H&R Real Estate Investment Trust T.HR.UN

Huge upside, but not attractive yield for new buyers

[thenewsnake]

Can this rally continue? Maybe $13 if we're lucky

[BushWeedUp100]

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[SeekAlpha81]

Maybe, I think we top out around there until covid is over. I could be wrong.. I feel like we're about to see widespread closures in the US and Canada.

[thenewsnake]

Not the US.  Trump + red states will ride it out at all costs. 

[SeekAlpha81]

You could very well be right! 

[gashole]

I disagree... anyone who does their research on HR would realize they have a very low payout ratio, its not like they are paying out 95% of ffo and having a 5% yield, they are paying less than half that and have a 5% yield... the savings in the dividend add directly to their NAV.

[materialsgirl]

gashole You should save your energy and avoid replying  to bloggers who do not comprehend the basics about distributions, payout ratios etc. If a blogger does not grasp the basics there is no  point in trying to educate them mat

[gashole]

Yes you're probably right and as a side note I look back at the financial crisis it was a full 18 months before HR increased their dividend and many more months after that before it got back to pre financial crisis levels so those that think q1 or q2 they are just going to put the dividend back where it was I think are going to be sadly mistaken... I could be wrong but I do believe they enjoy

[SeekAlpha81]

Mat, I hope you weren't talking about me. Gas knows I'm long and not going anywhere, I also do my DD til' I'm blue in the face. I like the fact the distribution hasn't been raised... it's why the SP is going up. I've always said I would rather own a healthy company than one that's giving away all of its money. They unfortunately didn't shed any light on buybacks

[BushWeedUp100]

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[materialsgirl]

For investors, share buybacks are a wondeful thing  when the price is 30% or 40% below NAV. For me, paying down debt which costs 2% is never a good  idea for any company. Analysts seem to all like 50% debt ratio.  I prefer 60% or 70% except that analysts will downgrade the stock. I hope and expect that analysts will smarten up soon. They are handcuffing REIT management. mat

[gashole]

True... actually getting debt at these levels for expansion or remodelling is a better idea than paying down debt. Any new or mortgage renewalls are going to be very attractive. 

[SeekAlpha81]

Imagine where we would be today if they used a bit of debt and bought back 5-10pct of the outstanding shares. 

[gashole]

They should buy back 10%. Would help the shares and ultimately the dividend payout ratio down the road when they increase it in 18 months or so. 

[NSPfacts]

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