HRUFF - Artis REIT: Short-Term Pain For Long-Term Gain
Investment Thesis
Artis REIT (ARESF) (TSX:AX.UN) announced a dividend cut by half in its Q3 2018 earnings release. The dividend cut will allow the company to use the excessive cash towards stock repurchases, growth projects, and balance sheet deleveraging. The company’s share price appears to be fair when compare to its peers but is trading significantly below its net asset value. Even with a dividend cut, investors should be able to earn a 5.3%-yielding dividend. We believe investors with a long-term investment horizon will continue to be rewarded.
Source: YCharts
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