ahead of our $32.7MM forecast and $33.5MM consensus (range of $32.4MM to $35.0MM). The positive variance was driven by higher-than-expected distribution and interest income and lower-than-expected OpEx.
Other takeaways: (1) Alaris expects run-rate revenue over the next 12 months of $163MM, which includes current contracted amounts, an additional US$0.5MM from Ohana related to deferred distributions and ~ $12.5MM of common dividends; (2) Alaris also is guiding to Q3/24 total revenue from its Partners of ~$38.7MM, $16.5MM run-rate G&A expense and a run-rate payout ratio of 65% to 70%; and (3) on July 31, 2024, Stride redeemed all its outstanding preferred units relating to Alaris’ investment, which totaled US$4MM.
Maintaining our Sector Perform rating and 12-month price target of $18/ share.
Conference call on Friday at 11am ET; link to webcast available on Alaris’ website.
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