Freehold Royalties Ltd T.FRU

Q2 earnings

[Rainyday]

Should be out in a couple of weeks. It will be interesting to see if the company raises the dividend (perhaps $.06 per year) or keeps the cash to devote to paying down debt in anticipation of perhaps more asset acquisitions. Either way it's a good yield and a "keeper" in this space.

[JayBanks]

I myself am expecting anouther 2 cents per month bringing us to 10 cents. I'm pretty sure I remeber we were light on payout ratio guidance when we moved to 8 cents (as in they had room to go higher with the increase then) and the price of oil I believe is up a bit in the time frame, also a few transactions have happened adding to our income pool also... I won't be disappointed if they

[JayBanks]

  We ended up short of my expectation but I'm still content with the penny. I haven't dove into the numbers but I'll be interested to see the payout ratio if we are light or bang on now...

[downwithdotcom1]

ok results, not great...PSK definitely has outperformed FRU for 2 quarters in a row now and yet FRU has been getting most of the analyst love...yup their divi is alot higher but thats gonna soon change as PSK needs only one more $100 mill quarterly debt payment to get to their targetted debt level to really start returning capital to shareholders as witnessed by their current payout ratio of 18

[ThePickleJar]

Can you explain your reasoning behind these statements?  Share prices seem to disagree with you as they are quite similar when compared. Interesting to see how they perform now that they've both been able report, FRU is one of the latest to release and haven't gotten any "rub" yet. I'll take a higher dividend to match the higher payout ratio in a royalty company

[downwithdotcom1]

back of napkin conclusions - FRU just increased their debt load (not yet captured in their Q2 results as a result of these latest tranactions ) while PSK has been agressively paying theirs down (by another 100 mill this quarter alone). Come Q3 , debt load PER SHARE will be getting much closer - noting FRU's 150 mill shares vs PSK's 230 mill share count. PSK has stated that around $300 mill

[Divypro]

The issue with PSK is that they would have to triple the dividend to get close to the yield offered by FRU. That would put their payout ratio at around 55% which is similar to FRU after the recent raise. So based on payout ratio PSK is already trading where it should be even after raising the dividend 300% unless one believes they should trade at a much lower yield (at the same payout ratio

[downwithdotcom1]

unfortunately your assertions are only PARTIALLY CORRECT..yes , FRU has assets in the US that get much better prices BUT PSK is 92% oil/liquids where FRU is only 61% making over-all net backs for PSK $80+ where-as FRU was $78 in Q2 even with their US assets (USD pricing, higher HENRY HUB pricing). regards, dwdc PS need more analysis on the dividend..follow up to come...

[Divypro]

PSK is only 56% oil/liquids with a net back of $80.44 in Q2. Aeco natural gas average $7.24/mcf. FRU is 61% oil/liquids with a net back of $78.80 in Q2.  The differences in liquids % is negligible. The higher US natural gas prices for FRU are offset by the higher heavy oil percent that FRU has. So the difference in net backs are negligible. What changes it for me to favour FRU is

[newcoin]

I like that FRU pays monthly and PSK only quarterly. This may not be important to everyone but I like some funds coming in every month.

[Konaboy]

Still light on payout ratio. Declared strategy is ongoing acquisitions.  Divvy is very solid, as long as they keep their acquisitions paced and not too big we'll we fine and not overexposed.  Another <$150M acquisition, and another penny next quarter.  This is the Way.

[diceslinger]

Eps .44 beat estimate s