Post by
retiredcf on May 29, 2023 7:00am
Another View
35% below NAV. GLTA
NXR.UN is a REIT focusing on industrial, office and retail properties, and is now trading at 17x Forward P/E. In the recent quarter, NXR.UN’s AFFO (Adjusted Funds from operations) declined slightly by -2.5% to $0.159, compared to last year of $0.163 and its NAV also declined slightly to $12.13 per share. The balance sheet is leveraged, with net debt of $1.1B. Net debt/EBITDA is around 12.0x. Distributions in the trailing-twelve-month period were $36M, which was covered by the cash flow of $44M. Overall, the company has been consistently growing (slowly) over the last few years. NXR.UN is trading at a discount to NAV and at 11X cash flow which we think is attractive. However, there is size risk here and macro risk and these should be taken into consideration as well. (5iResearch)