
TSE:SRU.UN
This summary was created by AI, based on 6 opinions in the last 12 months.
Smart REIT (SRU.UN) has garnered mixed reviews from experts, highlighting its defensive nature and attractive dividend yield, which is currently close to 7%. Despite its appeal, concerns regarding growth and economic pressures are prevalent, with some analysts pointing to the high payout ratio and the challenges faced in the retail sector, especially in light of tenant bankruptcies. Experts recognize Walmart as a solid anchor tenant, but express caution about the potential for dividends to be cut or shares to be issued in turbulent times. Additionally, while the company is considered well-managed and has strong assets, analysts suggest that growth may lag behind inflation, indicating a preference for stocks with lower payout ratios like Sienna Senior Living. The overall sentiment leans toward it being a good long-term hold, albeit with limited growth prospects in the near term.
Trading at a larger discount to NAV than REI.UN-T. But you get a slightly lower growth. Sustainable payout ratio as well as a sustainable leverage. 99% occupancy level with Wal-Mart stores as tenants. Will grow free cash flow at a higher level than in the past since new CEO came in and is looking to provide value for investors.
This is retail, so there is a little bit of pressure with online sales. Also, Canadians have a little bit less money to spend. However, this company's largest tenant is Wal-Mart (WMT-N) along with the other kind of companies that would be in these anchored areas. Thinks this is a good time to buy into this. Cheap relative to their peers.