MGRUF - Artis REIT: Should We Be Concerned About Its Payout Ratio?
Investment Thesis
Artis REIT (ARESF) (TSX:AX.UN) owns a portfolio of commercial properties across North America. The company’s dividend payout ratio has been over 100% since 2017. However, we believe this situation is temporary and its payout ratio will gradually improve in the next few years. Artis' portfolio in Western Canada should benefit from improving economic condition. In addition, Artis has a list of active and future development projects that should help to boost its revenue and net operating income in the future. Third, its strategy to internalize its property management will impact its